Management

Concepts

09/22/2022 1
Contents

 Nature of management,
 Meaning of management and
 Significance of management.
 Managerial functions.
 Managerial processes.
 Managerial skills.
 Managerial roles in organizations.
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INTRODUCTION TO MANAGEMENT

SIGNIFICANCE OF MANAGEMENT

 Management is essential in all

organized efforts.
 Management is the dynamic, life
giving element in every organization
 Management is a critical element in
economic growth of a
society/country.

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 ORGANIZATION
 When two or more people work
in a structured way to achieve a
specific goal or a set of goals.

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WHAT IS AN ORGANISATION?

Organization is a deliberate
arrangement of people to
accomplish some specific task or
tasks.

People
Deliberate Structure

Distinct Purpose

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GOALS OR OBJECTIVES

 The purpose that an organization

strives to achieve.

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 DEFINITIONS OF MANAGEMENT

There are as many definitions numbers

of authorities in this field.

 As per Mary Parker Follet:” The art of

getting things done through others.”

 As per George R. Terry: ”Management is

a process of planning, organizing,
actuating and controlling performed to
determine and accomplish the
objectives by use of people and
resources.
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Definition of management process

 Production or efficiency oriented

 Decision-oriented
 People-oriented
 Function-oriented

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Production oriented

 According to Taylor management define as

a
 “management is the art of knowing what
you want to do and then seeing that it is
done in the best and chepest way.”

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Decision oriented

 “Management is simply the control over

the action of human beings for the
expressed purpose of attaining pre-
determined goals.”

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People oriented

 Lawrence appley define management as a

“management is the accomplishment of
result through the efforts of other people.”
 According to koontz “management is the
art of getting things done through and with
people formally organized group.”

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Function oriented

 According to Henry Fayol “ to manage is to

forecast and to plan, to organize, to
coordinate and to control.”

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In simple words of van Flrt &Peterson

 “management as a set of activities

directed at the efficient & effective
utilization of resources in the pursuit of
one or more goals.

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 Financial resources

Managerial activities Physical resources

Effective & efficient utilization

Human resources goals

Informational resources

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 COMMENTS ON THE NATURE OF
MANAGEMENT
 Management is not just an art – it is also a
science.
 Managers are required to do more than one
function.
 Managers also perform non-managerial roles.
 Managerial functions are done in all
organizations.
 Managerial functions are executed at all levels.
 Management functions have been defined using
different types and different number of words.
 Aim of all managers is to create a surplus.
 Managing is concerned with efficiency,
effectiveness and productivity.

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Nature of management
1. Multidisciplinary
2. Dynamic nature of principles
3. Relative , not absolute principals
4. Management science or art
5. Management a profession
6. Universality of management
7. Management is an integrative process
8. Management is necessarily activity based

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Feature of management
1. It is a process
2. It is a social process
3. Group efforts
4. Attainment of pre determine objective
5. It is a distinct entity
6. It is a system of authority
7. Universality of management
8. It is needed at all levels
9. It is a discipline
10. It is a integrative process
11. It is an art as well as science
12. It is a profession

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Importance of management
1. Achievement of group goals
2. Minimization of cost
3. Change and growth
4. Effective and smooth running of business
5. Higher profit
6. Provide innovation
7. Social benefits
8. Effective utilization of resources
9. Development of resources
10. Sound organization structure
11. Useful for developing countries
12. Integration various interest groups
13. Stability in the society

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SYSTEMS VIEW OF ORGANIZATIONS

 Organizations can be considered as

open systems that continually interact
with the external environment.
 The external environment is both a
supplier of resources as well as a
source of consumers and
 significantly influences the
operations and outcomes.

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 SYSTEMS VIEW OF
ORGANISATIONS
Environment

Supplies Organization creates Consumes

# OPPORTUNITIES

RESCOURCE
INPUTS
TRANSFORMATION
OUTPUTS
PROCESS
Money Land Finished goods
Workflows turn
# THREATS

Materials Energy and/or services,

resources into
Machines Info Others
outputs
Methods Mgmt
Men

Consumer Feedback

GOAL INPUTS OF STAKE HOLDERS

Investors/Customers/Employees/Suppliers/Society/Government
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 ORGANISATIONAL PERFORMANCE
PRODUCTIVITY,EFFICIENCY AND EFFECTIVENESS

 Resources and customers are two critical

elements of open system view of organizations.
 For organizational success the resources must
be well utilized and customers well served.
 The need for value creation is vital in this
context.
 Value is created when resources are utilized in
the right way, at the right time and at minimum
cost.

