Cha#1, MGT

What is Management?
 Management = Manage + Men + T (Tactfully)

i.e. manage people tactfully.
 “Management is an art of getting things done

through others.”
- Rue and Byars.
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Copyright © 2003 Prentice-Hall, Inc.
Management is what a manager does.
The major responsibilities of a manager are to
- make policies or plans or take decisions;
- collect resources and allocate those resources

according to the demand or requisitions of the
people or departments of org.;
- guide people in the right direction and make

them efficient;
- finally monitor the people and overall

activities;
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 “Management is the process of planning,
organizing, leading and controlling the
organization’s human, physical, financial and
information resources for achieving the goals of
the organization effectively and efficiently.”
- Ricky W. Griffin.
 “Management is the process of working with and

through others to achieve organizational objectives
in a changing environment”
defined by Robert Kreitner
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The Management Process:
A process is a systematic way of doing thing.

Management is a social process by which all the
managers and others are engaged in some inter-
related activities in order to achieve their desired
goals. Now we will briefly describe the functions
that comprise the process of management.
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Organizing:
Planning & Decision
Determining the
making:
best way of
Setting the collecting
organization’s goals resources and
and deciding the best
way of achieving
grouping activities
those goals.
Controlling: Leading:
Monitoring and Motivating and
correcting ongoing influencing the
activities to ensure human resources to
goal achievement. work hard for
achieving the
organizational
goals
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1. Planning & Decision making:
Planning is a primary and fundamental function of
management. Planning may be defined as making decisions
in advance what will be done in future. It is a process of
determining future courses of actions. It is concerned with
what is to be done, where, when, how, by whom the work
will be done etc. It involves selecting missions and visions
and the actions needed to achieve them. It requires decision
making and it is related with choosing the best alternatives
from a good number of alternatives.
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2. Organizing:
Organizing is the process of arranging and
allocating work, authority, and resources
among the member of an organization so that
they can attain the organizational goals. In fact,
organizing involves work distribution to the
member of a group. It determines which one is
the best way to group activities and resources.
It produces a structure of relationships in an
organization. .
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Staffing is also related to organizing and it
involves and keeping filled the positions in the
organization structure. This can be done by
determining the positions to be filled,
identifying the requirement of manpower,
filling the vacancies and training employees so
that the assigned tasks are accomplished
effectively and efficiently.
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3.Leading
Leading is a process of influencing and
supporting the human resources to work hard
for achieving the organizational goals. It
includes motivation.
4. Controlling:
Controlling is a process of monitoring and
correcting ongoing activities to ensure goal
achievement.
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Basic Managerial Skills:
Henri Fayol, a famous management theorist and father
of modern management, identified three basic skills –
technical skills, human skills and conceptual skills.
Diagnostic skills, communication skills, decision
making skill, time management skill are also
significant for a manager.
1. Technical skill :
Technical skill is the ability to perform a particular job in
prescribed ways. Accountants, engineers, surgeons all
have their technical skills necessary for their respective
professions.
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Technical skill enables a person to accomplish the
mechanism of performing a particular job. This may
be known how to maintain accounts, how to
conduct a financial audit, how to construct a
building or how to perform in the operation theatre.
Technical skills are important especially for first line

managers, who spend much more of their time
training subordinates and supervising their work-
related problems.
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2. Human skill / Interpersonal skill:
Human skill is the ability to work with, understand, and
motivate other people as individuals or in groups.
Managers spend much of their time interacting
with people both inside and outside their
organizations.
We may recall here Mintzberg’s explanation of how

top (and middle) managers spend their time: 59
percent in meetings, 6 percent on the phone, and 3
percent on tours. All these managerial activities
involve other people.
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It is interesting to note that not all managers exhibit
good human (interpersonal) skill. Managers, who
are harsh with their subordinates, would simply
increase personnel turnover. Moreover, it becomes
increasingly difficult to replace those who leave the
organization. On the other hand, the manager who
has good human skill is likely to be more successful
than the one with poor human or interpersonal skill.
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3. Conceptual skill:
Conceptual skill is the ability to co-ordinate and integrates
all of an organization’s interests and activities. It
requires having the ability to visualize the enterprise as
a whole, to understand how the different parts of an
organization depend on one another, and to predict
how a change in any of its parts will affect the whole.
Conceptualization requires imagination, broad

knowledge and mental capacity to conceive abstract
ideas. For example, the managing director of a bank
visualizes the importance of better service for its clients.
As a result it can ultimately attract a vast number of
clients and it can increase its deposits and profits.
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4. Diagnostic skill:
Diagnostic skill enables a manager to visualize the most
appropriate response to a situation. For example, a
physician diagnoses a patient’s illness by analyzing
symptoms and determining their probable causes.
Similarly, a manager can diagnose and analyze a
problem in the organization by studying its
symptoms and then developing a solution.
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5. Communication skill:
Communication skill refers to the manager’s abilities to
convey ideas and information to others and to
receive ideas and information from others effectively.
This skill enables a manager to transmit ideas to

subordinates so that they know what is expected, to
coordinate work with peers and colleagues so that
they work well together properly, and to keep higher-
level managers informed about what is going on. In
addition, they help the manager listen to what others
say and to understand the real meaning behind
letters, reports, and other written communication.
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6. Decision making skill:
Effective managers also have good decision making
skills. Decision-making skill refers to the
manager’s ability to correctly recognize and
define problems and opportunities and then to
select an appropriate course of action to solve the
problems and capitalize on opportunities.
No manager makes the right decision all the time.

But effective managers make good decisions most
of the time. If they do make a bad decision, they
usually recognize their mistake quickly and then
make good decisions to recover with as little cost
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7. Time Management skill:
Finally, effective manager usually have good time
management skills. Time-management skill refers
to the manager’s ability to prioritize work, to work
efficiently, and to delegate appropriately.
Managers face many different pressures and
challenges. They have to manage carefully, and
they may transfer responsibility if needed.
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Basic Managerial Roles:
Henry Mintzberg, a famous management theorist ,
observed the day-to-day activities of a group of
CEOs by literally following them around and
taking notes on what they did. From his
observation, Mintzberg concluded that managers
play ten different roles which are summarized in
the following table:
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Ten Basic Managerial
Category Role Roles: Sample Activities
1. Figurehead Attending ribbon-cutting ceremony for new plant.
A. Interpersonal 2. Leader Encouraging employee to improve productivity.
Roles
3. Liaison Coordinating activities of two projects groups.
4. Monitor Scanning industry reports to stay abreast of
developments.
B. Informational 5. Disseminator Sending memos outlining new organizational
Roles initiatives.
6. Spokesperson Making a speech to discuss growth plans.
7. Entrepreneur Developing new ideas for innovation.
8. Disturbance Resolving conflict between two subordinates.
C. Decisional
Roles handler
9. Resource Reviewing and revising budget requests.
allocator
10. Negotiator Reaching agreement with a key supplier or labor.
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Chapter # 2 : Traditional and
Contemporary Issues & Challenges
Scientific Management:
Scientific management is the process of developing
performance standards on the basis of systematic
observation and experimentation.
Scientific management is concerned with improving the
performance of individuals workers.
Frederick Winslow Taylor (1856-1915) is the central figure of

scientific management. He is generally acknowledged as the
“Father of Scientific Management.” Though Taylor is a key
person in this area, some other prominent figures make rich
the field of scientific management. they are as follows
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1. Carl Barth
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Business Environment
Organizations are the products of physical
environment. All the organizations whether they
are engaged in the business or non-business
activities draw the inputs from the environment,
convert the inputs into outputs and send them back
to physical environment. So every organization has
a two-way interaction with the physical
environment.
Physical Inputs Transformation Outputs Physical

Environment Environment
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The activities of business or industrial unit are
affected to some extent by certain common or overall
factors which are beyond the control of the
entrepreneur. The sum of these influencing factors is
called as environment.

The activities of a firm can be influenced by two
types of environment.

A. Macro Environment or External Forces,
B. Micro Environment or Internal Forces
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Business Environment
A. External B. Internal
Environment Environment
1. Demographic
Env.
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What is Management?

 Management = Manage + Men + T (Tactfully)

 “Management is an art of getting things done

- collect resources and allocate those resources

- guide people in the right direction and make

- finally monitor the people and overall

 “Management is the process of working with and

A process is a systematic way of doing thing.

Technical skills are important especially for first line

We may recall here Mintzberg’s explanation of how

Conceptualization requires imagination, broad

This skill enables a manager to transmit ideas to

No manager makes the right decision all the time.

Frederick Winslow Taylor (1856-1915) is the central figure of

Physical Inputs Transformation Outputs Physical

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