Chapter 1 Introduction to management.pptx

 Management is concerned with human beings whose
behavior is highly unpredictable.
 Management is found in every walk of life.
 Management does not perform specific jobs. It
motivates other people to perform specific jobs.
 Management is not doing the work but getting the
work done thru the efforts of others.

Definition
 The art of getting things done through people - Mary Parker
Follet
 Management is the coordination of all resources through the
process of planning, organising, directing and controlling in
order to attain stated objectives. —Henry L. Sisk.
 Management is principally the task of planning,
coordinating, motivating and controlling the efforts of
others towards a specific objective. —James L. Lundy
 Management is the art of knowing what you want to do and
then seeing that it is done in the best and cheapest way. —
F.W. Taylor

 To manage is to forecast and to plan, to organise to
command, to coordinate and to control. —Henry
Fayol
 Management is the function of executive leadership
anywhere. —Ralph C. Davis
 Management is a distinct process consisting of
planning, organising, actuating and controlling
performed to determine and accomplish the
objectives by the use of people and resources. —
George R. Terry

 Management brings together basic resources
popularly known as 6M’s – Men, Materials,
Machines, Methods, Money and Markets.
 This helps to achieve the expected results quickly
and economically in terms of production, sales,
profits and goodwill in the market.

1. MANPOWER
2. MACHINES
3. MATERIALS
4. METHODS
5. MONEY
6. MARKETS
Six M’s of Management

1. Manpower
 Managerial and non managerial personnel's
employed in business constitute manpower.
 Not only survival but also success of an organisation
largely depends on its skills, efforts and
contributions of its managers.
 Manpower mobilizes, allocates and utilizes the
financial and non financial resources of an
organisation.

2. Machines
 Machines are commonly used to convert raw
materials into semi finished and finished products.
 Machines produce goods at reduced cost of
production and also improve its quality.
 Efficient management of business now a days mainly
lies in the use of improved technology.

3. Methods
 Methods indicate normal and prescribed ways of
doing things.
 Various operations are undertaken as per certain
systems and procedures.
 For every kind of work step by step sequence of
actions are suggested which brings about smooth
and efficient functioning in the business.
 The selection of the right methods increase
operational efficiency and contribute to effective
management.

4. Materials
 Materials consists of raw materials and semi finished
goods which are either converted or assembled into
finished products with the help of production
process.
 The quality and cost of finished products depend
largely on the quality and cost of materials.
 It is desirable to maintain adequate stock of
materials to face variations in supply.

5. Money
 Money is the lubricating factor in business. It is not
possible to imagine a successful business in the
absence of strong financial base.
 Money is employed to generate more money in the
form of profits.
 Money can be self contributed borrowed from public
subscription and banks and adjusted in the form of
fixed and working capital.

6. Markets
 Whether products or services , they need marketing.
 Successful marketing brings about increased
financial resources back to business.
 Now marketing is the main challenge to every
business.
 Better and improved marketing technique must be
implemented to achieve success in business.

1. Management is a process
2. Management is action based
3. Management involves achieving results thru the efforts
of others
4. Management is a group activity
5. Management is intangible
6. Management is aided, not replaced by computers
7. Management is all pervasive
8. Management is an art, science as well as profession
9. Management is dynamic
10. Management has different operational levels

1. Optimum Use Of Resources
2. Competitive Strength
3. Cordial Industrial Relations
4. Employee Motivation
5. Introduction Of New Techniques
6. Team Spirit
7. Stability & Prosperity To Business Enterprises
8. Social Benefits
9. Labour Turnover & Absenteeism

1. Management as an economic resource.
2. Management as a system of authority
3. Management as a group activity
4. Management is relative not absolute
5. Management is universal
6. Management as a process
7. Management as a discipline.

 Management is described as a distinct process which
involves various elements like planning, organising,
coordinating, staffing, controlling etc. such management
process is essential for achieving specific business objectives
in an orderly manner.
 Management process is a continuous one and run by the
managers operating at different levels. This is a process for
getting the work done thru others.
 Management is a distinct process in which managers plan,
organise, lead, motivate and control human efforts in order
to achieve well defined goals. This is called Management
Process.

