UNIT 2 : Rupendra

INTRODUCTION TO Gopali
MANAGEMENT
MANAGEMENT
As how the mind controls the human body and its function , similar
management (mind) controls the various activities (human body) in the
Organization
Collection of physical equipments, 4 M‟s in Organization – Men, Machine,
Materials, Money leads to nothing. For efficient and profitable functioning it
is necessary that all these factors are put to work in a co-ordinated manner.
The term management has been defined in several ways
Some define management as a process comprising specific functions
such as planning, organizing, leading and controlling
Others define it as the process of working with people and resources to
accomplish organizational goals

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MANAGEMENT DEFINITION
According to Ricky W. Griffin (2009), “ Management is a set of activities
(including planning, organizing, leading and controlling) directed at an
organization’s resources (human, financial, physical, and information), with
the aim of achieving organizational goals effectively and efficiently in a
changing environment”
This definition highlights five core components of managerial work. These
are:
I. Planning, organizing, directing and controlling the activities of human and other
resources
II. Making the most efficient and effective use of resources
III. Coordinating various activities
IV. Achieving organizational objectives and
V. Coping with a changing environment

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So, basically management is the art of getting things done through others.
According to Harold Koontz :
“ Management is the process of designing and maintaining an environment
in which individuals, working together in groups efficiently to accomplish
selected aims”

 Managers carry out their managerial function

 Applies to any kind of Organization
 Applies to managers at all Organizational levels
 Aim is to create a surplus
 Concerned with productivity, implies effectiveness and efficiency
 Mgmt of 4 M‟s in the Organization – Men, Machine, Materials & money

4
Theo Haimann has given following three concepts of Management

Management

As a Noun As a Discipline As a Process

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1. Management as a Noun:
When management is used as a noun, it refers to all managerial personnel of
an organization who have policy making, supervisory and controlling
responsibility for achieving organizational goals
It is a collective noun consisting of BOD, Managing Director, General
Manager, Department Heads, Supervisors etc
Thus , when we say management of Himalayan Bank is good, we are
referring the persons who are managing the organization

2. Management as a Discipline:
 A discipline may be defined as a branch of knowledge or subject of instruction
 When used as discipline, management is a specialized branch of human
knowledge, which involves the study of principles and practices of
management
 It is a subject of study, which is now formally taught in colleges and
universities.
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3. Management as a Process:
 As a process, management refers to the series of interrelated functions
 They are performed a by managers to make productive use of materials
and human resources
 The process of management involves the determination of objectives and
putting them into action
 Hence, management is the process of planning, organizing, leading and
controlling the efforts of organizational members to accomplishing
objectives of an organization

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CHARACTERISTICS OF
MANAGEMENT
1. Achieving the Objectives:
 An organization comes into existence to attain certain objectives
 Management deals with the achievement of these objectives
 A manager‟s success is measured by the extent to which these
objectives are achieved
 Hence, goal setting and goal attainment are the strategic parts of a
manager‟s job
 Objectives provide the standard against which the performance can be
evaluated
 A manager‟s efficiency and tact can be measured by his or her
capability of setting goals and achieving them
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2. Working with others:
 Organizational goals are achieved with the joint effort of people
 Therefore , the managerial challenge lies in working with people and
managing group efforts
 Management can provide effectiveness to human efforts only when team
or group activities are managed properly
 Managers would fail in their work if they are poor in interpersonal
relations, communication , coordination and adjustment
 The basic elements in teamwork are motivation and empowerment

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3. Attaining Efficiency and Effectiveness:
 Efficiency is defined as “getting things right”
 Efficiency is the managerial ability to minimize or optimize the use of
organizational resources in attaining the objectives
 Effectiveness, on the other hand , is defined as “doing the right things”
 This means the ability of management to achieve the objectives
 Organizations are effective when managers choose appropriate goals and
then achieve them
 Hence, Efficiency and Effectiveness are the twin pillars of managerial
success
 Therefore, the managers should work to make intensive use of a variety
of individual-level and organizational-level resources to accomplish the
expected outcomes

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EFFICIENCY AND EFFECTIVENESS

Means Ends
Efficiency Effectiveness

Goals

Goal Attainment
Resource Usage

Low High
Waste Attainment

FOM 1.9

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4. Universal Activity:
 Management is a universal in nature
 It is necessary and practice in almost all types of organization
 It is essential in all level of organization
 Management is required or essential where there is human activity
 It means, wherever there is human activity, there is a management
 The principles of management are universally applicable

