Introduction to Management

Definition
Management is the art of getting things done
through and with people in formally organized
group.
Management is defined for conceptual, theoretical
and analytical purpose as that process by which
manager create, maintain, direct and operate
purposive organization through systematic, cooperative and coordinated human efforts.

Features of Management
Organized activities
Existence of objectives
Working with and through people
Relationships among resources
Decision making

Nature of Management
Multidisciplinary
Dynamic nature of principles
Relative but not absolute
Science
Art
Profession
Universality of management

Management and Administration A

Terminological Conflict
These controversies have resulted into
three different approaches:
1) Administration is above management
2) Administration is a part of management
3) Administration and Management are same

F. W. Taylors contribution in
Management
Taylor developed scientific management
based on his experience.
His contributions can be described in two
parts :
1) Main features of scientific management
2) Principles of scientific management.

Features of Scientific Management

Separation of planning and doing
Functional foremanship
Job analysis
Standardization
Scientific selection and training of workers
Financial incentive
Economy
Mental revolution

Workshop Manager

Planning incharge

Production incharge

Route Clerk

Speed boss

Instruction card clerk

Inspector

Time and cost clerk

Maintenance foreman

Disciplinarian

Gang boss

Worker

Principles of Scientific Management

Replacing the rule of thumb with science
Harmony in Group action
Co-operation
Maximum output
Development of workers

Contribution of Henry Fayol

Fayol observed in certain activities of an industrial
organization which could be divided into six groups:
Technical,

Security,

Financial,

Commercial,

Accounting and Managerial

He

has

divided

his

approach

management in to 3 parts:
1) Managerial qualities and training
2) General principles of management
3) Elements of management

of

studying

Managerial Qualities
Physical (health, vigour)
Mental (judgment and adaptability)
Moral (energy, initiative loyalty)
Educational
Technical
Experience

General principles of Management

Division of work
Authority and responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual to general
interest
Remuneration of personnel
Centralization

Continue..
Scalar chain

A
B
C
D
E

Order
Equity
Stability of tenure
Initiative
Esprit de corps

G
H
I
J
K

Elements Of Management
Planning
Organizing
Staffing
Directing
Controlling

Fundamentals of Planning

Introduction
Definition : Planning is the selection and
relating of facts and making and using of
assumptions regarding the future in the
visualization and formalization of proposed
activities believed necessary to achieve
desired result.

Importance of planning
Primacy of planning
To offset uncertainty and change
To focus attention on objective
To help in coordination
To help in control
To increase the organizational effectiveness

Planning process
Perception of
opportunities

Establishing
objectives

Planning
premises

Identification of
alternatives

Establishing
sequence of
activities

Formulation
of supporting
plans

Choice of
alternative
plans

Evaluation of
alternatives

Types of Plans

Objectives and MBO

Introduction
Objectives may be defined as the end
results which an organization tries to
achieve.
It also defines as the goals, purposes or
aims that organizations wish to achieve
over varying periods of time.

Hierarchy of Objective
Top Level

Middle Level

Lower Level

Functions and Contributions

Defines organization
Direction for decision making
Performance standard
Basis for decentralization
Integrating

organization

individual,

group

and

MBO (Management by Objectives

Introduction
MBO is a comprehensive managerial
system that integrates many key
managerial activities in a systematic
manner, consciously directed towards the
effective and efficient achievement of
organizational objectives.

MBO Process
Organizational Purpose and
objectives

Planning Premises

Key Result Areas (KRA)

Superiors objectives

Superiors recommendation
for subordinates objectives

Matching resources

Subordinates statement to
his objectives

Subordinates agreed
objectives

Subordinates Performance

Performance appraisal and

Review

Recycling

Benefits of MBO
Better managing
Clarity in organizational action
Personnel satisfaction
Basis for organizational change

Decision Making Process

Specific
objectives

Identification
of problems

Diagnosis
Results

Evaluation of
alternatives

Search for
alternatives

Analysis
Choice of
alternatives

Action

Experience
Experiments
R&D

LEADERSHIP

LEADERSHIP

Definition
Leadership is interpersonal influence
exercised in a situation and directed
through communication process, towards
the attainment of a specified goal or goals.
Terry has defined leadership as a
continuous
process
of
influencing
behaviour.
Simply defined as Leadership is the
process of influencing and supporting
others to work enthusiastically towards
achieving objectives.