 Luther Gullick gave a new formula to suggest the
elements of Management Process – PODSCORB
P-Planning
O-Organising
D-Directing
S-Staffing
Co- Coordinating
R-Reporting (Controlling)
B-Budgeting

1. Planning
 It is the primary function of management. It precedes
other functions because a manager plans before he acts.
 It involves the determination of objectives and selecting
course of action to achieve desired results.
 It is the starting point of managerial process. Planning is
looking ahead. It is preparing for the future.
 Effective planning provides answers to questions like –
What to do? How to do? Who is to do? and When to do?
 Planning is a function performed by managers at all levels.
 It is a mental process requiring the use of intellectual
facilities foresight, imagination and sound judgement.

2. Organising
 It is next to planning. It is the function of creating a
structure of duties and responsibilities.
 Organizing involves establishing authority –
responsibility relationships among people working in
groups and creating a structural framework.
 It involves departmentalization, span of control,
delegation of authority and establishing of superior
subordinate relationship.
 A sound organisation avoids duplication of work and
overlapping of efforts.

3. Staffing
 Staffing involves manning the various positions of
the organisation.
 It includes manpower planning, recruitment and
selection of the right people, training and developing
them, deciding financial compensation, appraising
their performance periodically.
 ‘Right Man for the Right Job’ is the basic principle in
Staffing.

4. Directing
 Directing deals with instructing people to do the work in the
right manner. It also includes guiding, motivating, supervising
and leading people towards the attainment of planned
objectives.
 It is the responsibility of managers at all levels. They have to
work as leaders of their subordinates.
 In leading the people, the manager performs the following
three distinct tasks:
 Communication : the process of information flow from one person to
another and across the organization;
 Leadership : the process by which a manager guides and Influences the
work of his subordinates; and
 Motivation : the act of stimulating the people so that they give their best to
the organisation.

6. Coordinating
 Proper coordination of activities of different
departments are essential for achieving the
objectives.
 Coordination is rightly treated as the Essence of
Management.
 Coordination avoids misdirection and wastages and
brings unity of action in the organisation
 Coordination will not come automatically or on its
own. Special efforts are necessary on the part of
managers for achieving such coordination.

7. Controlling
 Planning and controlling – the two functions are
closely interrelated in that while plans specify the
objectives to be achieved, control as a managerial
function facilitates to know whether the actual
performance is in conformity with the planned one.
 In the event of deviations, appropriate corrective
measures could be taken.
 Controlling implies measuring and correcting the
activities to ensure that events conform to plans.

A role is a set of expectations for a managers behavior.
Henry Mintzberg studied the role of managers and
classified it into 3 categories :
1. Interpersonal Role
2. Informational Role
3. Decisional Role

1. Interpersonal Roles
Role Description
Figure head Symbolic head; obligated to perform
routine duties of a legal and social nature. – greeting
visitors, attending weddings of employees, lunches with
important customers.
Leader Responsible for the motivation and activation
of subordinates; responsible for staffing, training
and associative duties.
Liaison Nurtures and maintains network of
outside contacts. The liaison role involves
interface activities with environment. – attending
meetings, conferences, changes in environment.

2. Informational Roles
Role Description
Monitor Scan the environment for information. Collect and study
information and determine how it influences his business.
– periodicals, reports, personal contact
Disseminator Transmits information received from both within and
outside the organization to members of the organization –
phone calls, memos, meetings.
Spokesman Transmits information to stake holders about
external environment and organization’s
plans, policies, actions, results, etc.

3. Decisional Roles
Role Description
Entrepreneur Play with new ideas for product improvement or product
addiction. Adapting to changing environment. Open to
suggestions.
Conflict handler Acts has a fire fighter, works as an arbitrator to solve
differences
Resource
allocator
Delegate authority to subordinates, allocate funds for new
equipment, advertising, pay rise
Negotiator Negotiates with union leaders to strike a deal for issues,
negotiates price with distributors.

 A manager occupies executive position and needs
certain managerial skills so as to perform his duties
in an efficient manner.
 The skills which a manager requires can be termed
as Managerial skills.
 The managerial skills was initially suggested by
Henri Fayol and was made popular by Prof R.L. Katz.
 They are classified under three heads –
TECHNICAL, HUMAN AND CONCEPTUAL
SKILLS.

1. Technical Skills
 Technical skills involves specialized knowledge and
competence in the use of distinctive managerial tools
and techniques.
 This skill is necessary in the case of managers
working at the supervisory levels i.e. lower levels.
 A supervisor is mainly concerned with directing and
controlling subordinates and needs technical skill.
 The importance of technical skills reduces when the
manager moves to the higher levels.

