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VIVA- Management
 Management: Management is a group effort to realize the organization’s policy objectives
under the leadership of the manager.
 Manager: a manager is a person who is responsible for directing the efforts aimed at helping
organizations achieve their goals.
 Objectives: The chief purpose of management is to achieve organizational policy objectives by
ensuring unhindered progress and improvement of the organization through the maximum
utilization of its resources to the best possible results.
 Management emphasis: Management emphasis the achievement of organizational goals
through the maximum use of the organization’s resources with minimum waste.
 Nature of Management: Management is a system comprising planning, organizing, staffing,
leading, and controlling. Management has to pay attention to fulfilling the objectives of the
interested parties.
 Managerial work harnesses and co-ordinates four types of resources: 1) human, 2)
monetary, 3) physical, and 4) informational.
 levels of Management: The three levels of management are as follows- 1) Top Level
Management, 2) Middle Level Management, 3) Lower Level Management
 Top Level Management: It consists of board of directors, chief executive or managing
director. The top management is the ultimate source of authority and it manages goals and
policies for an enterprise. It devotes more time on planning and coordinating functions.
 Middle Level Management: The branch managers and departmental managers constitute
middle level. They are responsible to the top management for the functioning of their
department. They devote more time to organizational and directional functions.
 Lower Level Management: Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section officers, superintendent etc.
 Concept and scope of management to include socio-economic and psychological points.
 From the economic viewpoint, management is a factor of production.
 The administrative and organizational angle regards it as systemic, while the sociologist
would like to view it in hierarchical terms.
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 Organization: Collection, preservation and co-ordination of the elements of an enterprise in

an integrated manner.
 Administration: Administration is the driving force of an enterprise which sets the objectives
and formulates plans to achieve them. Administration is entrusted with the responsibility of
making plans and providing leadership for achieving goals.
 Management is not a pure science but it has scientific elements. Managers can improve their
skill of management by studying the scientific approaches to their practice of management.
 Managerial Skills: Fayol identified three basic skills – 1) Technical skill, 2) Human skill
and 3) Conceptual skill.
 Technical skill: Technical skill is required to perform a particular job in prescribed ways.
 Human skill: Human skill is the ability to work with, understand, and motivate other people as
individuals or in groups.
 Conceptual skill: Conceptual skill is the ability to co-ordinate and integrates all of an
organization’s interests and activities.
 Functions of Management: 1) Planning, 2) Organizing, 3) Staffing, 4) Directing 5) Motivation
and 6) Controlling.

Planning

Organizing

Staffing

Motivation

Directing

Controlling

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 Plan: A plan is a future course of actions.

 Planning: Planning is determination of courses of action to achieve desired goals.
 Organizing: Organizing includes arranging and distributing work, authority and resources
among the members of the organization in order to accomplish the goals best.
 Staffing: Staffing is the effective and efficient deployment of manpower across the
organization.
 Leading: Leading draws all the members working in the organization into an intimate
relationship. The manager also persuades others to join in the common pursuit of the
enterprise’s future goals.
 Directing: It is a managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes.
 Direction has following elements: 1) Supervision 2) Motivation 3) Leadership 4)
Communication
 Supervision: Supervision implies overseeing the work of subordinates by their superiors. It is
the act of watching & directing work & workers.
 Motivation: Motivation means inspiring, stimulating or encouraging the sub-ordinates with zeal to
work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.
 Leadership: Leadership may be defined as a process by which manager guides and influences
the work of subordinates in desired direction.
 Communication: Communications is the process of passing information, experience, opinion
etc. from one person to another. It is a bridge of understanding.
 Coordinating: Coordinating helps achieving harmony among individual efforts towards
accomplishing group targets.
 Controlling: Controlling steers the organization towards its goals according to the guidelines
set by planning.
 Contribution of Fayol and Taylor: F.W. Taylor and Henry Fayol are generally regarded as
the founders of scientific management and administrative management and both provided the
bases for science and art of management.
 Taylor used his firsthand experience to formulate his theory. The focus of his theory is to
increase the efficiency of employees by molding their thought and scientific management.
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 The essence of Taylor’s scientific method is to manage an enterprise with the emphasis on
economic considerations such as cost-effectiveness, efficiency and productivity.

