CHAPTER 1 —~Management 1.1 Definitions, Concept and Nature: There have been numerous definitions and linkages of this term ‘management’. Few prominent definitions are: “ “Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives by the use of human beings and other resources” —- George R. Terry * “To manage is to forecast and to plan, to organize, to command, to coordinate and to contro!” - Henry Fayol “ “Management is a multi-purpose organ that manages business and manages workers and work” — Peter Drucker “ “Management is the art of getting things done through and with people in formally organized groups” — Harold Koontz “ “Management is the art of getting things done through people” - Mary Parker Fallett * ‘Good management or scientific management achieves a social objective with the best use of human and material energy and time, and with satisfaction for the participants and public.” - Mary Cushing Nile “Management is defined as a process by which a cooperative group directs action towards common goals” - Joseph Massieional View Vs. Modern View: Traditional View Modern View Art of getting things done by others Primary driver of any organization making it productive, efficient and functional Process of planning, organizing, staffing, directing and controlling others’ activities Process of creating proper internal environment and conducive working conditions in any organization Mobilizing and utilizing human and physical resources for achievement of organizational goal Coping with changing external environment by working on organization’s strengths and weaknesses Concept of Management: > Management as an Activity: Group activity directed toward achievement of decided goals which include Interpersonal, decisional and informative activities >» Management as a Process: Set of interrelated functions including planning, organizing, staffing, directing and controlling > Management as an economic resource: Important factor of production as it combines and coordinates all the available resources > Management as a team: Team consisting of those people who hold the responsibility of directing and coordinating other people's efforts and keep working towards the common goal. > Management as an academic discipline: It is a specialized branch dealing with principles and outline for effective management of organizations. It offers bird’s eye view and rewarding career to those who pursue management as a discipline. > Management as a group: Refers to a group of people occupying managerial positions and performing managerial functions.Nature of Management: >» Management as a Science: Science is guided by 4 major features; universally accepted principles, Experimentation and Observation, Cause and Effect Relationship, Test of Predictability and Validity. Management is a systematic body of knowledge but not as exact as other sciences because of the fact that it deals with human beings and their behavior is not exactly predictable. > Management as an Art: Management as an art implies application of skills and knowledge to bring desired results. It is about finding best way of doing things. Essential elements of art are; Practical knowledge, personal skill, result oriented approach, creativity and improvement through practice. > Management as a profession: Management also requires specialized knowledge, academic preparation and professional association like other professions, although it may not be considered as a full-fledged profession like medicine, CA and law by some. Characteristics of Management: * Management is a process and not just a body of individuals *® Management takes place through people, hence it is a social process « Management is result-oriented and action-based « Management is a group activity directed toward a common goal « Management is intangible; invisible government or spirit which functions & guides peoplee Management is integrating financial, physical and human resources and getting the best output ¢ It is both Art as well as Science — What to achieve (Science) and how to accomplish (Art) « Management can be defined as a process, discipline, activity, group, profession, art and science e Computers and Technology aids management and doesn’t replace it! (as is the notion) * Management is pervasive, universal and comprehensive and is present at all levels © Management is innovative, dynamic and situational « Management and ownership are not same, Managers manage on behalf of owners e Management has different levels of operation and has a vast scope * Management is dynamic and influenced by economic, social, political and human resource 1.2 Objectives of Management: Management objectives can be broadly classified into 3 categories viz. Organizational, Social and Personal objectives. a. Organizational Objectives: Apply to whole organization considering benefits of all stakeholders like employees, management, customer and government. This also includes economic benefits related to survival, growth and profit of an organization. b. Social Benefits: Considering societal needs in terms of their problems, expectations and benefits while carrying out managerial activities falls under this domain. Main social objectives of management are providing with employment opportunities, saving environment from pollution and contributing towards improvement of living standard.c. Individual/ Personal Objectives: Being considerate towards employees and their satisfaction is one of the important objectives of management. It includes, developing human friendly policies, providing decent and equitable remuneration, a share in profit and good working conditions. Other objectives of Management can be listed as: >» Maximizing output and minimizing costs and efforts through optimum utilization of resources > Mutual Benefits for Employers