Topic 1

1. Overview of Management
In today’s volatile economies, every organization needs strong managers to lead its people
towards achieving the business objectives. A manager’s primary challenge is to solve problems
creatively and plan effectively. Managers thus fulfill many roles and have different
responsibilities within the various levels of an organization. Management began to materialize
as a practice during the Industrial Revolution, as large corporations began to emerge in the late
19th century and developed and expanded into the early 20th century. Management is regarded
as the most important of all human activities. It may be called the practice of consciously and
continually shaping organizations.
Management is a universal phenomenon. Every individual or entity requires setting objectives,
making plans, handling people, coordinating and controlling activities, achieving goals and
evaluating performance directed towards organizational goals. These activities relate to the
utilization of variables or resources from the environment − human, monetary, physical, and
informational.
Human resources refer to managerial talent, labour (managerial talent, labour, and services
provided by them), monetary resources (the monetary investment the organization uses to
finance its current and long-term operations), physical resources (raw materials, physical and
production facilities and equipment) and information resources (data and other kinds of
information). Management is essentially the bringing together these resources within an
organization towards reaching objectives of an organization.
Management Defined
Management has been defined by various authors/authorities in various ways. Following are
few often-quoted definitions −
Management guru, Peter Drucker, says the basic task of management includes both marketing
and innovation. According to him, Management is a multipurpose organ that manages a
business and manages managers, and manages workers and work.
Harold Koontz defined management as the art of getting things done through and with people
in formally organized groups.
All these definitions place an emphasis on the attainment of organizational goals/objectives
through deployment of the management process (planning, organizing, directing, etc.) for the
best use of organization’s resources. Management makes human effort more fruitful thus
effecting enhancements and development.

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 “Management is the process of planning, organizing, leading, and controlling an
organization’s human, financial, physical, and information resources to achieve
organizational goals in an efficient and effective manner.”

1.1 Nature and Scope of Management

The word management refers to all the tasks and activities undertaken by the people in an
organization for the successful achievement of goals and targets. It involves continuous
activities such as planning, organizing, leading and monitoring physical, financial and
information resources. Any organization’s success depends on the strength of those in
management positions.
The term management is flexible and has been used in various ways. While it refers to
organizational activities, it also denotes a body of knowledge or discipline. Some describe it as
a means of leadership while others view it as an economic resource. To understand the meaning
and nature of management, let’s look at the concept from a broader perspective. Here are
various categories that describe management in multiple contexts.
Management as a Process
As a process, management aims at increasing productivity and efficiency in an organization.
The purpose is to strengthen the client base, improve the knowledge, skills and capacity of
employees to achieve particular targets and goals. Management is also a never-ending process
that brings different teams and individuals together. Everyone works in harmony to achieve
common objectives.
Management as an Activity
As an activity, management looks at the daily tasks and accomplishments of an employee. It
helps them prioritize activities and monitor progress, which further helps them grow in their
roles. It prevents miscommunication and task repetition as everyone is aware of their roles and
responsibilities. There is clarity and accountability—the cornerstones of business growth and
success.
Management as a Profession
Management as a profession has been popularized by courses and academic institutions across
the globe. Several organizations prefer individuals with a Master of Business Administration
(MBA) degree. Specialized knowledge (such as an MBA degree) provides an individual with
a competitive edge, making them more desirable for managerial roles. Therefore, management
has evolved as a body of knowledge that continues to solve various workplace problems.

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Nature and Scope of Management
As we’ve already established, different people view management differently. Therefore,
defining the nature and scope of management becomes quite challenging. Let’s look at each of
these terms independently and see how they play out in the context of management.
Nature of Management
Management—as a systematic process—helps identify a group of people who carry out
particular activities, thereby improving an organization’s efficiency and effectiveness. Here are
the salient features that highlight the nature of management in businesses.
Universality
Management is a universal process and is essential for all organizations. If there is human
activity, there is management. The principles of management are applicable irrespective of the
size and location of a business. The universal principle also means that managerial skills can
be developed over time and they’re transferrable.
Social Process
The nature of management involves organizing people in groups and managing them. It
requires different levels of empathy, understanding and dynamism. In addition to taking care
of social and emotional well-being, the process involves developing, motivating and retaining
employees.
Purposeful
Management always has an end goal of achieving an organization’s targets, mission and vision.
The success of management can be measured by the extent to which an organization achieves
its objectives. There is an underlying purpose of increasing efficiency and productivity. The
objectives should be realistic, attainable and time-bound.
Intangible
There is no physical proof of the management process. Its success can be measured by the
outcomes of its efforts. For example, lower turnover rates indicate there’s high employee
engagement and job satisfaction. This further shows that managers or individuals in managerial
roles have taken proactive steps toward improving employee retention.
Coordination
Management coordinates all the levels of an organization by bringing together different teams
and departments. Without coordination, there would be ambiguity and chaos. Therefore, by
getting people on the same page, there is communication and minimized duplication of efforts.