 Elements of Scientific Management: The techniques which Taylor regarded as its essential
elements or features may be classified as under:
1. Scientific Task and Rate-setting, work improvement, etc.
2. Planning the Task.
3. Vocational Selection and Training
4. Standardization (of working conditions, material equipment etc.)
5. Specialization
6. Mental Revolution.
 According to Fayol, the same rational process is involved in the administration of any
organization, and the process of management is reducible to a universal set of functions and
principles.
 Fayol views management as comprising functions that can roundly control an organization.
His theory attempts to formulate a broad-based management that can equally apply to other
institutions.
 Henry Fayol's 14 Principles of Management: Fayol identifies fourteen universal principles of
management which are aimed at showing managers how to carry out their functional duties. He
himself followed them:
1. Division of labour: This improves the efficiency of labour through specialization, reducing
labour time and increasing skill development.
2. Authority: This is the right to give orders which always carry responsibility commensurate
with its privileges.
3. Discipline: It relies on respect for the rules, policies, and agreements that govern an
organization. Fayol ordains that discipline requires good superiors at all levels.
4. Unity of command: This means that subordinates should receive orders from one superior
only, thus avoiding confusion and conflict.
5. Unity of direction: This means that there should be unity in the directions given by a boss
to his subordinates. There should not be any conflict in the directions given by a boss."

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6. Subordination of individual interest to common good: According to this principle, the

needs of individuals and groups within an organization should not take precedence over the
needs of the organization as a whole.
7. Remuneration: Wages should be equitable and satisfactory to employees and superiors.
8. Centralization: Levels at which decisions are to be made should depend on the specific
situation, no level of centralization or decentralization is ideal for all situations.
9. Scalar chain: The relationship among all levels in the organizational hierarchy and exact
lines of authority should be unmistakably clear and usually followed at all times, excepting
special circumstances when some departure might be necessary.
10. Order: Here Fayol means that there should be a place for everything (and everyone), and
everything (and every one) should be in its place. This is essentially a principle of
organization in the arrangement of things and people.
11. Equity: Employees should be treated equitably in order to elicit loyalty and devotion from
personnel.
12. Stability of tenure: Viewing unnecessary turnover to be both the cause and the effect of
bad management, Fayol points out its danger and costs.
13. Initiative: Subordinates should be encouraged to conceive and carryout ideas.
14. Esprit de corps: Team work, a sense of unity and togetherness, should be fostered and
maintained.
 Types of Business Organizations: 1) Sole Proprietorship 2) Partnership 3) Corporation 4)
Joint Stock Company 4) Public Corporation 5) Government Companies
 Sole Proprietorship: A business owned by one person.
 Partnership: A business owned by two or more person associated as partners.
 Corporation: A corporation is a legal entity that is separate and distinct from its owners.
 Joint Stock Company: A joint stock company is a voluntary association of persons to carry on
the business.
 Public Corporation: A company whose shares is publicly treated and is usually held by a
large number of shareholders.
 Government Company: A Company in which whole of the capital or 51% or more is owned
by government is called government company.

