Introduction to Management

MODULE 1

Management is

Getting work done through others

Efficiency

Effectiveness

Exhibit 12

Effectiveness and Efficiency in Management

2007 Prentice Hall, Inc. All rights reserved.

13

and Effectiveness
Means Efficiency
Goals

Ends Effectiveness

Goal Attainment

Resource Usage

Low Waste

High Attainment

FOM 1.9

MANAGEMENT
Management is the attainment of organizational goals

in an effective and efficient manner through planning, organizing, staffing, directing and controlling organizational resources.

Organizational resources include men(human

beings), money, machines and materials.

Management Defined 1

Management is the process of achieving goals and objectives effectively and efficiently through and with the people.

"Management is a process of designing and maintaining an environment in which individuals work together in groups to effectively and efficiently accomplish selected aims".

Management Defined Contd

3
Management is the process of achieving organizational goals and objectives effectively and efficiently by using management functions i.e.
Planning Organizing Staffing Controlling

Management is a set of activities directed at an organization's resources with the aim of achieving organizational goals in an efficient and effective manner.

Definitions
Louis E Boone & David L Kurtz- The use of people

and other resources to accomplish objectives.

Mary Parker Follet- the act of getting things done

through people.
Frederick Taylor defines Management as the art of

knowing what you want to do in the best and cheapest way.

Characteristics
Management is a distinct process. Management is an organized activity Management aims at the accomplishment of

predetermined objectives.
Management is a group activity Management principles are universal in nature Management integrates human and other resources.

Management: Science or Art?

Science is a collection of systematic knowledge, collection of truths and inferences after continuous study and experiments. It has fundamental principles discovered. Art uses the known rules and principles and uses the skill, expertise, wisdom, experience to achieve the desired result.

Management has got two faces like a coin; on one side it is art and on the other it is science. Management has got scientific principles which constitute the elements of Science and Skills and talent which are attributes of Art.

Management is both art and science.

Who Are Managers?

Manager

Someone who coordinates and oversees the work of other people so that organizational goals can be accomplished.

2007 Prentice Hall, Inc. All rights reserved.

111

What Do Managers Do?

Functional Approach Planning

Defining goals, establishing strategies to achieve goals, developing plans to integrate and coordinate activities. Arranging and structuring work to accomplish organizational goals. Working with and through people to accomplish goals. Monitoring, comparing, and correcting work.

Organizing

Leading

Controlling

Exhibit 13

Management Functions

2007 Prentice Hall, Inc. All rights reserved.

113

Managerial Levels

Classifying Managers
First-line Managers Individuals who manage the work of nonmanagerial employees. Middle Managers Individuals who manage the work of first-line managers. Top Managers Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization.
2007 Prentice Hall, Inc. All rights reserved. 115

The term Levels of Management refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa.
The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position. The levels of management can be classified in three broad categories: 1. Top level / Administrative level 2. Middle level / Executory level 3. Low level / Supervisory / Operative / First-line managers

Levels of Management

Top Managers
Responsible for Creating a context for change Developing attitudes of commitment and ownership in employees Creating a positive organizational culture through language and action Monitoring their business environments

Middle Managers
Responsible for
Setting objectives consistent with top management goals, planning strategies Coordinating and linking groups, departments, and divisions Monitoring and managing the performance of subunits and managers who report to them Implementing the changes or strategies generated by top managers

First-Line Managers
Responsible for Managing the performance of entry-level employees

Teaching entry-level employees how to do their jobs

Making schedules and operating plans based on middle managements intermediate-range plans

1st Assignment
Evolution of Management

thought
Recent trends in Management

Last date :

MANAGERS ROLES
Interpersonal role

Informational role
Decisional role

MINTZBERG Managerial Roles

Interpersonal Figurehead
Leader

Informational Monitor
Disseminator

Decisional Entrepreneur
Disturbance Handler Resource Allocator

Liaison

Spokesperson

Negotiator

INTERPERSONAL ROLE
Figurehead- They perform duties that are ceremonial

and symbolic in nature. Leader- give direct commands and orders to subordinates and make decisions Liaison-coordinate between different departments and establish alliances between different organizations

INFORMATIONAL ROLE
Monitor- evaluate the performance of managers in

different functions Disseminator-communicate to employees the organizations vision and purpose Spokesperson- give a speech to inform the local community about the organizations future intentions

DECISIONAL ROLE
Entrepreneur- commit organization resources to

develop innovative goods and services Disturbance handler- to take corrective action to deal with unexpected problems facing the organization from the external as well as internal environment Resource allocator- allocate existing resources among different functions and departments Negotiator- work with suppliers, distributors and labor unions

INTERPERSONAL
Role Description Identifiable Activity

Figurehead Manager serves as an official representative of the organization or unit

Leader Manager guides and motivates staff and acts as a positive influence in the workplace Manager interacts with peers and with people outside the organization to gain information

Greeting visitors; signing legal documents

Staffing, training

Liaison

Acknowledging mail/email; serving on boards; performing activities that involve outsiders 27

INFORMATIONAL
Role Monitor Description Manager receives and collects information Identifiable Activity Reading magazines and reports; maintaining personal contacts Holding meetings; making phone calls to relay information; email/memos Holding board meetings; giving information to the media
28

Communication (Disseminator)

Manager distributes information within the organization Manager distributes information outside the organization

Spokesperson

DECISIONAL
Role Entrepreneur Description Manager initiates change Identifiable Activity Organizing sessions to develop new programs; supervises design of projects Steps in when an employee suddenly leaves or an important customer is lost Scheduling; requesting authorization; budgeting Participating in union contract negotiations or in those with 29 suppliers

Disturbance Handler

Manager decides how conflicts between subordinates should be resolved Manager decides how the organization will use its resources Manager decides to negotiate major contracts with other organizations or individuals

Resource Allocator

Negotiator

What Companies Look for in Managers

Technical Skills

Human Skill

Conceptual Skill

Design Skill

Exhibit 15

Skills Needed at Different Management Levels

2007 Prentice Hall, Inc. All rights reserved.

131

TECHNICAL SKILLS
A persons knowledge and ability to make effective use of any process or technique constitutes his technical skills. For eg: Engineer, accountant, data entry operator, lawyer, doctor etc.

HUMAN SKILLS
An individuals ability to cooperate with other members of the organization and work effectively in teams. For eg: Interpersonal relationships, solving peoples problem and acceptance of other employees.

CONCEPTUAL SKILLS
Ability of an individual to analyze complex situations and to rationally process and interpret available information. For eg: Idea generation and analytical process of information.

HENRI FAYOLs FOURTEEN PRINCIPLES OF MANAGEMENT

1. Specialization of labor. Specializing encourages continuous improvement in skills and the development of improvements in methods. 2. Authority. The right to give orders and the power to exact obedience. 3. Discipline. No slacking, bending of rules. 4. Unity of command. Each employee has one and only one boss. 5. Unity of direction. A single mind generates a single plan and all play their part in that plan. 6. Subordination of Individual Interests. When at work, only work things should be pursued or thought about. 7. Remuneration. Employees receive fair payment for services, not what the company can get away with.

8. Centralization. Consolidation of management functions. Decisions are made from the top. 9. Scalar Chain (line of authority). Formal chain of command running from top to bottom of the organization, like military 10. Order. All materials and personnel have a prescribed place, and they must remain there. 11. Equity. Equality of treatment (but not necessarily identical treatment) 12. Personnel Tenure. Limited turnover of personnel. Lifetime employment for good workers. 13. Initiative. Thinking out a plan and do what it takes to make it happen. 14. Esprit de corps. Harmony, cohesion among personnel.