Introduction
to
Management
Course: MBA
Subject: Introduction to Management
Unit: I
Unit 1Chapter:1- Concept of management:
• Development of management thoughts
• Levels of management
• Role of a manager
• Management hierarchy
What is Management ?
• Where this word is used?
• What is the meaning?
-Manage Men
- Old French ménagement.: ‘the art of conducting ,directing ‘
-Latin Manuagere : ‘to lead by the hand’
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DEFINITION:
• Management in all business areas andorganizational activities are the acts of gettingpeople together to accomplish desired goalsand objectives. Managementcomprises planning, organizing, staffing, leading or directing,and controlling an organization (a group of oneor more people or entities) or effort for thepurpose of accomplishing a goal.
• Mgt is all about PODSCORB
• “Management is an art of getting things done
through and with people”.
• “The process by which execution of given
purpose put into operation and supervise”.
• “Management is the art of securing maximum
results with the minimum of efforts so as to get
maximum prosperity and happiness for both
employer and employee”
Applicability of Mgt. in life and job
• Management in life:
- Daily planning, future planning
- Various occasions i.E, marriage, parties
- To achieve any goal i.e., 80% in FYBBA
• Management at job:
- proper authority and
responsibility
- achieving targets
- stress management
- measuring deviation
- smooth functioning
- co-ordination/ communication
- employee satisfaction
Scope of management :(Relation with other subjects/Sectors )
Marketing
• - Deciding promotional activities/ strategies/ setting targets – planning
• - Recruiting/training sales exe. – staffing
• - Giving targets by manager – Directing
• - Why targets are not achieved – Controlling
Finance
• - Preparing budget – Planning and controlling
• - Recruiting/training executives – staffing
• - Maximum result with min. efforts/resources
H.R.
• - How many employees will be required? -Planning
• - Recruiting/training executives – Staffing
• - Performance appraisal – Controlling
• - which task given to whom? - Organising
What Managers Do
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Managerial Activities
•Making decisions
•Allocating resources
•Directing activities of others to attain goals
Managers
Individuals who achieve goals through other people.
Where Managers Work
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Organization
A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.
The Four Functions of Management
Planning
Select goals & ways to
attain themOrganizing Assign responsibility for
tasks
Leading Use influence to
motivate
Controlling
Monitor activities &
make corrections
Planning
– defining goals and objectives
– deciding what type of activities the company will engage in
– determining the resources needed to achieve the organization’s goals & objectives.
Organizing
– Grouping of activities
– Conflict resolution.
– Authority and responsibility
– delegation
– Allocation of resources
Directing/ leading
– Leading for better work
– Stimulating to work more
– Giving motivation
– Specifying job responsibilities
– Creating good working conditions
– Giving guidance
– Showing path
Controlling Checking performance
Comparing actual targets with performance
Finding deviation
Taking corrective action
Monitoring performance of people & units.
• Identification of performance problems & actions to correct problems
2
Management hierarchy/ Levels of management
3
• Top level Posts/job title:
Chief Executive Officer (CEO), Chief Financial Officer (CFO), ChiefOperational Officer (COO), Chief Information Officer (CIO),Chairperson of the Board, President, Vice president, Corporate head
• Middle level Posts/job title:
General manager, Plant manager, Regional manager, and Divisional manager
• Lower level Posts/job title:
• Office manager, Shift supervisor, Department manager, Foreperson, Crew leader, Store manager
4
Skills at managerial levels
Skills at managerial levels
5
MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONS
Plan. Organ. Lead. Control.
Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%
Roles of a manger
– Set of expectations for one’s behavior
– Diverse activities --10 roles
Category Role
Informational Monitor
Disseminator
Spokesperson
Interpersonal Figurehead
Leader
Liaison
Decisional Entrepreneur
Disturbance handler
Resource allocator
negotiator
Management Roles1. INFORMATIONAL• Monitor- Seek and receive information, scan periodicals and reports,
maintain personal contacts
• Disseminator- Forward information to other organization members, send
memos and reports, make phone calls
• Spokesperson- Transmit information to outsiders through speeches,
reports, memos- ex. Mr. Ratan Tata announces about his new car in a press
conference
Management Roles2. INTERPERSONAL• Figurehead- Performs formal and symbolic duties such as greeting
visitors, signing legal documents.ex. College dean awarding degree to convocation ceremony• Leader- Direct and motivate subordinates, training, counseling, and
communicating with subordinates.- Liaison- Maintain information links both inside and outside
organization, use mail, phone calls, meetingsEx. Manager interacting inside and outside of the
organization.
3. DECISIONAL• Entrepreneur- Initiate improvement projects, identify new ideas, delegate idea
responsibility to others
• Disturbance Handler- Take corrective action during disputes or crises; resolve conflicts among
subordinates; adapt to environmental crises
• Resource Allocator- Decide who gets resources, scheduling, budgeting, setting priorities- Allocating money, time, material etc.
