Chapter One: An Overview of Management

CHAPTER ONE
AN OVER VIEW OF MANAGEMENT
“Training will neither make a fish fly nor a bird swim; but training will certainly help a fish to
swim faster and a bird fly higher” ( Yong, AKB, 1996.)
Learning Objectives:
 To introduce the concept and definitions of management.
 Present the characteristics of management.
 Understand the functions of management.
 Understand the functional areas of management.
 Introduce the role of management.
 Present the levels of management.

1.1. INTRODUCTION
We are born in an organization (a family). Live in organizations (society) and work in
organizations (Business, Government, Army, School, College etc.). Each one of these organizations is
a group of persons working together to achieve some common objectives. The organizations can be
successful only when the efforts of various individuals in the groups are integrated into team work.
The central agency which performs this task is known as management. It plays the same role in an
organization which brain does in human body.
Managers influence all phases of modern organizations. Plant managers run manufacturing
operations that produce the clothes we wear, the food we eat, and the automobiles we drive. Sales
managers maintain a sales force that markets goods. Personnel managers provide organizations with a
competent and productive workforce.
Management is a key to the success all sectors. The importance of management is highly
understood by developed countries than underdeveloped ones. The main cause for the difference
between developed (wealthy) and an underdeveloped (poor) country is the way they use of the
knowledge of management. The famous management guru Peter Drucker said “There are no
underdeveloped countries as such but under managed only.”
The tasks of management are performed in our day to day activities. Everybody is a manager
of him/her self. He/she manages his/her time, energy, talents and makes decisions every day that
influences his/her life and the lives of others. For instance when you get up in the morning, you make
decisions about the day.
 You plan what to do during the day
 You organize the resources to accomplish the plan
 Periodically check the activities of the plan to be implemented.
Therefore, as seen above realizing or not, during the day you are at least performing three
management functions, namely, planning, organizing and controlling.
In general, basic knowledge of management is vital for our life and organizations as well as crucial
for business students.

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Chapter One: An Overview of Management

1.2. MEANING AND DEFINITION OF MANAGEMENT

Giving precise definition of management is not so simple because the term management is used in
a variety of ways. Being a new discipline it has drawn concepts and principles from a number of
disciplines such as Sociology, Economics, Psychology, Statistics, Anthropology and so on. The
contributors from each of these groups have viewed management differently. For example,
Economists have treated management as ‘a factor of production’; Sociologists treated it as ‘a group
of persons’. Hence, taking all these view points, it becomes difficult to define management in a
comprehensive way and no definition of management has been universally accepted. Many definitions
were given by various contributors; one popular definition is given by Mary Parker Follet.
1. According to Follet management is ‘the art of getting things done through people’. This
definition clearly distinguishes between manager and other personnel of the organization. A
manager is a person who contributes to the organization’s goal indirectly by directing the efforts of
others, not by performing the task by him. A person who is not a manager makes his contribution
to the organization’s goal directly by performing the tasks by him/her. Sometimes a person may
play both roles simultaneously. For example, a sales manager plays managerial role by directing
the sales force to meet the organization’s goal and plays non-managerial role by contacting an
important customer and negotiating deal with him/her. The principal of an institution plays the role
of manager by directing the heads of the departments and plays non-managerial role by teaching a
subject. There are two weaknesses of this definition. The first weakness is that the definition states
that management is an art. Art deals with application of knowledge. But management is not merely
application of knowledge. It also involves acquisition of knowledge i.e., Science. Managing using
intuition or thumb rule is not correct management. The second weakness of this definition is that it
does not explain the various functions of management.
2. A better definition is given by George R Terry who defines management as “a process consisting
of planning, organizing, actuating and controlling performed to determine and accomplish the
objectives by the use of people and resources”. According to him, management is a process-a
systematic way of doing thing using four managerial functions namely planning, organizing,
actuating and controlling. ‘Planning’ means thinking of the manager’s action in advance. The
actions of the managers are based on logic, plan or some method rather than hunch. ‘Organizing’
means coordinating machines, materials and human resources of the organization. ‘Actuating’
means motivating, directing the subordinates. ‘Controlling’ means that manager must ensure that
there is no deviations from plans. This definition also indicates that managers use people, materials
and other resources to accomplish the organizations objectives. The objectives may vary with each
organization. For example the objective of a technical or management institute might be to provide
quality education according to the needs of the industry. The objective of a hospital might be to
provide medical care to the community at reasonable price. Whatever may be the objectives of the
organization management is a process by which the objectives are achieved.
3. According to Ralph C Devis, “Management is the executive leadership anywhere”.
4. According to William Spriegal, “Management is that function of an enterprise which concerns
itself with the direction and control of various activities to attain business activities”.
5. Ross Moore states “Management means decision-making”.

