Organization Type:

The two types of organizations are:

1. Formal Organization: The four factors (objective, people, structure, technology)
presented here are very clearly indicative, precise, and well defined.
2. Informal Organization: The four factors (objective, people, structure, technology) are
here but they are not clearly indicative, not well defined.
How big is the term ‘Organization’?
Or, how comprehensive is the term ‘Organization’?
Organization means when two or more processes are engaged in a systematic effort to achieve
desired objective(s) that is either to produce or render service.
In fact, we always in an organization.
- We are born in an organization.
- We live in an organization.
- We die in an organization.
Now, we are interested in the management of formal organization i.e. Business Organization in
particular.

Business:
Etymology of the word ‘Business’ concerns the word’s roots and origin. If a man is busy with
activities which are not production centered or production oriented- then he is not in business.
Production means ‘creation of utility’. So, if a man is busy with creation of utility, then it means,
he is engaged in business.
Business has two main points:
- Industry: The manufacturing side of business.
- Commerce: The distribution side of business.

Utility:
Utility is the capacity to satisfy human need and want. Something (product, service, idea) which
has the capacity to satisfy human need/want has utility.
We are talking of the management of those organization which are engaged with the above three
point (product, service, idea).
Need and Want:
Needs refer to those goods and services which are essential for our living. Our existence will be
at stake without that.
Example: food, cloth, shelter, education, and medical care.
Wants refer to those goods and services which are not essential for our living. We require them
for better living.
Example: car, AC, mobile phone etc.
o Need is limited but want is unlimited
o Need already exists, it cannot be created but want maybe created.

Practice of Management:
It is as old as human civilization. Management is a team effort, management is a group effort,
management is a joint/collective effort. When people lived in a group, from that time
management term came.

Management as a Subject/Discipline:
Management is a subject which is taught in school, college, and university. It is the product of
20th century. It is a product of recent origin. Before 1900, only three universities of the world
taught management as a subject.
Two of which are:
- University of California
- University of Chicago
“The managers who built the pyramids are the best managers of the world.”
- Peter F. Drucker
(100,00 peoples, built the Great Pyramid in Giza)

Definitions of Management:
Definition 1: Management is the art of getting things done through others.
There should be at least two parties:
1. Manager (who will give directions
2. Managed (subordinates who will follow directions)
What usual questions should come to our mind?
- What things are to be done?
- When things are to be done?
- How things are to be done?
- Why things are to be done?
- Where things are to be done?
- By whom things are to be done?
- For whom things are to be done?
A manager should know answers of all the questions above. When a manager knows the answers
of all the questions above, then the definition ‘art of getting things done through other’ can arise.
So, when managers know the objective(s) of their organization, then they will be able to know
the answers of the questions.

Definition 2: Management is leading a group of people.

Management is leading a group of people towards a definite direction. Leading a group of people
does not arise if a manager does not know the objective(s) of the organization.

Definition 3: Management is effective and efficient utilization of resources.

Two important things to know:
- Resources are limited.
- Man cannot create any resources.
Because of the two reasons above, we should properly use our resources. Just to achieve our
objective, we shall have to utilize our resources effectively and efficiently.

Definition 4: Management is a decision-making process.

Decision making is a very important issue for a manager.
Why do we need decision-making?
We make decision(s) to achieve our objective(s). Whatever we find around us are the decisions
of many managers of so many organizations.

Definition 5: “Management is knowing exactly what you want men to do and then seeing
that the do it in the best and cheapest way.” – F.W. Taylor
Definition 6: Management is the management of 6 Ms.
Human resources:
- Man
Non-human Resources:
- Material
- Method
- Machine
- Money
- Market
So, management deals with both human and non-human resources.

Definition 7: Management is setting objectives of an organization and realization of those

objectives by using the available resources efficiently and effectively.
The three important factors from the definition above that a manager should follow:
- Setting objective(s)
- Realizing objective(s)
- Making proper use of available resources
Management ensures these factors. These factors do not happen automatically. One must go
through a definite set of functions.
‘Management’ is the process of achieving organization goal(s) through engaging in four major
functions of planning, organizing, leading, and controlling.

