Management

Managers
and Managing

Management
Management is a process by which the common goals
are reached through cooperative endeavor and
actions.

It is simply the process of Decision-Making and

Control over the actions of Human Beings for the
expressed purpose of attaining pre-determined goals.

Management Key Concepts

Organizations: People working together and

coordinating their actions to achieve specific
goals.

Goal: A desired future condition that the

organization seeks to achieve.

Management: The process of using

organizational resources to achieve the
organizations goals by...

Planning, Organizing, Leading, and Controlling

3 Common characteristics of an
organization.
Distinct
Purpose

Deliberate
Structure
People

Additional Key Concepts

Resources

are organizational assets and

include:5 Ms of Management
Man
Machinery,
Materials,
Method
Money

Managers

are the people responsible for

supervising the use of an organizations
resources to meet its goals.

Management is not a natural system

/ artificial creation
Financial
Resources

Human
Resources
Achievement
of goals
Physical
Resources

Information
Planning

Organizing

Leading

Directing

Controlling

Characteristics of Management
It is an organized activity.
Existence of Objectives .
Relationship among Resources.
Working with and Through people.
Decision-Making.

Nature Of Management
It is Multidisciplinary.
Is Dynamic in Nature.
Relative not absolute principles.
Management is science or Art.(GD)
Universality of Management.

Science Or Art
Science : Is a systematized body of knowledge pertaining to a
particular field of enquiry.It contains concepts theories ,
experimentation and principles which are true and universal.
Art : Is based on Judgment, feeling , intuition, . In art knowledge
is put to creative use.And also involves the application of skills.

Management as Science

Science is a body of knowledge contains concepts , theories,

experimentation and principles which are true and
Universal.Same is with Management.
E.g. Organization Structure uses Unity of command, Span of control.

Any discipline cannot be called science unless it has

generalizations and principles which are true and universal.
Management involves Decision- Making which is based on
logic and reasoning.
Stress on collection of facts and data, their systematic analysis
and arriving at conclusions in a scientific manner.

Management as Art
As

an art , Management calls for use of Skills, Intuition and

judgment, and continuous practice of theories .
Peter.F.Drucker Said the Functions of management are to manage
the business , managers , workers and the work.Where ever we
consider people,We cannot stop the involvement of emotions and
subjectivity.
Principles of science are exact,like of physics and biological
science.The principles of management are not exact and are
flexible depending upon the situation.

Administration Vs Management
A terminological Conflict
Basis Of
Difference
1.

2.

3.

4.

5.

Level in
Organization
Major Focus
Nature of
Functions
Scope Of
Functions
Qualities
Required

Administration

Management

Top Level

Middle/lower level

Policy formulation/Objective
determination
Determinative

Policy Execution for

objective achievement
Executive

Broad and Conceptual

Narrow and Operational

Administrative

Technical

Organizational Performance
Measures

how efficiently and effectively managers use resources to satisfy

customers and achieve goals.

Efficiency: A measure of how well resources are used to

achieve a goal.Refers to Cost Benefit rate incurred in pursuit of
achieving the organizational goals.

Managers who are able to minimize the cost of resources

achieve goals and are acting efficiently.

Effectiveness: A measure of the appropriateness of the goals

chosen (are these the right goals?), and the degree to which
they are achieved.

Organizations are more effective when managers choose the

correct goals in tandem with the changing environment and
then achieve them.

Effectiveness Vs Efficiency
Peter Drucker offers a helpful distinction.He says managers
typically either Do things right or Do the right things
Doing things right means Efficiency- Getting the most from the
limited resources.
Doing the right things means effectiveness-Setting the right goals
and objectives and then making sure theyre accomplished.

Efficiency Vs Effectiveness
Efficiency (Means)

Effectiveness (Ends)

Resource Usage

Goal Attainment

Low Waste

High Attainment

Management strives for :

Low Resource Waste (High Efficiency)
High Goal Attainment (High Effectiveness)

Four Functions of Management

Planning
Choose Goals

Organizing

Controlling

Working together

Monitor & measure

Leading
Coordinate

What Managers Do?

Managerial Skills
There are three skill sets that managers need to
perform effectively.
1. Conceptual skills: the ability to analyze and see the whole
picture, To recognize significant elements and to integrate these
elements.
2. Human skills: the ability to work with, understand, alter, lead,
and control peoples behavior to accomplish organizational
objectives
3. Technical skills: the job-specific knowledge required to
perform a task. The ability to use procedures, techniques and
knowledge of a specialized field.

All three skills are enhanced through formal training,

reading, and practice.

Conceptual Skills
Using information to solve business problems
Identifying of opportunities for innovation
Recognizing problem areas and implementing solutions
Selecting critical information from masses of data
Understanding of business uses of technology
Understanding of organizations business model

Skills Needed at different levels of

Management

Skill Type Needed by Manager Level

Top
Managers
Middle
Managers
Line
Managers
Conceptual

Human

Technical

Management Roles
Role is defined as the pattern of Behavior which
is defined for different positions. It refers to the
expected behavior of the occupant of a position.

Managerial Roles
Described

by Mintzberg.

A role

is a set of specific tasks a person performs

because of the position they hold.

There

are 3 broad role categories:

1. Interpersonal
2. Informational
3. Decisional

FORMAL AUTHORITY AND STATUS +

PERSONAL SKILLS AND CHARACTERISTICS

INTERPERSONAL
ROLES

INFORMATIONAL
ROLES

DECISIONAL ROLES

Figure Head

Monitor

Entrepreneur
Disturbance Handler

Leader

Disseminator

Resource Allocator
Negotiator

Liaison

Spokesperson

Interpersonal Roles
Roles

managers assume to coordinate and

interact with employees and outsiders and
provide direction to the organization.
Figurehead

role: symbolizes the organization and

what it is trying to achieve.

Leader

role: train, counsel, mentor and encourage

high employee performance.

Liaison

role: link and coordinate people inside and

outside the organization to help achieve goals.

Informational Roles
Associated

with the tasks needed to obtain and

transmit information for management of the
organization.
Monitor role: Collects and analyzes information from
both the internal and external environment.
Disseminator role: manager transmits information to
influence attitudes and behavior of employees.
Spokesperson role: use of information to positively
influence the way people in and out of the organization
respond to it.

Decisional Roles
Associated

with the methods managers use to

plan strategy and utilize resources to achieve
goals.
Entrepreneur

role: deciding upon new projects or

programs to initiate and invest. Risk Taking.
Disturbance handler role: assume responsibility for
handling an unexpected event or crisis.
Resource allocator role: assign resources between
functions and divisions, set budgets of lower managers.
Negotiator role: seeks to negotiate solutions between
other managers, unions, customers, or shareholders.

Reconciling Function and Role Approach of a

managers Job
Planning
Interpersonal Role
Organizing
Staffing
Directing
Controlling

Informational Role

Decisional Role

Management Levels
Organizations

often have 3 levels of managers:

First-line Managers: responsible for day-to-day operation.

They supervise the people performing the activities required
to make the good or service.
Middle Managers: Supervise first-line managers. They are
also 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. They
establish organizational goals and monitor middle managers.

Three Levels of Management

Top
Managers
Middle
Managers
Front Line Managers

Non-management

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