SNIST (JNTUH)-B.

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INTRODUCTION TO
MANAGEMENT
 UNIT– I
INTRODUCTION TO MANAGEMENT

Definitions
Levels of Management
Functions of management.
Planning: types of planning, planning process
Organizing: Organizational Design and structure,
staffing; Directing;
Controlling: Basic control process
Fayol’s principles of Management
Taylor’s principles of Scientific Management
Maslow’s Motivational theory
MANAGEMENT is a Science?

Science
Science is a systematic body of
knowledge pertaining to a specific field of
study that contains general facts which
explains a phenomenon.

Science establishes cause and effect

relationship between variables
MANAGEMENT is a Science?

Science

+ ART
MANAGEMENT is a Science?
So…Management is both an art and a science.
Management combines features of both science as
well as art.
It is considered as a science because it has an
organized body of knowledge which contains
certain universal truth.
Do You have MANAGEMENT Experience?
Do You have MANAGEMENT Experience?
What is Management?
MANAGEMENT
4-Ms
Managing the organizational resources
that includes
Men (human beings)
Money (Finance)
Machines and
Materials
MANAGEMENT: Managing

Example: Restaurent
Definitions
According to Louis E Boone & David L Kurtz –
The use of people and other resources to
accomplish objectives.
According to Mary Parker Follet
the act of getting things done through people.

Frederick Taylor defines

Management as the art of
knowing what you want to do
in the best and cheapest way.
Management
Management is the attainment of organizational
goals in an effective and efficient manner
through
Planning,
Organizing
Staffing
Directing and
Controlling organizational resources.
MANAGEMENT
Characteristics of Management
Management is a distinct/well-defined process.
Management is an organized activity
Management AIMS at the accomplishment of
predetermined objectives.
Management is both a science and an art.
Management is a group activity
Management principles are universal in nature
Management integrates human and other resources
(Integration of 4-Ms).
Concept of Management -
Raymond G. Leon
Management by Communication
Management by Systems
Management by Results
Management by Participation
Management by Motivation
Management by Exception
Management by Objectives
LEVELS OF MANAGEMENT
Level of Management
Level of Management
The term “Levels of Management’ refers to a
line of demarcation between various managerial
positions in an organization.

The number of levels in management increases

when the size of the business and work force
increases and vice versa.
The level of management determines a chain of command, the amount of
authority & status enjoyed by any managerial position.
The levels of management can be classified in three broad categories:

Top level / Administrative level

 Middlelevel / Executory
Low level / Supervisory / Operative / First-line managers
Managers at all the levels perform different functions
Top Level of Management

It consists of board of directors, chief executive or managing

director. The top management is the ultimate source of
authority and it manages goals and policies for an enterprise. It
devotes more time on planning and coordinating functions.
The role of the top management can be summarized as
follows –
 Top management lays down the objectives and broad policies
of the enterprise.
 It issues necessary instructions for preparation of department
budgets, procedures, schedules etc.
 It prepares strategic plans & policies for the enterprise.
 It appoints the executive for middle level i.e. departmental
managers.
 It controls & coordinates the activities of all the
departments.
 It is also responsible for maintaining a contact with the
outside world.
 It provides guidance and direction.
 The top management is also responsible towards the
shareholders for the performance of the enterprise.
MIDDLE LEVEL OF MANAGEMENT
 The branch managers and departmental managers constitute
middle level.
 They are responsible to the Top Management for the
functioning of their department.
 They devote more time to organizational and directional
functions.
 In small organization, there is only one layer of middle level
of management but in big enterprises, there may be senior and
junior middle level management.
Their role can be emphasized as -
 They execute the plans of the organization in accordance with the
policies and directives of the top level management.
 They make plans for the sub-units of the organization.
 They participate in employment & training of lower level
management.
 They interpret and explain policies from top level
management to lower level.
 They are responsible for coordinating the activities within
the division or department.
 It also sends important reports and other important data to
top level management.
 They evaluate performance of junior managers.
 They are also responsible for inspiring lower level managers
towards better performance.
Lower Level of Management
Lower level is also known as supervisory / operative
level of management. It consists of supervisors, foreman,
section officers, superintendent etc.
According to R.C. Davis, “Supervisory management
refers to those executives whose work has to be largely
with personal oversight and direction of operative
employees”.
In other words, they are concerned with direction and
controlling function of management.
Their activities include -
 Assigning of jobs and tasks to various workers
 They guide and instruct workers for day to day activities.
They are responsible for the quality as well as
quantity of production.
They are also entrusted with the responsibility
of maintaining good relation in the
organization.
They communicate workers problems,
suggestions, and recommendatory appeals etc
to the higher level and higher level goals and
objectives to the workers.
They help to solve the grievances of the
workers.
They supervise & guide the sub-ordinates.
They are responsible for providing training to
the workers.
They arrange necessary materials, machines,
tools etc for getting the things done.
They prepare periodical reports about the
performance of the workers.
They ensure discipline in the enterprise.
They motivate workers.
They are the image builders of the enterprise
because they are in direct contact with the
workers.
Management by Objectives (MBO)
Management by Objectives (MBO) is a personnel
management technique where managers and
employees work together to set, record and
monitor goals for a specific period of time.