5. Dynamic Activity:
 Management is a continuous and dynamic activity
 The principles are flexible as per the need and requirements of time and organization
 The system of management of today may not be suitable or applicable tomorrow
 They may be applied in different environment in different situation
 Management need to modify its style and system as per the time, situation and need of the
organization

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6.Distinct Process:
 Management is a distinct process in the sense that it uses different
resources like physical, capital and informational through human resources
 These functions have different functions and are inter-related with each
other
7.Social Process:
 Management is a social process as the activities of management are
performed by the use of human
 It utilizes and mobilizes the human resources for the achievement of
organizational goals
 It has to fulfill the needs ,wants and demands of employees along with
fulfilling the organizational objectives.

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PROCESS AND FUNCTIONS OF
MANAGEMENT
Those functions which are performed by managers are called management
process
The process of management thus refers to a series of inter-related functions
It is the process by which management creates, operates and directs purposive
organization through systematic, coordinated and co-operated efforts
In other words, the management process suggests the functions to be
performed by managers for achieving a specific objective

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Management process is thus a systematic way of doing managerial activities like
planning, organizing, directing, controlling and decision making
George R. Terry summarizes the management process as “ a distinct process
consisting of planning, organizing, actuating and controlling, performed to
determine and accomplish stated objective by the use of human beings and other
resources”

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FUNCTIONS OF MANAGEMENT

Organizing

Controlling Staffing
Planning

Leading

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1. Planning:
Planning is the primary function of management without which no other functions
of management can go ahead
It involves selecting and determination of objectives, policies, procedures and
programs to realize the pre-determined goals of an organization
It chooses future course of action among alternatives. It requires decision making
by every level of manager.
According to Ricky Griffin “ planning is the setting organization's goals and
deciding how best to achieve them”.
In conclusion, Planning is the process of establishing goals and choosing future
course of action to achieve them.

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2. Organizing:
Organizing is the process of identifying the major activities and grouping them
into jobs and assigning the jobs to different departments and individuals to
implement them successfully
It is concerned with collecting and gathering various resources to achieve the
planned goals
The resources include human, financial, physical and information
It also includes delegating necessary authority to fulfill the given responsibility so
that people can perform their activities in the best and cheapest way to achieve
the organizational goal

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3. Staffing:
Staffing is the activity related with recruitment, selection, appointment and
placement of right person at right time for the right job
It is concerned with human resources. People are regarded as prominent
resource of the organization which mobilizes all the factors of organization.
Organizational performance depends upon quality manpower.
It is also related with organizing seminar, workshops, trainings etc for the
growth and development of employee‟s skills and competencies
It also includes the activities like performance evaluation, promotion,
transfer of employees, planning proper remuneration, reward management
and maintenance etc.

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4. Leading:
Leading can be defined as the management function of directing,
communicating, influencing, supervising and motivating human resources towards
the achievement of organizational goals
Leading takes place in teams, departments and divisions as well as at the top of
large organizations
Its ultimate purpose is to increase productivity
While functions like planning and organizing, are merely preparations for doing
work, the leading function actually starts the work

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5. Controlling:
Controlling is the process of measuring and comparing the actual performance
with that of planned performance and taking corrective actions
It check whether that the activities are performed as per the plan or not and
brings uniformity in action
The main objective of controlling is to take corrective action rightly by using right
techniques to avoid the deviation during the course of action to ensure the
attainment of desired results
If planning is looking ahead, controlling is looking back. Hence, there is no
control without plans and plans without control means no achievement

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1 Planning is the process of setting goals, and charting the best way of action for achieving the goals. This
Planning function also includes, considering the various steps to be taken to encourage the necessary levels of change
and innovation.

2
Organizing is the process of allocating and arranging work, authority and resources, to the members of the
Organizing organization so that they can successfully execute the plans.

3 A: Staffing is the process of filling the positions in the organization and keeping them filled.
Staffing B: Staffing is the process of recruiting and selecting the right person for the right job at the right time in the
right place.

4 Leading involves directing, influencing and motivating employees to perform essential tasks. This function
Leading involves display of leadership qualities, different leadership styles, different influencing powers, with excellent
abilities of communication and motivation.