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6. According to Donald J Clough, “Management is the art and science of decision making and
leadership”.
7. Joseph L Massie defines as “Management is the process by which a cooperative group directs
actions towards common goals”.
8. According to F.W. Taylor, “Management is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way”.
9. According to Henry Fayol: “To manage is to forecast and plan, to organize, to command, to co-
ordinate, and to control.”
10. John F Mee states “Management is the art of securing maximum results with minimum efforts so
as to secure maximum prosperity for employer and employee and give the public the best possible
service”.
11. According to Koontz and O’Donnel, “Management is the direction and maintenance of an
internal environment in an enterprise where individuals working in groups can perform
efficiently and effectively towards the attainment of group goals”. It is the art of getting the
work done through and with people in formally organized groups.
12. Working definition: Management is the process of planning, organizing, staffing, leading and
controlling the activities of an organization to achieve its objectives.
From the view point of economics, sociology, psychology, statistics and anthropology management
has different meanings. There are four views of management:
(1) Management is a process.
(2) Management is a discipline.
(3) Management is a human activity.
(4) Management is a career.
Management is a process: A process is defined as systematic method of handling activities.
Often we hear the statements “that company is well managed” or “the company is miss-managed”.
These statements imply that management is some type of work or set of activities, these activities
sometimes performed quite well and sometimes not so well. These statements imply that management
is a process involving certain functions and activities that managers perform.
Management is a discipline: Discipline refers to the field of study having well defined
concepts and principles. Classifying management as discipline implies that it is an accumulated body
of knowledge that can be learnt. Thus, management is a subject with principles and concepts. The
purpose of studying management is to learn how to apply these principles and concepts at right
circumstances at the right time to produce desired result.
Management is a human activity: If you say that “the restaurant has an entirely new
management” or “He is the best manager I have worked for”, you are referring to the people who
guide, direct and thus manage organizations. The word ‘management’ used here refers to the people
who engage in the process of management. Managers are responsible for seeing that work gets done in
organization.
Management is a career: Today management is developed as a career focused on
specialization. Marketing management, finance management, personal management,
Industrial management, production management, quality management are some of the specializations
in management. Specialists are appointed at various positions of the organizational hierarchy. Hence,
management is career.
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Chapter One: An Overview of Management

1.3 IMPORTANCE OF MANAGEMENT

Management is indispensable in all organizations. Some of the importance of Management are given
below:
1. Scientific Management only can meet the challenges and complexities of modern business.
2. Efficient Management can effectively utilize the available resources in the enterprise.
3. Management creates teamwork and coordination among employees.
4. Management directs and controls the organization to achieve the desired goal.
5. Management provides stability in organization.
6. Management provides new ideas, imagination and vision for better and greater performance.
7. Good management serve as a friend, philosopher and guide in tackling business problems.
8. Management is a tool of personality development of the people and attempts to raise their
efficiency and productivity.
9. Management is equally important at the national level. It is an agent of change and economic
development.

1.4. AN OVER VIEW OF MANAGERIAL FUNCTIONS

A function is a group of similar activities. There is divergence of view on “What functions are
undertaken by managers in organizations?” Some management experts classify these functions into
four types and others classify into five types and some others classify them as seven items. The Table
1.1 presents the management functions identified by various writers.

