Unit 1.

Basic
Concepts
Management:

Management is the process of getting things done, effectively and efficiently, with
and through other people within a defined organizational structure.
Management is an art as it involves application of creativity, innovation, learning
through experience and developing skills through practice.
Management is a science as management knowledge can improve a manager’s
managerial practices, although it is an inexact science as the same principles and
practices do not always yield the same results and it also depends on the particular
manager’s skills, abilities and talent.
Organization:
An organization refers to a group of people working towards common or shared goals
within a complex structure, rules and regulations.

An organization could be a business, government agency, hospital, university or any

other type of organization.
 UNIVERSALITY OF
MANAGEMENT
• Management is needed in all types and sizes of organizations, at all organizational
levels and in all organizational work areas.

• Thus, it can be said as management is universal.

 WHAT MANAGERS DO

• 4 Functions Approach
• Management Roles Approach

(What is the difference between functions and Roles?)

Functions refer to what a manager ‘does’ while roles refer to what a manager has to
‘be’. Example: One of the functions of managers is to direct people and get work done
from them. For this a manager may have to play the role of a leader, negotiator,
figurehead etc.
 4 FUNCTIONS
APPROACH:
• Henri Fayol, a French Industrialist, first proposed the 4 functions approach.

POCCC: Planning, Organizing, Commanding, Coordinating, Controlling

POLC: Planning, Organizing, Leading, Controlling

FUNCTIONS OF

MANAGEMENT
 1.
PLANNING

- Defining goals
- Forecasting
- Decision Making
- Establishing strategy
- Developing sub-plans to coordinate activities
 2. ORGANIZING

- Determining what tasks are to be done

- Who is to do them
- How the tasks are to be grouped
- Division of work
- Who reports to whom
- Who will make decisions
- Authority and Responsibility
- Degree of centralization or decentralization
 3. STAFFING

- Recruitment
- Selection
- Training
- Developing
- Promotion
- Compensation etc.
(The scope for the staffing function of managers will vary as per the level of
management, size and nature of the organization. In larger organizations a separate HR
Department may be created.)
 4.
LEADING
- Directing
- Motivating
- Supervising
- Communicating
- Influencing
- Coordinating
- Resolving conflicts
- Guiding
 5.
CONTROLLING
- Monitoring performance
- Comparing it with goals
- Correcting deviations
 MINTZBERG’S MANAGERIAL
ROLES
I. Interpersonal
Roles
II. Informational Roles
III. Decisional roles
 I. INTERPERSONAL
ROLES
• Figurehead
(social, ceremonial, legal responsibilities, source of inspiration)

• Leader
(guiding, motivating, influencing, supporting etc.)

• Liaison(communication with internal and external contacts,

networking on behalf of the
organization)
 II. INFORMATIONAL
ROLES
• Monitor
(seek information related to the organization and industry, relevant changes in the
env., monitor the team, productivity, well-being etc.)
• Disseminator
(communicate potentially useful information to colleagues and the team )
• Spokesperson
(Speak for the organization, information about the organization and its goals to
the people outside it.)
 III. DECISIONAL ROLES
• Entrepreneur
(Create and control change, innovation, solving problems etc.)
• Disturbance Handler
(Mediate disputes, conflict resolution)
• Resource Allocator
(Where organizational resources shall be best applied, allocating funding, staff,
other resources)
• Negotiator
(Negotiate within team, department or organization, or with outsiders)
 MANAGERIAL SKILLS AND
COMPETENCIES
• Conceptual skills
• Interpersonal skills
• Technical skills
• Political skills

• Decision making, team building, decisiveness, assertiveness, politeness, personal

responsibility, trustworthiness, loyalty, professionalism, tolerance, adaptability,
creative thinking, resilience, listening, self development etc.
 MANAGERIAL SKILLS AND
COMPETENCIES
• Communication (verbal, non-verbal, listening, negotiating, convincing etc. )
• Team work (working well with others)
• Planning (forecasting, estimating, decision making, prioritising etc.)
• Administrative (managing the office or workplace, scheduling, reporting, budgeting,
policy making etc.)
• Strategic (analysis, problem-solving, research, innovation etc.)
• Global (combination of knowledge, skills, attitude and values to manage global or
intercultural situations)
 HOW THE MANAGER’S JOB IS CHANGING

In today’s world, managers are dealing with many changes.

- Changing workplaces, virtual workplaces

- Changing workforce, more mobile workforce, managing diversity

- Changing technology

- Social Media

- Empowered employees

- Work-life balance
- Discrimination concerns
- Ethical issues
- Security threats
- Changing consumers
- Changing competition
- Global economic and political uncertainties
- Increased accountability
 IMPORTANCE OF CUSTOMERS TO THE
MANAGER’S JOB
• Study of consumer behaviour can help in understanding the demand, forecast
trends, calculate required productivity levels.
• Customer feedback is valuable for improvement in product/service, new product
ideas, increasing customer satisfaction.
• Happy customers are a source of referrals.
 IMPORTANCE OF INNOVATION TO THE
MANAGER’S JOB
• Innovation helps in generating new ideas, product diversification, introduce novel
products, reduce costs, improve efficiency and productivity, improve employee
morale, growth of the organization, market share, revenue and fulfil overall goals of
the organization.

