Management

Dr. Prashant Mehta

Who is a Manager?

● A person responsible for the work performance of

group members.
● A manager holds the formal authority to commit
organizational resources, even if the approval of others is
required.
What is Management?

● “Management is the process of getting things done

through others”
● “The of using organizational resources to
process organizational objectives through
achieve
organizing and planning, and
staffing, DuBrin. leading, controlling” -
Levels of Management

● Another way of understanding the nature of

a manager’s job is to examine the three
levels of management shown in Exhibit 1-
1.
● The pyramid in this figure illustrates
progressively fewer employees at each
higher managerial level.
● The largest number of people is at the
bottom organizational level.
Top Level Management:
● Most people who enter the field of management aspire to become top-level
managers—managers at the top one or two levels in an organization.
● C-level manager is a recent term used to describe a top-level manager; these
managers usually have the word chief in their title, such as chief operating officer.
● Top-level managers are empowered to make major decisions affecting the
present and future of the firm.
● Top-level managers are the people who give the organization its general
direction; they decide where it is going and how it will get there.
● The terms executive, top-level manager, and c-level manager can be used
interchangeably.
Middle-Level Managers:
● Middle-level managers are managers who are neither executives nor first-
level supervisors, but who serve as a link between the two groups.
● Middle-level managers conduct most of the coordination
activities within the firm, and
● they are responsible for implementing programs and
policies formulated by top-level management.
● Thejobs of middle-level managers vary substantially in terms
of
responsibility and income.
● A branch manager in a large firm might be responsible for more than 100
workers.
● In contrast, a general supervisor in a small manufacturing firm might have 20
people reporting to him or her. Other important tasks for many middle-level
managers include helping the company undertake profitable new ventures and
finding creative ways to reach goals.
● A major part of a middle manager’s job is working with teams to accomplish
work.
● First-Level Managers
● Managers who supervise operatives are referred to as first-
level managers, first-line managers, or supervisors.
● Employees in entry-level positions, mainly report to a first-
level manager.
● Supervisors help shape the attitudes of new employees toward the firm.
Functions/Process of Management

Controlling
Leading
Organising
and
Planning Staffing
Planning:
● Planning involves setting goals and figuring out ways of reaching them.
● Planning, considered the central function of management, pervades
everything a manager does.
● In planning, a manager looks to the future, saying, “Here is what we
want to achieve, and here is how we are going to do it.”
● Decision making is usually a component of planning, because choices must be
made in the process of finalizing plans.
● The importance of planning expands as it contributes heavily to performing
the other management functions. For e.g., it is involved in marketing, staffing,
etc.
Organising and Staffing:
● Organizing is the process of making sure the necessary human and
physical resources are available to carry out a plan and achieve
organizational goals.
● Organizing also involves assigning activities, dividing work into specific job
and tasks, and specifying who has the authority to accomplish
certain tasks.
● Another major aspect of organizing is grouping activities
into departments or some other logical subdivision.
● Thestaffing function ensures the availability of necessary
human resources to achieve organizational goals.
● Hiring people for jobs is a typical staffing activity.
● Staffing is such a major activity that it is sometimes classified as a
function separate from organizing.
Leading
● Leading means influencing others to achieve organizational objectives.
● As a consequence, it involves energizing, directing, persuading others, and
creating a vision.
● Leadership involves dozens of interpersonal processes:
motivating,
communicating, coaching, and showing group members how they can reach their
goals.
● According to management guru Henry Mintzberg, effective leaders develop the
sense of community or shared purpose that is essential for cooperative effort in all
organizations
Controlling:
● Controlling generally involves comparing actual performance to a
predetermined standard.
● Any significant difference between actual and desired performance
would prompt a manager to take corrective action.
● A secondary aspect of controlling is determining whether the original plan
needs revision, given the realities of the day.
● The controlling function sometimes causes a manager to return to the
planning function temporarily to fine-tune the original plan.
F W Taylor’s contribution to Management

● F.W. Taylor or Fredrick Winslow Taylor, also known as

the ‘Father of scientific management’ proved with his
practical theories that a scientific method can be
implemented to management.
● The focus of scientific management was
application of scientific methods the
to individual workers’ increase
productivity. father
● scientific
Frederick management, was an of
W. Taylor, considered engineer
the by background.
● He used scientific analysis and experiments to
increase worker output.
Principles of Scientific Management by Taylor