The list of management functions is too long. However it can be shortened by combining some
functions into one. For example, leading, motivating, communicating and commanding may be
combined into a single function namely directing. For our purpose we shall designate the following
five as the functions of the manager by Koontz and O’Donnell.
(1) Planning: Planning is the primary function of management. It is looking ahead and preparing for
the future. It determines in advance what should be done. It is conscious determination of future
course of action
Planning is a function which is performed by managers at all levels – top, middle and supervisory.
Plans made by top management for the organization as a whole may cover periods as long as five to
ten years, whereas plans made by low level managers cover much shorter periods.
(2) Organizing: Organizing is the distribution of work in group-wise or section wise for effective
performance. Once the managers have established objectives and developed plans to achieve them,
they must design and develop a human organization that will be able to carry out those plans

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successfully. Organizing involves dividing work into convenient tasks or duties, grouping of such
duties in the form of positions, grouping of various positions into departments and sections,
assigning duties to individual positions and delegating authority to each position so that the work is
carried out as planned. According to Koontz O’Donnel, “Organization consists of conscious
coordination of people towards a desired goal”. One has to note that different objectives require
different kinds of organization to achieve them. For example, an organization for scientific
research will have to be very different from one manufacturing automobiles.
(3) Staffing: Staffing involves managing various positions of the organizational structure. It involves
selecting and placing the right person at the right position. Staffing includes identifying the gap
between manpower required and available, identifying the sources from where people will be
selected, selecting people, training them, fixing the financial compensation and appraising them
periodically. The success of the organization depends upon the successful performance of staffing
function.
(4) Directing: Planning, organizing and staffing functions are concerned with the preliminary work
for the achievement of organizational objectives. The actual performance of the task starts with the
function of direction. This function can be called by various names namely “leading”, “directing”,
“motivating”, “activating” and so on. Directing involves these sub functions:
 Communicating: It is the process of passing information from one person to another.
 Leading: It is a process by which a manager guides and influences the work of his
subordinates.
 Motivating: It is arousing desire in the minds of workers to give their best to the
enterprise.
(5) Controlling: Planning, organizing, staffing and directing are required to realize organizational
objectives. To ensure that the achieved objectives confirm to the preplanned objectives control
function is necessary. Control is the process of checking to determine whether or not proper
progress is being made towards the objectives and goals and acting if necessary to correct any
deviations. Control involves four elements:
(a) Establishing standards of performance.
(b) Measuring current or actual performance.
(c) Comparing it against the established standard.
(d) Taking action to correct any performance that does not meet those standards.

1.5. MANAGEMENT: A SCIENCE OR ART?

There is great controversy whether management is science or art. It is an art in the sense of
possessing of managing skill by a person. It is a science also because of developing principles or laws
which are applicable in a place where a group of activities are coordinated. In fact management is both
science and art as it clear from the following discussion.
Management as science: Science is a systematized body of knowledge. We call a discipline scientific
if its
(1) Methods of inquiry are systematic and empirical.
(2) Information can be ordered and analyzed; and
(3) Results are cumulative and communicable.

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Management as an art or a science has been an issue of debate for a long period of time. In fact,
effective management is a blend of both science and art. And successful executives’ managers
recognize the importance of combing both the science and the art of management as they practice their
craft.
Science: Is a systematized body of knowledge/ systematically organized knowledge derived from
observation, study, and experimentation that carried out to determine the nature and principle of the
subject under study.
Art: is the application of obtained knowledge and skills that constitutes science to bring out the
results. It is based on the knowledge of principles developed by science.
The science of Management
Managers gather data, facts, and objective information, and also can use quantitative methods and
decision making techniques to arrive at “correct” decision. And they need to take such scientific
approach to solve problems whenever possible. Technical, diagnostic & decision making skills are
especially important when practicing the science of management.

Management as science;
 Is the structured body of knowledge with its own distinct concepts and principles developed
with reference to the general truth underlying the management practices? Hence management
is a science.
 Is based on principles instead of traditional way of doing things, trials and error methods.
 Is not as comprehensive or as exact as other sciences, because management mostly deals with
human elements which are very complex variables.
 Human beings are not standardize and their behavior is unpredictable
 Experiments cannot be repeated under standardized conditions.
Human being can not be subject of controlled laboratory experiment. Science is a systematic body of
knowledge pertaining to a specific field of study that contains general facts which explains a
phenomenon. It establishes cause and effect relationship between two or more variables and underlines
the principles governing their relationship. These principles are developed through scientific method
of observation and verification through testing.

Science is characterized by following main features:

1. Universally acceptance principles - Scientific principles represents basic truth about a

particular field of enquiry. These principles may be applied in all situations, at all time & at all
places. E.g. - law of gravitation which can be applied in all countries irrespective of the time.