5 Controlling is the process of devising various checks to ensure that planned performance is actually achieved.
Controlling It involves ensuring that actual activities conform to the planned activities. Monitoring the financial statements,
checking the cash registers to avoid overdraft etc., form part of this process.
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PRINCIPLES OF MANAGEMENT
Principles are the guidelines that direct the activities of an organization in order
to achieve the goal
Each and every principle is based on reality or truth
Principles of management are now universally used not just for managing
business organizations; they are also applied to various other types of
organizations , such as educational, social, military and government
In management, there are different principles which give guidance to do right
things

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The principles of management are flexible in nature
It means the principles cannot be applied equally all the time in all the situations
The principle which is suitable in one conditions may not be suitable in another
situation
It establishes cause and effect relationship. For e.g. the quantity demanded
decrease when price rises
All the management principles are equally important
According to G.HICKS, “Principle is a fundamental statement or truth providing a
guide to though or action.”
Management principle influence and guide a manager to be most effective in
carrying our different management functions like planning, directing, coordinating,
controlling , staffing and leading

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Fayol‟s Principles of Management
Henri Fayol (1841-1925)

 Henry Fayol had developed 14 principles of management through

his experiments and experience.
 As he has brought revolutionary change in the field of management,
he is also known as “Father of Modern Management”

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14 Principles of Henri Fayol

1. DIVISION OF LABOR
This principle implies that every employee should be assigned only one type of work on
the basis of his/her expertise

It facilitates specialization of work, which helps companies to produce better quality
products in bulk with same effort and resources

Division of work applies to all kinds of work, management as well as technical and at all
levels of organization

This brings efficiency, effectiveness and specialization in individual efforts

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 2. AUTHORITY & RESPONSIBILITY
Authority is a legitimate right or power to command the workforce by virtue of the
position
This gives the power to make decisions
Responsibility means obligation for the performance of the job assigned.
This principle says that authority without responsibility
leads to irresponsible behavior and responsibility
without authority will makes person ineffective
Fayol suggests that there should be a balance between
the responsibility and authority

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 3. Unity of Command

 This principle states that there must be only one superior who gives command

 A sub-ordinate should receive orders and be accountable to one and only one boss at a
time.

 He should not receive instructions from more than one person

 When a person gets instructions from many superiors then it create confusion and delays in
action

 Therefore, the employees should be made responsible towards only one boss

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4. UNITY OF DIRECTION
This principle believes that people engaged in the same kind of business or same kind of
activities must have the same objectives in a single plan.

If different superiors give different directions to a single subordinate to accomplish task,
then there will be no unity of direction

Without unity of direction, unity of action cannot be achieved.

In order word, there must be one head, one plan and one boss

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5. EQUITY
Equity refers to equality in all respect of fair treatment, kindness & justice

No one should be discriminated for different reasons like castes, religion, geography etc

For the same job, all should be made equally responsible

When management behaves in an equity manner, employees will be encouraged for the
efficiency and productivity

It ensures healthy industrial relations between management and labor which is essential for
the successful operation of the enterprise

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 6. ORDER
This principle is concerned with proper & systematic arrangement of things and
people.

It says that right man should be appointed at right place at right time

If things are not rightly ordered then it brings anomaly or irregularities in the
organization

 Arrangement of things is called material order and placement of people is called

social order.

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 7. DISCIPLINE
 Discipline means sincerity, obedience, respect of authority & observance of rules and
regulations of the enterprise.

It is very essential element of the organization

Without discipline an organization cannot attain its goals

Lack of discipline leads to failure of an organization

Subordinate should respect their superiors and obey their order.

Everyone in the organization should be self disciplined so that every work can be done
easily and smoothly

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8. INITIATIVE
Initiative means eagerness to initiate actions without being asked to do so.

The zeal and energy of employees are augmented by initiative

According to this principle, every manager must take step in order to make the work done
properly to realize the goal of an organization

Management should provide opportunity to its employees to suggest ideas, experiences&

new method of work.

The initiation makes every work possible as it encourages and boost up the morale of
employees

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 9. REMUNERATION
 Remuneration to be paid to the workers should be fair, reasonable, satisfactory & rewarding of the
efforts.

It must be in accordance with the experiences, qualifications, productivity etc of the employees

Organization should provide financial and non-financial benefits to the employees satisfying to
both employees and employer

A good remuneration always indicates the quality of the organization and employees

A good remuneration system encourages for higher productivity

and boost up the morale of employees

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10. STABILITY OF TENURE
The stability of tenure refers to the job security
Job insecurity results to frequent change of job
Employees should not be moved frequently from one job position to
another i.e. the period of service in a job should be fixed.
Lack of stability of tenure causes high labor turnover ratio
Due to this, efficiency and productiveness of organization
get decreases

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 11. SCALAR CHAIN
Scalar chain is the chain of superiors ranging from the ultimate authority to the
lowest.