Difference between a Leader and a

Manager

Manager
Appointment
Formal authority
Focus on the organizational
objectives
About efficiency i.e doing
things right
About
coping
with
complexity, about brining
order and consistency to
organizational life
Authority is depends on his
position

Leader
Emerges
Informal power
Focus on the followers
About effectiveness i.e.
doing right things
About coping with change,
about bringing a sense of
purpose and direction
Power is depends on the
leaders ability

Importance of Leadership
1) Motivating Employees
2) Creating Confidence
3) Building Morale

Leadership Approach
Behavioural Approach
- Autocratic Leadership
- Participative / Democratic Leadership
- Free-rein Leadership (Laissez-faire)
Situational Approach

Theories of Leadership
Trait Theory
- Personal qualities : Physical & Intelligence
- Acquirable qualities :Emotional Stability,
Empathy, Motivating, Communication,
Human Relations, Social, Technical Skills
Behavioural Theory
- Task oriented behaviour or problem oriented
- Group oriented behaviour

Theories of Leadership
Situational theory

Motivation
Definition

Needs of
Individuals

Providing
Satisfactory
environment for
need fulfillment

Engagement in
work

Maslows Need Hierarchy Theory

- Lower Needs : Physiological need (hunger etc.,)
Safety and Security
- Higher Needs : Social (Belongingness)
Self-esteem ( recognition and attention)
Self-Actualisation (maximizing the use of abilities, skills
and potential)

A. H. Maslows hierarchy of
needs
SELFACTUALIZATION

ESTEEM NEEDS

LOVE, AFFECTION, AND

BELONGINGNESS NEEDS
SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS

ATTITUDE
Meaning
Features
Functions
Factors affecting to Attitude formation

Job Satisfaction
Introduction
Factors affecting Job Satisfaction :
1) Personal : Age, Education , Gender,
other
2) Organizational : Occupational Level,
Job Content, Considerate Leadership, Pay
& Promotion, Work Group

Types of Business
Organization
Private Sector Organization
Public Sector Organization
Joint Sector Organization Venture
captial company

Private Sector Organization

Sole Proprietorship
Partnership
Joint Stock companies
Co-operative Societies

Public Sector Organization

Government Departments
Public organization
Government Companies

Definition
Leadership is interpersonal influence
exercised in a situation and directed
through communication process, towards
the attainment of a specified goal or goals.
Terry has defined leadership as a
continuous
process
of
influencing
behaviour.
Simply defined as Leadership is the
process of influencing and supporting
others to work enthusiastically towards
achieving objectives.

Difference between a Leader and a

Manager

Manager
Appointment
Formal authority
Focus on the organizational
objectives
About efficiency i.e doing
things right
About
coping
with
complexity, about brining
order and consistency to
organizational life
Authority is depends on his
position

Leader
Emerges
Informal power
Focus on the followers
About effectiveness i.e.
doing right things
About coping with change,
about bringing a sense of
purpose and direction
Power is depends on the
leaders ability

Importance of Leadership
1) Motivating Employees
2) Creating Confidence
3) Building Morale

Leadership Approach
Behavioural Approach
- Autocratic Leadership
- Participative / Democratic Leadership
- Free-rein Leadership (Laissez-faire)
Situational Approach

Theories of Leadership
Trait Theory
- Personal qualities : Physical & Intelligence
- Acquirable qualities :Emotional Stability,
Empathy, Motivating, Communication,
Human Relations, Social, Technical Skills
Behavioural Theory
- Leadership styles or approaches (Power
orientation based)
Path goal model of leadership (Situational
Approach)