and Employees through smooth and coordinated functioning > Ensuring Social Equality and Justice through improved productivity and employment management > Increasing Effectiveness available resources through best combination and application > Minimizing Risk through forecasting, communication and flexibility > Future Planning through evaluating present performance, vision and improvisation 1.3 Need for Management: * Achievement of group goals: Management is needed wherever team work Is done to manage conflicts, align team members to common goal and motivating them to perform best. e Establishing structured and sound organization: A well- structured organization will be transparent, fair and profitable. Management is needed to standardize, structure and implement ideas as per plans. e Reducing costs and increasing efficiency: Getting best from the available resources is only possible through ‘effective’ management strateaies.e Trying out new things: Management is needed to promote innovation and taking calculative risk while implementing new ideas thereby increasing probability of success e Adaptation to changes for survival and innovation: Management brings in adaptability to respond to dynamics of competitive environment and revival of the system accordingly © Delegation of Work in order to deliver a time-bound objective: Effective delegation of work to right set of people is necessary for completion of targets on time which is possible only if tasks and people are manage in a right way e Improvement in own skillset: Constant updation of own skillset according to market dynamics thus contributing to business in a better way can only be done with proper planning, vision and management. Management by Objective Versus Management by Exception: - Proposed by Peter Drucker, MBO is a technique where managers and employees work towards a common objective which they further record and monitor over a specified time period for improving overall organizational performance. Whereas, MBO has benefits like improved participation, motivation, ownership, better communication and clarity of goals across the organization; the disadvantages lie in sticking to one accepted standard leading to lack of innovation and also more focus on achieving individual targets at times ignoring quality of work because of being time-bound.- MBE is identification of deviation from set standards and best practices which can impact organizational performance and taking appropriate action regarding same. While the key advantage of MBE lies in saving time of management by focusing over core responsibilities and important deviations only, disadvantage lies in lack of participation and more time (thus more cost) taken to find the errors. 1.4 Evolution of Management: 1.4.1 Classical Approach (1900-1930)- It focuses on output, efficiency and productivity of workers and not on differences in their behavior. Applying science to management, developing proper management structure and focusing on economic rationality is the core ofthis theory. 1.4.1.1 Scientific Management: Focuses on best way to perform a job and get the highest efficiency and production levels from workers. It includes theory of: 1.4.1.1.1 Frederick Taylor who is considered as father of scientific management and proposed four principles of management for identifying one best way of doing a job. These principles are; - Use of scientific selection and training methods - Pay for performance - Co-operation between managers and workers - Equal division of work/ responsibilities between managers and workers.1.4.1.1.2 Frank and Lilian Gilbreth focused on motion studies to lay foundation of scientific management. Motion Analysis today is used to establish job performance standard primarily. 1.4.1.1.3 Henry Gantt designed a project scheduling model to improve worker efficiency. He focused on removing inefficient tasks and introduced bonus system for accomplishing more than basic set standards or if a task is done in lesser time. Also, Gantt charts were introduced for evaluating progress of workers. Time frame (hours, weeks, days) are plotted on horizontal axis and activities are plotted on y-axis. 1.4.1.2 Administrative Management/ Management Process: It focuses on organizational efficiency through development of managerial principles and finding best ways of organizing jobs in a business. Henri Fayol outlined 14 principles for managing complex organizations (administrative management): 1. Division of Labor 2. Authority 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Remuneration 7. Subordination of Individual interest to common good 8. Centralization 9. The Hierarchy 10. Order 11. Equity 12. Stability of Staff 13. Initiative 14. Espirit De Corps (Team Spirit)1.4.1.3 Bureaucratic Management: Based on formal organizational system of management dealing with defined hierarchical role, authority and competency of management in order to maintain effectiveness and efficiency. 1.4.4.1 Max Weber theory of Bureaucratic Management deals with 6 principles of formalized view of organizations; a formal hierarchical structure, Management by rules, Organization by task competency, Impersonal relationships, focused mission& employment basis tech qualifications Li ns of Classical theories of Management: > These theories considered economic motivation (money) as the only form of motivation for workers to perform best & don’t highlight on other needs like social, security, power needs etc. > Best way of doing a job is subjective and hardly does such a thing exists > Division of labor brings in monotony and increase the risk of reduction in skill set of workers > Only focus on achieving highest levels of production and following rules brings in unintended consequences at times like reduction in motivation of workers > Employees are treated as parts of machines and thus an assumption that they will conform to work setting if financial incentives are lucrative. It also brings in a risk of job elimination > Ignores external influence over organizations 1.4.2 Neo-Classical(1920-1950) —The focus of this theory shifted towards inculcating behavioral science into management i.e. finding best ways to motivate and support employees in an organization. Two important movements in Neo-classical theories are Human Relations movement and Behavioral Sciences movement.1.4.1.3 Bureaucratic Management: Based on formal organizational system of management dealing with defined hierarchical role, authority and competency of management in order to maintain effectiveness and efficiency. 