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 ORGANISATIONAL
PERFORMANCE.

 If organizations add value to the

original cost of inputs then :
1)business organizations earn
profit
2)non profit organizations add
wealth to the society.
 All organizations utilize a variety of
performance measures.

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ORGANISATIONAL PERFORMANCE
Productivity

 Productivity is one of the most

common indicators of
performance.
 Productivity is defined as the
overall value of goods and
services produced divided by the
value of inputs needed to
generate that output.
 Productivity is also linked to
efficiency and effectiveness

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ORGANISATINAL PERFORMANCE

Efficiency and Effectiveness

 Efficiency is the relationship between
inputs and outputs –minimizing
wastes and therefore cost of
resources.
 Effectiveness is a measure of goal
attainment.
 Summing up: ORGANIZATIONS NEED
TO DO THE RIGHT THINGS IN A
RIGHT WAY

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 ORGANISATIONAL
PERFORMANCE
Efficiency-Effectiveness Matrix
EFFECTIVE BUT INEFFICIENT EFFECTIVE AND EFFICIENT
HIGH

• Goals achieved • Goals achieved

ATTAINMENT

• Resources wasted • Resources well utilized

• Good revenue but high cost • Good revenue and low cost
• Marginal profit or loss • Good profit
GOAL

INEFFECTIVE AND INEFFICIENT EFFICIENT BUT INEFFECTIVE

• Goals not achieved • Goals not achieved
• Resources wasted • No wasted resources
• Poor revenue and high cost • Poor revenues and low cost
LOW

• Loss • Marginal profit or loss

POOR RESOURCE UTILISATION GOOD

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 FUNCTIONS OF MANAGEMENT

 The most well accepted framework for

understanding management is to break down the
management functions into its constituent
processes:
 PLANNING
 ORGANISING
 STAFFING
 LEADING
 CONTROLLING
 Management is referred to as a process to
emphasize that ALL managers engage in certain
INTER-RELATED activities in order to achieve the
desired goal.

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 PLANNING
IT IS THE FUNCTION THAT DETERMINES
THE FUTURE COURSE OF ACTION. IT
INVOLVES:
 Setting missions, goals and objectives.
 Formulating the strategy to achieve the
above.
 Answering the 5W’s and 2H’s in a
general way for all the units and the sub
units of the organization.
 Allocating resources-human, physical
and monetary.
 Planning exercise to be done at all
levels.
 The time horizon for planning to be on
long term, medium term as well as on
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short term basis

 ORGANISING
Organizing a business requires providing
it with all the necessary inputs at the
place and at the time they are required.

 Based on the requirement of the plan,

design the structure.
 The structure results from:
- identifying individual roles,
- grouping of work,
- integrating the total effort and
- establishing relationships.
 Organizational structure creates an
environment for human performance.
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 STAFFING
Staffing is a perpetual function requiring
managers to find the ‘right person for the right
job.' This is a dynamic situation since people are
continually leaving, getting fired, dying,
promoted and transferred. Building of human
organization involves:
 Identifying work force requirement.
 Inventorying available people.
 Selecting and recruiting new people.
 Planning careers of workforce.
 Training and developing the current
incumbent and his/her successor to
enable them to perform their tasks efficiently
and effectively.
 Appraising and promoting.
09/22/2022Setting compensation.
management concept/Dr. kaamini sharma 29
LEADING

 LEADING PREDOMINANTLY DEALS WITH

INTERPERSONAL ASPECTS OF MANAGING.MOST
IMPORTANT OPPORUNITIES AS WELL AS
PROBLEMS FOR MANAGERS ARISE FROM
PEOPLE. EFFECTIVE MANAGERS ALSO NEED TO
BE EFFECTIVE LEADERS. LEADING INVOLVES:
 Communication- it has to be a two - way traffic.
 Leadership- it is the process of guiding and
influencing the work of subordinates.
 Motivation- it arouses the desire in the workers
to give their best. It is an act of inspiring and
stimulating.
 Motivation can be financial as well as non-
financial.
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CONTROLLING
IT IS ENSURING OUTCOMES OF ACTIONS
CONFORM TO THE ADOPTED PLANS.THIS
INVOLVES:
 Establish standards of performance.
 Compare current performance with
standards.
 For any deviation take corrective action to
ensure the organizational goals are met.