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Creativity
Management is made up of individual components and is a composite process. Every
independent component contributes in unique ways. For example, group efforts encourage
creative ideas and imagination. The sum of individual efforts creates synergy and something
new is born.
Dynamic Function
Management should be dynamic at its core because businesses are often influenced by
economic, social, political and technological factors. With room for flexibility and adaptability,
individuals can perform well even in stressful situations. There should be adequate training and
facilitation within the process.

Scope of Management
Clearly defined responsibilities, concepts, theories and principles related to managerial
functions define the scope of management. Let’s look at the various aspects of this.
Financial Management
Every enterprise prioritizes financial management because finances can get extremely tricky if
not managed properly. Effective financial management ensures there are fair returns to
stakeholders, proper estimation of capital requirements and laying down optimal capital. It
includes preparation and examination of financial statements, creating proper dividend policies
and negotiations with external stakeholders.
Marketing Management
The scope of management in marketing extends to planning, organizing, directing and
controlling activities in the marketing department. Identifying customer requirements is crucial
for providing business solutions. When a manager is fully aware of the benefits of the products
and/or services the organization provides, they achieve better results. Marketing management
ensures that available resources are properly utilized and the best possible outcomes are
achieved.
Personnel Management
Personnel management—as the name suggests—deals with personnel or individuals in a
business environment. It includes the recruitment, transfer, termination, welfare and social
security of employees. This aspect of management is extremely important as employees form
teams and teams drive an organization’s goals. Individual productivity also contributes to
overall efficiency. Without attending to employee needs and wants, an organization is likely to
struggle.
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Production Management
This type of management refers to the process of creating utilities. When you convert raw
materials to finished products and oversee the planning and regulation, you’re engaging in
production management. Without production, there isn’t any finished good or service and
without it, organizations can’t generate interest or profits. The final product must fulfill
customer requirements. The process includes quality control, research and development, plan
layout and simplification.
Office Management
This includes controlling and coordinating all office activities to achieve an organization’s
goals and targets. For example, an administration’s efficiency impacts a business significantly.
The more organized the departments and responsibilities are, the more effective an organization
is.

1.1.1 Characteristics of management

Everything you need to know about the characteristics of management. An efficient
management can make the employees to work efficiently and an inefficient management can
break the employees and can bring industrial unrest in the business organization.
This management has got immense importance now-a-days because of increased trend towards
standardization, automation, specialization and computerization of the activities.
1. Management is Intangible
As has been pointed out by Terry, management is intangible. It cannot be seen. It is an unseen
force. However, its presence can be felt by the results of its efforts in the form of production,
sales and profits.
2. Managements Goal-Oriented
Management seeks to achieve goals. These goals may be economic or non-economic. In a
business organization, the primary goal is to produce and distribute goods and services in order
to earn profit. In a service organization, the goal might be customer service (hospitals,
educational institutions, etc.).
3. Management is Universal
Management is an all-pervasive activity. The basic principles of management are applicable in
business as well as in other organizations. These principles, however, need careful application
depending on situational demands.