Motivation
Definition

Needs of
Individuals

Providing
Satisfactory
environment for
need fulfillment

Engagement in
work

Maslows Need Hierarchy Theory

- Lower Needs : Physiological need (hunger etc.,)
Safety and Security
- Higher Needs : Social (Belongingness)
Self-esteem ( recognition and attention)
Self-Actualisation (maximizing the use of abilities, skills
and potential)

A. H. Maslows hierarchy of
needs
SELFACTUALIZATION

ESTEEM NEEDS

LOVE, AFFECTION, AND

BELONGINGNESS NEEDS
SAFETY NEEDS

PHYSIOLOGICAL OR SURVIVAL NEEDS

Theories of Motivation
Carrot and Stick model of motivation
Herzbergs motivation
Theory X and Theory Y

Job Satisfaction
Introduction
Factors affecting Job Satisfaction :
1) Personal : Age, Education , Gender,
other
2) Organizational : Occupational Level,
Job Content, Considerate Leadership, Pay
& Promotion, Work Group

Types of Business
Organization
Private Sector Organization
Public Sector Organization
Joint Sector Organization Venture
captial company

Private Sector Organization

Sole Proprietorship
Partnership
Joint Stock companies
Co-operative Societies

Public Sector Organization

Government Departments
Public organization
Government Companies

Modern Approach to
Management

ERP Enterprise Resource

planning
ERP system is a fully integrated business
management system covering functional areas
of an enterprise like Logistic, production,
finance, accounting and HR.
Characteristics:
Flexibility
Modular and open
Comprehensive
Beyond the company
Best business practice

Features:

ERP Implementation
Identifying the needs of implementing
Evaluation
Deciding the would be situation for the
business
Re-engineering the business process
Evaluating various ERP packaging
Finalizing the most suitable one
Installing the required hardware and network
Implementing the ERP package

General model of ERP

Tools
SCHEDULING

FORECASTING

SCM

INVENTORY
MANAGEMENT

AGGREGATE
PLANNING

Supply Chain Model

Customer
Analysis
Purchasing /
Supplier Partnering

Order Fulfilment

Storage and Transport

Manufacturing
Assembly

Integrated
Supply
Chain
Managemen
t

Material
managemen
t

Inventory Management
and control

Demand and Lead time

Management

CRM (Customer Relationship

Management)
It entails acquiring and deploying knowledge
about ones customers and using this
information across the various touch points to
balance revenue and profits with maximum
customers satisfaction.
Types of CRM :
1.
2.
3.
4.

Win back or Save

Prospecting
Loyalty
Cross sell / Up sell

 The CRM Cycle:

An assessment phase
A planning phase
Am execution phase

e-CRM : uses the electronic media to

integrate and simplify customer-related
business processes.
e-CRM
must
address
customer
optimization by three dimension :
Acquisition, Expansion and Retention

Re-engineering or Business
process Re-engineering
It is the fundamental re-thinking and radical
redesign of business processes to achieve
dramatic improvements in critical, contemporary
measures of performance such as cost, quality,
service and speed.
Re-engineering process:
Understanding the process
Redesigning the process
Re-engineering implementation

Important Topics From all of us

Hierarchy of Objectives
MBO & MBO Process
Decision Making Process
Types of Business Organization (Whole Topic)
ERP (Enterprise Resource Planning
CRM and e-CRM (Customer Relationship Management)
IPR (Intellectual Property Rights)
SCM (Supply chain Management)
Marketing Research Process
Core marketing concept of marketing management
Segmentation, targeting and positioning (STP)
Leadership theories (Trait theory, Path goal)
Leadership Styles or approaches (power oriented)

 Motivation theories (Maslows need Hierarchy, Carrot

and stick model, herzbergs motivation)
4Ps of marketing
Financial Institution
Financial Markets
Key activities of financial management
Financial system
Financial instruments
30% from the mid-sem syllabus