Chapter 1

 Understanding
management concepts
 Characteristics of
management
 Functions of

 Management is the
attainment of organizational
goals in an effective and
efficient manner through
planning, organizing,
staffing, directing and
controlling organizational
resources.

 Louis E Boone & David L
Kurtz- The use of people and
other resources to accomplish
objectives.
 Mary Parker Follet- the act of
getting things done through
people.
 Frederick Taylor defines
Management as the art of

 Management is a distinct 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

 Management by
Communication
 Management by Systems
 Management by Results
 Management by
Participation
 Management by Motivation


 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

 The need for planning will
be recognized
 It provides for objectives and
accountability for
performance
 It encourages participative
management

 Management involves
five functions
 These functions are
organised to achieve
organisational goals.
 Management involves

 PLANNING
 ORGANIZING
 STAFFING
 DIRECTING
 CONTROLLING

• 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. 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?
• What are the methods and means to achieve
the objectives?

• 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

•Procedures-states a series of
related steps or tasks to be
performed in a sequential way
•Rules-prescribes a course of
action and explicitly states what
is to be done
•Programs-comprehensive plan
that includes future use of
different resources
•

 Take Time to Plan
 Planning can be Top to
Down or Bottom to Top
 Involve and Communicate
with all those Concerned
 Plans must be Flexible and
Dynamic

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.

 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
 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

 Determine what is to be done/ Division of
Work:
 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:

 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:

Definition 1
 Selecting and training individuals
for specific job functions, and
charging them with the
associated responsibilities.
Definition 2
 Number of employed personnel

 Provides positive and dynamic
leadership
 Provides maximum opportunities
 Provides proper motivation of
personnel
 Ability to command people

 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

 Establish Standards of
Performance
 Measure Actual Performance
 Compare Performance to
Standards:
 Take Corrective Action

 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.

A persons’ knowledge and ability to
make effective use of any
process or technique constitutes
his technical skills.
For eg: Engineer, accountant, data
entry operator, lawyer, doctor etc.

An individuals’ ability to cooperate with
other members of the organization
and work effectively in teams.
For eg: Interpersonal relationships,
solving people’s problem and
acceptance of other employees.

Ability of an individual to
analyze complex
situations and to
rationally process and
interpret available
information.
For eg: Idea generation
and analytical process of

 Interpersonal role
 Informational role
 Decisional role

 Figurehead- ethical guidelines and
the principles of behavior employees
are to follow in their dealings with
customers and suppliers
 Leader- give direct commands and
orders to subordinates and make
decisions
 Liaison-coordinate between different

 Monitor- evaluate the performance
of managers in different functions
 Disseminator-communicate to
employees the organization’s vision
and purpose
 Spokesperson- give a speech to
inform the local community about the

 Entrepreneur- commit organization
resources to develop innovative goods and
services
 Disturbance handler- to take corrective
action to deal with unexpected problems facing
the organization from the external as well as
internal environment
 Resource allocator- allocate existing
resources among different functions and
departments

 FIRST-LINE MANAGERS- often
called supervisors stand at the base of the
managerial hierarchy
 MIDDLE MANAGERS- heads of
various departments and organise human
and other resources to achieve
organizational goals
 TOP MANAGERS- set organizational
goals, strategies to implement them and

 Hard work
 Smart work
 Patience
 Out of box thinking
 Reading and acquiring
knowledge
 Ethical consciousness
 Collaborative relationship

Chapter 1

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