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THE MANAGEMENT PROCESS IN
PRACTICE
 It is easier to understand a process, as complex
as management, when it is broken down into
parts and the basic relationships between the
parts are clearly identified.
 Descriptions of this kind are called models.
 In reality, managing is not as simplistic as made
to look during previous discussion on
management functions using models.

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 THE MANAGEMENT PROCESS IN
PRACTICE
 The management process is the ongoing
decisions and work activities in which
managers engage as they plan, organize, lead
and control.
 Various models are more intertwined than
implied by our earlier model.
 There is no simple cut-and dried beginning or
ending point as managers plan, organize, lead
and control.
 As managers ‘manage’ they are often
involved in some planning, some organizing,
some leading and some controlling,- and
perhaps not even in that sequential order.
 Different management processes seem to
merge into each other like a continuous river.
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 THE MANAGEMENT PROCESS IN
PRACTICE
THE INTERACTIVE NATURE OF
MANAGEMENT PROCESS

PLANNING
Setting performance objectives
And how to achieve them.

ORGANISING CONTROLLING
Arranging tasks ,people and Measuring performance and
other resources to accomplish taking action to ensure
the work. desired results are achieved.

LEADING
Inspiring people to give their
best to achieve high
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performance levels.
Difference between management and
administration
Basis Administration Management

Nature of work Mainly concerned It puts the policies &

with the plans into action
determination of
objective & and
major policies of an
org.
Type of function Thinking or It is a doing or
determinative executive function.
function
Top level activity Middle level activity

Level of authority
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Decision making Decision are generally It is a ‘doing’ or
influenced by public executive function
opinion, thinking or
determinative function
Main function Planning and Motivation and
organising controlling

Administrative & It needs administrative It require technical

technical ability rather than technical ability more than
ability administrative ability.
Co-ordination and Co-ordinates finance, It uses org. for
control production and achievement of the
distribution. Frame targets fixed by
org. structure & administration.
exercises control over
the enterprise.

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 MANAGERIAL ROLES IN
ORGANISATION
 People working together in groups to
achieve some goal must have roles to
play, like the roles actors fill in a drama.
 These roles could be the one’s :
 They develop themselves
 Are accidental and haphazard or
Well defined and structured by someone
to ensure people contribute in a
specific way to group efforts.

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MANAGERIAL ROLE IN
ORGANISATION
 H. Mintzberg’s study of five top
managers at work challenged
several long held concepts about
a manager’s job, like managers
were reflective thinkers, who
carefully & systematically
processed information before
making decisions.

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MANAGERIAL ROLES IN
ORGANISATION
 Mintzberg discovered that:
His managers engaged in a large
number of varied, unpatterned and
short duration activities.
There was little time for reflective
thinking because managers faced
constant interruptions.
Half of manager’s activities lasted
less than nine minutes each.

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 MANAGERIAL ROLES IN
ORGANISATION
 In addition to above insights on what
managers did, Mintzberg categorised what
managers do based on what managers
actually do on their jobs.

 Mintzberg concluded that managers perform

ten different but highly interrelated roles

 Management roles refer to specific categories

of managerial behaviour.

 Mintzberg’s ten managerial roles can be

grouped as:
1. INTERPERSONAL ROLES
2. INFORMATIONAL ROLES
3.09/22/2022
DECISIONAL ROLES
management concept/Dr. kaamini sharma 40
 MINTZBERG’S MANAGERIAL ROLES
1.INTERPERSONAL
Role Description Examples of identifiable
activities
Figure Symbolic head; required to Greeting visitors,
head perform a number of routine signing legal
duties of a legal or social nature. documents.

Leader Responsible for motivation and Performing virtually all

activation of subordinates, activities involving
staffing, training and associated subordinates.
duties.

Liaison Maintains self developed network A sales manager

of outside contacts and informers conferring at a
who provide favours and marketing trade
information. Such networks are association meeting.
also developed and maintained Also receiving
within the organisation. information from H.R.
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 MINTZBERG’S MANAGERIAL ROLES
2. INFORMATIONAL
Roles Description Examples of identifiable
activities
Monitor Seeks and receives wide Reading magazines &
variety of information to journals, studying
develop thorough reports.
understanding of organization
& the environment. Becomes
the nerve centre of internal and
external information.