1.4.4.1 Max Weber theory of Bureaucratic Management deals with 6 principles of formalized view of organizations; a formal hierarchical structure, Management by rules, Organization by task competency, Impersonal relationships, focused mission& employment basis tech qualifications Li ns of Classical theories of Management: > These theories considered economic motivation (money) as the only form of motivation for workers to perform best & don’t highlight on other needs like social, security, power needs etc. > Best way of doing a job is subjective and hardly does such a thing exists > Division of labor brings in monotony and increase the risk of reduction in skill set of workers > Only focus on achieving highest levels of production and following rules brings in unintended consequences at times like reduction in motivation of workers > Employees are treated as parts of machines and thus an assumption that they will conform to work setting if financial incentives are lucrative. It also brings in a risk of job elimination > Ignores external influence over organizations 1.4.2 Neo-Classical(1920-1950) —The focus of this theory shifted towards inculcating behavioral science into management i.e. finding best ways to motivate and support employees in an organization. Two important movements in Neo-classical theories are Human Relations movement and Behavioral Sciences movement.1.4.2.1 Human Relations Movement: deals with finding ways which will encourage better performance of workers. Improving working conditions in ways other than monetary factors like lowering working hours, introducing rest periods or enhancing social interaction at work lead to Improved productivity. 1.4.2.2 Elton Mayo: He focused on understanding worker's problems and ways of addressing them. According to him, humans are one of the most influential and powerful inputs for any organization and their needs other than economic needs, cannot be ignored. His endeavor was to propagate believes pertaining to human beings’ motivation through fulfillment of social needs, respect, recognition, participation and other non-monetary benefits in addition to monetary ones. 1.4.2.3 Hawthrone Studies: Experiments conducted to determine effects of better physical facilities on worker's performance. It included assessing conditions at work like working hours, break time, lightning levels. These changes in working conditions led to morale boost of workers which in turn increased the productivity levels. 1.4.2.4 Behavioral Science Movement: It is an extended version of human relations theory and places wide emphasis on inter-personal relationships and responsibilities and strives to find application of sociology and social psychology to understand organizational behavior. It includes studying attitudes and behaviors of individuals and groups in context of an organization.1.4.2.5 Abraham Maslow: People have different sets of needs which can be arranged in a hierarchy. A person moves to next level only when the level below has been climbed. These levels are: a. Physiological Needs - Deals with basic needs for survival and maintenance. Eg. Food, Clothing. b. Safety Needs —Deals with personal and financial security. Eg. Safety against murder, fire etc. c. Social Needs -Need for affiliation, love and belongingness. Eg. Team work, collaboration etc. d. Esteem -Drive for recognition, rewards, achievement, status, power and ego. e. Self-actualization -Real mission, autonomy, empowerment and realizing one’s potential to fullest. Final level of Maslow’s hierarchy which can be achieved after all other needs are satisfied. 1.4.2.6 Douglas McGregor: Motivational theory categorized into two theories: Theory X and Theory Y. a. Theory X-Traditional carrot and stick approach which assumes that workers have to be forced in order to make them work towards organizational goals as they are lazy and dislike work. Places emphasis on control, authority ad coercion in an organization because of the assumption that workers are self-centered, unambitious and that they prefer to be led. Focus of this theory lies on centralization, authority and one-way communication (management to workers). b. Theory Y -This is a modern theory which considers workers as ambitious, creative and well-aligned to organizational goals. People are not lazy and careless, rather a bad treatment in organization makes them like that. Workers should be allowed to exercise discretion and self-control. Focus of this theory is on decentralization, participation and two-way communication.1.4.2.7 Herzberg two-factor theory: Herzberg classified job factors in two categories: a. Hygiene factors: They are essential for working at any organization. They do not motivate any individual but their absence certainly demotivates a person. Main examples include pay, fringe benefits, policies, status, interpersonal relationships, security etc. b. Motivation Factors: These factors ensure positive satisfaction and motivate employees to perform better.Employees find these factors rewarding and they work as an additional benefit above physiological needs. Major examples include Recognition at work, Power, Responsibility, Growth Opportunities and Work Satisfaction. Other major contributors of Neo-Classical theory were Rensis Likert (human relations, management styles and organizational structure), George Homans (Use small groups to extrapolate findings to social systems), Warren Bennis (Planning for organizational change) and Kurt Lewin (planned change, unfreeze, change, refreeze)1.4.2.8 Rensis Likert’s system of Management (Systems 4 approach): Rensis Likert developed different management styles in 1960. He described four management systems based on involvement, relationship and roles of managers and subordinates in organization. 