Management also contains some fundamental principles which can be applied universally like
the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all
type of organization - business or non-business.

2. Experimentation & Observation - Scientific principles are derived through scientific

investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round
the sun has been scientifically proved.

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Management principles are also based on scientific enquiry & observation and not only on the
opinion of Henry Fayol. They have been developed through experiments & practical
experiences of large no. of managers. E.g. it is observed that fair remuneration to personal
helps in creating a satisfied work force.

3. Cause & Effect Relationship - Principles of science lay down cause and effect relationship
between various variables. E.g. when metals are heated, they are expanded. The cause is
heating & result is expansion.

The same is true for management; therefore it also establishes cause and effect relationship.
E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If
you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in
effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when
not treated in fair and just manner, reduces productivity of organization.

4. Test of Validity & Predictability -Principles of management can also be tested for validity.
E.g. principle of unity of command can be tested by comparing two persons - one having single
boss and one having 2 bosses. The performance of 1st person will be better than 2nd.

It cannot be denied that management has a systematic body of knowledge but it is not as exact
as that of other physical sciences like biology, physics, and chemistry etc. The main reason for
the inexactness of science of management is that it deals with human beings and it is very
difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the
area of social sciences. It is a flexible science & that is why its theories and principles may
produce different results at different times and therefore it is a behavior science. Ernest Dale
has called it as a Soft Science.

 The art of Management

Even though managers may try to be scientific as much as possible, they must often make decisions
and solve problems on the basis of intuition, experience, instinct and personal insights. Relying
heavily on conceptual, communication, interpersonal and time management skills, a manager may
have to decide between multiple courses of action that look equally attractive, and even “objective
facts” may prove to be wrong. Thus managers must blend elements of intuition and personal insight
with hard data and objective facts.
Management as an Art
 Like other practices, it is know-how. It is the application of knowledge. “It is doing things
based on realities of the situation”.
A manager to manage must have both the knowledge of science and art. Managers can work better by
using organized knowledge about management.
 Without science means without structured body of management principles and concepts; and
trusting (reliance) on luck, intuition or what s/he did in the past.
 Without art means trying to manage by memorization of principles, diagnose by the books,
neglecting practical reality.
Management principles are not developed for the sake of knowledge but for their applications to
specific situations. Management as a practice is an art and as an organized knowledge underlying the
practice is a science. Art needs the existence of science and science determines skillful application of

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Chapter One: An Overview of Management

knowledge, i.e. an art. Therefore, both science and art are inseparable and interconnected; and they are
complementary but not mutually exclusive. Accordingly, management is both an art and science.

Art implies application of knowledge & skill to trying about desired results. An art may be defined as
personalized application of general theoretical principles for achieving best possible results. Art has
the following characters -

1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is
not sufficient. It is very important to know practical application of theoretical principles. E.g.
to become a good painter, the person may not only be knowing different color and brushes but
different designs, dimensions, situations etc to use them appropriately. A manager can never be
successful just by obtaining degree or diploma in management; he must have also known how
to apply various principles in real situations by functioning in capacity of manager.
2. Personal Skill: Although theoretical base may be same for every artist, but each one has his
own style and approach towards his job.. Every manager has his own way of managing things
based on his knowledge, experience and personality that is why some managers are known as
good managers.
3. Creativity: Every artist has an element of creativity in line. That is why he aims at producing
something that has never existed before which requires combination of intelligence &
imagination. Management is also creative in nature like any other art. It combines human and
non-human resources in useful way so as to achieve desired results. It tries to produce sweet
music by combining chords in an efficient manner.
4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and
more proficient through constant practice. Similarly managers learn through an art of trial and
error initially but application of management principles over the years makes them perfect in
the job of managing.
5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same
manner, management is also directed towards accomplishment of pre-determined goals.
Managers use various resources like men, money, material, machinery & methods to promote
growth of an organization.