Organizational goals and planning flow top-down

through the organization and are translated into
personal goals for organizational members.
Steps in MBO
To establish long-term and short-tem organizational
goals
To establish long-term and short-term objectives for
each manager, clarifying the key performance standards
Periodic review of performance
Encouraging managers to accept responsibility
Benefits of MBO
The need for planning will be recognized
It provides for objectives and accountability for
performance
It encourages participative management
It helps in job enrichment
It provides for a good feedback system
FEATURES
Management involves five functions (POSDirCon)
These functions are organised to achieve
organisational goals.
Management involves effective and efficient use of
resources
FUNCTIONS OF MANAGEMENT
PLANNING

ORGANIZING

STAFFING

DIRECTING

CONTROLLING
Management Functions…
PLANNING
• Planning is determining the objectives and
formulating the methods to achieve them.
• It is more simply said than done.
• A job well planned is half done.
PLANNING
• During planning one needs to ask oneself the
following:
• What am I trying to accomplish i.e. what is my
objective?
• What resources do I have and do I need to
accomplish the same?
• PLANNING are the methods and means to achieve
the objectives?
• Is this the optimal path?
Planning
 Types of Planning
• Purposes or Missions
• Objectives-It is the ultimate goal towards which the
activities of the organization are directed
• Strategies-general program of action and deployment of
resources
• Policies-general statement or understanding which guide
or channel thinking in decision making
• Procedures-states a series of related steps or tasks to be
performed in a sequential way
 Types of Planning
• Rules-prescribes a course of action and explicitly states
what is to be done
• Programs-comprehensive plan that includes future use
of different resources
• Budgets-statement of expected results expressed in
numerical terms
Principles of Planning
Take Time to Plan
Planning can be Top to Down or Bottom to Top
Involve and Communicate with all those
Concerned stake-holders
Plans must be Flexible and Dynamic
Evaluate and Revise
Steps in Planning
1. Determining the goals or objectives for the entire
organization.
2. Making assumptions on various elements of the
environment.
3. To decide the planning period.
4. Examine alternative courses of actions.
5. Evaluating the alternatives.
6. Real point of decision making
7. To make derivative plans.
Types of Managerial Decisions:
Programmed

Non programmed.

Mechanistic:
It is one that is routine and repetitive in nature

Analytical:
It involves a problem with a larger number of decision
variables
Types of Managerial Decisions:
Judgmental:
It involves a problem with a limited number of decision
variables, but the outcomes of decision alternatives are
unknown

Adaptive:
It involves a problem with a large number of decision
variables, where outcomes are not predictable
Organizing
Process of Organizing
Division of Work: Determine what is to be done
Assign Tasks: Departmentalization:
Link Departments:
Hierarchy Development:
Decide how much Authority to Designate/
Authority, Responsibility and Delegation:
Decide the Levels at which Decisions are to be
made / Centralization vs. Decentralization:
Decide how to Achieve Coordination:
Techniques for achieving
coordination.
Coordination by Rules or Procedures
Coordination by Targets or Goals:
Coordination through the Hierarchy
Coordination through Departmentalization
Using a Staff Assistant for Coordination:
Using a Liaison for Coordination:
Using a Committee for Coordination
Using Independent Integrators for Coordination:
Coordination through Mutual Adjustment:
STAFFING
Definition 1
Selecting and training individuals for specific job
functions, and charging them with the associated
responsibilities.