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 Internal Environmental Factors: The internal environment is the environment that has a
direct impact on the business. The internal factors are generally controllable because the
company has control over these factors. The internal environmental factors are resources,
capabilities and culture.
 Resources:
 Tangible resources: Tangible resources are financial resources and physical assets are
identifies and valued in the firm’s financial statements.
 Intangible resources: Intangible resources are largely invisible, but over time become more
important to the firm than tangible assets because they can be a main source for a competitive
advantage. Such intangible recourses include reputational assets (brands, image, etc.) and
technological assets.
 Human resources: Human resources or human capital are the productive services human
beings offer the firm in terms of their skills, knowledge, reasoning, and decision-making
abilities.
 Capabilities: The term organizational capabilities are used to refer to a firm’s capacity for
undertaking a particular productive activity.
 Culture: It is the specific collection of values and norms that are shared by people and groups
in an organization and that helps in achieving the organizational goals.
 External Environment Factors: It refers to the environment that has an indirect influence on
the business. The factors are uncontrollable by the business. The two types of external
environment are micro environment and macro environment. 1) Micro Environment Factor
2) Macro Environment Factor
 Micro Environment: Macro environment includes political, economic, social and
technological factors. A firm considers these as part of its environmental scanning to better
understand the threats and opportunities created by the variables and how strategic plans need
to be adjusted so the firm can obtain and retain competitive advantage.
 Shareholders: Any person or company that owns at least one share (a percentage of
ownership) in a company is known as shareholder.
 Suppliers: An individual or an organization involved in the process of making a product or
service available for use or consumption by a consumer or business user is known as supplier.

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 Distributors: Entity that buys non-competing products or product-lines, warehouses them, and
resells them to retailers or direct to the end users or customers is known as distributor.
 Customers: A person, company, or other entity which buys goods and services produced by
another person, company, or other entity is known as customer.
 Competitors: A company in the same industry or a similar industry which offers a similar
product or service is known as competitor.
 Media:
 Macro Environment: The macro environment consists of forces that originate outside of an
organization and generally cannot be altered by actions of the organization. Macro
environment includes political, economic, social and technological factors.
 Political Factors: Political factors include government regulations and legal issues and define
both formal and informal rules under which the firm must operate. Some examples include:
 Tax policy
 Trade restrictions and tariffs
 Employment laws
 Environmental regulations
 Economic Factors: Economic factors
Political affect the purchasing power of potential customers and
stability
the firm's cost of capital. The following are examples of factors in the macroeconomic:
 Economic growth
 Interest rates
 Exchange rates
 Inflation rate
 Social Factors: Social factors include the demographic and cultural aspects of the external
macro environment. These factors affect customer needs and the size of potential markets.
Some social factors include:
 Health consciousness
 Population growth rate
 Age distribution
 Career attitudes
 Emphasis on safety
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 Technological Factors: Technological factors can lower barriers to entry, reduce minimum
efficient production levels, and influence outsourcing decisions. Some technological factors
include:
 R&D activity
 Automation
 Technology incentives
 Rate of technological change

 Nature of Planning: 1) Planning is goal-oriented 2) Primacy of Planning 3) Pervasiveness

of Planning 4) Efficiency, Economy and Accuracy 5) Co-ordination.
 Strategic plan: Strategic plans are intended to design tactics in order to achieve long-term
objectives.
 Administrative planning: Administrative planning is done at the level of middle management.
It is done to allocate organizational resources and co-ordinate internal subdivisions of the
organization.
 Operational planning: Operational planning is the process of determining how specific tasks
can best be accomplished on time with available resources. This is also done to cover the day-
to-day operations of an organization.
 Single-use plans: Single-use plans are prepared for single or unique situations or problems and
are normally discarded or replaced after one use. Generally three types of single-use plans are
used. These are programs, projects and budgets.
 Programs: programs are plans of action followed in proper sequence according to objectives,
policies and procedures.
 Projects: A project is a particular job that needs to be done in connection with a general
program.
 Budgets: A budget is a statement of expected results expressed in numerical terms.
 Contingency Plans: Contingency plans are made to deal with situations that might crop up if
these assumptions turn out to be wrong. Thus contingency planning is the development of
alternative courses of action to be taken if events disrupt a planned course of action.