It means, information and orders should flow form the right channel so that each
of the level gets informed and ordered properly

There should be unbroken chain for command and communication

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12. SUB-ORDINATION OF INDIVIDUAL
INTEREST TO COMMON GOAL
An organization is established by the people having different interest
Their interest may be individual or/and organizational
Individuals must incorporate their interest with the organizational needs
This principle emphasize on the general interest which would be beneficial
to both employees and employer

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 13. ESPIRIT DE‟ CORPS
It refers to „unity is strength‟ and strength of an organization lies in the cooperation and
harmony in individual effort

It means we must do the work jointly in order to materialize

the goal of an organization as single effort is not enough

The unity always generates team spirit which is the reason

behind the success

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14. CENTRALIZATION
Centralization refers to the degree to which subordinates are involved
in decision making.
Whether decision making is centralized (to management) or
decentralized (to subordinates) is a question of proper proportion.
According to Fayol, managers should retain final responsibility but
the subordinates should be given enough authority to do their jobs
properly
The task is to find the optimum degree of centralization for each
situation.

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MANAGERIAL HIERARCHY

Hierarchy in an organization is necessary and inevitable

Level of hierarchy refer to the division of authority and responsibility
among the various managerial positions
When superiors and subordinates are required to do more or less the
same work, the hierarchy would not be accepted
In practical terms, each level of the hierarchy must perform distinct
tasks

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From the managerial viewpoint, the following are necessary in respect to
hierarchy
The levels of hierarchy must be reviewed to determine how clearly one is different from
the others
Each level must be given clear responsibility and authority to carry out the assigned
tasks because vagueness would be an obstacle for the managers to achieving the
results expected to them

There are three levels of management classified on the basis of size,

nature of the organization, range of production etc.

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Levels of management

Top
Management
President, CEO,
Executive
Vice Presidents

Middle Management
Sales Managers, Division Managers,
Department Managers

First-Line Management
Foreman, Supervisors, Office Managers

Non- Managerial Employees

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 LEVELS OF MANAGEMENT
1. Top Level Management:
Top management is also known as executive management
The top level management is the first and foremost level of management for the
welfare, growth and development of the organization
Its main responsibility is to make plan, policies etc. to obtain the organizational
goal and for the betterment and survival
It comprises of CEO,Managing Director, BODs, General Managers etc
It devotes more time on planning and coordinating functions
They also represent the organization to the external environment like
government officials, executives of other organizations and so forth officially

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The important functions of top management include:
a. Determine the goal of an organization
b. Preparing plans, policies and strategies to achieve the goals
c. Set up an organizational structure to conduct the operations as per plan
d. Performing direction, controlling, motivation, communication etc
e. Assemble resources of money, men, materials and machines for executing the
plans
f. Exercise effective control of the operations

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2. Middle Level Management:
Middle level management consists of department, division and
section head
It is also called tactical management
The main function of middle level management is to implement and
control the plans and policies formulated by top level management
The level also formulates the objectives of department
The middle level managers may be personnel manager, sales
manager, division head, section heads etc
They are subordinates to the top managers and responsible for the
first-line managers

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The main functions of middle management are as follows:
a. To interpret the plans and policies developed by the top level management
b. To set departmental goals and objectives
c. To guide, instruct and apply controlling to the departments and lower level
d. To communicate lower level about the plans , policies and guidelines set by
top level management
e. To recruit and select the suitable staff
f. To assign duties and responsibilities for first line officer

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3. Lower Level Management (First Line Management):
Lower level management is also known as operating management, first
line management or supervisory-level management
This is formed by supervisors, foreman and different officers like sales
officer, account officer, finance officer etc
These officers are mainly responsible for carrying out the assigned duties
for the achievement of organizational goal
They are directed and controlled by middle level managers
In contrast to top and middle level managers, the first line managers
spend a large proportion of their time supervising the work of subordinates

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The main functions of first-line management are as follows:
a. To arrange the necessary tools , equipments etc. for the workers
b. To solve the problems of workers
c. To maintain the good human relations and discipline among the workers
d. To classify and assign the duties
e. To guide the workers about the procedure of working
f. To build a high group morale among the workers
g. To provide training to the workers
h. To communicate about the success or failure of the operation with
middle level management
i. To communicate the plan and policies guided by middle level
management