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4. Management is a Social Process
According to Newman, management is a social process because it deals with people first. To
make the best use of human efforts, managers have to create close cooperation among
employees in an organization. They have to use resources for the benefit of society as a whole.
They have to look after the interests of employees, shareholders, customers, investors, and
community.
5. Management is a Group Activity
Management is concerned with getting things done through people. People join groups in order
to achieve results collectively Management helps people in realizing their individual as well as
group goals in a coordinated manner.
6. Management is a System of Authority
A manager is supposed to get things done, rather than doing things himself, by using authority.
Authority is the right to give orders and the power to obtain obedience from subordinates.
7. Management is an Activity
Management is a distinct activity (like playing, teaching, studying). It can be studied,
knowledge about it obtained, and skill in its applications acquired.
8. Management is Dynamic
Management is a dynamic and growth-oriented function. It tries to visualize problems before
they turn into emergencies and takes suitable steps. It tries to adapt itself to the environmental
changes quickly It proposes to take actions to make the desired results to come to pass.
According to Drucker, ‘Managers do not wait for the future; they make the future’.
9. Management is a Science as well as an Art
Management is a systematized body of knowledge based on certain principles capable of
general application. The principles underlying time and motion studies, morale, motivation,
leadership can be applied by persons working in various capacities. Art is the application of
knowledge and skills in order to achieve results. Management is an art because it involves the
use of know-how and skills, just like any other art such as – music, painting, etc. In recent
years, management has developed into a separate, distinct discipline, receiving vital inputs
from subjects such as – psychology, sociology, anthropology, economics, etc.

1.1.2 Levels of Management

The term “Levels of Management’ refers to a line of demarcation between various managerial
positions in an organization. The number of levels in management increases when the size of
the business and work force increases and vice versa. The level of management determines a
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chain of command, the amount of authority & status enjoyed by any managerial position. The
levels of management can be classified in three broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions. The role of managers at all the three
levels is discussed below:

LEVELS OF MANAGEMENT

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top
management is the ultimate source of authority and it manages goals and policies for
an enterprise. It devotes more time on planning and coordinating functions.
The role of the top management can be summarized as follows -
a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the
performance of the enterprise.

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2. Middle Level of Management
The branch managers and departmental managers constitutes middle level. They are
responsible to the top management for the functioning of their department. They devote
more time to organizational and directional functions. In small organization, there is
only one layer of middle level of management but in big enterprises, there may be senior
and junior middle level management. Their role can be emphasized as -
a. They execute the plans of the organization in accordance with the policies and
directives of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or
department.
f. It also sends important reports and other important data to top level
management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better
performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists
of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis,
“Supervisory management refers to those executives whose work has to be largely with
personal oversight and direction of operative employees”. In other words, they are
concerned with direction and controlling function of management. Their activities
include -
a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in
the organization.

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 e. They communicate workers problems, suggestions, and recommendatory
appeals etc to the higher level and higher-level goals and objectives to the
workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things
done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact
with the workers.
1.2 Role of Managers
Managers are the primary force in an organization's growth and expansion. Larger
organizations are particularly complex due to their size, process, people and nature of business.
However, organizations need to be a cohesive whole encompassing every employee and their
talent, directing them towards achieving the set business goals. This is an extremely
challenging endeavor, and requires highly effective managers having evolved people
management and communication skills.
The Top Management
The top-level executives direct the organization to achieve its objectives and are instrumental
in creating the vision and mission of the organization. They are the strategic think-tank of the
organization.
Senior Management
The General Manager is responsible for all aspects of a company. He is accountable for
managing the P&L (Profit & Loss) statement of the company. General managers usually report
to the company board or top executives and take directions from them to direct the business.
The Functional Manager is responsible for a single organizational unit or department within a
company or organization. He in turn is assisted by a Supervisor or groups of managers within
his unit/department. He is responsible for the department’s profitability and success.
Line and Staff Managers
Line Managers are directly responsible for managing a single employee or a group of
employees. They are also directly accountable for the service or product line of the company.
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For example, a line manager at Toyota is responsible for the manufacturing, stocking,
marketing, and profitability of the Corolla product line.
Staff Managers often oversee other employees or subordinates in an organization and generally
head revenue consuming or support departments to provide the line managers with information
and advice.
Project Managers
Every organization has multiple projects running simultaneously through its life cycle. A
project manager is primarily accountable for leading a project from its inception to completion.
He plans and organizes the resources required to complete the project. He will also define the
project goals and objectives and decide how and at what intervals the project deliverables will
be completed.
The Changing Roles of Management and Managers
Every organization has three primary interpersonal roles that are concerned with interpersonal
relationships. The manager in the figurehead role represents the organization in all matters of
formality. The top-level manager represents the company legally and socially to the outside
world that the organization interacts with.
In the supervisory role, the manager represents his team to the higher management. He acts as
a liaison between the higher management and his team. He also maintains contact with his
peers outside the organization.

Mintzberg's Set of Ten Roles

Professor Henry Mintzberg, a great management researcher, after studying managers for
several weeks concluded that, to meet the many demands of performing their functions,
managers assume multiple roles.
He propounded that the role is an organized set of behaviors. He identified the following ten
roles common to the work of all managers. These roles have been split into three groups as
illustrated in the following figure.

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Interpersonal Role
• Figurehead − Has social, ceremonial and legal responsibilities.
• Leader − Provides leadership and direction.
• Liaison − Networks and communicates with internal and external contacts.
Informational Role
• Monitor − Seeks out information related to your organization and industry, and
monitors internal teams in terms of both their productivity and well-being.
• Disseminator − Communicates potentially useful information internally.
• Spokesperson − Represents and speaks for the organization and transmits information
about the organization and its goals to the people outside it.
Decisional Role
• Entrepreneur − Creates and controls change within the organization - solving
problems, generating new ideas, and implementing them.
• Disturbance Handler − Resolves and manages unexpected roadblocks.
• Resource Allocator − Allocates funds, assigning staff and other organizational
resources.
• Negotiator − Involved in direct important negotiations within the team, department, or
organization.
Managerial Skills
Henri Fayol, a famous management theorist also called as the Father of Modern Management,
identified three basic managerial skills - technical skill, human skill and conceptual skill.
Technical Skill
• Knowledge and skills used to perform specific tasks. Accountants, engineers, surgeons
all have their specialized technical skills necessary for their respective professions.

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 Managers, especially at the lower and middle levels, need technical skills for effective
task performance.
• Technical skills are important especially for first line managers, who spend much of
their time training subordinates and supervising their work-related problems.
Human Skill
• Ability to work with, understand, and motivate other people as individuals or in groups.
According to Management theorist Mintzberg, the top (and middle) managers spend
their time: 59 percent in meetings, 6 percent on the phone, and 3 percent on tours.
• Ability to work with others and get co-operation from people in the work group. For
example, knowing what to do and being able to communicate ideas and beliefs to others
and understanding what thoughts others are trying to convey to the manager.
Conceptual Skill
• Ability to visualize the enterprise as a whole, to envision all the functions involved in a
given situation or circumstance, to understand how its parts depend on one another, and
anticipate how a change in any of its parts will affect the whole.
• Creativity, broad knowledge and ability to conceive abstract ideas. For example, the
managing director of a telecom company visualizes the importance of better service for
its clients which ultimately helps attract a vast number of clients and an unexpected
increase in its subscriber base and profits.
1.2.1 Other Managerial Skills
Besides the skills discussed above, there are two other skills that a manager should possess,
namely diagnostic skill and analytical skill.
Diagnostic Skill − Diagnose a problem in the organization by studying its symptoms. For
example, a particular division may be suffering from high turnover. With the help of diagnostic
skill, the manager may find out that the division’s supervisor has poor human skill in dealing
with employees. This problem might then be solved by transferring or training the supervisor.
Analytical Skill − Ability to identify the vital or basic elements in a given situation, evaluate
their interdependence, and decide which ones should receive the most attention. This skill
enables the manager to determine possible strategies and to select the most appropriate one for
the situation.
For example, when adding a new product to the existing product line, a manager may analyze
the advantages and risks in doing so and make a recommendation to the board of directors,
who make the final decision.

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“Diagnostic skill enables managers to understand a situation, whereas analytical skill helps
determine what to do in a given situation.”

1.3 Open System Organizational Structure

In organizational theory, organizations can be open or closed. A closed system has no contact
with the world outside. An open system has to deal with the outside environment, including
customers, competitors and the general economy.
ORGANIZATION THEORY

Organization theory deals with how organizations function, or fail to function.

• How do organizations influence and mold the people working there? If, say, a company
values aggressive, hard-driving salespeople and bureaucratic procedure, new hires will have to
adapt to that.
• How do those people shape the organization? Unionized labor, for instance, can often
set limits on what management policies workers have to accept.
• How does the organization affect its environment, and how does the environment affect
the organization?
• What determines whether organizations survive or run out of steam?
Open system organization theory is one of the best-known ideas to come out of this school of
thought.
OPEN VS CLOSED

Traditional theories saw most organizations as closed. They follow their own path regardless
of what the outside world does. A business's only interaction with the surrounding environment
were the products or services it put out.
Starting in the 1960s, organization theorists reconsidered. They realized that organizations
were usually influenced by their environment to some extent, which made them open, not
closed.

OPEN SYSTEM ORGANIZATION THEORY

Under open system organization theory, the characteristics of open system organization are
shaped by specific and general environmental influences. Specific influences are the people
and groups the organization deals with on a regular basis: customers, suppliers, distributors,
regulators and competitors.
General environmental influences fall into four categories:

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• The cultural values of the surrounding society. A century ago, it was culturally acceptable

to discriminate against women and minorities in hiring; now discrimination is a black mark
against an organization's image.
• Law and politics. It's not only socially unacceptable to discriminate based on gender,

religion, race and ethnicity, in many cases it violates federal law. In recent years, a number of
states have banned discrimination based on sexual orientation.
• The economy. A regional recession can leave a business struggling to stay afloat. A booming

economy with lots of jobs may force a company to boost pay and benefits to recruit enough
workers.
• Education. The quality of education affects the quality and ability of the local workforce.

1.3.1 CHARACTERISTICS OF OPEN SYSTEM ORGANIZATION

Examples of closed systems include monopolies that can dictate terms to customers and rigid
bureaucracies that resist any influence on their policies. An example of open system
organization are the many businesses that respond to their environment. Some change their
policies under pressure, such as when a company fires a leader who's been charged with sexual
harassment.
The characteristics of an open system organization, if it's healthy, include active interaction
with their surroundings. They solicit feedback from customers and potential customers with
surveys, market research and evaluations. They also try to influence their environment through
marketing, advertising and lobbying legislators.
Open system organizations consist of lots of subsystems such as departments and project teams.
If one part of the organization fails, it doesn't mean the entire organization falls apart. In a
healthy organization, the people in different departments, branches and teams interact and work
together for their benefit and the company's.
ADVANTAGES OF OPEN SYSTEMS

Closed systems are inflexible and stagnant. In a heavily bureaucratic organization, it's
important to follow procedure, turn in reports and attend meetings even if they don't produce
any worthwhile results. In an open-system organization, the outcome matters more than the
process; if the standard approach doesn't get results, it's okay to change.
Closed systems can be more comfortable for the people inside them. People in closed systems
always think they know the answers; people in open systems have to accept there's no one
perfect way to succeed.