Management as a profession
A profession may be defined as an occupation that requires specialized knowledge and intensive
academic preparations to which entry is regulated by a representative body. The essentials of a
profession are:
1. Specialized Knowledge - A profession must have a systematic body of knowledge that can be
used for development of professionals. Every professional must make deliberate efforts to
acquire expertise in the principles and techniques. Similarly a manager must have devotion and
involvement to acquire expertise in the science of management.
2. Formal Education & Training - There are no. of institutes and universities to impart
education & training for a profession. No one can practice a profession without going through
a prescribed course. Many institutes of management have been set up for imparting education
and training.
3. Social Obligations - Profession is a source of livelihood but professionals are primarily
motivated by the desire to serve the society. Their actions are influenced by social norms and

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values. Similarly a manager is responsible not only to its owners but also to the society and
therefore he is expected to provide quality goods at reasonable prices to the society.
4. Code of Conduct - Members of a profession have to abide by a code of conduct which
contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of
conduct is enforced by a representative association to ensure self-discipline among its
members. Any member violating the code of conduct can be punished and his membership can
be withdrawn.
5. Representative Association - For the regulation of profession, existence of a representative
body is a must. For example, an institute of Charted Accountants of India establishes and
administers standards of competence for the auditors but the AIMA however does not have any
statuary powers to regulate the activities of managers.

1.6. LEVELS OF MANAGEMENT

Managers are many kinds. They can be differentiated by levels and areas within an organization.
Levels are hierarchical management or arrangement of managerial positions in an organization, and
depend on the size of the organization. Large organizations typically have several levels of
management.
Managing at different levels of the organization
Managers are classified according to their levels/ positions within an organization. Kinds of managers
by level are presented in the figure below.

Levels of management
Top Level Management
 Makes up the relatively small group of executives who manage the overall organization.
 is instrumental in developing concepts for such new enterprises;
 Responsible for committing resources for the organizations and also accountable for their
success or failure.
 titles found in this group include: Board of directors, Executive committee, Chief Executive
Officer (CEO), General Manager, President, Vice president, etc
Main functions are
 Create organization’s goals, overall strategies and operating policies.
 Officially represent the organization to the external environment/ parties by meeting
with government officials, executives of other organizations, and so forth.
 Providing effective organizational structure that insures integration.

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 Providing overall leadership and direction.

 Making overall control of the organization.
 Analyzing changes in the external environment and respond to it.
 make decisions about such activities:
 acquiring other companies
 investing on Research and Development
 entering or abandoning other markets
 building new plants and office facilities
 Jobs are likely being complex and varied.
 Work long hours and spend much of their time in meetings or on the telephone.
 Are very well paid.
Middle Level Managements
 Are head of different functional areas and their assistants
 Common titles are such as: division/ section heads; department heads; operation manager;
branch manager; plant manager; etc.
 Are primarily responsible for implementing the policies and plans developed by top managers,
and for supervising & coordinating the activities of lower level managers.
 Bridge the upper & lower levels of the organization to implement the strategies developed at
the top.
 Managers in this level are specialists.
o Their activities are limited to a particular area of operation.
Main functions are
o Acting as an intermediary between top and operational level of management.
o Translating long term plans in to medium range plans.
o Developing specific targets (in their area of responsibility).
o develop specific schedule (to guide action and facilitate control)
o coordinate inputs, productivity and outputs of operating levels of management
Lower level management
 Is also called first-line, supervisory or operating-level management.
 The last level of the ladder in the hierarchy of management.
 Supervises and coordinate the activities of operating employees/ subordinates.
o Subordinate are non-management workers and they are directly engaged in
production or service rendering.
 Directs small team of worker and keeps a check on their performance so that short-term
production and work targets are achieved.
 Responsible for the work of operating employees and don’t supervise other managers.
 typical titles are such as: section chief; office manager; Forman; supervisor; etc
 Oversee the day-to-day operation of their respective activities. And typically spend a large
proportion of their time supervising the work of subordinates.
Main functions are
o Plan daily and weekly activities and accomplish them based on monthly, quarterly
and annual plan.

