Chapter Seven

Fundamentals of Management

Md. Ariful Islam, Lecturer, DBA, East West University

What is Management?
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management is the organizational process that includes strategic planning, setting; objectives, managing resources, deploying the human and financial assets needed to achieve objectives, and measuring results. The organization and coordination of the activities of a business in order to achieve defined objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal.
Md. Ariful Islam, Lecturer, DBA, East West University 2

What is Objective?
Objective is specific results or targets to be reached by a certain time. Why Objectives: Clear statement of organizational purpose Long-range goals Specific objectives Objectives for subunits Personal objectives Measure of performance
Md. Ariful Islam, Lecturer, DBA, East West University 3

Types of Objectives
a. b. c. d. Organizational Objectives Departmental Objectives Subunit Objectives Individual Objectives

Md. Ariful Islam, Lecturer, DBA, East West University

Management Functions
1. 2. 3. 4. 5. Planning Organizing Staffing Directing Controlling

Md. Ariful Islam, Lecturer, DBA, East West University

Management Functions

Md. Ariful Islam, Lecturer, DBA, East West University

Management Functions
Planning
Planning (also called forethought) is the process of thinking about and organizing the activities required to achieve a desired goal. Planning involves the creation and maintenance of a plan. As such, planning is a fundamental property of intelligent behavior. This thought process is essential to the creation and refinement of a plan, or integration of it with other plans; that is, it combines forecasting of developments with the preparation of scenarios of how to react to them.
Md. Ariful Islam, Lecturer, DBA, East West University 7

Management Functions
Organizing
Organizing is the function of management which follows planning. It is a function in which the synchronization and combination of human, physical and financial resources takes place. All the three resources are important to get results. Therefore, organizational function helps in achievement of results which in fact is important for the functioning of a concern. Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.
Md. Ariful Islam, Lecturer, DBA, East West University 8

Management Functions
Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. Manpower Planning Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer.
Md. Ariful Islam, Lecturer, DBA, East West University 9

Management Functions
Directing
It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating subordinate for the achievement of organizational goals. Supervision Motivation Leadership Communication
Md. Ariful Islam, Lecturer, DBA, East West University 10

Management Functions
Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. 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 deviation. Therefore controlling has following steps: i. Establishment of standard performance. ii. Measurement of actual performance. iii. Comparison of actual performance with the standards and finding out deviation if any. iv. Corrective action.
Md. Ariful Islam, Lecturer, DBA, East West University 11

Levels of Management
Executive-Level Middle-Level First-Line
Executive

Middle

First-Line

Md. Ariful Islam, Lecturer, DBA, East West University

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Management Functions in Various Levels

Md. Ariful Islam, Lecturer, DBA, East West University

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Roles of Managers
1. Interpersonal 2. Informational 3. Decision

Md. Ariful Islam, Lecturer, DBA, East West University

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Informational
Role Monitor Activity Seek and acquire workrelated information. Examples Read trade press, periodicals, reports; attend seminars and training; maintain personal contacts.

Disseminator

Communicate/ Send memos and reports; inform disseminate staffers and subordinates of information to others decisions. within the organization. Pass on memos, reports and informational materials; participate in conferences/meetings and report progress.
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Spokesperson Communicate/transmit information to outsiders.

Md. Ariful Islam, Lecturer, DBA, East West University

Interpersonal
Role Activity Examples

Figurehead

Perform social and legal duties, act as symbolic leader

Direct and motivate subordinates, select and train employees Establish and maintain contacts within and outside the organization

Greet visitors, sign legal documents, attend ribbon cutting ceremonies, host receptions, etc.
Includes almost all interactions with subordinates Business correspondence, participation in meetings with representatives of other divisions or organizations.
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Leader

Liaison

Md. Ariful Islam, Lecturer, DBA, East West University

Decisional
Role
Entrepreneur

Activity
Identify new ideas and initiate improvement projects Deals with disputes or problems and takes corrective action Decide where to apply resources Defends business interests

Examples
Implement innovations; Plan for the future Settle conflicts between subordinates; Choose strategic alternatives; Overcome crisis situations Draft and approve of plans, schedules, budgets; Set priorities Participates in and directs negotiations within team, department, and organization
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Disturbance Handler

Resource Allocator Negotiator

Md. Ariful Islam, Lecturer, DBA, East West University

Core Management Skills

Managerial Technical Human Relations Conceptual

Md. Ariful Islam, Lecturer, DBA, East West University

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Skills in Various Levels

Md. Ariful Islam, Lecturer, DBA, East West University

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Thanks YOU!

Md. Ariful Islam, Lecturer, DBA, East West University

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