4 systems or management styles are: I. Exploitative Authoritative: Leader doesn’t care about his subordinates and uses threats/ fear-based methods for making people conform. There is a downward flow of communication and concerns of people are not paid any attention. Employees are highly demotivated because they are forced to work for longer hours and no extra monetary/ other benefits are provided. II. Benevolent Authoritative: In this control is lesser than exploitative authoritative system and motivation is defined on basis of potential of punishment and rewards partially. Lower level employees are involved in policy making but only within the framework given by higher management. Upper management has little awareness of problems and challenges faced by lower level management. Communication flow is generally downward with little bit of upward communication too. Motivation is moderately low, attitude of employees is hostile towards each other because of competition created between them and productivity is fair 0 good. III. Consultative System: Workers are motivated through rewards, lesser punishment and little involvement in decision-making. Lower level management have authority to make decisions that affect their work although the major control still lies with upper echelon of management.Higher management considers employees’ problems before setting organizational goals. Communication is in both directions though upward is still limited. Satisfaction and employee productivity increases in this system as compared to above two.IV. Participative System: Likert emphasized that this is the most effective system out of the 4 mentioned. Genuine employee participation, setting goals through proper two-way communication and leveraging workers’ creativity to fullest are main features of this system. Managers are fully aware of problems faced by their subordinates. Group participation, high level of responsibility and accountability among employees and high satisfaction and production levels of workers are there. Employees are motivaed through monetary awards and participation in goal setting. 1.4.2.9 Mckinsey 7-s Framework: Management model defined for strategic group vision to include business, business units and teams. 7s in this model are: structure, strategy, systems, skills, style, staff and shared values. This model is used for organizational analysis to evaluate and monitor internal changes in the organization which in turn will examine likely future changes, align departments during merger and acquisition, determine best possible way to implement strategies and improve performance of the company. This model relies on theory that for any organization to perform well, these seven key elements should be aligned to each other and mutually reinforcing. Hard Elements: Strategy: Main purpose and goals of business and how organization aims to enhance its competitive advantage Structure: Division of main activities, their integration and coordination Systems: Procedures for measuring, rewarding and allocating resourcesSoft iv. Vv. vi. vil. Elements: Shared values: Values on which an organization runs and are followed by every member of the company Skills: Core competencies and distinct capabilities Staff: Human resource, educational, demographic and attitudinal characteristics Style: Behavioral patterns of key groups like managers and leadership Limitations of Mckinsey Framework: Doesn't exactly tell about the actions triggered after this analysis No future plan or guidelines Abstract checklist or a list of generic elements, not telling what type of analysis is this Limitations of Neo-Classical Theories of Management: > Over emphasis on human variables and ignoring monetary/ economic rewards completely >» Assumption that management and workers will always unite and lack of sustainable structure to resolve conflict arising between them > An employee-focused approach makes it more difficult for management to remove conflict causing employees or to resolve such issues > Focus on lower levels of organization and not on middle/upper levels > Studies conducted on static and limited variety of organizations ad findings may not be relevant because of a lot of assumptionsClassical Versus Neo-Classical Theories: Points Classical Neo-Classical Focus Economic and Emotions and human Functional demands | aspect Structure | Impersonal Social/ Informal Emphasis | Discipline, Science Social needs, and Rationality security, recognition Application | Autocratic Democratic Details Scientific, Hawthrone, Human administrative and Relations, bureaucratic Organizational management Behavior Goal of Maximum Alignment with worker remuneration Organizational goal 1.4.3. Modern Approach (1960 to Present) —A synthesis of several theories, it focuses on complexities of organizations in terms of interaction between workers and environment.Also, present approaches place equal emphasis on man and technology. Majorly it is categorized into 3 streams: 1.4.3.1 Mathematical Approach/ Management Science Approach/ Quantitative