introduction to management.pdf
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Management involves planning, organizing, leading, and controlling organizational resources to achieve goals. Managers fulfill various roles such as leader, problem solver, and decision maker. They work across different levels within an organization's hierarchy. Effective management is important for organizational success as it leads to optimal resource utilization, cost minimization, growth and survival. Key functions of managers include planning, organizing, staffing, directing and controlling. Skills such as technical, human and conceptual are required to help employees become more productive. Management is essential for all types of organizations to accomplish their objectives.
introduction to management.pdf
- 2. What is management? • In today’s tough and uncertain economy, a company needs strong managers to lead its staff toward accomplishing business goals. • But managers are more than just leaders — they’re problem solvers, cheerleaders, and planners as well. • Managers fulfill many roles and have many different responsibilities at each level of management within an organization. • Through this presentation we will discover those roles and functions, but you also find out the truth about several common misconceptions about management.
- 3. Definition • Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. —Harold Koontz and Cyrill O’Donnell
- 4. • 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 organize, to command, to coordinate and to control. —Henry Fayol
- 5. Management • Management refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling. • The process of reaching organizational goals by working with and through people and other organizational resources.
- 6. Management Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals. Goals Purpose that an organization strives to achieve; organizations often have more than one goals, goals are fundamental elements of organization. The Role of Management To guide the organizations towards goal accomplishment
- 7. Resources {Assets} 7 categories of resources: People Money Time Work Procedures Energy Materials Equipment
- 8. Goals • Profit Levels or Maximum cost levels • Maintenance or growth of financial strength • Quality standards • Guest employee & management concerns • Professional obligations • Societal concerns (setting up a plant)
- 9. CONCEPTS OF MANAGEMENT The term management has been interpreted in several ways; • Management as an Activity • Management as a Process • Management as an Economic Resource • Management as a Team • Management as an Academic Discipline • Management as a Group
- 10. Management as an Activity • Management is defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group. • The activities of management are: o Interpersonal activities o Decisional activities o Informative activities
- 11. Management as a Process • Management consists of getting the objectives of an organisation and taking steps to achieve objectives. The management process includes planning, organising, staffing, directing and controlling functions. • Management as a process has the following implications: (i) Social Process: Management involves interactions among people. (ii) Integrated Process: Management brings human, physical and financial resources together to put into effort so as to maintain harmony among them. (iii) Continuous Process: Management involves continuous identifying and solving of problems.
- 12. Management Process and Goal Attainment
- 14. Management as an Economic Resource
- 15. Management as a Team/Group • As a group of persons, management consists of all those who have the responsibility of guiding and coordinating the efforts of other persons in order to achieve their goals Management as an Academic Discipline • Management has emerged as a specialised branch of knowledge. It comprises principles and practices for effective management of organisations. Management offers a very rewarding and challenging career.
- 16. Nature and Characteristics of Management • Management is goal-oriented: It is a group goals or organisational goals. The basic goal of management is to ensure efficiency and economy in the utilisation of human, physical and financial resources. • Management is universal: All types of organisations,e.g., family, club, university, government, army, cricket team or business. • Management is an Integrative Force: It integrates and coordinates human and other resources to achieve the goals.
- 17. • Management is a Social Process: Management is done by people, through people and for people. It is a social process because it is concerned with interpersonal relations. • Management is multidisciplinary: Management depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology,etc. The vast body of knowledge in management draws heavily upon other fields of study. • Management is a continuous Process: Management is a dynamic and an on-going process. The cycle of management continues to operate so long as the organization exists.
- 18. • Management is dynamic: Management tries to visualise problems before they turn into emergencies. According to Drucker, Managers do not wait for the future,they make their future. • Management is Intangible: Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible. • Management is an Art as well as Science: It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge.
- 19. Objectives Of Management Organizational objectives: • Reasonable profits so as to give a fair return on the capital invested in business • Survival and solvency of the business, i.e., continuity. • Growth and expansion of the enterprise • Improving the goodwill or reputation of the enterprise.
- 20. Objectives Contd.. Personal objectives: Employees • Fair remuneration for work performed • Reasonable working conditions • Opportunities for training and development • Participation in management and prosperity of the enterprise • Reasonable security of service.
- 21. Objectives Contd.. • Social objectives: Society • Quality of goods and services at fair price to consumers. • Honest and prompt payment of taxes to the Government. • Conservation of environment and natural resources. • Fair dealings with suppliers, dealers and competitors. • Preservation of ethical values of the society.
- 22. ROLE AND IMPORTANCE OF MANAGEMENT • According to Peter Drucker,“ management is a dynamic life giving element in an organisation, without it the resources of production remain mere resources and never become production”.
- 23. ROLE AND IMPORTANCE CONTD… • Achievement of goals: Management is goal oriented. In order to achieve the goals, management reconciles the objectives of the group with those of its members so that each one of them is motivated to make his best contribution • Optimum utilisation of resources: Managers forecast the need for materials, machinery, money and manpower. Ensures adequate resources plus no idle resources. They create and maintain an environment conducive to highest productivity.
- 24. • Minimisation of cost: In the modern era of cut-throat competition no business can succeed unless it is able to supply the required goods and services at the lowest possible cost per unit. Managers ensures no wastage. Reduces costs, improving efficiency, managers enable an enterprise to be competent to face competitors and earn profits. • Survival and growth: An enterprise has to adapt and update itself to the changing demands of the market and society. Management takes steps in advance to meet the challenges of changing environment. SWOT analysis is conducted. Managers enable the enterprise to minimise the risks and maximise the benefits of opportunities.