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 Most

Least
Important
Important
Planning

Organizing

Top
Staffing

Managers
Directing

Controlling

Planning

Organizing

Staffing
Middle
Managers

Directing

Controlling

Planning

Organizing
Importance of management functions to managers in each level

Staffing
Managers
First-Line

Directing
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Controlling
 JOB CONTENT OF MANAGEMENT LEVELS

S.No Characteristics Top Management Middle Management Operating

Management

1. Focus on Planning Heavy Moderate Minimum

2. Focus on Control Moderate Heavy Heavy

3. Time Frame One to five years Up to a year Day to day

4. Scope of activity Extremely broad Entire functional area Single sub-function

or sub-tasks

5. Nature of activity Relatively Moderately Highly structured

unstructured structured
6. Level of complexity Very complex, many Less complex, better Straight forward
variables defined variables

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S.No Characteristics Top Management Middle Management Operating
Management

7. Job Measurement Difficult Less Difficult Relatively easy

8. Result of activity Plans, policies and Implementation End product

strategies schedules,
performance
yardsticks

9. Types of information External Internal, reasonable Internal historical, high

utilized accuracy level of accuracy

10. Mental attributes Creative, innovative Responsible, Efficient, effective

persuasive,
administrative

11. Number of people Few Moderate number Many

involved

12. Department/divisional Intra-division Intra-departmental Inter-departmental

interaction

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 MANAGER
Managers are the work-force having different managerial skills
A manager is someone whose primary responsibility is to carry out the
management process within an organization to achieve the organizational
goals.
Changing nature of organizations and work has blurred the clear lines of
distinction between managers and non-managerial employees

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TYPES OF MANAGER
There are different types of managers in an organization
depending upon the levels of management and area of function
Managers can be classified into following types:
1. Top Level Managers
2. Middle Level Managers
3. Lower Level Managers

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TOP LEVEL MANAGERS
The managers who belong to the highest level of managerial hierarchy are top
level managers
Top level managers include Chief Executive Officer (CEO), Chairman,
President, Managing Directors etc
They are the key persons of the management and also called as strategic
managers
They are responsible in formulating long term plans, policies, mission, vision,
goals etc of an organization
Top level managers are the ultimate source of authority

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MIDDLE LEVEL MANAGERS
The managers who work under the guidance of top level managers are
the middle level managers
Middle level managers are in the largest group of managers in an
organization
They consist of departmental heads from different departments like
production, human ,finance, operation, marketing, sales etc
Middle level managers have more authority as compared to lower level
managers as they are delegated more authority by the top level managers
Middle level managers are just like a linking pin between top managers
and first line managers

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LOWER LEVEL MANAGERS
The managers who lie at the lowest level of managerial hierarchy are lower
level managers
These mangers are the actual performer of the activities
It includes supervisors, coordinators, office managers etc
They are also known as first line managers or operating level of managers
They are directly involved in implementation of plans & policies formulated by
the top and middle level managers
Lower level managers are delegated less authority as compared to middle level
managers

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MANAGERIAL SKILLS
Skill refers to the ability of an individual to perform a given task
effectively & efficiently
It‟s the ability to translate knowledge into action
A manager must posses a wide variety of skills and abilities to carry out
various management functions
Robert Katz has identified three basic kinds of skills necessary for
successful managers
They are : Technical Skills, Human Skills and Conceptual Skills
However, at present diagnostic skills and digital skills are also
prerequisites to managerial success

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Technical skills:
Technical skills are the ability to use the procedures,
techniques, and knowledge of a specialized field
Technical skills are those skills necessary to accomplish
specific tasks within the organization
Technical skills are more important to first line managers
For e.g. an accountant has to have expertise in accounting

58
 Human or interpersonal skills:
Managers spend considerable time interacting with people
both inside and outside the organization
This includes the ability to understand other people and
interact effectively with them.
Human skills are the ability to work with, understand and
motivate other people
Human skills include interpersonal skills such as
communication, negotiation, bargaining, directing, leading
motivation and conflict resolution

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Conceptual skills:

Conceptual skills involves the formulation of ideas and concept

It represent the manager‟s ability to organize information to better
understand and take a broad and farsighted view of the organization
They include manager‟s ability to see the organization as a whole and
understanding how different parts depend on one another, and a change in
one part will impact the other parts
This allows them to think strategically to see „ big picture‟ and to make
broad based decision that serve the overall organization
Thus, planning and organizing functions require a high level of conceptual
skill.

