Introduction to Management

Chapter One
 Brainstorming Questions
• What is management?
• What do managers do?
• What skills are needed to be good
manager?
• What are the roles of managers?
• Is management a science? An Art? A
Profession?
 1.1 Definition of Management
• Management is the process of designing and
maintaining an environment in which individuals
working together in groups efficiently accomplish
selected aims (Koontz and Weihrich).
• Management is a distinct process consisting of
activities of planning, organizing and controlling,
performed to determine and accomplish stated
objectives with the use of human beings and
other resources. (Terry and Franklin).
 Definitions cont’d
• The work involved in combining and directing the
use of resources to achieve particular purposes is
called management. (David R. Hampton)
• Management is the process of planning,
organizing, leading and controlling the work of the
organization members and of using all available
organizational resources to reach stated
organizational goals. (Stoner, Freeman and
Gilbert)
 Definitions cont’d
• Management is the art of getting things done
through people effectively and efficiently.
(Mary Parker Follett).
 Paradigm of Definitions
• The various definitions of management can be conveniently
classified in to four categories
 Functional school - management is an integrating process designed
to achieve organized, and purposeful results
 Human relations school- management is a social process because
managerial actions are principally concerned with relations between
people
 Decision making school- management as a decision making body,
as a rule making and rule enforcing body
 Systems and contingency school
 Systems school- organizations are organic and open system
consisting of different interacting and interdependent parts having
variety of goals
 Contingency school- According to the contingency theory,
management is situational. There is no one best way to design
organizations and manage them
 Organization
• Organization is a system which operates through
human activity.
• Organization is a deliberate arrangement of
people to accomplish some specific purpose. (That
individuals independently could not accomplish
alone).
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Composed of people
– Have a deliberate structure
 1.2 Characteristics of Management
1. Management is goal-oriented:
 Management is not an end in itself, it is a means to
achieve certain goals.
The basic goal of management is to ensure
efficiency and economy in the utilization of human,
physical and financial resources.
2. Management is universal:
 Management is an essential element of every
organized activity irrespective of the size or type of
activity.
Universality of Management
 Characteristics Cont’d
3. Management is an integrative Force
 As a unifying force, management creates a whole
that is more than the sum of individual parts
 It integrates human and other resources
4. Social Process
Management is done by people, through people and
for people.
It is social process because it is concerned with
interpersonal relations.
 Characteristics Cont’d
5. Multidisciplinary
 Management has to deal with human behavior
under dynamic conditions.
 Therefore, it depends upon wide knowledge
derived from several disciplines like engineering,
sociology, psychology, economics etc.
6. Management is intangible
 Management is an unseen or invisible force
 It cannot be seen but its presence can be felt
everywhere in the form of results.
 Characteristics Cont’d
7. Management is a continuous process
 Management is a dynamic and an on-going
process.
 The cycle of management continues to
operate so long as there is organized action
for the achievement of group goals.
 1.3 Management Process/Functions
The functions of management provide a useful
framework for organizing management knowledge.
1. Planning – It is the most fundamental of all
management functions.
 It is concerned with what? Who? How? When?
Where? And how much aspect of performance.
 It is deciding in the present about the future
objectives and the course of actions for their
achievement.
 Planning involves:
 Determination of short range and long range
objectives
 Development of strategies and courses of
action to be held for achievement of the
objective
 Formulation of policies, procedures and rules
for the implementation of strategies and plan
2. Organizing
 It involves identification of activities required to achieve
the enterprise objectives.
 Sub-functions of organizing are:
– Identification of activities required
– Grouping of activities in to similar jobs
– Assigning jobs to employees
– Delegation of authority in order to enable employees
perform their jobs- command resources
– Establishing a net work or the structure of the
organization
3. Staffing
 Staffing involves:
– Determination of number and kind of
employees needed
– Recruitment of employees (creating potential
employees from whom selection is to be
made)
– Selection of the most efficient employee
suitable for job
– Placement and induction
– Training and development
4. Directing
• Directing is the function of leading employees
to perform efficiently to the achievement of
the organizational goals.
• It involves communication, motivation and
leadership.
5. Coordinating
 Coordinating is an activity of establishing a
relationship among various types of
organizations so that they all move together in
the direction of the organizational goal.
 This function involves clear definition of
authority, responsibility, relationships, unity of
directions, effective communication and
effective leadership.
6. Controlling
 It is the function of ensuring performances and
consistency of performance with the
predetermined objectives. The sub functions of
controlling are:
– Measurement of performance against goal
– Identification of deviation from goal
– Taking corrective action to ratify deviations
 1.4 Levels of Management
 Refers to a line of demarcation between
various managerial positions in an
organization
 Determines:
 a chain of command
 the amount of authority and
 status enjoyed by any managerial positions
Levels of Management Cont’d
 The levels of management can be classified in
three broad categories:
1. Top level/administrative level/ strategic level
2. Middle Level/Tactical/Executive level
3. Lower level/supervisory/operative/first line
manager
 Mangers at all these level perform different
functions
 1. Top level management
 Top management is the ultimate source of
authority and it manages goals and policies
for an organization
 It devotes more time on planning and
coordinating functions
 consider how the organization interacts with
its environment
 Ultimately responsible for the success or
failure of an organization
 2. Middle level management
 They execute the plans of the organization in
accordance with the policies and directives of
top level management
 They make plans for sub-units of the
organization
 They interpret and explain policies from top
level management to lower levels
 They are also responsible for inspiring lower
level managers towards better performance
 3.Lower level management
 Refers to those executives whose work has to
be largely with personal oversight and
direction of operative employees
 They are concerned with direction and
controlling functions of management
 They are directly responsible for the
production of goods and services
 Levels of Management
Top
leve
l
Middle level
managers