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o Assigning employees to specific jobs

o Issue instructions at the workplace
o Follow up, motivate and evaluate workers
o Send reports to their supervisors
o Keep a watch on workers performance
o Evaluate and make close contact with workers

1.6. ROLES OF MANAGEMENT

A manager performs planning, organizing, directing and controlling to achieve the
organizational objectives. It has been questioned whether these functions provide an adequate
description of the management process. As against these management functions Henry Mintzberg has
defined the role of managers to identify what managers do in the organizations. A role is an organized
set of behavior or action expected from the position holder.
The term managerial roles refer to specific actions or behaviors expected of and exhibited by
a manager. (Think of the different roles you play—such as student, employee, student organization
member, volunteer, sibling, and so forth—and the different things you’re expected to do in these
roles.) When describing what managers do from a roles perspective, we’re not looking at a specific
person per se, but at the expectations and responsibilities that are associated with being the person in
that role—the role of a manager. Mintzberg has identified ten roles of manager which are classified
into three broad categories as shown in fig. 1.1.

1. The interpersonal roles

-are ones that involve people (subordinates and persons outside the organization) and other
duties that are ceremonial and symbolic in nature. The three interpersonal roles include
figurehead, leader, and liaison.
a. Figurehead role: representing the organization as the ceremonial and symbolic functions,
acting as public official for the organization. Or performing ceremonial duties important for the
organization’s image and success. e.g.
 taking visitors to dinner; attending ribbon-cutting ceremonies;
 The mayor who presents a key of a city to a local hero.
 The supervisor who attends the wedding of the mechanic operator.

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 The sales manager who takes important customer to lunch; and the like.
 Are the most basic and the simplest of other roles.
b. Leadership role: is directing and coordinating the activities of subordinates to accomplish
objectives. it include some aspects like
 Creating a vision that employees can identify with.
 Doing with staff:- hiring, training, promoting.
 Motivating subordinates to meet organizational needs.
c. Liaison role
 Relationship made outside the areas of command or interacting/ dealing with managers,
people/ peers outside the organization. It helps to seek support from people who can affect
the organization’s success.
 Managers are asked to serve as figurehead, leader and liaison. Figurehead and liaison roles
give access to great deal of important information to managers.
2. The Informational Roles
 Is the processing of information and flow naturally from the interpersonal roles.
 Are activities that focus on obtaining and disseminating data important for the decisions that
managers need to make.
 The process of carrying out this role places a manager at a strategic point to gather and
disseminate information. Effective managers build networks of contacts for sharing
information, i.e. managers emerge as the nerve system centers of their organization.
 are classified as
a. Monitor role
 Involves actively seeking out, receiving and securing information that may be of value.
Here managers, just as radar, scan their environment. It is like a nerve center.
 managers seek information to
 detect problems or opportunities
 build general knowledge about the work situation
 make necessary changes
 Information comes from
 Formal mechanisms, such as report, news media’s, public forecasts etc…
 Informal conversations with both organization’s members and those external to
the organization.
Much information received is oral (from hearsay, gossip, formal meeting). Hence managers must
evaluate and decide whether to use this information.
b. Disseminator role
 Is transmitting or providing relevant information back to others in the workplaces. i.e.
sharing/ sending information found from internal and external sources to others both
internal and external to the organization.
c. Spokesperson role
 Focuses on external communication. It is representing an organization to outside party on
the behalf of members of the organization, or transmitting information about the work

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group to others especially outside the organization. e.g. to public, press, customer group,
etc…
 Manager is a person who speaks for his organization to people outside the organization.

3. The Decisional Roles

 Entail making decisions or choices. The four decisional roles include entrepreneur, disturbance
handler, resource allocator, and negotiator. As managers perform these roles, Mintzberg
proposed that their activities included both reflection (thinking) and action (doing).
 Related making decision, and the most important of the three categories of roles.
 Are activities dealing with the allocation of resources to reach organizational objectives?
 Manager’s informational role typically leads to decisional roles. Managers use information to
make decision to commit their organization to new actions or objectives.
 are classified into
a. Entrepreneurial role
 Making change that is important for the improvement and betterment of the organization,
i.e. acting as designer and initiator of change within the group to improve organization’s
position.
 Managers play this role when they initiate new project; launch a survey; test new market;
or enter a new business; etc…
b. Disturbance handler role
 Making decisions or taking corrective actions in response to situations that are beyond
their control, or dealing with problems and changes beyond manager’s immediate control.
 Type of problems/ disturbances includes strikes, bankruptcy, breaking of contracts, etc…
 Disturbances may arise when poor manager ignores the situation until it becomes a crisis.
If disturbance occurs, solution must be found.
c. Resource-allocator role
 It is critical role. Refers to the allocation of resources. It is both protecting and using
organizations assets/ money, material, HR equipment, data reputation, time/. Managers
decide how resources are distributed, and with whom they will work most closely.
d. Negotiator Role
 Mediating internal conflicts and negotiating with others for the advantage of the unit. It
focuses on reaching an agreement with others outside the work group on work related
issues or materials or agreement with other units within the organization
 Manager enters into negotiations with other groups or organization as a representative of
the organization. They meet and discuss their differences with individuals or groups for
the purpose of reaching an agreement. Negotiations are an integral part of a manager’s job.
 Closely linked to Resource allocator role.
All these roles can be integrated with earlier classification of management which is presented in fig.
1.2.

