Introduction to management:

Definition;
Nature;
Functions;
Levels and
Roles of management
 What is management?

• People have managed other people, resources

and time for hundreds of years.
– managed informally at home, informal
associations and communities.
• Managerial skills and competencies are keys
to organizational success.
• Good management is to an organization what
health is to the body.
• The job of managers is very challenging.
 What is management?

• Management is old and universal, however

there is no agreed single definition of it.
• There are many definition of management as
some of them are as follows:
 Definition of management
• Mary Parker Follett
– “management as the art of getting things done
with and through people.”
• Chester I. Barnard
– “getting things done through people by making
the efficient use of resources.”
 Definition of management
• Hanry Fayol
– “To manage is to forecast and plan, to organize , to
command, to coordinate and to control.”
• F. W. Taylor
– “Management is knowing exactly what you want
people to do, and then seeing that they do it in
the best and cheapest way.”
 Definition of management
• Koontz O Donnel
– “ Management is the art of getting things done
through and with people in formally organized
groups.”
• Harold Koontz & Heinz Weihrich
– “Management is the process of designing and
maintaining an environment in which individuals,
working together, in groups, efficiently accomplish
selected aims.”
 Definition of management
• Ricky W. Griffin
– “ Management is a set of activities (including
planning and decision making, organizing, leading
and controlling) directed at an organization’s
resources (human, financial, physical and
information) with the aim of achieving
organizational goal in an efficient and effective
manner.”
• Efficient: Using resources wisely and in a cost effective way. Doing things right.
• Effective: making the right decisions and successfully implementing them.
Doing the right thing.
 Definition of management
• Another widely accepted definition of
management is given by James A.F. Stoner
– “the process of planning organizing, leading and
controlling the work of organization members and
of using all available organizational resources to
reach the stated organizational goals.”
• - S.P. Robins- “Management is the process of
getting things done, effectively and
efficiently, through and with other people.”
 Definition of management
• Management is the process of managing the 5ms
+ information.
• The 5ms are
– Men,
– Machine,
– Method,
– Material and Money.
Management mainly focuses on manage-men-tactfully
because other Ms+ information are mobilized best by
men.
 Definition of management
• Most definitions of management do share common
idea.
• In conclusion management may be defined as the
process of:
– optimum utilization of inputs (human resources, financial
resources, physical resources, information resources that
an organization acquires from the environment)
– through different managerial functions (planning,
decision making, organizing, controlling, leading)
– to attain organizational goals efficiently and effectively.
 Management in Organization

Inputs from
the Planning
environment and decision Organizing
•Human making
resources Goals attained
•Financial • Efficiently
• Effectively
resources
•Physical
resources Contr
Controlling Leading
•Information olling
resources

R.W. Griffin
 The process of management
Basic resources Fundamental functions: Stated objectives
End results

Planning Motivating
Men and G
Women O
Material
Machines
A
Methods L
Money Organizing Controlling
 The professional manager
• The headmaster of the Mountain Technical College is a very hard working man.
He has managed to change the school from a 90 student, all male institution
with not a too impressive academic record, to a first class co-education school
with an excellent academic record. The headmaster is supported by teachers
and other staff were able to achieve this in five years. The image of the school
has changed from negative to a very positive one. The headmaster is in his 40s
and has been in the teaching profession for 15 years. He was promoted from
deputy headmaster to headmaster five years ago. The school has a total
population of 300 students, 15 teachers and 30 staff members. The Government
and two international development agencies support the school. As a result of
demand by parents for admission to the school, the headmaster plans to re-
organize the school. He plans to increase the student’s population to 400,
appoint new staff and promote some of the current staff.
• The headmaster still refuses to be called a manager. How will you convince the
headmaster that he is an effective manager? Explain the following to the
headmaster.
• What is an organization? What is management? Who is a manager? What
does a manager do? What are the skills required of a manager?
 Nature of Management:
Universality: basic principles of mgmt. can be
applied in all managerial situations regardless
of the size, nature and location of the
organization.
Purposeful: Management is always aimed at
achieving organizational goals and purposes.
Social process: Management essentially involves
managing people organized in work groups.
 Nature of Management:
Coordinating force: Management coordinates the efforts of
organization members through orderly arrangement of inter-
related activities so as to avoid duplication and overlapping.
Intangible: It is an unseen force. Its presence can be felt
everywhere by the results of its effort which comes in the
form of adequate work output, satisfactory working climate,
employees satisfaction etc.
Continuous process: Management is a dynamic and an on-
going process. The cycle of management continues to
operate so long as there is organized action for the
achievement of group goals.
 Nature of Management:
Complex process: Functions of management
cannot be undertaken sequentially,
independent of each other. All the functions
are performed by involving several
ingredients. Therefore, the whole process is
integrative and performed in a network
fashion.
 Management Process
Planning and
Organizing
Decision Making