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Diagnostic Skills:
The skill that enables the managers to visualize and analyze the most
appropriate response to a situation that helps to solve the managerial problems is
a diagnostic skill
A manager must diagnose and analyze a problem in the organization by studying
its symptoms and then developing a solution
Diagnostic skills allow the manager to better understand cause-and-effect
relationships and to recognize the optimal solution to problems
The importance of diagnostic skills increases as the manager is promoted to the
higher level

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Management Level and Skills

62
SKILL DISTRIBUTION AT
VARIOUS MANAGEMENT LEVELS

63
MANAGERIAL ROLES
A role is an organized set of behaviors
A managers, in order to be effective, has to assume different roles at different
point of the time as demanded by the call of duty
In 1960, Henry Mintzberg conducted a study to understand about the
managerial roles.
 He identified 10 managerial roles that are common to all managers.
These 10 managerial roles are grouped under: Interpersonal,
decisional, and informational roles.

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 ROLES OF MANAGER

Roles of Manager

Decisional Informational
Interpersonal
• Entrepreneur
• Figurehead • Monitor
• Disturbance handler
• Leader • Disseminator
• Resource allocator
• Liaison • Spokesperson
• Negotiator

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A: Inter-personal Role:
Managers need to interact, lead and represent their subordinates
Through this role, managers provide direction and supervision to
employees
In interpersonal roles, managers develop contacts and build relationships
with people inside and outside the organization
They communicate with peers, superiors, subordinates, suppliers, customers and
bankers both formally and informally
Interpersonal roles are characterized by three activities: Figurehead, Leader and
Liaison

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1. Figurehead:
 In figurehead role, the manager represents the company legally and
socially to those outsiders of the organization
 Every manager has to perform some ceremonial duties such as
attending the wedding of employees, entertaining dignitaries, attain
seminar and meeting conducted by different parts of the business
society and so on
 These roles may or may not have any real substance

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2. Leader Role:
 The leader role defines the relationship between the manager and
employees
 The interpersonal roles keep the manger in a unique position to get and
disperse information
 It creates the direct relationship with the people in working in the
organization
 Managers must motivate and direct the activities of subordinates
towards accomplishment of organizational objectives

3. Liaison Role:
 In the liaison role, the manager interacts with peers and people outside
the organization
 The top level manager uses the liaison role to gain favors and information,
while the supervisor uses it to maintain the routine flow of work
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B. Informational Roles:
 Informational roles are closely related with tasks necessary to obtain and
transmit information
 Managers perform informational roles in various ways
 They handle a great deal of information in connection with their work
 The sources of such information are different
 The role of the manger is to develop a network of contacts and relations
within and outside the organization for collection, processing, and
dissemination of such information
 Information roles are characterized by three activities: Monitor,
Disseminator and spokesperson

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1. Monitor Role:
 In the role of monitor, the manager receives and collects information
 The information collected, by scanning internal and external
environment, facilities managerial decision-making function
2. Disseminator Role:
 In the role of a disseminator, the manager transmits special
information into the organization
 The top level manager receives and transmits more information from
people outside the organization to the department level managers and
department level managers to lower level managers and vice versa

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3. Spokesperson Role:
 In the role of spokesperson, the manager disseminates the organization‟s
information into its external environment to whom it is required
 Top level manager is seen as an industry expert, while the supervisor is
seen as a unit or department expert
 They inform and satisfy various people who influence organization‟s goals
 They provide the financial information regarding financial performance to
the shareholders
 They also assure consumer groups that the organization is meeting the
social obligation

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C. Decision Role:
 Decision-making is the vital function of every manager
 Decision-making involves negotiations and compromises with competing
or conflicting interests
 Managers develop strategies to deal with such negotiations and
uncertainties, and put them into action to attain goals
 Hence, decisional roles closely associated with the methods managers
use to plan strategy and utilize resources
 Decisional roles of a manager are conceived as: entrepreneurship,
disturbance handler, resource allocator, and negotiator

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1.Entrepreneur Role:
 In the entrepreneur role, the manager initiates change
 The manager seeks and identifies opportunities to promote the
needed change
 He is also involved in the department and implement and implement
of change strategy
2. Disturbance Handler Role:
 In the disturbance handle role, the manager deals with threats to the
organization
 The role equips the manager to take corrective actions needed to
resolve problems or unexpected disturbances
 He must seek solutions to various unanticipated problems like strike,
accidents and so on

