INTRODUCTION TO MANAGEMENT

Dr. Vara Prasad

MANAGEMENT:
Management is the force that unifies
human as well as non-human resources in the service of Organisational goals. It is a process of getting results with and through people.

MANAGEMENT:
The process of guiding the development, maintenance, and allocation of resources to attain organizational goals

What is Management?
It is not easy to define the term management. There are certain genuine reasons for this : (i) Management is a vast subject. It is very extensive. It is, therefore, not possible to put all the essential features of management in a single formula. (ii) Management is concerned with human beings, who are behaviourally highly unpredictable. (iii) Management is a young developing discipline whose concepts are continuously changing.

Management As A Noun
In popular usage, management refers to a group of people who direct the activities of other people and material resources towards the attainment of predetermined goals.

Management as a Process
Management as a process refers to a series of inter-related functions, such as planning, organising, staffing, leading and controlling.

Management as a Group/Team
The term management is used to denote the persons who manage the affairs of an organisation. Thus, as a group of persons, management includes all those who are responsible for making decisions and supervising the work of others.

Management as a Discipline
As a discipline, management is a specialised branch of knowledge which involves the study of certain principles and practices.

Management as an Activity
Management refers to a separate class of activities which are performed by managers. Managerial activity consists of planning, organising, staffing, directing and controlling.

Scope of Management
The scope of management is very wide. Basically, it refers to three distinct ideas. Management may be understood as

(i)
(ii)

an economic resource,
a system of authority, and

(iii) a class or elite.

Characteristics of Management
The various interpretations of management emphasise three things: (i) management is a process and involves a series of continuing and related activities, (ii) it tries to concentrate on reaching organisational goals, (iii) and it reaches these goals by working with and through other people and other organisational resources. The important features which reveal the nature of management may be stated thus: Management is intangible Management is goal-oriented Management is universal Management is a social process Management is a group activity Management is a system of authority Management is an activity
Cont

 Management is dynamic Management is a science as well as an art Management is multidisciplinary

Importance of Management
The importance of management can be understood from the following points: Optimum use of resources Effective leadership and motivation Establishes sound industrial relations Achievement of goals

Change and growth

Improves standard of living

Levels of Management

Top Management

CEO Vice President Division Heads, Regional Managers

Strategic Plans

Middle Management Supervisory Management

Tactical Plans

Supervisors, Team Leaders, Foremen

Operational Plans

Managerial Skills
1. Technical Skills
specialized knowledge and expertise 2. Human Relations Skills interpersonal skills 3. Conceptual Skills understanding the big picture 4. Global Management Skills ability to operate in diverse environments

Managerial Roles
Type of role: 1. Informational Activities: information gathering, disseminating, spokesperson figurehead, leader, liaison entrepreneur, resource allocation, resolve conflicts, negotiate

2. Interpersonal 3. Decisional

Distinction between Administration and Management

Point of distinction
Nature

Administration
Thinking function (what is to be done and when).

Management
Doing function (who should do it and how).

Scope

Determines broad objectives and policies.

Top level function. Conceptual and human skills. Owners who invest capital and receive profits. Mostly in government, military, educational, social and cultural organisations.

Implements plans and achieves goals through people.

Middle and lower level function. Technical and human skills. Paid individuals who work for remuneration. Mostly in business organisations.

Level

Skills needed Represents

Usage

Trends in Management
Increased employee empowerment Increased role of information technology Increase in global management

Principles of Management
Nature of management principles
Management principles change with the change in the environment in which the organisation exists.

Why Management Principles?

By means of principles of management, a manager can avoid fundamental mistakes in his job and foretell the results of his actions with confidence. Principles help in the following ways:

To increase efficiency
To crystallise the nature of management

To improve research in management

To attain social goals

What are principles of management?

Fayols principles:

1. 2. 3. 4. 5. 6.

Division of work Authority Discipline Unity of command Unity of direction Subordination of individual interests to the general interest 7. Remuneration 8. Centralisation 9. Scalar chain 10. Order 11. Equity 12. Stability and tenure of personnel 13. Initiative Cont 14. Esprit de corps

 Mooney and Reileys staff principle Taylors principle of management by exception Webers principles Likerts principle of supportive relationship Human relations Modern organisation theories and principles of management

Universality of Management Principles

Universality of management suggests that the manager uses the same managerial skills and principles in each managerial position held in various organisations. Universality implies transferability of managerial skills across industries, countries. It means that management is generic in content and is applicable to all types of organisations. Arguments for Universality Same functions Universal principles Fundamentals are same, the techniques employed and practices followed are different Practical evidence Arguments Against Universality Complete substitutability is impossible Organisational philosophies differ Universality of principles: a ridiculous statement? Management is a product of the culture

Sources of Power for Leaders:

Type of Power: 1. Legitimate 2. Reward 3. Coercive 4. Expert 5. Referent Derived from: position in organization control over rewards control over punishments extensive knowledge charisma, respect, admiration