Controlling Leading
 Nature of Management:
Multidisciplinary: Although management has
been developed as a separate discipline, it
draws knowledge and concepts from various
disciplines.
Not Absolute principles: Mgmt. principles are
relatively not absolute they have different
strength in different conditions. So, POM
should be applied in the light of prevailing
conditions.
 Principles of management:

• A principle is a basic statement that provides

understanding and guidance to thinking and
action.
• Principle is fundamental truth explains
relationship between two or more sets of
variables under a given situation.
• It is a basic element of management theory.
• It helps in predicting what would happen if the
principles were applied.
 Principles of management:

• Division of work
– Management should assign the right (balance) proportion
and kind of work to groups and employees.
• Substitution of resources:
– when the resources that are normally used to provide
services become scarce different resources may be used to
produce the intended result.
• Span of control:
– For effective supervision and leadership, the number of
subordinates under the immediate supervision of one
manager should be limited to manageable number.
 Principles of management:

• Unity of command:
– Each employee should receive orders and instructions
from only one supervisor.
• Unity of direction:
– There should be one head and one plan for a group of
activities having a common objective.
• Authority and responsibility:
– Authority is the power and right inherent in a managerial
position and responsibility is the obligation to be fulfilled
by the subordinates. There should be balance between
authority and responsibility..
 Principles of management:

• Subordination of individual interest to general

interest:
– It is essential to reconcile individual objectives
with group/organization objectives.
• Remuneration to personnel:
– It is the reward paid to the employees for their
contribution. It should be acceptable both to the
management and the employees.
 Principles of management:

• Management by exception:
– selectivity in work and priority in decision
– managers should not overload themselves with
routine and repetitive work he/she should keep
time available for important critical issues.
– Managers should make big decisions first.
• Shortest decision path:
– the decision must be made as closely as possible in
time and place to the object of the decision and to
those affected by it.
 Principles of management:

• Centralization and decentralization:

– Centralization is the retention of decision making
authority at the top. Decentralization is the
systematic division of decision making authority
from top to bottom.
• Scalar chain:
– Unbroken line of authority from top to bottom
which is important for systematic and orderly
communication in an organization.
 Principles of management:

• Equity
• Stability of tenure
• Management by objective
• Esprit De Corps:
– Union is strength. It is possible only through
harmony and mutual understanding among the
workers.
 Management Function
A. Planning:
B. Organizing:
C. Staffing:
D. Directing:
i. Supervision
ii. motivation
iii. Leadership
iv. Communication
v. Coordination
E. Controlling:
 Management Function
A. Planning:
– It is primary function of management.
– It is setting organizational objectives, forecasting the
events, formulating policies and procedures, preparing
work schedules and budget to achieve a desired result.
– It is deciding in advance What (activities) a person or
organization wishes to do?
• How these activities are to be performed?
• When these activities are to be performed?
• Who is to perform these activities?
• What resources are needed?
• Where are these activities to be performed.
 Management Function
B. Organizing:
– It is the process of arranging and allocating work,
authority, and resources among an organization’s
members so they can achieve the organization’s
goals.
– It is the process of:
• Identifying major activities.
• Grouping them into managerial units
• Assigning jobs to different departments and employees.
• Delegating necessary authority to fulfill given
responsibility.
 Management Function
C. Staffing:
It is manpower planning.
It is recruitment, selection, appointment and placement
of right person to the right job.
It includes-
– Determining the total manpower requirement.
– Job analysis (job descriptions)
– Recruitment, selection and appointment of right person to the
right job.
– Develop employee’s skills (training, workshop).
– PE, promotion, transfer of employees.
– Remunerating.
 Management Function
D. Leading/Directing:
It is concerned with instructing, guiding and inspiring
subordinates to achieve organizational objectives. It
is getting people to work together.
It includes.
i. Supervision
ii. Motivation.
iii. Leadership.
iv. Communication.
v. Coordination
 Management Function
E. Controlling: is the process of setting a standard,
measuring actual performance, identifying and
analyzing deviation, if any between standard and
actual, taking corrective action.
Setting standard

Corrective Measuring
action Controlling performance

Identifying and
analyzing deviation

It is monitoring organizational progress toward goal attainment.

