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ESSENTIALS OF MANAGEMENT UNIT -1

BASICS OF MANAGEMENT

BY S.Chandramouli Assistant professor – Saveetha Management School Saveetha Engineering College

What Is Management?
• Management
– The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.

• Managers
– The people responsible for supervising the use of an organization’s resources to meet its goals.

• Resources are organizational assets
– People Skills Knowledge Information – Raw materials Machinery Financial capital

Types of Managers
• Levels of Management
– First-line managers • Responsible for day-to-day operations. Supervise people performing activities required to make the good or service. – Middle managers • Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals. – Top managers • Responsible for the performance of all departments and have cross-departmental responsibility. • Establish organizational goals and monitor middle managers. • Form top management team along with the CEO and COO.

Levels of Management .

.DEFINITION OF “Management” Management art of Getting things done by a group of people with the effective utilization of resources.

Drucker’s “To Manage is what is to forecast and plan. efficiently accomplish selected aims” . Taylor “process of designing and maintaining of an environment in which individuals working together in groups.W. to Compound.Peter F. to co-ordinate. and to control” Henry Fayol’s “art of knowing what do you want to do and then seeing that it is done in the best and cheapest way” . to organize. organs can be described and defined only through their functions” .Koontz and Weihrich .Management Definitions “Management is an organ.F.

CHARACTERSTICS OF MANAGEMENT Economic Resources Goal oriented Distinct process Integrative force System of authority Dynamic function Social process Management make things happen Intangible forces .

MANAGEMENT – SCIENCE OR ART? Science Organized or systematized body of knowledge pertaining to a specific field of enquiry Art Application of knowledge and personal skills to achieve results .

which remain valid in all situations . Definitive Explains the cause effect relationships between variables Lays downs universal laws and principles.SCIENCE OR ART Develops by knowledge Develops practice acquired through observation and experimentation Descriptive Explanation is based on person's own understanding and interpretation Laws and principles are not of universal nature and their validity will differ from situation to situation.

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. It identifies major schools of management thought and describes how they evolved.Nature of Management This chapter introduces the concept & the elements of Management. Modern approaches are emphasized & the role of the manager is closely examined.

in fulfillment of a given purpose or task.Administration & Management • Administration – that part of the management process concerned with the institution and carrying out of procedures by which the program is laid down & communicated. and the progress of activities is regulated & checked against targets & plans. • Management – a social process entailing responsibility for the effective & economical planning & regulation of the operations of an enterprise. .

Without management. people would pursue their own objectives independently and this would lead to waste & inefficiency.Concept of Management Management may be defined as a process whereby scarce resources (human.’ . material. & financial) are combined to achieve organizational goals.

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Four Functions of Management .

Functions of Management Organising Planning Staffing Directing Reporting Coordinating Budgeting .

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Considering Planning Premises .

Formulating Supportive Plans .

DIFFERENT PHASES OF PLANNING A C E D B TIME .

Control by Punishment instead of harassment .

DIRECTING “building an effective work climate and creating opportunity for motivation . supervising. scheduling and discipline .

1–27 .Being a Manager High Variety Fragmentation Managerial Problems Brevity Compensation to be a manager © Copyright 2004 McGrawHill. All rights reserved .

All rights reserved .Managerial Skills What should be the right thing? • Conceptual Skills – The ability to analyze and diagnose a situation and distinguish between cause and effect. • Human Skills – The ability to understand. 1–28 . and control Howindividuals can we do better? the behavior of other and groups. alter. © Copyright 2004 McGrawHill. • Technical Skills – The specific knowledge and techniques required to perform an organizational role. lead.

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Decision making is defined as selection of a course of action from among alternatives to achieve a desired goal .

• Decision making is a selection process. The best alternative is selected out of many available alternatives. Decision are made to achieve some goal or objective. . • Decision making is a goal oriented process.

• Decision may be positive or negative. A decision may direct others to do or not to do. .

Based on occurrence – Programmed decisions – Non Programmed decisions Based on location – Organizational decisions – Personal decisions Based on person – Individual decisions – Group decisions Based on Information – Routine Decisions – Strategic Decisions Based on Implementation – Policy decisions – Operative Decisions .

ORGANISATIONAL DECISIONS PERSONAL DECISIONS .

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DECISIONMAKER Who will be my ???? .

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PLANNING • • • • Where the org. wants to be in future Defining goals for future organizational performance Deciding on the tasks and use of resources Deciding in advance which will be done in the near future • Lack of planning or poor planning hurts an organisation’s performance .

Provides all facilities necessary to perform the work. . tries to accomplish plans Involves assignment of tasks Grouping of tasks into departments Assignment of authority Allocation of resources across the org.ORGANISING • • • • • • • Typically follows planning Reflects how the org.

divisions and individuals to work immediately with the manager .s.LEADING • Motivate employees to achieve organisational goals • Creating a shared culture and values • Communicating goals to employees and creating desire to perform at higher level • Involves motivating entire dept.

CONTROLLING • Monitoring employees’ activities • Determining whether the org. is on target to attain its goals • Make corrections if necessary • Ensure that the achieved objectives conform to preplanned objectives .

HENRY FAYOL 1841 .1925 BASICALLY FROM BRITISH COUNTRY 14 PRICIPLES OF ADMINISTRATION THOUGHTS “ MANAGERS WERE BORN NOT MADE” .

HENRY FAYOL 14 PRINCIPLES   DIVISION OF LABOUR AUTHORITY     DISICIPLINE UNITY OF COMMAND UNITY OF DIRECTION REMENURATION     SUBBORDINATION OF INDIVIDUAL INTEREST TO THE COMMON GOOD CENTRALIZATION HIERARCHY ORDER     EQUITY STABILITY OF STAFF INITATIVE ESPIRIT DE CORPS .

INDUSTRIAL ADMINISTRATION B. GILBRETH & LILLIAN BILBRETH THE BEST WAY TO WORK EDWARD TREGASKISS ELBOURNE BASICALLY ENGINEER.S ROWNTREE ESTABLISHMENT OF PENSION FUND ELTON MAYO TO IMPROVE HUMAN RELATION IN INDUSTRY HENRY GANTT IMPORTANCE OF HUMAN FACTORS IN THE MANAGEMENT LIKE BONUS .OLIVER SHELTON DEVELOPED A SOUND PERSONAL POLICY FRANK B.

.For any organization to be successful. the following principles should be adhered: All the above said principles shall be carried out only if the organization possesses a sound management.

THANK YOU!!! .