Management

The Business World Today

 Constant change!
 Technology
 Society

 Environment

 Competition
 What Is An Organization?
 A formal and coordinated group of people who
function to achieve particular goals
 These goals cannot be achieved by individuals
acting alone
 An organization has a structure.
Characteristics of an Organization
 An organization has a structure.

 An organization consists of a group of people

striving to reach goals that individuals acting
alone could not achieve.
 Management
Organization
Two or more people who work together in a structured
way to achieve a specific goal or set of goals.
Goals
Purpose that an organization strives to achieve;
organizations often have more than one goals, goals are
fundamental elements of organization.
The Role of Management
To guide the organizations towards goal
accomplishment
What is Management?

 The process of deciding how best to use a

business’s resources to produce good or
provide services
 Employees
 Equipment

 Money
Management

The attainment of organizational goals in

an effective and efficient manner through
planning, organizing, and controlling
organizational resources
Management
 Management refers to the tasks and activities
involved in directing an organization or one of
its units: planning, organizing, leading, and
controlling.
 The process of reaching organizational goals by
working with and through people and other
organizational resources.
Management

 Every individual works in the organized

group to achieve what he can’t achieve
individually
 Management is an essential part of any
group activity. Group can be:-
 Family
 Play group
 Work group
 School
 Business firm
 A government
Management

 Management is universal process

 Wherever there is human activity, there

is management
“Management”

Management is looked at from the following

angles

 As a Noun
 As a Process
 As a Discipline
Definition of Management
“Management Is the task of planning, co-oridnating,
motivating and controlling the efforts of others towards a
specific objective”
- James L. Lundy.
“Management is a human activity which directs and controls
the organization and administration of the business
enterprise.”
- Beyard O’Wheeler.
“Management is art of getting things done through people”
- Mary Parker Follett.
Nature/Characteristics of Management

 Group Activity

 Goal- oriented—(economic & social objective)

 Universal Phenomenon
 Needed at all levels of Organization
 Social process
Nature/Characteristics of Management

 System of authority
 Dynamic function
 Multi disciplinary subject
 Achieve Pre determined objective
 Management is a process
Purpose/Objectives of Management

 Optimum utilization of resources

 Minimizing the element of risk
 Improving performance
 Planning for the future.
 Growth and Development of business
 Better quality
Importance of Management

 Achievement of group objectives

 Optimum utilization of resources
 Reduction of cost
 Increased profit
 Smooth running of business
 Provides innovation
 Change & growth
 Social benefits
Scope Of Management

 Production Management
 Marketing Management
 Finanacial Management Branches of
Management
 Personal Management
 Purchasing Management
 Office Management
 Transport Management
Levels of Management

 Many managers work in an organisation.

However, these managers do not work at
the same level. They work and operate
at different positions. Hierarchy of these
managerial positions is called Levels of
Management.
Levels of Management
Levels of Management
 Three Levels of Management
 Generally, there are Three Levels of Management,
viz.,
 Administrative or Top Level of Management.
 Executive or Middle Level of Management.
 Supervisory or Lower Level of Management.
 At each level, individual manager has to carry out
different roles and functions.
Diagram of Levels of Management
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.

 Responsible for providing the overall

direction of an organization
The role of the top management can be
summarized as follows -
 The top level management determines the objectives,
policies and plans of the organisation.

 They assemble and bring together available resources.

 The top level management does mostly the work of

thinking, planning and deciding. Therefore, they are
also called as the Administrators and the Brain of the
organisation.

 They spend more time in planning and organising.

The role of the top management
can be summarized as follows -
 They prepare long-term plans of the organisation
which are generally made for 5 to 20 years.
 The top level management has maximum
authority and responsibility. They are the top or
final authority in the organisation. They are
directly responsible to the Shareholders,
Government and the General Public. The success
or failure of the organisation largely depends on
their efficiency and decision making.
 They require more conceptual skills and less
technical Skills.
 Middle Level of Management

 The Middle Level Management consists of the

Departmental Heads (HOD), Branch Managers, and
the Junior Executives. The Departmental heads are
Finance Managers, Purchase Managers, etc.
 The Branch Managers are the head of a branch or
local unit.
 The Junior Executives are Assistant Finance
Managers, Assistant Purchase Managers, etc.
 The Middle level Management is selected by the
Top Level Management.
The middle level management emphasize more on following
tasks :-

 Middle level management gives recommendations

(advice) to the top level management.

 It executes (implements) the policies and plans

which are made by the top level management.

 It co-ordinate the activities of all the departments.

 They also have to communicate with the top level

Management and the lower level management.
 They spend more time in co-ordinating and
communicating.
 They prepare short-term plans of their departments
which are generally made for 1 to 5 years.
 The middle Level Management has limited authority and
responsibility. They are intermediary between top and
lower management. They are directly responsible to the
chief executive officer and board of directors.
 Require more managerial and technical skills and less
conceptual skills.
Lower Level of Management

 The lower level management consists of the

Supervisors.
 They are selected by the middle level
management. It is also called Operative /
Supervisory level or First Line of
Management.
 They have direct responsibility for producing
goods or services Foreman, supervisors,
clerical supervisors
The lower level management
performs following activities :-
 Lower level management directs the workers /
employees.
 They develops morale in the workers.
 It maintains a link between workers and the
middle level management.
 The lower level management informs the workers
about the decisions which are taken by the
management. They also inform the management
about the performance, difficulties, feelings,
demands, etc., of the workers.
The lower level management
performs following activities :-
 They spend more time in directing and controlling.
 The lower level managers make daily, weekly and
monthly plans.
 They have limited authority but important
responsibility of getting the work done from the
workers. They regularly report and are directly
responsible to the middle level management.
 Along with the experience and basic management
skills, they also require more technical and
communication skills.
The Manager

 A Manager is the person, who is responsible

for planning and directing the work of a
group of individuals, monitoring their work,
and taking corrective action when necessary.
Role Of Manager
 Director
 Motivator
 Human being
 Guide
 Friend
 Planner
 Supervisor
 Reporter.
Functions Of A Manager
 Planning the work
 Taking Decision
 Delegation Authority
 Solving the problems
 Co-ordination
 Setting target
 Guiding sub ordinates
 Providing Facilities
 Stimulating Workers
 Control
CLASSICAL THEORY

 The Classical Theory is the traditional

theory, wherein more emphasis is on the
organization rather than the employees
working therein.
 According to the classical theory, the
organization is considered as a machine
and the human beings as different
components/parts of that machine.
The classical theory has the
following characteristics:
 It is built on an accounting model.
 It lays emphasis on detecting errors and
correcting them once they have been
committed.
 It is more concerned with the amount of output
than the human beings.
 The human beings are considered to be
relatively homogeneous and unmodifiable.
Thus, labor is not divided on the basis of
different kinds of jobs to be performed in an
organization.
 It is assumed that employees are relatively
stable in terms of the change, in an
organization.
 It is assumed that the authority and
control should be vested with the central
authority only, in order to have a
centralized and integrated system.
NEOCLASSICAL THEORY

 The NeoClassical Theory is the

extended version of the classical theory
wherein the behavioral sciences gets
included into the management.
According to this theory, the organization
is the social system, and its performance
does get affected by the human actions.
Systems Approach to organisation

 In the 1960, an approach to

management appeared which try to unify
the prior schools of thought. This
approach is commonly known as
‘Systems Approach’.
 They viewed organisation as an organic
and open system, which is composed of
interacting and interdependent parts,
called subsystems.
 The system approach is top took upon
management as a system or as “an
organized whole” made up of sub-
systems integrated into a unity or orderly
totality.
Features of Systems Approach

 (i) A system consists of interacting

elements. It is set of inter-related and
inter-dependent parts arranged in a
manner that produces a unified whole.
 (ii) The various sub-systems should be
studied in their inter-relationships rather,
than in isolation from each other.
 (iii) An organizational system has a
boundary that determines which parts
are internal and which are external.
 (iv) A system does not exist in a vacuum.
It receives information, material and
energy from other systems as inputs.
These inputs undergo a transformation
process within a system and leave the
system as output to other systems.
 (v) An organisation is a dynamic system
as it is responsive to its environment. It
is vulnerable to change in its
environment.
The Management Process

The
Management
Process
The Management Process

Planning involves tasks

that must be performed to
attain organizational goals,
how the tasks must be
performed, and indicating
when they should be
performed.
The Management Process
 Planning
 Decides company
goals and the actions
to meet them
 CEO sets a goal of
increasing sales by
10% in the next year
by developing a new
software program
The Management Process

 Organizing means assigning the planned

tasks to various individuals or groups
within the organization.

 Process of deciding where decisions

will be made, who will perform what jobs
and tasks, and who will report to whom in
the company
The Management Process

Co-ordination
 “Co-ordination means balancing different
activities”
The Management Process

 Staffing
 Decides how many and what kind of people
a business needs to meet its goals and then
recruits, selects, and trains the right people
 The main purpose of staffing

is to put right man on right job

The Management Process

Directing
Directing means guiding
the activities of the
members in appropriate
directions.
Objective is to improve
productivity.
The Management Process

Directing

 Getting others to perform the necessary

tasks by motivating them to achieve the
organization’s goals
The Management Process
Controlling
 Management starts with ends
planning and ends with controlling.
 Planning is successful if tasks are
properly controlled.
Management: Science or Art?

 Art is “Skill in conducting any human activity”.

 Science is “Any skill or technique that reflects a precise

application of facts or principles”.

 Management as a science indicates that in practice

managers use a specific body of information & facts for
guidance.

 Management as an art requires only skill to apply facts.

 Management: Science or Art?

Art Science
1 Artist’s Vision Clarity of Concept
2 Knowledge of Craft Application of Scientific
Method
3 Successful Clarity of Theory
Communication
4 Creative Power Presence of Relationship
between Factors
5 Skilled Performance Systematised Body
Management as an Art
 There is no specific way to teach or understand
management
 It is a skill borne of personality and ability
 Some people cannot be taught to be effective managers
 Even if trained, some people will not be capable of being
effective practicing managers
 Rely more on social and political environment using their
own knowledge of a situation
 Manager as an artist
 A liberal art which deals with knowledge & leadership
 It describes, expresses and advances by practice
Management as a Science
Perspective
 There are ideal managerial practices for certain
situations
 Based on logical consistency, systematic explanation,
critical evaluation & experimental analysis
 Managers follow general principles and theories
 They create and test hypotheses
 Reliance on concepts learned in business schools or
through company training programs
 Less attention to political and social factors involved in
different situations
 It advances by knowledge
 It defines, measures & proves
Management is both
 Management is both; Science as well as Art
 It uses both scintific knowledge & art in managing an
organization
 A balance betweent he two is needed
 Knowledge of science must be applied and art for it must
be present
 Applied knowledge is power
 Having mere knowledge is not important. The art of
using knowledge is equally important
Distinguish between..

Administration: Management:
 It is a thinking  It is a doing process
process  It takes the decisions
 It takes major within the framework
decisions & is wider of administration.
term than  It is a lower level
management. management function
 It is a top level  It consists of the
management function managerial personnel
 It consists of the with specialized
owners of the knowledge who may
enterprises be employees
Continue..

 It is used in relation to  It is used mainly in

the government, business firm which
military, educational & have economic
religious organization. motives
 Its decisions are  Its decision are
generally influenced influenced by internal
by external factors factors such as
such as social, values, beliefs &
political, legal etc opionions.
THANK YOU!!!!