The real difficulty…lies not in developing new

ideas but in escaping from the old ones.

-John Maynard Keynes

Chapter 1
LEARNING OBJECTIVES
 You should be able to manage any business activity, event
or project
 You should be able to deal with people/teams (organizing)
 Examine the meaning, importance and nature of
management
 Understand the difference between management and
administration
 To be able to perform the functions and roles of a
manager
 Outline professional and family managements
 Define international business and identify the skills
required of an international manager
Introduction
 Management is an important element in every
organization. It is the element that
coordinates currents organizational activities
and plans for the future.

 The management adapts the organization to its

environment and shapes the environment to
make it more suitable to the organization.
IMPORTANCE OF MANAGEMENT
1) Management is a critical element in the
economic growth of a country
2) Management is essential in all organised efforts,
be it a business activity or any other activity
3) Management is the dynamic, life-giving element
in every organisation
IMPORTANCE OF MANAGEMENT
1) Management is a critical element in the
economic growth of a country
 By bringing together the factors of production (viz., men, money,
material & machines), management enables a country to
experience a substantial level of economic development.

 A country with enough capital, manpower & other natural resources

can still be poor if it does not have competent managers to
combine & coordinate these resources

 Peter Drucker has rightly observed that without management, a

country’s resources of production remains resources & never
become production
Example of Poor management by Ministry of Agriculture of
India.

Food Facts…

At least 17,546 tonnes of food grains were damaged between 2009-10 and July
2012 in Food Corporation of India (FCI) godown, an RTI reply has revealed.

FCI admits 1.94 lakh MT food grains wasted between 2005-13

Almost 40% of the total food production in the country is written off as lost in
transit, is wasted by consumers or is damaged, according to  United Nations
Development Programme (UNDP).

The total valued of food wasted in India a year is valued at Rs 58,000 crore.
IMPORTANCE OF MANAGEMENT
2) Management is essential in all organised
efforts, be it a business activity or any
other activity
 Principles of management are now universally used not just for
managing business organization, they are also applied to various
types of organizations, such as educational, social, military,
government.

 Management is thus the same process in all forms of

organizations, although it varies widely in its complexity with the
size of organization.
IMPORTANCE OF MANAGEMENT
3) Management is the dynamic, life-giving element in
every organisation
 In a competitive economy, the quality & performance of
management determines the success of an organization; indeed
they determine its very survival.
 Management Key Concepts

 Organizations: Two or more people working together in order

to achieve certain goal.

 Goal: A desired future condition that the organization seeks to

achieve.

 Resources are organizational assets and include:

 [Old: Men, Machine, Material & Money]
 New: Men, Machine, Material, Money, Information & Skills People,

 Managers are the people responsible for supervising the use of

an organization’s resources to meet its goals.
DEFINITION OF MANAGEMENT
“Art of getting things done through people.”
Mary Parker Follett
Eg: Sales manager

“Consisting of planning, organising, actuating and

controlling, performed to determine and
accomplish the objectives by the use of people
and resources.” (POAC)
George R. Terry
 In this definition, (POAC)
Planning means Plan in advance.

Organizing means coordination between human resources

and material resources.

Actuating means motivation and giving direction to

subordinate.

Controlling means to ensure about implementation of plan

without deviation.

Thus this definition tells that management is act of

achieving the organization objectives.
MANAGEMENT FUNCTIONS OR THE
PROCESS OF MANAGEMENT
 Planning, Organizing, Leading & Controlling - Newman & Summer (POLC)

 Planning, Organizing, Commanding, Coordinating and Controlling - Henri Fayol

(POCCC)

 Planning, Organizing, Staffing, Directing, Coordinating, Reporting & Budgeting -

Luther Gulick (POSDCoRB)

 Decision Making, Organizing, Staffing, Planning, Controlling, Communicating &

Directing - Warren Haynes & Joseph Massie (DOSPCCD)

 Planning, Organizing, staffing, directing & Controlling - Koontz O’Donnell

(POSDC)

 Planning, Organizing, Directing, Controlling, Innovating and Representation –

Earnest Dale (PODCIR)
MANAGEMENT FUNCTIONS OR
THE PROCESS OF MANAGEMENT
• Planning
• Organising
• Directing
• Controlling
• Innovating*
• Representation*

* Innovation and Representation are two additional managerial functions considered important
by Ernest Dale.
Understanding PODCIR through Tata Zest
 Functions of Management
1) Planning
 It is a process of deciding the business objectives and
charting out the plan/ method for achieving the same.

 What, which, when, where, how – these questions

should be answered during the planning phase.

 This includes determination of what is to be done, how, and

where it is to be done, who will do it and how result are to
be evaluated.