 Managerial hierarchy (Levels of
management)
• Organizations generally have three levels of
management, represented by TOP
MANAGERS, MIDDLE MANAGERS, and FIRST-
LINE MANAGERS.
• Regardless of level, managers are also usually
associated with a specific area within the
organization, such as marketing, finance,
operations, hr….
Managerial hierarchy (Levels of
management)

Top
management

Middle management

First line management/ Lowest level

management
 Managerial hierarchy (Levels of
management)
Top Level Management:
Known as executive management/ Chairperson/
President/VP/Executive Director/GM/CEO/MD
• Main job is to establish mission and goals and general
operating policies.
• Responsible for overall management of the organization.
• Brain of the org. are in few number.
• Represent organization to the external environment.
• Often work long hours and spend much of their time in
meetings.
 Managerial hierarchy (Levels of
management)
Middle level management:
• Subordinate to top managers and are largest
group in most organizations.
• Functional heads of different departments and
responsible for preparing, implementing
departmental plans and controlling activities
of first line managers.
• Marketing manager, HR manager, Finance
 Managerial hierarchy (Levels of
management)
• First line management/ Lower level
management: Supervisor, Coordinator,
Foremen
• Supervise and coordinate the activities of
operating employees.
• Make day to day plan and implement plans
made by middle level management.
 Management by type
• Line managers:
– Managers who deal directly with the
organization’s primary goods and service.
– Are directly in the chain of command.
– Production and marketing managers.
• Staff managers:
– Those who provide advice and expertise in their
specialized area of knowledge.
– Personnel managers, HR, RD, Finance
 Managerial Roles
• A role is set of specific task a person performs
because of the position they hold.
• Henry Mintzberg researched five chief executives at
work.
• He discovered managers engage in a large number of
varied, un-patterned, and short duration activities.
• He concluded that managers perform 10 different
but highly interrelated work.
• He grouped 10 roles under 3 primary headings.
 Mintzberg’s Managerial Roles
Category Role Sample Activities

Interperso Figurehead Ceremonial work, representing board, greeting

nal
visitors, signing legal documents
Leader Directing, coordinating, motivating staffs
Liaison Maintaining relations internally and externally.
Informati Monitor Assessing activities around organization.
onal
Disseminator Provide information to subordinates
Spokesperson Inform org and outsiders about organization
Decisional Entrepreneur Planning and initiating change,
Disturbance Conflict management, crisis management
handler
Resource Allocates money, people, time,
allocator
Negotiator Reaching agreement with supplier, union
 Managerial Skills
• Skill is an ability or proficiency in performing a
particular task.
• To fulfill numerous roles, managers also need a
number of specific skills to succeed.
• Managerial skills are learned and developed.
• There are three basic skills have been identified.
– Conceptual Skills,
– Human Skills and
– Technical Skills.
 Managerial Skills
• TECHNICAL SKILLS:
• It is the ability to use equipment or
procedures of specific work.
• Technical skills are especially important for
first line managers.
– These managers spend much of their time training
subordinates and answering questions about work
related problems.
 Managerial Skills
• HUMAN SKILLS/ INTERPERSONAL SKILLS:
• The ability to communicate with, understand
and motivate both individuals and groups.
• It reflects the leadership ability of a manager.
• These skills are equally important at all levels
of management.
 Managerial Skills
• CONCEPTUAL SKILLS:
• The manager’s ability to think in the abstract.
• It involves the formulation of ideas and
concepts.
• These skills are much important to Top level
managers.
 Managerial Skills

Conceptual Human Technical

Skills Skills Skills

Top
Management

Middle
Management

Lower
Management
 Emerging challenges for management

1. Globalization:
2. Development of environmentalism:
3. Quality and productivity:
4. Ethics and social responsibility:
5. Workforce diversity:
6. Innovation and change:
7. Empowerment of employees:
8. Technological development: