Department of Human Resource Management

Faculty of Management studies and Commerce

University of Jaffna

Course Title: MC9010 - Management Practices & Case Studies

Chapter Title: Introduction to Management Hand out No: 01
Prepared by: Ms.N.Jasintha Issued on: 06.03.2020

Intended Learning Outcome

After completing this chapter successfully, you should be able to:

 Define Organization and Management.

 Describe the four management functions, roles, skills and type of managers.
 Describe the characteristics of Management.
 Explain the challenges faced by the modern-day managers.

INTRODUCTION TO MANAGEMENT

1.1.INTRODUCTION

Since time immemorial, managing has been the most imperative activity as the society has
continuously relied on group efforts. Moreover, it has always been crucial to ensure the
coordination of individual efforts right from the time people engaged socially. Well-coordinated
efforts are pivotal for achieving the aims and objectives that cannot be realized individually.

As organized groups have become enormous over the years, the role of management has also
been increasing in importance and complexity. Organizations nowadays have become more
global; employee groups are more diverse; and organization structures do not contain large
hierarchies rather focus on a collaborative approach. To tackle these new challenges,
Organizations are adopting new methods and philosophies of management. In this chapter, let us
study the concept, meaning, roles, skills and levels of management and managers in detail.

1.2.DEFINITION OF ORGANIZATION, BUSINESS AND BUSINESS ORGANIZATION

What is meant by Organization?

A group of people who work together in a structured way for a shared purpose
(Cambridge Advanced Learners Dictionary)

An organization is a two or more people who work together in a structured way to achieve a
specific goal or set of goals.
(Stoner and Freeman,2009)
What is meant by Business?
A business is any economic activity carried out to satisfy human needs and wants.

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What is meant by Business Organization?
A business organization is a collection of individuals and deliberately structured entity
which produces goods and/or services utilizing limited resources to achieve its specific goals
and objectives.
Apply to all organizations: for profit, non-profit and not-for -profit.

1.3.DEFINITION – MANAGEMENT

Management has drawn concepts and principles from a number of disciplines such as Sociology,
Economics and Psychology and so on. The contributors from each of these groups have viewed
management differently. Therefore 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 from different disciplines;

Mary Parker Follet (1868-1933)

Management is “the art of getting things done through people”.

Fayol,1930
Management is the process of planning, organizing, commanding, coordinating and controlling.

Daft,2012
Management is the attainment of organizational goals in an effective and efficient manner
through planning, organizing, leading and controlling organizational resources.

Hence, Management can be broadly defined as:

“A process of planning, organizing, leading and controlling the limited resources efficiently and
effectively to achieve predetermined goals and objectives in an ever changing business
environment.”

1.4.CORE CONCEPTS OF MANAGEMENT

1. Resources
o Man
o Machine
o Material 5Ms
o Method
o Money

2. Efficiency
o The degree to which limited resources are optimally used.
3. Effectiveness

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 o The degree to which the intended results are achieved.

Efficiency: Refers to getting the most output from the least amount of inputs. Because managers
deal with scarce inputs; including resources such as Man, Machine, Material, Method and
Money. They are concerned with the efficient use of those resources. It’s often referred to as
“doing things right”. That is, not wasting resources.

Effectiveness: Management is also concerned with being effective, completing activities so that
organizational goals are attained. Effectiveness is often described as “doing the right things”.
That is, doing those work activities that will help the organization reach its goals.

4. Productivity
o Productivity is the relationship between the output generated by a production or
service system and the input provided to create this output. In another way we can
say that productivity is the summation of Efficiency and Effectiveness.
o Productivity = Output
Input

1.5.CHARACTERISTICS OF MANAGEMENT

The critical analysis of the above definitions, the following characteristics of management
evolve.

1. Management is a continuous process

The process of management consists of planning, organizing, directing and controlling the
resources to ensure that resources are used to the best advantages of the organization. A single
function alone cannot produce the desired results. Management involves continuous planning,
organizing, directing and controlling.

2. Management is an art as well as science

 Management as a Science
Science is a body of knowledge pertaining to a specific field of study. It contains
theories, principles and facts.

 Management as an Art
Art implies the application of knowledge and skills to bring about the desired results.

Management is both a science as well as an art. Science (theory) and art (practice) are both
essential for the success of management.

3. Management aims at achieving predetermined objectives

All organizations have objectives that are laid down. Every managerial activity results in
achievement of these predetermined objectives.

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 4. Management is a factor of production
An enterprise produces goods or services using resources like land, labor, capital, machines etc.
These resources themselves cannot realize the organizations goals. The goals are achieved when
these are effectively coordinated by the management

5. Management is decision-making
Decision-making is selecting the best among alternative courses. The success or failure of an
organization depends upon the quality of decision. A manager must make a right decision at
right time.

6. Management is needed at all levels

The functions of planning, organizing, directing, controlling, decision-making are performed by
top level as well as lower level supervisors.

7. Management aims at maximum profit

The resources are properly utilized to maximize profit. Maximizing the profit is the economic
function of a manager.