 This function expected to be carried out throughout the

organization. It should be performed by the manager at all
levels.

 Starts from What business to How to start to How to

market to When to launch to Where to Launch and create
market to Which sector !
2) Organizing
 Make Things/Resources available + Inform the roles of each
person involved

 [According to Allen, the organizing refers to “the structure which results

from:

 identifying and grouping the work,

 defining and delegating responsibility and authority and

 establishing relationships.”]

 To organize a business is to provide it with everything useful to its

functioning i.e. personnel, raw materials, machineries, capital etc.

 Once objectives are established, manager has to develop plan to achieve

them with help of human resources as well as material resources.
Conti
 Managers will group people into departments according to the
tasks performed.

 Managers will also lay out lines of authority and responsibility

for members.

 An organizational structure is the outcome of organizing. This

structure coordinates and motivates employees so that they
work together to achieve goals.
3) Directing

 Directing involves communication,

leadership and motivation.

 Communication is the process of passing

the information and understanding it from
one person to other person.

 Leadership is the function whereby the

person or manager guides and influences
the work of his subordinates.

 Motivation is to motivate the employee to

give their best to the organization.
2 broad categories of motivation:
Financial & Non Financial
•Airbnb gives 2000$ to travel,
•Netflix gives paid maternity and paternity leave of a year
•Google provides the surviving spouse or partner of a
deceased employee 50% of their salary for the next 10
years
•Kotak Bank gives incentive to referrals
•Virtualidea.com –Amazon
•Westin hotels send their top five innovators off on all
expenses paid exotic holidays. This is done every quarter,
making it a highly attainable reward.
•Adobe doesn’t use ratings to establish employee
capabilities, feeling that that inhibits creativity and harms
how teams work. Managers take on the role of a coach,
more than anything, letting employees set goals and
determine how they should be assessed.
4) Controlling
 Manager must ensure that performance occurs in
conformity with the plans adopted, instructions issued &
the principles established. This is the controlling function of
management.

 The controlling involves-

1. Establishing standards of performance.
2. Measuring current performance and comparing it against the
established standard.
3. Taking corrective action that does not meet the standard.
 In the absence of sound control, there is no guarantee that
the objectives which has been set will be realized
 Eg. Asian Paints Sales target
5) Innovation and Representation

 These are also two important additional managerial functions.

 Innovation means creating new ideas which may either result in the development of new products or finding new uses for older ones. It is
necessary to grow better.

 InstantArti

 Refresh Bag

 Kent Noodles

 Google driverless car

 Fidget Spinner

 E-Choupal

 Personal Shopper

 The manger has to represent himself for the organization. A manger must win support effectively from different groups (either internal or
external).
ORGANISATION OR BUSINESS
FUNCTIONS

Organizational/ Business Functions

Management
Functions Research &
Production Sales Finance Personnel
Development

Planning 

Organizing 

Directing 

Controlling 

Innovating 

Representing 
LEVELS OF MANAGEMENT
LEVELS OF MANAGERS
President, VP, MD, COO, CEO, CTO,
etc
Gold collar

Regional manager, Project leader,

Store manager, Division manager
Pink collar

Department manager,
Shift manager,
Department manager
(Supervisors White collar)

Subordinates-
Workers, executives,
labourers
Blue collars
LEVELS OF MANAGERS
 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.(C-
Suite)
Conti…
 Lower (first-line) Level
 Example: Foremen and white collar supervisors

 Middle Level
 Example: Sales managers, plant managers, personnel
managers & many other departmental heads.

 Top Level
 Example: Board chairman, company presidents, the
executive vice-presidents who coordinate all the
specialties & make policies for the company as a
whole
ROLES OF A SENIOR MANAGER
By Henry Mintzberg
•Interpersonal Roles
– Figurehead
– Leader
– Liaison

•Informational Roles
– Monitor
– Disseminator
– Spokesman

• Decisional Roles
– Entrepreneur
– Disturbance Handler
– Resource Allocator
– Negotiator
ROLES OF A SENIOR MANAGER
Interpersonal Roles

1)
Perform social and legal Greet visitors, sign legal documents, attend
Figurehead duties, act as symbolic ribbon cutting ceremonies,
leader host receptions, attend employee wedding,
take customer to lunch, etc.