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 Steps in Planning: 1) Being Aware of Opportunities, 2) Establishing Objectives 3)

Developing Premises 4) Determining Alternative Courses 5) Evaluating Alternative Courses 6)
Selecting a Course 7) Formulating Derivative Plans 8) Numbering Plans by Budgeting.
 Types of Plans: Plans can be broadly classified as: a) Strategic plans b) Tactical plans c)
Operational plans.
 Strategic plans: A strategic plan is an outline of steps designed with the goals of the entire
organization as a whole in mind, rather than with the goals of specific divisions or departments.
 Mission: The mission is a statement that reflects the basic purpose and focus of the
organization which normally remain unchanged. The mission of the company is the answer of
the question: why does the organization exists?
 Objectives or goals: Both goal and objective can be defined as statements that reflect the end
towards which the organization is aiming to achieve.
 Strategies: Strategy is the determination of the basic long term objectives of an organization
and the adoption of action and collection of action and allocation of resources necessary to
achieve these goals.
 Strategic planning: Strategic planning takes into account factors external to the organization.
 Strategic objective: Strategic objective provides statements of definable and measurable
achievements.
 Operational strategies: Operational strategies specify the actions that are to be taken in order
to attain objectives.
 Features of Strategic Plans: 1) long-term 2) comprehensive 3) integrate, guide and control
4) Boundaries.
 Types of Strategies: a) Cost leadership strategy b) Differentiation strategy c) Focus strategy.
 Cost leadership strategy: This generic strategy calls for being the low cost producer in an
industry for a given level of quality.
 Differentiation Strategy: A differentiation strategy calls for the development of a product or
service that offers unique attributes that are valued by customers is called differentiation
strategy.

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 Focus Strategy: The focus strategy concentrates on a narrow segment and within that segment
attempts to achieve either a cost advantage or differentiation.
 Strategic Planning Process: 1) Planning Awareness 2) Formulating goals 3) Analyzing the
external environment 4) Analyzing internal environment 5) Identifying strategic opportunities
and threats 6) Performing gap analysis 7) Developing alternative strategies 8) Implementing
strategy 9) Measuring and controlling progress.
 Tactical plans: A tactical plan is concerned with what the lower level units within each
division must do, how they must do it, and who is in charge at each level. Tactics are the means
needed to activate a strategy and make it work.
 Operational plans: The specific results expected from departments, work groups, and
individuals are the operational goals. These goals are precise and measurable.
 Single-use plans: Single-use plans apply to activities that do not recur or repeat.
 Standing plans: Standing plans are usually made once and retain their value over a period of
years while undergoing periodic revisions and updates.
 Policy: A policy provides a broad guideline for managers to follow when dealing with
important areas of decision making.
 Procedure: A procedure is a set of step-by-step directions that explains how activities or tasks
are to be carried out.
 Rule: A rule is an explicit statement that tells an employee what he or she can and cannot do.
 Contingency plans: Contingency planning involves identifying alternative courses of action
that can be implemented if and when the original plan proves inadequate because of changing
circumstances.
 Objectives: Objectives may be defined as the goals which an organization tries to achieve.
Objectives are described as the end- points of planning.
 Management by Objectives (MBO): MBO is a process whereby the superior and the mangers
of an organization jointly identify its common goals, major area of responsibility in terms of
results expected for operating the unit and assessing the contribution of each of its members.
 Policies: Policies are general statements or understandings that guide managers’ thinking
indecision making.

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 Decision-making: Decision-making is the selection based on some criteria from two or more
possible alternatives.
 Types of Decisions: There are two basic types of decisions- 1) Programmed 2) Non-
Programmed.
 Programmed decisions: Programmed decisions usually deal with routine situations.
 Non-programmed decisions: Non-programmed decisions deal with extraordinary situations.
 Decision making process: 1) Specific Objective 2) Problem Identification 3) Search for
Alternatives 4) Evaluation of Alternatives 5) Choice of Alternative 6) Action 7) Results.
 Decision-Making Conditions: Decisions are made under of three conditions: a) Certainty b)
Risk c) Uncertainty.
 Diagnosis: Diagnosis is the process of identifying a problem from its signs and symptoms.
 Symptom: A symptom is a condition or set of conditions that indicates the existence of a
problem.

[In Sha Allah, will be Continue……]

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