Unit 1

Chapter 1
Introduction to Management
 What is an organization?
• Organization is a human association composed of people (adds
value, unique, cannot be substituted, imperfectly imitable),
structure, and technology (knowledge and skills, system , process
required to perform tasks like equipment, techniques, skills,
processes and facilities) for achieving common goals ( smart)
effectively and efficiently in a dynamic environment. (Dr. Govinda
Ram Agrawal)

• An organization is an entity which provides employment and

produces various products and services to satisfy human needs
and benefits the society.

• Every Organization is governed by a social contract.

• People are born, educated and works in organization. It is a goal

oriented social system.
 What is environment?

• Are the forces or factors which affect organization

ability to attain its goal.

• They are dynamic in nature.

• Internal environment: organizational goals, policies,

culture, resources, structure, etc.

• External environment: Task (all the stakeholders:

suppliers, customers, competitors, government,
unions, media, etc.) And General environment
(PESTEL).
 What is management?

• A set of activities (including planning and decision

making, organizing, leading and controlling) directed at
an organization’s resources (human, financial, physical,
and information), with the aim of achieving
organizational goal effectively and efficiently. Ricky W.
Griffin

• Getting things done through people by making the

efficient use of resources. Chester Barnard

• Management involves coordinating and overseeing the

work activities of other so that their activities are
completed efficiently and effectively.(Robbins)
What is concept of management?

• Management is the process of designing and maintaining

and environment in which individuals, working together in
groups, efficiently accomplish selected aims in formally
organized groups.(Harold Koontz)

• Management is art of getting things done with and through

people (Mary parker Follett)

• "Management is a multi-purpose organ that manages

business and manages managers and manages workers and
work." Peter Drucker

• "To manage is to forecast and to plan, to organize, to

command, to co-ordinate and to control." Henri Fayol
 What is Management function and process?

• Management is considered a process because it

involves a series of interrelated functions. The
management process includes planning, organizing,
leading and controlling functions.

• The broad functions of management can be broadly

classified as planning, implementation (organizing, and
directing), and evaluation (control, assessment, and
feedback) P.R. Pant
Management function and process?

• Planning: Planning is setting an organization's

goals and deciding how best to achieve them.

• Organizing is determining how activities and

resources are to be grouped.

• Leading is the set of processes used to get

members to the organization to work together.

• Controlling is monitoring organization progress

toward goal attainment.
Management as a System
External
Environment
Internal

Input Process output

Feed back
What are characteristics/features/ nature of
Management?

• Achieving objectives
• working with others
• Attaining effectiveness and efficiency
• Takes situational approach.
• Coping with the environment.
• Continuous and never ending process.
• Management is pervasive.
• Result oriented science and Art
• Responding to social needs
 Efficiency
 Efficiency refers to doing things in a
right manner.
 Focus on process, gives importance to
means
 It is concerned with present state or
status quo
 It is documentation and repetition of
the same steps
 Output to input ratio and focus on
getting max out put with minimum
input
 Reactive to change
 It emphasizes the economies
particularly time and money
 Using resources wisely and in a cost
effective way
Effectiveness
 Effectiveness refers to doing the right
thing
 Focus on achieving end goal
 It is concerned with variable that may
change in future
 It encourages innovation as it demands
people to think
 Looks whether actual output meets the
desired output.
 Proactive to change.
 It emphasizes how well the intended
outcome was accomplished.
 Making the right decisions and
successfully implementing them.
 Who carries out the management functions?
• Management Team.

Who is a manager?

• Managers are the individual who are responsible for

coordinating and integrating activities of other people to
achieve the organizational goal.

• Person responsible to carry out the management process.

• Organizational members who tells others what to do and how

to do it.

• Manager is someone who achieves goals of the organization

with people and through people.
What are different levels of manager
or management?
• Top level
• Middle level
• Lower level
What are different levels of manager
or management?
 Top level management:- It includes board of directors, chief
executive or general managers , senior strategist, decision making,
directors . Corporate level goals, missions and objectives are
determined.