2)
Direct and motivate Includes almost all interactions with
Leader subordinates, select and subordinates
train employees

3)
Establish and maintain Business correspondence, participation in
Liaison contacts within and meetings with representatives
outside the organization; of other divisions or organizations. 
Must cultivate contacts
outside his vertical chain
ROLES OF A SENIOR MANAGER
Informational roles
4)
Seek and acquire work- Scan/read trade press, 
Monitor related information periodicals, reports; attend
seminars and
training; maintain personal
contacts

5)
Communicate/ disseminate Send memos and reports; inform
Disseminator information to others within staffers and subordinates of
the organization decisions

6)
Communicate/transmit participate in conferences/
Spokesperson information to outsiders meetings and report progress to
(stakeholders) govt, suppliers, customers, etc
ROLES OF A SENIOR MANAGER
Decisional Roles
7)
Identify new ideas and Implement innovations; Plan for
Entrepreneur initiate improvement the future
projects
8)
Deals with disputes or Settle conflicts between
Disturbance problems and takes subordinates; Choose strategic
Handler corrective action alternatives; Overcome crisis
situations & handles strikes
9)
Decide where to apply Draft and approve of plans,
Resource resources, delegates schedules, budgets; Set priorities
Allocator authority
10)
Defends business interests Participates in and directs
Negotiator negotiations within team,
department, and organization
Negotiates with trade unions
MANAGERIAL SKILLS
A skill is an individual’s ability to perform physical or mental
tasks with a specified outcome. To successfully discharge
roles, a manager should possess three major skills:
• Conceptual Skill
• Technical Skill
• Human Relations Skill
 MANAGERIAL SKILLS
Technical skills
The ability to apply
specialized knowledge or
expertise.

Human skills
The ability to work with,
understand, and motivate other
people, both individually and in
groups.

Conceptual Skills
The mental ability to analyze
and diagnose complex
situations. It deals with ideas
Skill-mix at Different
Management Levels
 MANAGERIAL
EFFECTIVENESS
A manager’s performance can be measured in terms of two concepts: efficiency and
effectiveness.
Peter F Drucker

Effectiveness is “doing right things”

To do correct things
Delivery in zomato – Food is packed and not leaked
Doing what is necessary
Surgeon in Knee transplant is effectiveness

Efficiency is “doing things right”

To do things in a correct manner
Zomato-Fastest delivery
Efficient Surgeon fast surgery/Minimizing Charges or cost
MANAGERIAL
EFFECTIVENESS
 Efficiency refers to doing things in a right manner.
Scientifically, it is defined as the output to input
ratio and focuses on getting the maximum output
with minimum resources.

 Effectiveness, on the other hand, refers to doing

the right things. It constantly measures if the
actual output meets the desired output
 Difference Between Management
& Administration

 Views of Sheldon, Spriegal and Milward:

 Management is doing function & Administration
is thinking function

 Views of E.F.L. Brech and Others

 Administration is part of Management

 Views of Peter Drucker

 Non-business organizations – Administration
 Business Organizations – Management
 Difference Between Management
& Administration
S.No Features Administration Management
Determinative or Thinking
1 Nature function Executive or Doing function
Decision on Objectives &
2 Type of work Policies Implementation of policies
3 Levels of authority Top level Middle and Lower level
Public opinion & Outside Objectives & Policies of
4 Influence sources concern
Direction of human
5 efforts Not directly concerned Actively concerned
6 Main functions Planning & Control Directing & Organizing
7 Skills required Conceptual and human skills Technical and Human skills
8 Usage Used in Govt. & Public sector Business organizations
Administrator, Incharge,
9 Designations Officer Manager, Supervisor
 MANAGEMENT
A SCIENCE OR AN ART?

Management involves both elements—those of a

science and an art. While certain aspects of
management make it a science, certain others
which involve application of skill make it an art.

Managing as practice is an art; the organized

knowledge underlying the practice may be referred
to as a science.

Science talks about “Why” phenomenon and

Art talks about “How” phenomenon
Management as a Profession
Profession:
Profession is that occupation in which one
professes to have acquired specialized knowledge,
which is used either in instructing, guiding or
advising others.

Body of Specialized knowledge and technique

Formalized Methods of Acquiring Training and
experience
Representative body
Service above self
Ethical code of conduct
MANAGEMENT OF
INTERNATIONAL BUSINESS
International business refers to the business
activities that involve the transfer of resources,
goods, services, knowledge, skills or
information across national boundaries.
Managing Business Internationally
For example:
Fast food giant KFC is like many big franchise
firms opening more new outlets overseas. Along the
way company is making appropriate changes in its
menu offerings such as substituting juices and fruits
for coke and fries.
MANAGEMENT OF
INTERNATIONAL BUSINESS
Skills and abilities that an international manager must possess for managing
the business are:

Conceptual, Human Relations and Technical Skills

Ability to Evaluate Host Country Risk
Ability to Manage Country Risk
Ability to Exert Pressure on Home Government
Ability to Obtain Legitimacy
Knowledge of Legal Environment
Familiarity with the Host Country’s Culture
Familiarity with International Monetary System and International Accounting
Knowledge of Human Capital Available in the Host Country
Thank You!