Approach/ Operations Approach: Gives a scientific basis for managerial decision- making and includes mathematical models, processes and precision in management.This contributes to structured thinking, management discipline and systematic analysis of problems.The quantitative approach relies on: Scientific Management — Use of mathematics and statistics in problem-solving; Operations Management -Combining inputs like materials, capitals and workers which lead to smooth production of goods and services; Management Information Systems -Storing and analyzing past, current and projected data to generate useful insights which can aid in effective management; Systems Management Theory —Transformation of inputs into outputs and implementing a feedback loop mechanism. a. Management Science: Visualizes management as a logical and analytical entity expressing management as mathematical symbols, relationships and measurable data. Some of the important quantitative approaches under Management Science are: > CPM (Critical Path Method) and PERT (Program Evaluation and Review Technique): These methods help in scheduling and managing complex projects. The assumption on which these are based is that any given task has one or more predecessor and one or more successor tasks as well except for the start and end nodes. - PERT involves planning, monitoring, evaluating and controlling projects where time taken for each activity is not known. Various events necessary for final achievement of objectives are identified in this method and a flow diagram of these evens is made. Time taken for completion of each activity is estimated through probability.- Critical Path Method: Duration of individual activities is known, thus earliest possible start time and latest possible start time for each activity can be determined. In this method, critical activities are identified (whose delay can delay the entire project). Longest path in the network determines the duration of entire project, which is known as critical path. > Linear Programming: This method is constrained optimization which optimizes a given criterion with some constraints. The relationship between objective functions and constraints is linear. Different methods which are used in linear programming are Game theory, Decision Theory, Queuing theory, inventory models and simulation. b. Operations Management: Primarily deals with production management and similar fields. It ensures that a business is performing operating efficiently both in terms of resources needed and meeting customer requirements. It encompasses a six-sigma approach which is focused toward achieving quality. Every six sigma project has a defined structure of steps and targets and the tools which are used are tending charts, potential defect calculations etc. c. Management Information Systems: Design and implementation of computer-based information which is used by management for purpose of decision making. MIS provides valuable information which is used for making strategic and critical decisions.Limitations: > No weightage to human element > Makes decision making as a time taking process > Decision making is only one part of managerial process > Assumes that all variables for decision-making are measurable and interdependent > If the information is not updated, it can lead to wrong decisions 1.4.3.2 Systems Approach: Any organization is divided into subsystems which are interdependent and constantly interacting with each other. A system receives input in terms of material, energy and information post which it undergoes a transformation process and generates an output which in turn serves as input to some other system. Also, the environmental elements under which a system operates have potential to affect the entire system and its parts. In management terms, a system is equal to an organization meaning that any organization is composed of sub systems like resources, process, goods, information that co-exist and interact to achieve organizational goals. Chester Barnard was the first one to utilize systems approach in management by emphasizing on keeping a balance between events and conflicting forces. Limitations: > More intellectual appeal but less practicality > Complex for larger organizations1.4.3.3 Contingency Approach: It has evolved from System’s approach and focuses on integrating theory with practice. According to this theory, there exists no single best approach for management, rather everything depends on situation. It outlines an approach where behavior of any sub- unit is dependent on relationships with other sub-units and environment under which it operates and if a manager wants to change behavior of any sub-part, he must try changing situation which is influencing the behavior of that unit. Peter Drucker, Edwards Deming, Laurence Peter, Thomas Peters and Nancy Austin are some of notable contributors of management theories in recent times. Peter Drucker is essential for social and organizational aspects of management processes and relies on significance of organizational environments and collective working of workers and managers to initiate progress and change. 1.4.3.4 Operational Approach: Focuses on roles and functions of managers and clears out the principles which should be followed by them. Other important theories under Modern School of management are: - Total Quality Management: When organizations/ people focus on quality more, then quality increases with time and costs decline while if the focus is on cost, quality declines and costs rise with time.