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Definition of Organizational Performance (https://www.iedunote.com/organizational-
performance)
According to Richard, organizational performance includes three specific areas of firm
outcomes:
1. financial performance (profits, return on assets, return on investment);
2. product market performance (sales, market share); and
3. shareholder return (total shareholder return, economic value added).
Specialists in many fields are concerned with organizational performance, including strategic
planners, operations managers, finance directors, legal advisors, and entrepreneurs (owners of
the organization).
In recent years, many organizations have attempted to manage organizational performance
using the balanced scorecard methodology where performance is tracked and measured in
multiple dimensions such as:
• Financial performance (e.g., shareholder return).
• Customer service.
• Social responsibility (e.g., corporate citizenship, community outreach).
• Employee stewardship.
The organization itself does not perform any work, but its managers are performing their
assigned works, and in a combination of these performed works is called organization
performance.
Some factors are to be performed by the organization such as human and cultural factors,
technology, natural recourses, economic factors, regulatory measures, markets, management
philosophy, organizational culture (goals, values, beliefs & norms), organizational climate,
motivated behavior and teamwork, structure, technological and physical resources, financial
resources, leadership style.
The organization gets effectiveness, efficiency, development, and participant satisfaction
outcomes with these resources.
After using all support and efforts when the organization produces a product or service, that is
called organizational performance.
Factors of Organizational Performance
Organizations vary according to the relative influence of several factors related to the
organization’s objective and the instruments and strategies chosen to achieve them.
These factors, which determine the structure, aims, and activities of the organization, can be
grouped into:
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 1. External factors: Those from the enabling environments that are not under the
organization’s control but which affect its structure and development. They include:
1. Economic factors
2. Socio-economic factors
3. Political-administrative factors
2. Internal factors: Organizational characteristics, including:
1. Purpose of the organization
2. Organizational instruments
3. Individual choice factors: Members’ joint or individual decisions regarding expected
costs and benefits.
Older studies, especially in the 1970s, focused on the influence of internal factors, while more
recent work has emphasized the importance of all three sets of factors.
Organizational Performance Model
A Causal Model of Organizational Performance and Change, or the Burke & Litwin Model,
suggests linkages that hypothesize how performance is affected by internal and external
factors.
It provides a framework to assess organizational and environmental dimensions that are keys
to successful change. It demonstrates how these dimensions should be linked causally to
achieve a change in performance.
The causal model links what could be understood from practice to what is known
from research and theory.
The model discusses how different dimensions link with each other and how the external
environment affects the different dimensions in an organization.
The model provides a guide for organizational diagnoses and planned, managed organizational
change, clearly showing cause-and-effect relationships.
Outline of the Model
The model revolves around 12 organizational dimensions:
1. External environment
2. Mission and strategy
3. Leadership
4. Organizational culture
5. Structure
6. Management practices
7. Systems
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 8. Work unit climate
9. Task and individual skills
10. Individual needs and values
11. Motivation
12. Individual and organizational performance
The model also distinguishes between transformational and transactional organizational
dynamics in organizations.
Internal and External Environment of Organizational Performance
Environmental factors play a major role in determining an organization’s success or failure.
Managers should strive to maintain the proper alignment between their organizations and their
environment.
All organizations have both external and internal environments.
An organization’s internal environment is composed of the elements within the organization,
including current employees, management, and especially corporate culture, which defines
employee behavior.
Although some elements affect the organization, others only affect the manager.
A manager’s philosophical or leadership style directly impacts employees. Traditional
managers give explicit instructions to employees, while progressive managers empower
employees to make many of their own decisions.
Changes in philosophy and/or leadership style are under the manager’s control. The following
sections describe some elements that make up the internal environment.
The internal environment consists of the organization’s owners, the board of directors,
employees, the physical environment, and culture.
Owners are those who have property rights claims on the organization. The board of directors
oversees a firm’s top managers, elected by stockholders.
Individual employees and the labor unions they sometimes join are other important parts of the
internal environment. The physical environment, yet another part of the internal environment,
varies greatly across organizations.

1.4 Trends and challenges of Management in Global Context

1. Planning and Decision making in a Global Scenario
To effective plan and make decisions in a global, economy managers must have a broad based
understanding of the environmental issues and Competitive issues.

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And they need to have understand local market conditions and what is the technological factor
that will affect their operations.
At when we talked about corporate level, executive need a great deal of information to function
effectively:-
1. Which market is growing?
2. Which market is shrinking?
3. Who are our domestic and foreign competitors?
They must also make variety of strategic decision about their organizations.
2. Organizing in a Global Scenario
Managers in International business must also attend to a variety of organizing issues
for example General Electric has operations scattered around the globe. The firm made the
decision to give local managers a great of responsibility for how to run their business.
Managers in an International business must address the basic issues of organizations structure
and design, managing change and dealing with Human Resources.
3. Leading in Global Scenario
Individual managers must be prepared to deal the these and other factors as the interact people
from different cultural backgrounds.
Supervising a group of five managers each of whom is from a different region is likely to be
much simpler than supervising a group of five managers, each of whom is from different
culture.
Managers must to understand How cultural factors affects individuals? How motivational
process vary across cultures? How the leadership changes in different
cultures? How communication varies across cultures, and How interpersonal and group
process depend on cultural background?

4. Controlling in a Global Scenario

Finally, Managers in international organizations must also be concerned with control, distance,
time zone differences and cultural factors also play a role in control for example in some
cultures, close supervision is seen as being appropriate, whereas in other cultures is not like
wise, executive in the USA and Japan may find it difficult to communicate vital information to
one another because of the Time Zone Difference.
Basic control issues for the international managers revolve around the operations management,
productivity, quality, technology and information system.

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References:
➢ https://harappa.education/harappa-diaries/nature-and-scope-of-management
➢ https://www.tutorialspoint.com/management_principles/management_principles_man
agers_role.htm#
➢ https://www.tutorialspoint.com/management_principles/management_principles_man
agers_role.htm
➢ https://www.businessmanagementideas.com/management/characteristics-of-
management/20263
➢ https://bizfluent.com/facts-7168296-open-system-organizational-structure.html
➢ https://www.mba-notes.com/2020/03/trends-and-challenges-of-management-in.html

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