Management of Organization:
The four important factors of an organization are:
1. Objective
2. People
3. Structure
4. Technology
1. Objective:
It is mandatory for existence of an organization.
What is meant by objective?
- Objective indicates where we are and where we want to go. In other words, objective
bridges the gap between the point, where we are and where we want to go.
- Objective is the result; what we want to achieve.
- Objective is the target; what we want to hit.
- Objective is the destination; where we want to reach.
- Objective is the mission; what we want to accomplish.
It is the duty or responsibility of the manager in an organization to set and objective in the
organization. It is the primary task of the manager. It completes half of the job/duty of the
organization.
Guideline of a manager are as follows:
- A manager should set his objective(s) at a point which is not very easy to achieve.
- A manager should set his objective(s) at a point which is not impossible to achieve.
Never set an objective which is impossible to achieve because it causes wastage of resources,
time, and money. Also never set an objective which is very easy to achieve. It causes waste of
resources.
Then, where does a manager should set his objective(s)?
The answer is theoretically simple. The manager should set his objective(s) somewhere between
the two points.
How to find out the point?
Setting and objective is very east but the difficult part is to implement the objective. Without
proper implementation, objective becomes meaningless. For implementing the objective, there
will be action plans. Action plan depends on the objective. If the objective changes, so do the
action plans. An objective detects, controls, guide the action plans. Action plan impacts on
objective. The primary part of a job is meaningful objective.
“If a navigator doesn’t know to which port he is steering, no wind is favorable to him.”
- Seneca
2. People:
An organization must have people.
There are two types of people in an organization:
- People within the organization: Manager, Administrator, Executive, Staff, Worker,
Personnel, Employer.
- People outside the organization: Supplier, Debtor, Creditor, Customer, Buyer, Utility,
Service provider.
A manager deals with both the people inside the organization and the people outside the
organization.

3. Structure:
Structure shows the authority and responsibility relationship. It shows flow of information of
authority and responsibility. In other words, structure indicates who will give direction and who
will follow the direction. Structure also shows communication channel.

Board of Directors  Chairman  Managing Director  Director  General Manager

 Deputy General Manager  Additional General Manager  Manager

Structure makes and organization disciplined. Structure of and organization cannot be seen or be
visible, cannot be touched. It can be represented through an organizational chart or organogram.

4. Technology:
Technology is dynamic. Dynamic means changing constantly. It makes our life easy and
enjoyable. Philosophies, technologies are not the same today as they were yesterday, nor will
they be the same tomorrow as they are today.

Functions of Management:
The four functions of management are as follows:
1. Planning
2. Organizing
3. Leading
4. Controlling
1. Planning:
- Planning is deciding what is to be done in advance.
- Planning is projecting a course of action.
- Planning is design for tomorrow’s action.

2. Organizing:
Organizing is the process of arranging and allocating both human and non-human resources so
that plans can be carried out successfully.

3. Leading:
Leading is the process of influencing others to engage in a work behavior necessary to achieve
organizational goal(s).

4. Controlling:
Controlling is the process of regulating organizational activities so that actual performance
conforms to expected organizational goal. In other words, this ensures the activities are running
according to the plan made.

Nature of Management Functions:

1. Management functions are ITERATIVE: One management function is the sub
function of other management functions. Managers should give more attention to the
people outside of the organization. One function calls other functions, that’s why
managements functions are iterative.
2. Management functions are UNIVERSAL: Universal means what is accepted by all. All
managers, in all organizations all over the world follows the functions of management.
They could be different (commercial organization, govt. organization, non-commercial
organization) but the basic functions are not different, it’s the same.
3. Managements knows are TRANSFERRABLE: As because the functions of
managements are universal; management know how, management knowledge,
management ideas are transferrable from one organization to another, maybe from one
country to another.
 4. Management functions have a SEQUENCE: Sequence means orderly management of
events to make a complete sense. Management function has a sequence, because it starts
with planning and ends with controlling. It doesn’t mean that a manager first finishes
planning completely before starting organizing, or finish organizing before starting
leading, or finish leading before starting controlling. A manager can start work with all
the functions simultaneously. Of course, a manager cannot start with controlling, or with
leading, or with organizing.
All the management functions are equally important. USA, and Japan, these two are the leading
nations in management.
So, why are we not bringing the management of USA, or Japan here in Bangladesh, as
management is transferrable from one country to another?
Management is CULTURE BOUND. That’s is why it is not possible to transfer the management
of Japan, or USA to Bangladesh. If we want to bring the management of Japan, or USA, we also
need to bring their culture.
In Japan, one person stays in the same organization in their life time. They never change
organization. They always thing that their organization is as like as their family. They also thing
that their boss, their superiors are as good as their parents. They always believe that their boss or
superiors always want their betterment as like their parents do.
Deep of Sense of Belongingness (for Japanese):
- Every Japanese manager develops a formal relationship with subordinates.
- In Japan, every big organization has their own organization song, anthem, and before
going to start their work, all of them sing their organization song together.

Five Sentences of Business:

1. We all are in a business in some way or another.
2. Business is something with which we all live.
3. Business needs people, people also need business.
4. Business needs people in the form of owner, manager, employee, and customer.
5. People form the core of business
What does an organization do for us?
- Organization serves society.
- Organization accomplisher objective.
- Organization preserves knowledge.
- Organization provides careers.