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3. Resource Allocator Role
 In the resource allocator role, the managers need to choose the area or
sector as to where the organization will expand its efforts
 These roles deal with allocation of scarce resource in the most efficient
and effective way
 Such roles guide specific activities include developing and monitoring
budgets, forecasting future resource needs and handling problems in
acquiring them

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4. Negotiator Role
 In the negotiator role, the manager negotiates with outsiders like suppliers
, capital provider, and other elements of society on behalf of the
organization
 The top-level manager makes the decisions about the organization as a
whole, while the supervisor makes decisions about his or her particular
work unit
 For example, a manager might represent the corporation to negotiate a
trade union contract, a joint venture and so on

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MANAGEMENT CAREERS
Management careers are considered as comprehensive, interesting and
challenging areas of profession in the global business
Many business entities such as manufacturing industries, hospitals, financial
institutions, insurance companies, wholesale and retail business, business service
companies, schools and colleges etc are providing management careers
Besides, government agencies and social institutions also provide career for the
managers
Based on nature and size of business organizations, they need different types of
managers for effective functioning of business activities
Therefore, management career is considered as complex and comprehensive and
taken as highly payable profession in global business

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Bachelor of Business Studies degree prepares and qualifies graduates for a
variety of career paths within multiple industries and sectors
Finance, accounting, operations, management, marketing and human resource
management are some of the more common management careers
Earning a degree in business management can also lead to a variety of other
business management careers and jobs
Companies in most industries- including advertising, public relations, information
technology, financial services and manufacturing employ business graduates
However, a career in management depends on talent, experience and self
marketing skills of the graduates

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EMERGING ISSUES AND CHALLENGES FOR MANAGEMENT

Managers play a central role in facilitating organizational effectiveness

Thus, the managers must have the insight to see and understand the
emerging organizational challenges
Several challenges confront managers today
These challenges arising mainly from significant changes in the outside
world
Managers must have the skill to diagnose the environment, analyze
competitors‟ actions, compete in international market and manage
organizational change

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1. Changing Organizational Perspective
Traditional views considered an organization as a closed system, operating in a
predictable and stable environment
Modern view of organization rejects these thinking about organizations
Today, organizations are viewed as complex entities operating in highly uncertain
and instable environments
Organizations are viewed as entities made up of multiple internal and external
realities
This paradigm shift in perspectives had made the job of a manager even more
challenging

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THE CHANGING ORGANIZATION
Traditional Organization New Organization
Stable Dynamic
Inflexible Flexible
Job-focused Skill-focused
Individual-oriented Team-oriented
Permanent Jobs Temporary Jobs
Command-oriented Involvement Oriented
Managers always make decision Employees participate in decision-making

Rule-oriented Customer-oriented
Relatively homogenous workforce Diverse workforce
Hierarchical Relationship Lateral and networked relationship
Working in Office Working through telecommuting

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2. Globalization of Business:
 Globalization phenomenon is getting popular these days
 Globalization of business refers to the free flow of goods service,
technology, labor, capital information, across the national boundary
 It is closer economic integration among different countries in terms of
flow of good service, capital labor and technology
 Globalization is the tendency of expanding business in different
countries.
 Managers have to work in boundary less world. There is no territory or
barrier in export and import business
 Globalization invites global competition. Organizations which were
competing locally with local competitors now they have to compete
with global competitors

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 It is very difficult to organization to survive and develop in such
situation. Organizations should increase quality of product and
reduce cost which is a challenge for manager. Many
organizations are becoming global these days.
 They are running their business in different countries with
different culture, climate, and geography, political and economic
system.
 It is a challenging work for managers to prepare executives
officers who can run business in such countries.

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3. Quality Assurance and Productivity:
 Quality is the ability of the product to satisfy customers need
 How to improve quality of the product or how to assure customers about the
quality of the product has become a great challenge for management
 Quality ensures organizations survival and growth Organizations use quality
to compete with competitors
 Only improving quality of product organizations can face the global
competition
 Therefore, there must be continuous improvement in quality
 Along, with increasing quality to increase productivity again is another
challenge for management
 Organization must try to achieve higher productivity. Higher productivity only
helps to reduce cost.
 Productivity is the ratio between input and output. Improved technology,
employees, regular skill development and better utilization of resources helps
to increase productivity.
 Total quality management is the latest approach or needs to improve quality