Low level manager

Front line managers (supervisors)
1.5 Types of Managers based on Scope of
Responsibility
Two types:
1. Functional Managers
 managers who are responsible for a department that
performs a single functional task and has employees
with similar training and skills
2. General Managers
 managers who are responsible for several departments
that perform different functions.
 They are responsible for the entire operations of the
organization without being specific
 1.6 Significance of Management
 Management is important for economic growth of a country.
 It brings together the factors of production: money, machinery,
men, methods, markets and material to enable the country to
experience economic development.
 A country with enough capital, manpower and other natural
resources can still be poor if it does not have competent
managers to combine and coordinate the resources.
In the words of Drucker “without management
country’s resources of production remain resources and
never become products”.
 Management is essential in all organized efforts.
 Its principles are universally accepted in business and non business
organizations
 1.7 Managerial Roles
 Managerial roles represent specific tasks that
managers undertake to ultimately accomplish
the managerial functions
 Henry Mintzberg identified 10 managerial roles
which are in turn grouped into three categories:
 Interpersonal
 Informational and
 Decisional Roles.
 The Managerial Roles
Managerial activities Associated roles

Interpersonal roles - arising •figurehead

•liaison
from formal authority and status
•leader
and supporting the information
and decision activities.
Informational roles •monitor
•disseminator
•spokesman

Decisional roles: making •Entrepreneurial

•disturbance handler
significant decisions •resource allocator
• negotiator
 1. Interpersonal Roles
 involves developing and maintaining positive
relationships with significant others in the
organization. It includes:
A. Figurehead Role:
 officially representing the organization or unit
 symbolic duties of a legal or social nature
E.g. Signing documents, presiding at a ceremonial
event, greeting visitors, etc.
 Interpersonal Cont’d
B. Leadership Role:
 guiding and motivating staff and acting as a
positive influence in the workplace
 building relationship and communicating
with employees & coaches them.
 As a leader, the manager is responsible for
hiring, training, motivating and encouraging
employees/subordinates.
 Interpersonal Cont’d
C. Liaison Role:
 Manager interacts with peers and with
people outside the organization to gain
information
 The top management uses this role to gain
favors and information, while the other
managers use it to maintain the routine flow
of work
 2. Informational Role
 relate to receiving and sending information so that
managers can serve as the nerve centers of their
organizational unit. Three roles:
1.Monitor role: refers to seeking, receiving,
screening and getting information.
2. Disseminator role: transmit information
internally that is obtained from either internal or
external sources.
3. Spokesperson role: transmits information about
the organization to outsiders
 3. Decisional Roles
 Roles that involve making significant
decisions that affect the organization.
 Four roles:
1. Entrepreneur (change agent) - acts as
initiator, designer, and encourager of change
and innovation
2. Disturbance handler - takes corrective
action when organization faces important,
unexpected difficulties
 Decisional Roles Cont’d
3. Resource allocator - distributes resources of all
types, including time, funding, equipment, and
human resources.
4. Negotiator
 Involves interacting with superiors, persons in
other departments, and subordinates.
 Negotiation affects resource allocation,
resolution of disturbances, implementation of
change, and interpersonal behavior.
 1.8 Managerial Skills
A manager’s job is diverse and complex and it
requires a range of skills.
 Skills are specific abilities that result from
knowledge, information, practice, and aptitude.
 Robert L. Katz identified three basic kinds of
skills:
1. Technical skill,
2. Human skill,
3. Conceptual skill
 1. Technical Skills
 Knowledge & proficiency in activities involving
methods, processes and procedures
 The use of tools, techniques, and procedures in a
specialized manner
 most important at the lower levels of
management.
 It becomes less important as we move up the
chain of command
 2. Human Relation Skills
 Skills associated with a manager’s ability to
work well with others, both as a member of a
group and as a leader who gets things done.
 Because all work is done when people work
together, human relation skills are equally
important at all levels of management.
 3. Conceptual skills
Skills related to the ability to:
 visualize the organization as a whole
 discern relationships among organizational parts,
and
 understand how the organization fits into the
wider context of the industry, community and
world
Conceptual skills are more important in strategic
level
 1.9 Management science or art

Management knowledge exhibits characteristics

of both art and science, the two not mutually
exclusive but supplementary.
 Management as a science contains a systematic
body of knowledge in the form of general
principles which enjoy universal applicability.
 Management science or art Cont’d
 The art of management is personal creative power
and skill in performance.
 If science teaches one to know, art teaches one to
do
 Managers have to know and do things efficiently
and effectively to be successful, so there is unique
scientific and artistic combination in practice.