- Learning Organization and Knowledge Management Approach: Knowledge management is the use of intellectual resources and capital (patents, intellectual property rights, trade secrets and knowledge of entire workforce) to gain competitive advantage. Learning organization approach deals with Systems thinking, shared vision, challenging mental models, team learning and personal mastery. - Team Building Theory: Process of forming, growing, improving knowledge, skills and attitudes of people with different needs, desires, abilities and backgrounds into an integrated and high performing team. Major team building theories are Brigs-Myers’ MBTI theory, Mc Gregor (X and Y theory) and Maslow’s hierarchy of needs theory. MBTI: A survey is used to identify type of a person amongst 16 types viz. Extrovert/ Introvert (E/T), Sensation/ Intuition (S/N), Thinking/ Feeling (T/F), Judging/ Perceiving (J/P). Refer 2.2.1 and 2.2.2 for Maslow’s and McGregor’s theory. - Chaos theory: “sensitive dependence on initial conditions’ implying that little changes (which were neglected as insignificant) in initial conditions will affect the system greatly. - Open System theory: An input translates to output after going through a transformation process and the input is revised after feedback from the system and also depends on external conditions. Limitations of Contingency Theory: » No theoretical base > Assumes that a manger will know all possible options before taking any action1.5 Line and Staff Authorities: a. Line Authority: Exercises direct control over subordinates in order to achieve primary organizational objectives. There is a downward flow of authority. Superior-subordinate relation, termed as Line Relationship. For ex. Line authority gives production manager the right to direct his subordinates about how to operate a machine and it gives director of finance right to ask for financial reports from department head. Important roles and responsibilities of Line Manager: > Follows ‘Chain of Command’ i.e. each manager directs and exercises control over his immediate subordinates > Accountable for effective performance of tasks assigned to him and his subordinates > Channel of Communication for his subordinates to give them instructions and guide them > Decision-making process at every level of organization is done by line authorities > Involved in day-to-day operations like production or selling of product/ service b. Staff Authority: Staff authorities are not directly part of Chain of Command but they help line managers in accomplishing primary objectives of the organization by providing advice, assistance and information to them. They generally reduce the burden of line staff and also have right to exercise control over their subordinates (like Line managers do). For ex. Legal manager (who is directly not part of chain of command) but provides assistance or much needed legal supportImportant roles and responsibilities of Staff managers and personnel: > Staff personnel deploy their technical expertise to assist line personnel & help senior management in achievement of business objectives > Staff managers provide support, guidance and knowledge to everyone in chain of command, whenever needed. Eg. HR department who helps in hiring an effective workforce > Indirect contribution to business goals by providing up to date information and support Causes of conflicts between Line and Staff Managers: 1, Line managers are apprehensive towards following advice given by staff personnel/managers 2. Staff authorities don’t have authority over line managers, hence implementation of their ideas is dependent on line managers 3. Staff authorities are not able to see the big picture objectively, at times and their approach is very confined 4. Staff authorities try to be over imposing by telling line managers how to do their work 5. Line managers do not take staff authorities’ advice seriously and do not utilize their services effectively and efficiently 6. There is no clear line of distinction between for authority relationships between these two1.6 Efficiency Versus Effectiveness in Management: fective Ineffective Pursuing right goals inefficiently (either high cost or more time or more inputs) Pursuing right goals with efficiency like high ROI, less time and cost taken Pursuing wrong goals that too after putting in more efforts/ cost Producing lesser output because of wrong goals but not taking enough inputs &cost Efficient Inefficient Being effective means doing the right things; while being efficient means doing things rightly! Pursuing one over the other depends on situation, goal and available input. If growth is the primary concern with ample available resources, a company may want to focus more on effectiveness while if a company is small and has shorter resources, efficiency becomes a prime concern.1.7 Managerial Competencies needed for Management: 1. Communication skills: Listening to employees’ concern and effectively dealing with it is one of the key competency of effective managers 2. Understanding workforce trends of different generations: Understanding working styles and balancing the change of different generations like baby boomers and Millennials 3. Focus on development needs of employees: Allowing employees to work to their fullest potential and providing them with best possible learning and growth opportunities 4. Leading organizational change: Constant revival of organizational structure and policies to develop and retain a high performing workforce 5. Emotional Intelligence: Capabilities around awareness, control and expression of one’s emotion to handle interpersonal emotions and relationships wisely is one of the key managerial competency 6. Team building and team worker: Building strong teams that work towards a common goal, leading the team and managing conflicts 7. Mentor and Motivator: Mentoring employees’ challenges (both personal and professional) and motivating them at every point to perform better 8. Delegation: Ability of delegating tasks to right people thus