Definition 2
Number of employed personnel in an organization or
program. Also called workforce.
STAFFING
DIRECTING/LEADING
Provides positive and dynamic leadership
Provides maximum opportunities
Provides proper motivation of personnel
Ability to command people
DIRECTING/LEADING
CONTROLLING
CONTROLLING CONCEPTS
Feed Forward Control-Control that attempts to identify
and prevent deviations before they occur is called feed
forward control, sometimes called preliminary or
preventive control.
Concurrent Control-Control that monitors ongoing
employee activities during their progress, to ensure they
are consistent with quality standards, is called
concurrent control.
Feedback Control-In this case, the control takes place
after the action. Sometimes called post-action or output
control
Steps in the Control Process
Establish Standards of Performance
Measure Actual Performance
Compare Performance to Standards:
Take Corrective Action
Principles of Effective Control
Effective controls are timely.
Control standards should encourage compliance.
Setting effective standards is important
Use management by exception.
Employees should get fast feedback on performance.
Do not over rely on control reports.
Fit the amount of control to the task.
Henry Fayol’s Principles
 There are 14 Principles of Management described by Henri Fayol.
 1. Division of Labor
 2. Party of Authority & Responsibility
 3. Principle of One Boss
 4. Unity of Direction
 5. Equity
 6.Order
 7.Discipline
 8.Initiative
 9.Fair Remuneration
 10.Stability of Tenure French Mining Engineer
 11. Scalar Chain
 12. Sub-Ordination of Individual Interest to General Interest
 13. Espirit De’ Corps (team spirit & team work)
 14. Centralization & De-Centralization
Henry Fayol’s 14 Principles
It is the art of knowing exactly what is to
be done in the best and the cheapest
way.

(March 20, 1856 – March 21, 1915) was

an American mechanical engineer who sought
to improve industrial efficiency. He was one of
the first management consultants.
FW Taylors’ 4 Principles
The four principles of management.
1. The development of a true science.
2. The scientific selection of the workman.
3. The scientific education and development of the
workman.
4. Intimate and friendly cooperation between the
management and the men.
Taylors’ - 4 Scientific Principles
1.Science, not the rule of thumb: scientific
investigation should be used for taking managerial
decisions instead of basing on opinion, institution
or thumb rule.
2.Scientific selection training and development of
employees: selection means to choose the best
employee according to the need. Their skill and
experience must match the requirement of the job.
Scientific development refers to criteria for
promotions, transfers etc.. So that work is done with
full efficiency.
4 Scientific Principles
3. Division of work/ responsibility: The
responsibility of workers and management should be
properly divided & communicated so that they can
perform them in an effective way and should be
reward for the same.
4. Harmony not discard/ cooperation between
employers and employees:
Harmonious relationship between employees and
employers. Cooperation of employees that managers
can ensure that work is carried in accordance with
standards.
MASLOW’S THEORY OF HUMAN NEEDS

The behavior of an individual at a

particular moment is usually determined
by his strongest need.
MASLOW’S THEORY OF HUMAN NEEDS
MASLOW’S THEORY OF HUMAN NEEDS
LEADERSHIP STYLES

Leaders can be differentiated

into good or bad based on the styles
they adopt or how they choose to
influence their followers.
They are:
1.Autocratic
2.Democratic or Participative
3.Free – Rein or Laissez – faire
Autocratic
Democratic or Participative
Free – Rein or Laissez – faire

not involving/requiring direct control/intervention