1. Science, not the Rule of Thumb

● This rule focuses on increasing the efficiency of an organisation through scientific
analysis of work and not with the ‘Rule of Thumb’ method.
● Taylor believed that even a small activity like loading paper sheets into boxcars
can be planned scientifically resulting in time and cost savings.
● All decisions should be based on scientific analysis and cause and effect
relationships rather than ‘Rule of Thumb’ where the decision is taken according to
the manager’s personal judgement.
2. Harmony, Not Discord
Taylor indicated and believed that the relationship between the workers and
management should be cordial and completely harmonious.
3. Mental Revolution
This technique involves a shift of attitude of management and workers towards
each other. Both should understand the value of each other and work with full
participation and cooperation.
4. Cooperation, not Individualism
It is similar to ‘Harmony, not discord’ and believes in mutual collaboration
between workers and the management. Managers and workers should have
mutual cooperation and confidence and a sense of goodwill. The main
purpose is to substitute internal competition with cooperation.
5. Development of Every Person to his Greatest Efficiency
The principle states that any organisation’s growth depends on the skills of its
workers. Thus, the scientific approach believes in proper staffing and employee
training to maximise output.
Henri Fayol’s contribution to Management

● Henri Fayol, also known as the ‘father of modern

management theory’ gave a new perception of the concept
of management.
● While Taylor contributed to Scientific Management,
Henri Fayol contributed to Administrative Management.
● Both management thoughts come under “Classical
Approach to Management”.
● Fayol introduced a general theory that can be applied
to all levels of management and every department.
Fayol’s 14 Principles

Division of Authority and Unity of Unity of

Work Responsibility Discipline Command Direction

Subordination
of Individual Remuneration Centralisation Scalar Chain Order
Interest

Stability of
Equity Tenure of Initiative Esprit de Corps
Personnel
Division of Labour:
● Segregating work in the workforce amongst the worker will enhance
the quality of the product. Similarly, he also concluded that the
division of work improves the productivity, efficiency, accuracy and
speed of the workers.

Authority and Responsibility

● Authority facilitates the management to work efficiently, and
responsibility makes them responsible for the work done under their
guidance or leadership.
Discipline
● Without discipline, nothing can be accomplished. It is the core value
for any project or any management.
● Good performance and sensible interrelation make the management
job easy and comprehensive.
● Employees good behaviour also helps them smoothly build
and progress in their professional careers.
Unity of Command
● This means an employee should have only one boss and follow his
command. If an employee has to follow more than one boss,
there
begins a conflict of interest and can create confusion.
Unity of Direction
Whoever is engaged in the same activity should have a unified goal. It
means all the person working in a company should have one goal and
motive which will make the work easier and achieve the set goal easily.

Subordination of Individual Interest

This indicates a company should work unitedly towards the interest of a
company rather than personal interest. Be subordinate to the purposes of
an organization. This refers to the whole chain of command in a
company.
Remuneration
● Remuneration plays an important role in motivating the workers of a
company.
● Remuneration can be monetary or non-monetary.
● However, it should be according to an individual’s efforts they have made.

Centralisation
● Centralization refers to the concentration of power in the hands of the
authority and following a top-bottom approach to management. In
decentralization, this authority is distributed to all levels of management.
● In any company, the management or any authority responsible for the
decision-making process should be neutral.
● Fayol stressed on the point that there should be a balance between the
hierarchy and division of power.
Scalar Chain
● A scalar chain refers to a clear chain of communication
between employees and their superiors.
● Employees should know where they stand in the hierarchy of
the organization and who to go to in a chain of command.
● To implement this in the workplace, Fayol suggests that there should be
an organizational chart drawn out for employees to see this structure
clearly.
Order
● This principle states that there should be an orderly placement of
resources (manpower, money, materials, etc.) in the right place at the right
time.
● This ensures the proper use of resources in a structured fashion.
Equity
● Equity is a combination of kindness and justice. This principle states
that managers should use kindliness and justice towards everyone
they manage.
● This helps in creating loyalty and devotion among the employees
towards the organization they work for.
Stability of Tenure of Personnel
● This principle states that an organization should work to
minimize staff turnover and maximize efficiency.

https://www.youtube.com/watch?v=FDnJcJD
TK98
Initiative
● This principle states that all employees should be encouraged to
show initiative.
● When employees have a say as to how best they can do their
job,
they feel motivated and respected.
Esprit de Corps
● Esprit de Corps means “Team Spirit”.
● This principle of management states that the management should
strive to create unity, morale, and co-operation among the employees.
● Team spirit is a great source of strength in the organization.