2. Human Skills
 Human skills refers to the ability of managers to interact
with the subordinates and to build team spirit at all
levels.
 This skill creates favorable atmosphere and facilitates
willing cooperation of employees.
 All managers especially middle level managers need
human relations skills.
 This skill is useful to understand feelings, sentiments of
other, undertake self evaluation etc.

3. Conceptual Skills
 It is a combination of vision, imagination and
intelligence that assures perspective in viewing the
organisation and its future.
 This skill indicates the ability of a manager think
about the future of his organisation, his ability to do
abstract thinking and his ability to assess the
environmental changes.
 These skills enables a top level managers to set
appropriate organisational goals for himself and for
his team.

 A professional managers should possess more skills
in addition to the above three skills. :
 Diagnostic Skills
 Analytical Skills
 Administrative Skills
 Behavioral Skills

4. Diagnostic Skills
 It includes the ability to analyse, examine and
determine solution to management problem.
 This skill identifies key factors and understand how
they inter relate to one another.
 A manager can effectively use this skills with a
proper blend of analytical ability with common sense
and intelligence.

5. Analytical Skills
 This skill uses scientific techniques to solve
management problems.
 This skill identifies key factors and understands how
they interrelate to one another.
 It is actually an ability to diagnose and evaluate.
 Without analytical skill, there is no hope of long term
success.

6. Administrative Skills
 Managers working at the top management levels
have to contribute towards framing plans and
policies.
 They are expected to coordinate various activities
and ensure conflict free working of the business, they
install and carry out procedures to check progress of
activities against plans.

7. Behavioral Skills
 Behavioral Skills are necessary to coordinate, control
and direct the activities of the subordinates.
 This skill enables managers to understand the
behavior of people by respecting their feelings and
understanding their problems.
 This leads to improved communication with
subordinates who will be motivated to put in their
efforts.

1. F.W. TAYLOR
2. HENRY FAYOL
Evolution of Management

1. Classical Approach to Management
 Classical Approach to management supports the body of
management thought based on the belief that employees
have only economical and physical needs.
 The social needs and needs for job satisfaction either does
not exist or are unimportant.
 It advocated high specialisation of labour, centralised
decision making and profit maximisation.
 Classical approach is the oldest school of management
thoughts. It started around 1900 and continued into the
1920’s.
 It is primarily concerned with increasing the efficiency of
workers and organisation based on management practices.

Classical
Approach
Bureaucratic
Management
Administrative
Management
Scientific
Management

a) Bureaucratic Approach to Management
 Max Weber, born to a wealthy family that had strong
political ties in Germany, became a sociologist, editor,
consultant to government, and author.
 Because of his various positions, he experienced the
social upheaval brought on by the Industrial Revolution.
He saw the emerging forms of organization as having
broad implications for managers and society.
 He believed in strictly following rules which would make
bureaucracy highly efficient form of organisation
founded on principles of logic, orders and legitimate
authority.

Features of Bureaucratic Organisation
1. Clear act of division of labour based on competence and
functional specialisation.
2. A well defined hierarchy of authority.
3. A bureaucrat seeks rationality, objectivity and consistency
for his organisation.
4. Interpersonal relations are based on positions and not
personalities.
5. A system of rules covering the duties and rights of
employees.
6. A system of procedures for dealing with work situations.
7. Selection and promotion based on technical competency.
8. Bureaucracy recognizes only legal power and authority
given to each position in the organisation.

Evaluation of Bureaucracy
 Rigid Model
 Does not recognize importance of human relations in
an organisation
 Blind faith in rules and regulations
 Too much of red tapism and paperwork
 Resistance to change by employees

b) Scientific Approach to Management
 The major contributor to this approach was F. W. Taylor
(1856–1917), the ‘father’ of scientific management.
 Taylor believed that there is One Best Way of doing a
work. Work standards and practices could be established
thru experimentation and observation.
 Each job was broken down into component parts, each part
timed and the parts rearranged into the most efficient
method of working.
 He stated that it was management’s duty to determine the
kind of work for which employee was suitable.
 He supported efficiency and improved production. Both
employers and employees stand to gain due to maximum
output.