1.6.IMPORTANCE OF MANAGERS TO THE ORGANIZATION

A manager is someone who coordinates and oversees the work of other people so that
organizational goals can be accomplished. There are several reasons we can list out for having a
manager in the organization. Here, three reasons are listed out for importance of managers.
1. Organizations need their managerial skills and abilities in uncertain, complex, and
chaotic times.
2. Managers are critical to getting things done in organizations.
3. Managers contribute to employee productivity and loyalty; the way employees are
managed can affect the organization’s financial performance; and managerial ability has
been shown to be important in creating organizational value.

1.7.LEVELS OF MANAGEMENT

Level of Management can be classified into three categories – Top Management, Middle
Management and Supervisory/Lower Level/ First-line management as shown in figure below

Board of Directors, Chairman, Chief

Top Executive

Department Heads, Divisional

Middle Heads, Section Heads

Lower Senior Supervisor, Front Line Supervisors

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Top level
Top level management determines goals and objectives. It performs overall planning,
organizing, staffing, directing and controlling. It integrates organization with environment,
balances the interest groups and is responsible for overall results.

Middle Level
Middle management stands between top management and supervisory management level.
Middle level management establishes programs for department and carries out functions for
achieving specific goals.

Lower Level/ First-Line Management

Supervisory management is concerned with efficiency in using resources of the organization. A
supervisor is an executor of policies and procedures making a series of decisions with well-
defined and specified premises.

1.8.MANAGERIAL SKILLS
Management is a challenging and complex task, and performing it effectively requires a variety
of skills. These skills are organized into three categories: conceptual, technical, and human.
They apply in varying degrees of importance to managers at all levels in an organization.

Conceptual skills
This refers to the ability to see the “big picture,” understand how the various parts of the
organization affect each other, and conceptualize how those parts can be organized to improve
the performance of the overall organization. In other words, conceptual skills are the foundation
for strategizing and organizing. Conceptual skills are most important to Top level managers.

Technical Skills
Technical skills enable managers to perform specific activities involving methods,
processes, or techniques. These skills include mastery of specific equipment or correctly
following procedures. Technical skills are most important to First line managers.

Human skills

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 Human skills refers that the managers need include the abilities to communicate,
persuade, manage conflict, motivate, coach, negotiate, and lead. Effective managers understand
the needs of their subordinates and act on this knowledge to improve employee well-being also.
Human skills are essential to all level managers equally.

1.9.MANAGEMENT FUNCTIONS

A function is a group of similar activities. Management functions can generally be classified into
four types;

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.
2) Organizing: Organizing is the distribution of work in group-wise or section-wise for
effective performance.
3) Leading: Leading is guiding and influencing the member of the organization to work
together with the interest of the organization.
4) Controlling: 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.

1.10. ROLES OF MANAGEMENT

Henry Mintzberg’s observations and subsequent research indicate that diverse manager activities
can be organized into 10 roles. A role is a set of expectations for a manager’s behavior. The
following table provides examples of each of the roles. These roles are divided into three
conceptual categories:
1. Informational role: Informational roles describe the activities used to maintain and
develop an information network (managing by information).
2. Interpersonal role: Interpersonal roles pertain to relationships with others and are related
to the human skills (managing through people).
3. Decisional role: Decisional roles pertain to those events about which the manager must
make a choice and take action. These roles often require conceptual as well as human
skills (managing through action).

Category Role Activity

Conceptual Skills

Technical Skills

Top Level Manager

Human Skills

Middle Level Manager

First line/ Low Level Manager

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1. Informational Monitor  Seek and receive
information
 Scan periodicals and
reports
 Maintain personal contacts.
Disseminator  Forward information to
other organization
members
 Send memos and reports
 Make phone calls.
Spokesperson  Transmit information to
outsiders through speeches
reports and memos.
2. Interpersonal Figurehead  Perform ceremonial and
symbolic duties such as
greeting visitors, signing
legal documents.
Leader  Direct and motivate
subordinates.
 Train, counsel, and
communicate with
subordinates.
Liaison  Maintain information links
both inside and outside
organization.
 Use e-mail, phone calls,
and meetings.
3. Decisional Entrepreneur  Initiate improvement
projects.
 Identify new ideas.
 Delegate idea
responsibility to others.
Disturbance handler  Take corrective action
during disputes or crises.
 Resolve conflicts among
subordinates.
 Adapt to Environmental
crises.
Resource allocator  Decide who gets resources.
 Schedule, budget, set
priorities.
Negotiator  Represent department

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 during negotiation of union
contracts, sales, purchases,
budgets.
 Represent departmental
interests.
SOURCES: Adapted from Henry Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973),
pp. 92_93; and Henry Mintzberg, “Managerial Work: Analysis from Observation,” Management Science 18 (1971):
B97_B110.

1.11. CHALLENGES FACED BY MODERN-DAY MANAGERS

 Managing global competition.
 Facing the competition through superior efficiency, quality, innovation, and
responsiveness.
 Increasing performance while being an ethical manager.
 Balancing the interests of different stakeholders.
(Stakeholders: A stakeholder is a party that has an interest in a company and can
either affect or be affected by the business. Eg: Owners, Employees, Customers,
Competitors, Suppliers, Government, Debtors, Creditors, Trade associations, Media,
Community and Etc.)
 Managing a diversified workforce.
 Adopting new technologies.
 Managing creativity, innovation and continuous change.

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