dealing effectively with increase in work responsibility and promoting people in terms of their gaining more skills and making them more responsible 9. Problem Solving: Identifying problems and challenges, understanding them and effectively dealing with those 10. Managing employee performance: Setting clear job expectations, monitoring employee goals at every level, rewarding them for good performance and mentoring them for personal development through constant feedback and development plan1.8 Top Level, Middle Level and Low level Management: Top Level: Consists of CEO, board of directors, Managing/ Executive Director who possess ultimate authority over goals and policies of organization. Role of top management includes: > Laying down objectives, vision, mission and policies > Issuing required instructions for preparing budgets, procedures, and schedules etc. > Strategic planning and policy formulation > Appointment of middle level managers and controlling activities of all departments > External networking and connections > Responsible for performance of organization, provide guidance and direction Middle Level: Consisting of departmental and branch managers, they are accountable to top management for smooth functioning and performance of department. Generally, in smaller companies there is only one layer of middle level managers but in bigger organizations junior and senior levels of middle managers may be present. Roles and responsibilities of middle level managers are as follows: > Executing activities and policies in line with objectives and direction of top management > Making plans for organizational sub-units > Development and Employment of Lower level management > Communication channel between top and lower level management > Evaluating performance of lower level management > Responsible for directing and coordinating activities within the department > Motivating lower level managers for performing betterLower Level: Consisting of supervisors, section officers and superintendent, these executives work largely with personal oversight and direction of operative managers/ employees. Their activities include: > Assigning jobs to different workers and guiding them for day to day activities > Responsible for both, quality and quantity of production > Communicating workers’ problems and challenges to higher management and their objectives to workers > Responsible for training workers > Help in grievance handling of workers > Arrange necessary inputs in terms of machines, materials for getting things done > Preparing reports about performance of workers and assessing them > Ensuring discipline in organization 1.9 Applications of Management: Management is used in every field owing to principle on which it is based i.e. a group of people working towards a common goal need management for accomplishing the desired goal effectively and efficiently. From every transaction of bank, airline industry, small and large businesses (be it a small coffee and eateries shop or a big MNC), economics, financials and even in our homes, we see pieces of management at every point. Setting goals, proper communication, coordinating with group, evaluating progress and taking corrective actions is what forms the crux of every action. Marketing: Developing best marketing strategies, competitor analysis and boosting the marketing efforts, all require good deal of management skillsOperations: Identifying operational bottlenecks, adhering to customer requirements and supply chain management Finance: Deciding Budget, adhering to decided budget, identifying P&L trends and being alert in case of deviations Human Resources: Outlining policies, procedures, effective functioning of organization and bringing tech disruption in HR is possible if management is proactive and effective Information Technology: Technological trends, bring a market leader, required systems, strategies and constant innovation etc. comes under effective management Science: Problem-solving, decision-making, deploying analytical methods, bringing in objectivity and universally accepted norms is also a part and application of management as a science 1.11 The Role of Manager in an Organization: a. Interpersonal role of manager: Grows out of manager’s Position and involves developing and maintain relationship with important other people/ organizations/ customers v Leader - Manager plays role of a leader by planning, organizing, guiding and motivating employees v Liaison and communicator - Effectively communicates organization’s vision to employees and liaisons between customers, employees and other managers v Figurehead for organization -Symbolizing organization for customers and building a rapport with employees, customers resulting in creation of his positive association with the organizationb. Informational Role: Revolves around receiving and transmitting information ¥ Monitoring - Seeking internal and external information which can affect organization through reports, periodicals an contacts which helps in better understanding of organization &industry v Disseminator -Transmitting available information to members of organization v Spokesperson - Outside transmission of information about organization c. Decisional Roles - Making important decisions that affect the organization v Entrepreneur - Initiator, designer and motivator of innovation and change undertaken in sync with organizational strategy v Error Handler - Corrective organizational strategy dealing with taking action in times of difficulty v Resource allocator - Scheduling,allocation and authorization of all resources (time, money, human, machine) efficiently and effectively v Negotiator - Manager works as a negotiator while dealing with customers, competitors, suppliers, unions and employees in times of crisis