Techniques of Scientific Management
1. Time & Motion Study
2. Fatigue Study
3. Mental Revolution
4. Differential Payment
5. Standardization
6. Reorganization Of Supervision

Limitations of Scientific Management
1. Workers did not enjoy freedom of choice.
2. Too much emphasis on division of work resulted
into breaking the work into smaller parts.
3. Payment based on performance brought about ill
feeling among some workers.
4. Bargaining about wage rates were not allowed as
every job was measured and rated scientifically.
5. Planning and control was given exclusively in the
hands of managers.

c) Administrative Approach to Management
Henri Fayol
 The most notable contributor was Henri Fayol (1841-
1925). His book General and Industrial management
presents a management philosophy that still guides
many modern managers.
 Because of his writings on elements and general
principles of management, Henri Fayol is usually
regarded as the Pioneer of administrative theory and
also Father of Modern Management.

14 Principles of Management
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of individual interest to general interest
7. Centralization
8. Remuneration
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure
13. Initiative
14. Esprit de Corps

2. Behavioural Approach to Management
 The Behavioral approach to management evolved mainly
because the practicing managers discovered that adopting
the ideas of the classical approach failed to achieve total
efficiency and workplace harmony. The behavioural
approach to management highlighted what the classical
advocates overlooked – the human aspect.
 The behavioral management theory is often called the
human relations movement because it addresses the
human dimension of work.
 Behavioral theorists believed that a better understanding
of human behavior at work, such as motivation, conflict,
expectations, and group dynamics, improved productivity.

Assumptions
1. An organisation is a socio technical system
2. It is important to recognize individual differences
in needs, attitudes, perceptions and values of
people who work in organisations.
3. Work and inter personal behavior of people in
organisation is influenced by various factors.
4. Human needs and organisational goods should be
joined together.
5. Conflicts in organisations are unavoidable.

Contributions of the Behavioural Approach
 Improved usage of teams to achieve organizational
goals.
 Emphasis on training and development of staff
 Use of innovative reward and incentive techniques.
 Furthermore the main focus on modern
management theory led to empowering employees
via shared information.

3. Systems Approach to Management
 The word system is derived from the Greek word
meaning ‘Bring together or to combine.’
 A system is a set of inter related component parts
which operate together to achieve certain goals ex car.
Remove the carburetor and the car stops working.
 It is extremely difficult for a manager to know which
aspect is most appropriate in a given situation.
 What is needed is one broad framework that can help
a manager diagnose a problem and decide which tool
or combination of tools will do justice to work.

Features
 The organization is system consisting of many variables.
 Each of these variables affects all others.
 There are many sub systems in a large system.
 Every system or sub system requires some input, has
some process & produces some output.
 Systems have the ability to produce positive & negative
consequences/ results.
 These consequences may be intended or unintended ones.
 There are both long term & short term effects of these
outcomes.

Key Concepts
1. Open or closed system
2. Sub Systems
3. Synergy
4. Defined boundaries
5. Feedback mechanism
6. Multidisciplinary
7. Consideration of whole system

4. Contingency Approach to Management
 Contingency theory of management is an extension
of system approach to management.
 There cannot be a suitable management solutions for
all situations. External and internal factors keep
changing.
 Since systems approach cannot appropriately
suggest relationship between organization and
environment, the gap so created has been fulfilled by
contingency approach.

 The contingency view seeks to understand the inter-
relationship within and among sub-systems as well as
between the organization and its environment and to
define patterns of relationship and configuration of
variables.
 It emphasizes the multivariate nature of organizations
and attempts to understand how organizations operate
under varying conditions and in specific circumstances.
 Contingency views are ultimately directed towards
suggesting organizational designs and managerial
actions most appropriate for specific situations

Features of the Contingency Theory
1. Management is externally situational: the conditions of the situation will
determine which techniques and control system should be designed to fit
the particular situation.
2. Management is entirely situational.
3. Management principles are not universal in nature as there is no best style
of management.
4. One needs to adapt himself to the circumstances.
5. It is a kind of “if” “then” approach. ‘If’ represents the independent variable
and ‘then’ represents the dependent management variable or the technique
to be adopted in that situation. ‘If’ workers have strong physiological needs,
‘then’ financial motivators should be adopted and ‘If’ they have strong
higher-order needs, ‘then’ non-financial motivators should be adopted.
6. It is a practically suited.
7. Management policies and procedures should respond to environment.
8. Managers should understand that there is no best way of managing. It
dispels the universal validity of principles.

Contemporary Issues and
Challenges

1. Globalization
2. Information Technology
3. Diversity in Workforce
4. Learning Organisation
5. Managing Innovation
6. Managing Change
7. Customer Focus
8. Knowledge Management
9. Ethics & Social Responsibility
10. Downsizing

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