Middle level management:- It includes departmental managers,

divisional heads and section officers. It acts as a bridge between
top level management and lower level management.

Lower level management :- It includes supervisors, foremen and

workers. it is also known as supervisory level of management in
which the supervisors or foreman like sales officers , account
officers etc take responsibilities of the implementation and
control of the operational plans developed by the middle level
managers.
 What are roles of mangers?
10 different managerial roles. Henry
Mintzberg
• Interpersonal: This role involves human interaction.
(Figurehead, Leader, Liaison)

• Informational: This role involves the sharing and analyzing of

information. ( Monitor, Disseminator, Spokesperson)

• Decisional: This role involves decision making.

( Entrepreneurship, disturbance handler, Resource allocator,
negotiator)
 Interpersonal Category

• This role involves human interaction (with

subordinates and person outside the
organization) and other duties that are
ceremonial and symbolic in nature. This role is
subdivided into three roles, they are:
(Figurehead, Leader, Liaison)
 Interpersonal Category
• Figurehead - Examples: Greet visitors, sign
legal documents, attend ribbon cutting
ceremonies, host receptions, etc.
• Leader - Examples: Includes almost all
interactions with subordinates like, directing,
coordinating, training, motivating, staffing.
• Liaison – Example: Business correspondence,
participation in meetings with representatives
of other divisions or organizations.
 Informational Category

• This role involves the sharing and analyzing of

information. This role is subdivided into three
roles, they are: ( Monitor, Disseminator,
Spokesperson)
 Informational Category

• Monitor - Scan/read trade press, periodicals,

reports; attend seminars and training;
maintain personal contacts.
• Disseminator - Send memos and reports;
inform staffers and subordinates of decisions.
• Spokesperson -Pass on memos, reports and
informational materials; participate in
conferences/meetings and report progress.
 Decisional Category

• This role involves decision making by using

information. This role is subdivided into four
role, they are: ( Entrepreneurship, disturbance
handler, Resource allocator, negotiator)
 Decisional Category
• Entrepreneur – This means solving problems, generating new
ideas, and implementing them. Implement innovations; Plan
for the future.
• Disturbance Handler - Settle conflicts between subordinates;
Choose strategic alternatives; Overcome crisis situations
• Resource Allocator – This involves allocating funding, as well as
assigning staff and other organizational resources.
• Negotiator - Manager needs to take part in, and direct,
important negotiations within the team, department, or
organization.
 What different skills manager
requires?
Technical skill:
• Skills necessary to accomplish or understand
tasks relevant to the organization.
• It is job specific knowledge and techniques
that are required to perform organizational
role.
• The low-level managers require more
technical skills because they are in charge of
the actual operations.
Interpersonal Skills:
• It is manager ability to communicate with,
understand, and, motivate both individuals and
groups.
• The knowledge and techniques of
communication, motivation, lead, conflict
management, group dynamics, etc are need in
interpersonal skills.
• Human relations skills are required by all
managers at all levels of management. This is so,
since all managers have to interact and work with
people.
Conceptual Skills: 
•It is manager’s ability to think in abstract by
viewing organization in holistic manner.
•It includes Analytical, Creative and Initiative
skills.
•According to Prof. Daniel Katz, conceptual skills
are mostly required by the top-level
management because they spend more time in
planning, organizing and problem solving.
• Leadership Skills: Leadership skill is the ability to
influence human behavior and get the work done
through the workers. A manager requires
leadership skills to motivate the workers.

• Diagnostic skill: Managers ability to visualize the

most appropriate response to a situation. A
manager should know how to identify a problem
and find a best solution for solving it. This
requires intelligence, experience and up-to-date
knowledge of the latest developments.
 What different skills manager
require?
• Communication skills: Are required equally at
all three levels of management. A manager
must be able to communicate the plans and
policies to the workers.
• Time Management skills: The manager’s
ability to prioritize work, to work efficiently,
and to delegate appropriately.
What different skills manager require?
 Emerging challenges for
management?
 
