UNIT 1: INTRODUCTION

 Management: concepts, meaning, essence,

levels and functions.
 Types of managers.
 Managerial roles and skills.
 Becoming a manager: role of education,
experience and situation.
 Business environment and society-external
environment, corporate social responsibility,
ethics, corporate governance and ethical
standards.
 Management is the process of getting
things done through others with the help
of some basic activities like planning,
organizing, directing, coordinating and
controlling.

 “Management is a set of activities directed

at an organization’s resources with the
aim of achieving organizational goal in an
efficient and effective manner.”-Ricky
W.Griffin
• Efficient:
“Doing things right”
Using resources wisely
& in a cost-effective way.

• Effective:
“Doing the right things”
Making the right decisions & successfully
implementing them.
 Human resources
 Financial resources
 Physical resources
 Information
 planning:- setting organization’s goals
 Implementation:
◦ organizing,
◦ directing,
◦ Coordinating
 leading
 Controlling:- control, assessment and
feedback
 Group Activity
 Goal-Oriented
 System of authority and responsibility
 Adopting situational approach
 Coping with environment
 Identifiable Functions in the Management
Process

1-9
 Manager
Someone who coordinates and
overseas the work of other people so that
organizational goals can be accomplished

 Classification of Managers:
Top Managers
Middle Managers
First-Line Managers
 Top Level

Highest Level, Brain of the organization

Responsible for overall management
Decision maker, set goal, objectives
Chairman, President, Executives Director, CEO
 Middle Level

Functional heads of different departments

Responsible for preparing and implementing
departmental plans
Mediator between top and lower level
HR, Finance, Procurement Managers
 Lower Level

Operating/front-line/supervisory
Day to day plans
Supervise, lead, control operating staff
Officers, Supervisors
 Inter-personal Role
Figurehead, leader, liaison

 Informational Role
Monitor, dissemination, spokesperson

 Decisional Role
Entrepreneur, disturbance handler, resource
allocation, negotiator
1) Interpersonal Role :
Manager performs interpersonal role in order to coordinate
and interact with the organizational members.

o Figurehead Role: It involves ceremonial work such as

greeting and receiving visitors, chairing board meeting,
attaining ribbon cut ceremony

o Leader Role: The manager is asked to serve as a leader. He

or she is responsible for hiring, training, and motivating
employees. Thus, encourages employees to improve
productivity.

o Liaison Role : It involves maintaining relation internally with

different unites and externally with the society for building the
image, gathering resources.
Monitor
• Under this the manager keep close eye over the activities
taking place in and around the places.
• The manager seek for information that may be of value.

Disseminator role
• The manager is also a disseminator of information,
transferring relevant information to the subordinates and keep
them informed of what is going on around the organization
and the precautions to be taken.

Spokesperson role:
• The spokesperson relay the information to the people outside
the unit or outside the organization
 Entrepreneurship role: It is concerned with planning and
initiating change within the organization.

 Disturbance handler role: It is related with maintaining

friendly working environment and organizational stability by
resolving problems of disagreement and conflict.

 Resource allocator role: It deals with the managerial function of

allocating resources (money, people, time, equipment) to
different unit and subordinate.

 Negotiator role: It involves representing as well as protecting

organization’s interest in dealing with insiders and outsiders to
add value to work.
 Human Skills
 Communication skills
 Technical Skills
 Conceptual Skills
 Decision making skills
 Interpersonal Skills
 Time management skills
What is Business Environment?

 The sum of all forces surrounding and influencing

the life and development of an organization.

 Business environment is the aggregate of all

conditions, events and influences that surrounds
and effects the business.-Keith Davis (1986)

 Environment refers to institution or forces that

effect the organization performance.- Robbins and
Mary Cutler
 Those factors and forces outside the organization that affect
the organization’s performance.

 The external environment is known as uncontrollable factors

because such factors are largely beyond the control of the
organization.

 Provides opportunity and threats to the organization

 It includes:
A. General Environment
B. Task Environment
 It is composed of set of forces that are outside the
organizations’ operating system. They are:

1. The Economic Dimension

2. The technological Dimension
3. The Socio-cultural Dimension
4. The Political-Legal Dimension
5. The International Dimension
1. Economic Environment

◦ The overall health and vitality of the economic system in

which the organization operates

◦ Fiscal policy, monetary policy, industrial policy, economic

growth, inflation, interest rates, low unemployment etc.
e.g. higher wages to attract new employees

2. Technological Environment

◦ The methods available for converting resources into

products or services
◦ Improved information technology
◦ Fewer employees, time savings
3. Socio-cultural Environment

– The customs, values, and demographic characteristics of

the society in which the organization functions
– Determine the products, services & standards of conduct
that the society is likely to value
– tastes changes overtime
– preferences for color, style, taste and so forth
– Depends on religion, education, class system, etc

4. Political-Legal Environment
– Government regulation of business and the relationship
between business and government
– Legal system define:
what an organization can or cannot do?
– Constitutions, political parties, government
5. International Environment
◦ The extent to which an organization is involved in or affected
by business in other countries

◦ Firms dealing with import-export business are most affected by

the changes taking places in international market

◦ Multinational firms e.g. Sony, Nestle, Hyundai, etc

◦ E.g. McDonald’s operates restaurants in 115 countries and

derives about two-thirds of its total sales from outside the
United States.
◦ It is made up stakeholders who affect an organization's activities
from outside the organization.