• Innovation can be applied to any function or activity in management

 IMPORTANCE OF SUSTAINABILITY TO THE
MANAGER’S JOB
• Sustainability is a business approach to creating long term value by taking into
consideration how the organization operates in the ecological, social or ethical and
economic aspects.
• Thus, there are 3 main aspects to sustainability: economic, ethical (social)
and ecological (natural environment)

• A business which is sustainable in the above 3 aspects will be able to sustain

over
the long term i.e. increase its longevity.
EVOLUTION OF
MANAGEMENT
 EARLY MANAGEMENT

• Planning, organizing, staffing, leading, controlling have existed for thousands of

years.
• The Industrial revolution (mid 1780s to 1800s) gave rise to existence of large
corporations which required ‘managing’.
• ‘The Wealth of Nations’- Adam Smith (1776)
 CLASSICAL APPROACH (1911- 1947)

Around the turn of the 20th century, the discipline of management began to evolve as a
unified body of knowledge.
Rules and principles were developed that could be taught and used in a variety of
settings.
F.W. TAYLOR- PRINCIPLES OF SCIENTIFIC MANAGEMENT (1911)
- Use of scientific methods to determine ‘one best way’ for the job to be done.
-Focused on raising productivity through greater efficiency.
Fundamental principles:

- Replacing rule of thumb with science

- Obtaining harmony, rather than discord in group

action

- Achieving cooperation of human beings rather than

chaotic individualism

- Working for maximum output rather than restricted

output.

- Developing all workers to the fullest extent possible

for their own and their company’s
prosperity.
Henri Fayol: General Administrative theory (1916 to 1947)
Identified 5 managerial functions and 14 principles of management

1. Division of work
2. Authority
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interests to General Interests
7. Remuneration
8. Centralization
9. Scalar chain (Chain of command)
10. Order (People and materials should be in the right place at the right
time)
11. Equity
12. Stability of tenure
13. Initiative
14. Esprit de Corps (Unity is Strength)
Other contributor in General Administrative theory is Max Weber.
 BEHAVIOURAL APPROACH (LATE 1700S -1950S)

The behavioural approach focused on actions of workers. It aimed at motivating the

employees to get higher levels of performance.
• Robert Owens: Working conditions
• Hugo Musterberg: Psychological tests and learning theories
•Mary Parker Follett: Individual and group behaviour
(Late 1700s to early 1900s)
• Harvard Professor- Elton Mayo: The Hawthorne Experiments (1924- 1930s)

• The Human Relations Movement (1930s to 1950s)- Importance of employee

satisfaction
- Abraham Maslow (Need hierarchy theory of motivation)
- Douglas McGregor (Theory X and Theory Y)
- William Ouchi (Theory Z)
- Frederick Herzberg (2 factor theory, Motivational factors & Hygiene Factors)
- 1960s to present: Study and research in Organization Behaviour
ABRAHAM MASLOW’S HIERARCHY OF
NEEDS
THEORY X AND THEORY Y- DOUGLAS
MCGREGOR
THEORY Z- WILLIAM
OUCHI
HERZBERG’S TWO FACTOR
THEORY
 QUANTITATIVE APPROACH (1940S -
1950S)
• Focuses on application of statistics, optimization models, information models,
computer simulations and other quantitative techniques to management activities.
• W. Edwards Deming, Joseph Duran – TQM
 CONTEMPORARY APPROACHES (1960S ONWARDS)

Systems Approach
– Chester Barnard
• Systems Approach: A manager has to
efficiently and effectively manage all parts of
the system so as to attain organizational
goals.
• Contingency Approach/ Situational Approach : Different organizations,
situations and employees need different ways of managing.
• Empirical or Case Approach : (concerned with studying experiences
through
cases and situations)
• Managerial roles approach (Mintzberg) (Covered earlier)
• Decision Theory Approach (focuses on decision making, decision markers,
methods and processes of decision making)
• Reengineering Approach (concerned with rethinking, process analysis,
redesigning etc.)
• Sociotechnical systems approach (interdependence of the technical systems and
the social system)
• Cooperative social systems approach (concerned with interpersonal and group
behaviour)
• Group behaviour approach (concerned with studying group behaviour patterns)
• Interpersonal behaviour approach ( concerned with individual behaviour, human
relations etc.)
• McKinsey’s 7 S Framework ( strategy, structure, systems, style, staff, shared values,
skills)
 REFERENCES

• Fundamentals of Management by Stephen P. Robbins, Mary Coulter & David De

Cenzo
• Essentials of Management by Harold Koontz & Heinz Weihrich