• Changing Organizational Perspective: It's about paradigm shift of viewing
organization form a closed system perspective to open system perspective.
They are:

• Traditional Organization                      New Organization        

1. Stable (closed system)                                              Dynamic( Open system)
2. Inflexible(rigid Structure and process)                   Flexible
3. Individual Oriented                                                   Team Oriented (Employee
+Manager)
4. Permanent jobs                                                          Temporary jobs
5. Command Oriented                                                   Involvement Oriented
6. Rule Oriented                                                             Customer Oriented
7. Homogeneous workforce                                         Diverse workforce
8. Hierarchical relationships                                         Lateral and network
relationships
9. Working in Office                                                       Working any time any where
through telecommuting
• Corporate Governance:
– Is the framework of rules and practices by which a board
of directors ensures accountability, fairness, and
transparency in a company's relationship with its all
stakeholders.
– Challenge is to install such values in all level of employee
through out the organization.

• Work force diversity:

– The variety of differences between people in an
organization. Diversity encompasses race, gender, ethnic
group, age, personality, cognitive style, tenure,
organizational function, education, background and
more), physical abilities and disabilities, foreign workers,
generations.
– Challenge is to creatively destruct the melting pot view.
• Empowerment:
– Is a strategy and philosophy that enables
employees to make decisions about their jobs.
Employee empowerment helps employees own
their work and take responsibility for their results.
– Challenge is to determine the level of delegation
and decentralization of power.

• Technology and information:

– It consist of innovation, techniques and organized
knowledge of way of doing things.
– Challenge is to process information and adjust
with changes.
• Workplace spirituality:
– Is about individuals and organizations seeing work value as a
spiritual path, as an opportunity to grow and to contribute to
society in a meaningful way.
– It is about care, compassion and support of others; about
integrity and people being true to themselves and others.
– Challenge is to install it.

• Knowledge management:
– Is the process through which organizations generate value
from their intellectual and knowledge-based assets, by
finding, unlocking, sharing, and capitalizing people expertise,
skill, wisdom and relationship.

– Challenge is to make adequate culture, strategy and

investment for continuing knowledge generation and sharing
for all members.
• Globalization:
– Is a process of interaction and integration among the
people, companies, and governments of different
nations, a process driven by international trade and
investment and aided by information technology.
– Challenge is to Operating business in a borderless and
global economy and how to compete for resource and
markets, and understanding people across cultures.

• Ethics and social responsibility:

– Ethics is an individual personal belief about a behavior,
action or decision is right or wrong. Social responsibility
of business refers to all such duties and obligations of
business directed towards the welfare of society.
– Challenge is ethics have declined and organization fails to
fulfill societal responsibilities.(why??)
• Change Management :Giving priority to
Innovation and Change. Challenge is to stimulate
employee creativity for innovation and change.

• Quality and productivity: Quality is consumer

perception of excellence. Quality is basis for
competition, productivity and lower cost.

• Relationship Management: Focus on maintaining

the connection between organizations and
individuals
 Building career in Management
• Be both specialist and generalist : be expert in
something and also know about the variety of
business activities.
• Be self-reliant: don’t just do your work and wait for
orders, look for opportunities to contribute in new
ways, to develop new products and processes, and
generate constructive change. Regardless of where
you work, think and act like entrepreneur.
• Be connected: good working relationship, team
player, strong interpersonal skills
 To bring Competitive advantage
in you organization focus on:
• Cost: use resource wisely and minimizing
waste(efficient)
• Quality: excellence of product , which meets
and exceeds customer expectations.
• Speed: timely execution, response and
delivery of result
• Innovate: introduction of new product and
services.
End