Session: 01 POM Introduction to Management

Businesses not only have the ability to create wealth and prosperity for their owners, but also for their employees
and society at large. In today's fast-paced, competitive world, businesses are continually changing. Most of these
organizations are on the hunt for the competitive advantage, or a way to strategically move ahead of the
competition in the marketplace. However, earning the competitive advantage takes work; goals must be set, plans
must be made, people must be motivated and mobilized, resources have to be gathered and distributed, and
objectives have to be monitored and assessed. Thus to manage all these various elements and resources of the
business and organizational system, a manager is required.

Managers administer and coordinate resources effectively and efficiently to achieve the goals of an organization.
Managers have the unenviable task of making decisions, solving difficult problems, setting goals, planning
strategies, and rallying individuals. In essence, managers get the job done through other people.

The role of a manager in a business organization is complex. While managers can come in different shapes and
sizes they all share the common task of working with people and resources to achieve organizational goals. An
organizational goal can be something as simple as finding a way to shorten the amount of time it takes for a
product to leave a warehouse or as elaborate as introducing a new product to the marketplace that makes all
previous versions of this type of product obsolete. Regardless of the goal, someone needs to manage all of the
factors necessary to seeing that goal become a reality.

Think of a manager as the foundation, support beams, and roof of a house. Just as the beam functions to provide
the necessary support from the bottom up in between parts, similarly the manager from his position provides
support and insight to all of those connected parts within the organization i.e. managing employees that carry out
various business processes.

No matter what type of organization they work in, managers are generally responsible for a group of individuals'
performance. As leaders, managers must encourage this group to reach common business goals, such as bringing a
new product to market in a timely fashion. To accomplish these goals, managers not only use their human
resources, but they also take advantage of various material resources as well, such as technology.

For example, think of a team. A manager may be in charge of a certain department whose task it is to develop a
new product. The manager needs to coordinate the efforts of his department's team members, as well as give
them the material tools they need to accomplish the job well. If the team fails, ultimately it is the manager who
shoulders the responsibility.

While this may seem like a great deal of responsibility and accountability for just one person to have, in an
organizational context, there are several layers of management. The roles and responsibilities a particular manager
has correlates to their position in the organization. While job titles and roles can vary from organization to
organization, they typically fall into one of three levels of management.

Two leaders may serve as managers within the same company but have very different titles and purposes. Large
organizations, in particular, may break down management into different levels because so many more people need
to be managed. Typical management levels fall into the following categories: they are top level, middle level
management and lower level management.
 o Top level: Managers at this level ensure that major performance objectives are established and
accomplished. Common job titles for top managers include chief executive officer (CEO), chief operating
officer (COO), president, and vice president. These senior managers are considered executives,
responsible for the performance of an organization as a whole or for one of its significant parts. When
you think of a top-level manager, think of someone like Dave Thomas of the fast-food franchise Wendy's.
Although John T. Schuessler was elected CEO in 2000, Dave Thomas was the founder and served as the
chairman of the board. He was the well-known spokesperson for the chain, until his death in 2002.

o Middle level: Middle managers report to top managers and are in charge of relatively large departments
or divisions consisting of several smaller units. Examples of middle managers include clinic directors in
hospitals; deans in universities; and division managers, plant managers, and branch sales managers in
businesses. Middle managers develop and implement action plans consistent with company objectives,
such as increasing market presence.

o Lower level: The initial management job that most people attain is typically a first-line management
position, such as a team leader or supervisor — a person in charge of smaller work units composed of
hands-on workers. Job titles for these first-line managers vary greatly, but include such designations as
department head, group leader, and unit leader. First-line managers ensure that their work teams or
units meet performance objectives, such as producing a set number of items at a given quality, that are
consistent with the plans of middle and top management.

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Q1: What is Business? Explain the Meaning, Definitions and Features of Business.
A: Business Meaning
Business is an economic activity, which is related with continuous and regular production and distribution of goods
and services for satisfying human wants.

Definitions of Business
Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an
objective of earning profit and acquiring wealth through the satisfaction of human wants." According to Dicksee,
"Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on
whose behalf the activity is conducted." Lewis Henry defines business as, "Human activity directed towards
producing or acquiring wealth through buying and selling of goods." Thus, the term business means continuous
production and distribution of goods and services with the aim of earning profits under uncertain market
conditions.

Features of Business
Characteristics or features of business are discussed in following points:-
1. Exchange of goods and services
All business activities are directly or indirectly concerned with the exchange of goods or services for money or
money's worth.
2. Deals in numerous transactions
In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of
transactions and not just one or two transactions. These transactions ensure business continuity.
3. Profit is the main Objective
The business is carried on with the intention of earning a profit. The profit is a reward for the services of a
businessman.
4. Business skills for economic success
Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A
businessman needs experience and skills to understand and run a business within a competitive market
environment.
5. Risks and Uncertainties
Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. A
business faces uncertainties, such as loss due to change in demand or fall in price and these cannot be insured and
have to be borne by the businessman.
6. Buyer and Seller
Every business transaction has minimum two parties that are - a buyer and a seller. Business activity is conducted
when both the buyer and seller enter into a contract or an agreement.
7. Connected with production
Business activity may be connected with production of goods or services. In this case, it is called as an industrial
activity. The industry may be primary or secondary.
8. Marketing and Distribution of goods
Business activity may be concerned with marketing or distribution of goods in which case it is termed as a
commercial activity.
9. Deals in goods and services
In business there has to be dealings in goods and service.
Goods may be divided into following two categories :-
1. Consumer goods : Goods which are used by final consumer for consumption are called consumer
goods e.g. T.V., Soaps, etc.
2. Producer goods : Goods used by producer for further production are called producers goods e.g.
Machinery, equipments, etc.
Services are intangible but can be exchanged for value like providing transport, warehousing and insurance
services, etc.
10. To Satisfy human wants
Businesses, through business activities, create products and services that aim to satisfy human wants directly or
indirectly. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction.
11. Social obligations
Modern businessmen are conscious of their social responsibility. Since a business, from the procurement of raw
materials to the final production and consumption of their goods and services, essentially depends on the
elements of society, it acknowledges its obligations towards it. Businesses can be credited for delivering high
quality products and services in the areas of health, clothing, accommodation, lifestyle, education and technology
which in turn have contributed to the social development of a nation.

Q2: What is Management Process? What role does a manager play within the Management process?
Q3: Explain in brief the Levels of Management with necessary diagram (pyramid: top-middle-level).
Q4: What are the 10 Basic Managerial Roles? Explain each of the 7 Basic Managerial Skills?