chapter 01 introduction to management

INTRODUCTION TO MANAGEMENT

AUTHORS:DR. K IRAN NERKARDR. VILAS CHOPDE

CHAPTER-1

Management consists in guiding human and physical resources into dynamic, hard-hitting organization unit that attains its objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering the service. --- Lawrence A. Appley

Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform effi ciently and eff ectively towards the attainment of group goals. --- Harold Koontz and Cyrill O’ Donnell

DEFINE MANAGEMENT

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•Lead the employees in an inspiring way to work harder for the achievement of individual and organizational goals.

Achievement of Goals

•Helps an organization to make the best possible use of limited and scarce resources.

Optimum Utilization of Resources

•Results from cost saving and profit maximization techniques applied by the management.

Cost Minimization

•Implies that an organization needs effective management to cope with dynamic business environment and adapt changes in the market.

Survival and Growth

•Results from the expansion of business, which is decided and implemented by the top management of an organization.

Employment Generation

•Implies that management of any organization aims at making an efficient use of its resources, such as labor, capital, and land to generate profit

Development of the Nation


NEED FOR MANAGEMENT

Objectives of

Management

Towards Organizati

on

Towards Workforce

Towards Society


OBJECTIVES OF MANAGEMENT

Generating sound profi t to provide a fair return on capital invested in business

Getting maximum output with minimum eff orts and resources

Combining various resources, such as capital, labor, and materials in the best possible way, so that various costs are reduced

Utilizing the factors of production in such a manner that all the wastages and damages are reduced up to the minimal level

Ensuring the survival and solvency of the organizationGrowing and expanding the organization Improving the goodwill of the organization


OBJECTIVES OF MANAGEMENT: TOWARDS ORGANIZATION

Providing fair remuneration in exchange of services rendered by employees

Developing employees through continuous training and development programs

Taking the participation of employees in the management and prosperity of the organization

Developing a sense of job security in the mind of employees

Coordinating and motivating employees to perform their level best

Sustaining good working conditions


OBJECTIVES OF MANAGEMENT: TOWARDS WORKFORCE

Providing goods and services at reasonable prices

Conserving environment and natural resources

Dealing fairly with suppliers, dealers, and competitors

Preserving ethical values of the society


OBJECTIVES OF MANAGEMENT: TOWARDS SOCIETY

Classical School of Thought Believed in having a set of guidelines for managing a complex structure and

functioning of an organization. Main contributors were Henri Fayol, Max Weber, Mary Parker Follet, and

Chester. I. Barnard. Scientifi c School of Thought

Founded as a result of increasing need of productivity and focused on increasing worker’s effi ciency.

Main contributors were Frederick W. Taylor, Henry L. Gantt, and The Glibreth. Behavioral School of Thought

Emerged when the need for harmony at workplace and understanding human nature was realized.

Main contributors were Hawthrone Studies, Abraham Maslow and Douglas McGregor.

Modern Approach to Management Discussed the modern management theories that refine, extend, and combine

all the classical and neo-classical approaches to management. It includes quantitative approach to management, contingency approach to

management, and systems approach to management.


EVOLUTION OF MANAGEMENT

Planning Organizing Staffing

Directing Controlling


STEPS IN MANAGEMENT PROCESS

Planning Involves determining the goals and objectives that an organization aspires

to achieve within a given time period, developing alternatives, and selecting the best course of action among the available alternatives to accomplish the set objectives.

Organizing Refers to the arrangement of work, processes, authority, and resources and

employees in the right order, so that all organizational activities can take place in a defined and orderly manner.

Staffi ng Involves employing the right number of people at the right place with right

skills and abilities. Directing

Involves influencing, motivating, encouraging, counseling, mentoring, and guiding the employees to work toward the accomplishment of organizational goals and objectives.

Controlling Refers to the function through which the actual and desired output is

measured.


MANAGEMENT PROCESS


DISTINCTION BETWEEN MANAGEMENT AND ADMINISTRATION

Differences Administration Management

Nature of function Determinative or thinking Executive or doing

Type of Work Concerned with the determination of major objectives and policies

Concerned with the implementation of policies

Levels of Authority Top-level function Middle and lower-level

Influence Administrative decisions are influenced mainly by public opinion

Influenced by objectives and policies of the organization

Direction of Human Efforts

It is not directly concerned with the direction of human efforts

It is actively concerned with the direction of human efforts

Main Functions Involved Planning and controlling Directing and organizing

Skills Required Conceptual and human Technical and human

Usage Usage largely in government and public sector

Used mainly in business organizations

Top managers

• A group of individuals who are responsible for the whole management process of an organization.

Middle managers

• A group or individuals who are responsible for monitoring the performance of first line managers, also called supervisors.

Lower managers

• A group or individuals who are involved in the day-to-day activities of an organization and directly report to middle level managers.


TYPES OF MANAGERS: ON THE BASIS OF ORGANIZATIONAL LEVELS

Functional Manager

• A manager, who is responsible for a particular function of an organization.

General Manager

• Managers, who are responsible for all the activities being carried out in all organizational functions.


TYPES OF MANAGERS: ON THE BASIS OF SCOPE OF MANAGERS

Entrepreneur Style

• Managers who create something unique on the basis of their self-analysis without going through prescribed policies and procedures.

Conservative Style

• Managers who believe in classical school of management.

Scientific Style

• Managers, who believe in solving the problems in a logical way.

Professional Style

• Managers, who apply modern management techniques and devices.


STYLES OF MANAGERS

Making timely and accurate decisions Coordinating with diff erent levels in the organization Administering and managing the performance of employees Analyzing the performance of subordinates and providing

feedback Striving to achieve business goals and departmental

objectives Contributing in various organizational activities, such as

selection, career management, and training and development of employees

Determining the compensation and reward systems Ensuring adherence to quality standards Following the rules and regulations of the organization Focusing on wealth maximization


ROLES AND RESPONSIBILITIES OF MANAGERS

According to a research carried out by Robert L. Kats, there are three main types of skills that every manager must either possess or develop to carry out the management function.

These skills are as follows: Technical skills: Refer to know how about a specific field of

study Conceptual skills: Include abstract reasoning ability Human skills: Refer to the communication skills,

coordination skills, leadership skills, which are required to maintain sound interpersonal relationship in an organization

Managers have to continually update and sharpen their skills as per the need of the organizational environment.


DEVELOPING MANAGERIAL SKILLS

Qualifi cation A manager must have both general and specifi c education in business administration.

Leadership The ability of a manger to infl uence employees to work in the desired manner.

Personal i ty A manager should be of sound health, attitude, and behavior.

Scientifi c Approach A manager should make fair and unbiased decisions.

Self-confi dence The quality of managers that enable them to be confi dent about their decisions.

Honesty A manager must be honest and possess good moral character, so that he/she can

positively infl uence the subordinates to follow the same traits. Technical Profi ciency

The technical knowledge of managers should be sound enough to understand the systems, procedures, and the methodology used in the organization for the production purpose.

Humanitar ian Approach Managers should treat their subordinates on the humanitarian ground, rather than

treating them on utilitarian ground.


QUALITIES OF A GOOD MANAGER

Management can be defined as a universal phenomenon that involves making optimum utilization of available resources to achieve predetermined goals.

The functioning of today’s modern organizations is influenced by the effi ciency of managers to a large extent.

The main role of managers is to encourage, guide, and supervise employees to work toward the fulfi llment of organizational goals and objectives.


RECAP

chapter 01 introduction to management

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