- 25. • Generation of employment: By setting up and expanding business enterprises, managers create jobs for the people. Managers also create such an environment that people working in enterprise can get job satisfaction and happiness which satisfies the economic and social needs of the employees. • Development of the nation: Efficient management and quality resources are the most crucial factors in economic and social development. By producing wealth, management increases the national income and the living standards of people. That is why management is regarded as a key to the economic growth of a country.
- 26. MANAGEMENT AND ADMINISTRATION • Oliver Sheldon in his “The Philosophy of Management” defines ‘Administration as a function is concerned with the determination of the corporate policy, the coordination of finance, production and distribution,the settlement of the structure of the organisation, under the ultimate control of the executive.’ Management is concerned with the execution of the policy, within the limits set up by administration and the employment of the organisation for the particular objects before it.
- 29. SCOPE OF MANAGEMENT • Production Management: Planning, organizing, directing and controlling the production function so as to produce the right goods, in right quantity, at the right time and at the right cost. It includes the following activities: (a) designing the product (b) location and layout of plant and building (c) planning and control of factory operations (d) operation of purchase and storage of materials (e) repairs and maintenance (f) inventory cost and quality control (g) research and development etc.
- 31. • Marketing Management: Refers to the identification of consumers needs and supplying them the goods and services which can satisfy these wants. It involves the following activities: (a) marketing research to determine the needs and expectation of consumers (b) planning and developing suitable products (c) setting appropriate prices (d) selecting the right channel of distribution, and (e) promotional activities like advertising and salesmanship to communicate with the customers
- 33. • Financial Management: Seeks to ensure the right amount and type of funds to business at the right time and at reasonable cost. It comprises the following activities: (a) estimating the volume of funds required for both long-term and short-term needs of business (b) selecting the appropriate source of funds (c) raising the required funds at the right time (d) ensuring proper utilisation and allocation of raised funds so as to maintain safety and liquidity of funds and the creditworthiness and profitability of business, and (e) administration of earnings Thus, financial management involves the planning, organising and controlling of the financial resources.
- 35. • Personnel Management: Involves planning, organising and controlling the procurement, development, compensation, maintenance and integration of human resources of an organisation. It consists of the following activities: • (a) manpower planning • (b) recruitments, • (c) selection, • (d) training • (e) appraisal, • (f) promotions and transfers, • (g) compensation, • (h) employee welfare services, and • (i) personnel records and research, etc.
- 36. Management and Organizations Organizations – • Groups of individuals constantly join forces to accomplish common goals. • Sometimes, the goals of these organizations are for profit, such as franchise restaurant chains or clothing retailers. • Other times, the goals are more altruistic, such as nonprofit churches or public schools. • But no matter what their aims, all these organizations share two things in common: • They’re made up of people, and • certain individuals are in charge of these people.
- 37. Requirement of managers • Managers appear in every organization — at least in organizations that want to succeed. • These individuals have the sometimes unenviable task of making decisions, solving difficult problems, setting goals, planning strategies, and rallying individuals. • Managers administer and coordinate resources effectively and efficiently to achieve the goals of an organization. • In essence, managers get the job done through other people.
- 38. The Intricacies of management • No matter what type of organization they work in, managers are generally • responsible for a group of individuals’ performance. • As leaders, managers must encourage this group to reach common business goals, such as bringing a new product to market in a timely fashion. • To accomplish these goals, managers not only use their human resources, but they also take advantage of various material resources as well, such as technology. • Think of a team, for example. A manager may be in charge of a certain department whose task it is to develop a new product. The manager needs to coordinate the efforts of his department’s team members, as well as give them the material tools they need to accomplish the job well. If the team fails, ultimately it is the manager who shoulders the responsibility.
- 39. Greater the authority and higher the responsibility. Levels of management differ from one organization to another, depending on the size of business activity, philosophy of management, span of control and other related factors. Management Level and Skills
- 40. Levels of management • Two leaders may serve as managers within the same company but have very different titles and purposes. • Typical management levels fall into the following categories: • Managers at this level ensure that major performance objectives are established and accomplished. • Middle managers report to top managers and are in charge of relatively large departments or divisions consisting of several smaller units. • The initial management job that most people attain is typically a first-line management position, such as a team leader or supervisor Top Level Middle Level Low Level
- 41. Functions of Managers Planning Organizing Staffing Leading Controlling • This step involves mapping out exactly how to achieve a particular goal. • After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of organizing. • After a manager discerns his area’s needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. • Leading involves motivating, communicating, guiding, and encouraging. • He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area’s plans remain on track.
- 42. Roles performed by managers • A manager is not only a team leader, but he is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one. • These roles fall into three categories: • Interpersonal: This role involves human interaction. • Informational: This role involves the sharing and analyzing of information. • Decisional: This role involves decision making.
- 43. CATEGORY ROLE ACTIVITY Informational Monitor Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders. Disseminator Disseminator Forward information to organization members via memos, reports, and phone calls. Spokesperson Transmit information to outsiders via reports, memos, and speeches. Interpersonal Figurehead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents. Leader Direct and motivate subordinates; counsel and communicate with subordinates Liaison Maintain information links both inside and outside organization via mail, phone calls, and meetings. Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate idea responsibility to others. Disturbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments. Resource Allocator Decide who gets resources; prepare budgets; set schedules and determine priorities. Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets. Mintzberg’s set of ten roles
- 44. Skills needed by managers • Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories: Technical Human Conceptual This skill requires the ability to use a special proficiency or expertise to perform particular tasks. This skill demonstrates the ability to work well in cooperation with others.. This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others.
- 45. Books for reference • Principles of Management – Thomas N Duening and John.M.Wancevich. • Management - V.S.P Rao and V.Hari Krishna.