◦ The task environment is also called the competitive or operating

environment.

◦ The task environment differs from the general environment in that

it can be influenced or controlled to some extent by an
organization.

◦ It includes:
 Competitors
 Customers
 Suppliers
 Strategic Partners
 Regulators
1. Competitors
– Competitions between substitute products
– E.g. Nike and Adidas
– Organizations may also compete for different kinds of
resources
2. Customers
– Whoever pays money to acquire an organization’s
products or services
– Customer satisfaction-huge impact-organization’s
success
3. Suppliers or Distributors
– provide necessary resources or a network to market or
other organizations
– Influence the course of action by price policies, discounts
for competitors, or a contract that binds them to one
singular competitor
4. Strategic partners:
 An organization working together with one or more other
organizations in a joint venture or similar arrangement
 Strategic partnerships help companies get from other
companies the expertise they lack.
 Helps to spread risk and open new market opportunities.

5. Regulators:
 A unit that has the potential to control, legislate, or
otherwise influence the organization’s policies and
practices
 Regulatory agencies: An agency created by the government
to regulate business activities
 Interest group: A group organized by its members to
attempt to influence business
 The conditions and forces within an organizations

 Internal environment offers strength or weakness

to the organization.

 Internal environment consists of:

◦ Owners
◦ Board of Directors
◦ Employees
◦ Physical Work Environment
◦ The Organization’s Culture
1. Owners:

– People who have a legal property right/Shareholders

– Individual investors, partners who jointly own the business

2. Board of Directors:

– Governing body elected by a corporation’s stockholders and

charged with overseeing the general management of the firm to
ensure that it is being run in a way that best serves the
stockholder’s interests
– Formulation of corporation strategy
– Review importance decisions

3. Employees:

– Source of information/feedback, cooperation required

– Permanent or temporary employees
4. Physical Work Environment

– Facilities to interact with different people on different projects

– Wireless communication equipment to keep in contact

5 The Organization’s Culture

– The set of values, beliefs, behaviors, customs, and attitudes that

helps the members of the organization understand what it
stands for, how it does things, and what it considers important
 Concept of Ethics:
◦ study of people’s rights and duties
◦ the moral rules that people apply in making decisions
◦ Moral principles or beliefs about what is right or wrong

 Decenzo and Robbins: “Ethics commonly refers to a set of

rules or principle that defined right and wrong conducts”

 R. W Griffins:” Ethics is an individual personal belief about

weather a behavior , action or decision is right or wrong.
Managerial ethics are the standard of behavior that guides
individual manager in their behavior.
 Therefore managerial ethics refers to an act that
manager have to practice fair management
processes and respect social values

 It is concerned with truth and justice

 It has variety of aspect: such as expectation of

society, fair competition, advertising, public
relation and social responsibilities.

 It defines what is good and bad with moral duty

and obligations
 Unfair business practices affect customers,
government, competitors, suppliers,
shareholders, etc.

 E.g. false financial statement, use of unfair

means, evading taxes, etc.

 Ethical effects on organizations

◦ How the organization treat its employees
◦ How employees treat the organization
◦ How the organization treats customers,
competitors, stakeholders, unions, etc.
 It enhance the reputation and goodwill of the
company
 It help maintain better relation with
stakeholders
 It ensure less interference by the government
 It improve working environment
 Promotes social responsibility
 Promotes fair competition
 It help to increase market share of the
business
 A set of obligation an organization has to protect
and enhance the societal context in which it
functions

 It is composed of shareholders, consumers,

employees, government and the general
community around the business place

 Social responsibility is:

◦ The obligation to pursue those policies, to make those
decisions, or to follow those lines of action which are
desirable in terms of the objectives and values of the
society.
 Social Obstruction (Obstructionist Stance):
 No Obligation, Hide or Cover up unethical activities,
Don’t care
 Social Obligation (Defensive Stance):
 Just cover the legal requirement and nothing beyond
that
 Social Response (Accommodative Stance):
 Meets ethical and legal requirements; listen to social
requests-however not proactive
 Social Contribution (Proactive Stance):
 Indicate a sincere and strong commitment to
improving the general social welfare in this country;
Charity; Local Sports Clubs; Education
1. Towards Shareholders:
• To ensure safety of capital investment
• To provide fair and regular return
• To provide regular financial information
• To provide opportunities to the shareholders on
decision making
• To maximize value of share holders wealth
2. Towards Customers
• To supply better quality goods in the right time.
• To improve quality continuously
• To provide after sales service
• To avoid unfair trade practice
• To conduct research for betterment of quality
• To provide goods in fair price
• To ensure availability of goods and service
3. Towards Employees
• To provide job security
• To provide fair wages and benefits
• To ensure welfare and benefits for the employees
• To provide favorable working environment
• To ensure employee participation in management.
4. Towards Government
 To follow government rules, laws and regulation
 To pay tax honestly
 To avoid monopolistic practice
 To support solving national problem
 To work for the development of society
 To involve in fair import export trade
5. Towards Public and Community
 To check environmental pollution
 To create employment opportunity to people
 To maximize use of local recourses
 To maintain and respect national culture value and
ethics
 To involve in social welfare program like education,
health, games and sports.
 Emergence of Open Market Economy
 Increasing role of private sectors
 Private investment in infrastructure development
 Emergence of multinational companies
 Growth of service sectors
 Development of information technology
 Emergence of Consumerism