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4.Ethics and Social Responsibility:
Ethics is study of how our decisions affect other people. It is the study of
people‟s right and duties
The moral rules the people to make decisions and the nature of
relationship among people
Ethics is to follow social code of conduct, social norms, values and
attitude
The decisions made by managers have a broad reach both inside and
outside the organization. So, managers must follow ethical norms and
consider social responsibilities
 Managerial decision must be based on ethical ground. But, these days
ethics is decreasing in business world
So, many business organizations have unethical practice. Because of the
unethical practice of some business houses, all business world is blamed

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How to fulfill social responsibility is also a challenge for
management.
The concept of corporate social responsibility has
developed.
Social responsibility means obligation of business
organizations towards society community, people, share
holders, etc.
To provide quality product at affordable price, to develop more
and more employment opportunities, to carry out different
development activities in society, to control pollution are some
social responsibilities of business organizations

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5. Corporate Governance:
Corporate governance infuses values of fairness, accountability,
responsibility and transparency into organizations
Today, there is a growing realization among managers that corporate
governance in an essential tool for improving performance
There is also growing demand of the stakeholders that managers should
contribute to a healthy business climate by adopting best practices and
being accountable to shareholders
These expectations would be definitely add to the challenge of a
manager‟s job

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6. Innovation and Change:
Management must pay attention on innovation and change. Otherwise, they would go out
of business.
Rapid innovations are taking place in technology, product and service. Product lifecycle is
getting shorter and shorter.
Product needs continuous improvement if the life span is to be made long.
 New ideas, new techniques, new methods are being innovated; there must be new
inventions of ideas, new invention of product. Old and outdated product cannot satisfy
customers.
There is change in external environment, political and legal, socio-cultural, economic and
technological environment change rapidly.
How to adjust with such change, how to keep pace with such change that has become
challenge for management.

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7. Workforce Diversity:
Modern organizations are characterized by workforce diversity
 Diversified workforce is the reality of business these days.
Organizations are becoming heterogeneous in terms of ethnicity, gender,
nationality, age group, etc.
People having different religions, different nationality works together under
one roof.
 Different people have different nature and they show different behavior
because they come from different background. How to manage such
diversified workforce is a great challenge for managers..
If they are not managed properly, they create serious problem.

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8. Empowerment:
 This is the age of empowerment.
Role difference between management and workers has narrowed down.
Status between worker and manager is very narrow
Most of the decisions are taken at operating level. Workers are free to
plan and schedule their work
They are given more and more autonomy and freedom. They participate
in major decision making activities
Joint goal setting and joint performance evaluation has become common.
Self managed work team had been established, more and more
information are given to employees, and how to manage such empower
team has become challenge for managers

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9. Technology:
How to utilize advanced and sophisticated technology has become another challenge for
management.
Tremendous advancement has been made in production, distribution and information
technology.
 Managers must manage all this technology with the development of computer, the face
of information technology has absolutely changed.
 Introduction of internet, email and other electronic media, have benefitted organizations
in the field of productions, distribution and other areas of business.
Decision making have been facilitated by information technology. Technological
advancement has changed the nature of job.
Most of the jobs which were performed by unskilled and semi-skilled labors previously,
now they are performed by skilled labors.
Organization must train their employees about new technology. Only with new
technology, Organization can compete with other competitors.

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10.Relationship Management:
Relationship management is defined as those processes that organizations and
individuals use in order to maintain the connections they have with each other
It has been now realized that fostering good relationship is a vital component to
both professional and personal success
Relationship management, however, entails much more than how one deals with
co-workers and customers
It involves a number of components: customer service, professional networking,
partnership team building and concern about the organization‟s reputation both
within and outside

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11. Workplace spirituality:
Workplace spirituality is about individuals and organizations seeking work
as a spiritual path, as an opportunity to grow and to contribute to society in
a meaningful way
It is about care, compassion and support of others; about integrity and
people being true to themselves and others
It means individuals and organizations attempting to live their values more
fully in the work they do
E.g. of vertical organizational spirituality include: meditation time,
accommodation of prayer practices
Horizontal organizational spirituality include: caring behaviors among co-
workers, a social responsibility orientation, service commitments to
customers, respect of self and of others
Workplace spirituality is now a growing concern for organizations

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12. Knowledge Management:
Informationalization has now changed the knowledge base of societies
In a knowledge-based society, knowledge which is the ability to create things,
determines competitiveness
Hence individuals and business enterprises in knowledge-based societies must
strive to maintain competitiveness by acquiring knowledge
Managers must continue to strive to find new methods of working

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