Disseminat Acts as an ‘information Holding communication

or conduit’ to different members meetings, phone calls to
of the org. Some information relay information.
may require interpretation and
integration.
Spokespers Transmitting information to Holding board meetings.
on outsiders- plans, policies, Interviews with media.
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actions, results etc.
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 MINTZBERG’S MANAGERIAL ROLES
3. DECISIONAL
Role Description Examples of
identifiable activities
Entreprene Searches org. and its environment for Organising strategy &
ur opportunities and initiates ‘empowerment review sessions to
projects’ to bring about changes; develop new
supervises design of certain projects and programmes
oversees their execution.
Disturbance Responsible for corrective action when Organising strategy &
handler organisation faces important unexpected their review to deal
disturbances with
crises&contingencies

Resource Responsible for allocation of all Scheduling,

allocater organisational resources in effect, making requesting,
or approving all significant decisions authorising,budget,
programming,
subordinates work
Negotiator Responsible for representing the Participating in union
09/22/2022 organisation at major negotiations
management concept/Dr. kaamini sharma contract negotiations
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 MANAGERIAL ROLE IN ORGANISATION

EVALUATION OF MINTZBERG’S FINDINGS

Follow up studies validate and support

Mintzberg’s role categories:
1. Managers of all organisations & at all levels
perform similar roles.
2. However emphasis on different roles may
change with their organizational levels eg.
Roles of figurehead, disseminator, negotiator
are important at higher levels. Leader role is
more important at lower levels.
3. Most of Mintzber’s roles align smoothly with
the four functions
4. All managers do some work that is not purely
managerial.
Mintzberg has management
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clearly offered new insights into
concept/Dr. kaamini sharma 44
what managers actually do .
 MANAGERIAL SKILLS
 A skill is an individual’s ability to translate
knowledge into action and is manifested in the
performance.
 People can be born with certain skills but it is
very much possible to develop them through
appropriate training and experience.
 In order to discharge his roles successfully a
manager should possess the following three
roles:
1. Conceptual skills,
2. Interpersonal skills and
3. Technical skills.
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 Conceptual Skills
 Conceptual skill is the ability to think analytically
and solve complex problems. It involves the
ability to break down problems into smaller
parts, and to recognise the influence or
implications of any one problem on others.
 Managers are increasingly required to deal with
more ambiguous problems, that have many
complications and long term consequences.
 The ability to understand the external and the
internal environment, conceptualise the issues
involved directly and indirectly and come out
with a decision or solution.

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 Human Relations Skill
 Human relations skill is the ability to work
well in co-operation with other people at
all levels.
 This skill develops in the manager an
ability:
1. To recognise the feelings and sentiments
of others,
2. To anticipate and judge the outcome of
various actions envisaged to be taken.
3. To examine his own concepts and values
which may enable him to develop correct
attitudes
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Technical Skills
 A technical skill is the ability to use a special
proficiency or expertise in one’s work.
 Engineers, doctors, tailors, accountants,
market researchers for example possess
technical skills.
 Technical skills can be initially acquired thru’
formal education and are further developed
by training and experience.

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 Skill –mix at different management levels.

Lower level Middle Level Top level

managers managers managers
Conceptual skills-the ability to think analytically and achieve
integrative
Problem solving.

Human skills-the ability to work well in cooperation with other

people

Technical skills-the ability to apply expertise and perform

Special tasks with proficiency

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 Difference between management and
organization
Management Organization

1) It is executive function which is It is organic function of putting

primarily concerned with the together the different parts of an
getting things done through enterprise into working order.
others.
2) Planning, organization, staffing, Organization is one of the
motivation, direction, coordination important function of management.
and control are all function of
management.
3) Management function are Organisation is framework or
executed by bringing into being an edifice of management.
organisation.
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Cont….
4) It is like the entire body of It is like the nervous system of a
human being. human body.

5)There is different level of There is no such level in

management viz., top, middle and organisation.
lower.

6)Management uses the Organisation is the machine of

organisation determined by management in its achievement of
administration. the ends determined by
administration.

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