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In planning a manager performs informational and decisional role as he has to collect information on
the basis in which he makes decisions. Similarly in performing other functions some or the other roles
are performed by manager.

1.7. MANAGERIAL SKILLS

What types of skills do managers need? In addition to fulfilling numerous roles, managers also need a
number of specific skills if they are to succeed. Skills: are abilities to do something expertly and
well, and they are necessary to operate activities successfully. Skills are not necessarily inborn but can
be developed/ acquired. Robert L. Katz has proposed that managers need three critical skills in
managing an organization. These are technical, human, and conceptual skills.
1. Technical skill: the skills necessary to accomplish or understand the specific kind of work being
done in an organization or ability to perform work using specific knowledge, methods,
procedures, techniques and resources in a specialized field. E.g. engineers; market researchers;
accountants; musicians; and computer programmers etc…
 Highly important for first line managers.
2. Interpersonal (human relations) skill: focuses on working with people. It is the ability to
communicate with, understand, and motivate both individuals and groups, i.e. ability
To lead, motivate, manage conflicts and work with others.
To understand other and to be understood by others
Vital part of every manager’s job and important to managers at all levels.
3. Conceptual skill
 Managers need mental capacity to understand the overall workings of the organization and
its environment; to grasp how all the parts of the organization fit together, and to view the
organization in a holistic manner.
 Manager’s ability to think in the abstract. It allows managers to think strategically; to see
the “big picture”, and to make broad-based decisions that serve the overall organization.
 visualizing different parts of an organization as one big whole, and to understand the
wholes interaction with its relevant environment i.e. visualizing
How organizations various parts / functions depend on each other.
How changes in one area can affect other areas.

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How each parts contributes to the achievement of the overall organizational goals.
 Managers use conceptual skills to understand activities and interests of the organization
and how they are related. And to diagnose and assess different types of management
problems, because they depend on the understanding of the relationships of various
factors.
 Can be
 Diagnostic skill
 Refers to the manager’s ability to visualize the most appropriate
responses to a situation. Organizations fail if managers do not have
diagnostic skills.
 Decision making skill
 Refers to the manager’s ability to recognize and define problems and
opportunities correctly and then to select an appropriate course of action
to solve problems and capitalize on opportunities.
 No manager makes the right decision all the time. However, effective
manager make good decisions most of the time. When they do make a
bad decision, they usually recognize their mistakes quickly and then
make good decisions to recover with as little cost or damage to their
organization as possible.
 Time-management skill
 Refers to the manager’s ability to prioritize work; to work efficiently;
and to delegate appropriately. Effective managers have good time
management.
 Are the most difficult to develop, but highly important to top level managers.
4. Communication skills
 Refers to the manager’s abilities both to convey ideas and information effectively to others
and to receive ideas and information effectively from others.
 Enable a manager to transmit ideas to subordinates so that they know what is expected; to
coordinate work with peers & colleagues so that they work well together properly; and to
keep higher-level managers informed about what is going on.
 Help the manager listen to what others say and to understand the real meaning behind
letters, reports, and other written communication.
 Ability to send and receive information, thoughts, feelings and attitudes. proficiency
 classified in to verbal (writing and oral) and non-verbal
 Crucial to all managers and it necessary for effective displaying of interpersonal, technical
and conceptual skills.
The relationship b/n managerial levels and skills
Marginal skills are closely related.
 Interpersonal (Human) Skills and communication skills
 Equally important at all level.
 Conceptual skill
 More important to upper level of management.

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 Technical skills -Very important at the lower level managers

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