• Negotiator- Represent department during negotiation of union contracts, sales,
purchases, budgets, represent departmental interests
Approaches in Mgt. thought
• Classical - scientific
- bureaucratic by Max Weber (considered hierarchy of the decision making process)- administrative
• Behavioral- Human relation school- Hawthorne experiments(Western Electric Hawthorne plant in
Chicago) ,Maslow,McGregor, Chris,Elton Mayo, Mary Parker
• Quantitative and Modern- Contingency theory (based on situation)
- Theory Z (job security, job loyalty) (mix of US and Japanese)
Taylor and scientific management(Frederick Winslow Taylor (1856-1915)
• The concept emerged in early 1900s.
• “SM is concerned with knowing exactly thatyou want men to do and then see in that theydo it in the best and cheapest way”
• Taylor experimented and found –how humanbeings could be made more efficient bystandardizing the work and better method ofdoing the work.
6
Elements of scientific management
1. Separation of planning and doing:
• Supervisor- Planning
• Worker – doing, operational work
2. Functional foremanship:
- work divided acc. To functions
2. Functional foremanship:
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3. job analysis:
- to find a best way of doing the things
- Time study
- Motion study
- Fatigue study
4. Standardization:- Standardization is a means of achieving
economics of production.• It seems to ensure –
– The line of product is restricted to predeterminedtype, form, design, size, weight, quality. Etc
– There is manufacture of identical parts andcomponents.
– Quality & standards have been maintained.– Standard of performance are established for workers
at all levels.
5. Scientific selection and training of workers.
- based on education, exp, aptitude, physical strength
- training to be more effective and efficient
6. Financial incentives- Piece rate system
7. Economy & Profit
-cost estimation and cost control
8. Mental revolution
- co-operation and co-ordination
H.Fayol’s Administrative Management (29 July 1841,
(29 July 1841 ,19 November 1925)
• French industrialist
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Fayol’s 14 principles of management
1. Division of work2. Unity of Command3. Order4. Equity5. Initiative6. Esprit de corps7. Stability of tenure8. Scalar chain9. Centralization10. Remuneration of
employees
11. Subordination of individual interest to general interest
12. Unity of direction13. Discipline14. Authority and
Responsibility
Fayol’s 14 principles of MGT.
1. Unity of Command:instructions/orders from only one boss. Ex. peon
Fayol’s 14 principles of MGT.
2. Division of Work:job /work is divided into specialized/small tasksi.e., departments
Fayol’s 14 principles of MGT.3. Order:• Arrangement of things and people
• All materials and personnel have a prescribed place, and they must remain there.
Fayol’s 14 principles of MGT.
4. Initiative:• Workers should be encouraged to develop
and carry out their plans for improvements
Fayol’s 14 principles of MGT.
5. Equity:• Fairness to all employees
• No favoritism
Fayol’s 14 principles of MGT.
6. Authority and Responsibility: “Authority is the right
to give orders & obtain obedience, and responsibility is
the effect of authority”
-should be divided properly
ex. Sales exe., Vodafone cust. care
7. Discipline: Rules and regulations
8. Unity of Direction: same objective for all with coordinated efforts
9. Subordination of Individual Interest to General Interest:
10. Remuneration of Employees: Employees receivefair payment for services
11. Centralization and Decentralization: ex. GTU, Panchayat
12. Scalar Chain: Formal chain of command running from top to bottom of the organization, like military
13. Stability of Personnel: Limited turnover of
personnel. Lifetime employment for good workers.
14. Espirit De Corps: team spirit of unity and harmony
among employees
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References/Sources 1. http://4.bp.blogspot.com/_16N-uuTISQo/TRO-JllSdCI/AAAAAAAAaDM/ALK06S44Yvc/s640/ghg.jpg
2. http://www.shareyouressays.com/wp-content/uploads/hindi/4-Different-Levels-of-Management-in-the-_6FF4/clip_image002.jpg
3. http://2.bp.blogspot.com/-wHomNVBHk4c/U7izx8E955I/AAAAAAAAAVY/_X__AEQRD1A/s1600/Levels+and+skills.png
4. http://sites.psu.edu/leadership/wp-content/uploads/sites/8069/2012/09/x012.jpg
5. http://3.bp.blogspot.com/-fgAqyPP8sjM/ToeuLD83RqI/AAAAAAAABns/4T6FG1COba4/s1600/frederick_taylor.gif
6. http://www.managementstudyguide.com/images/functional_foreman.jpg
7. http://www.managementstudyguide.com/images/functional_foreman.jpg
8. http://3.bp.blogspot.com/-fgAqyPP8sjM/ToeuLD83RqI/AAAAAAAABns/4T6FG1COba4/s1600/frederick_taylor.gif
9. http://www.managementstudyguide.com/images/functional_foreman.jpg
10. https://www.keepcalm-o-matic.co.uk/p/thanks-for-listening-any-questions--4/