Management lecture 02 class

After completing this session. You should be able to:
a. Describe the meaning of Management
b. Know the Management Process
c. Identify the Mangers’ Roles
d. Describe the functions of Management
e. Identify the Principles of Management
f. Identify the Features of Management
Learning Objectives

After completing this session. You should be able to:
g. Describe the Importance of studying
Management
h. Identify the differences among
Organization, Administration and
Management
i. Differentiate Between Administration
and Management and
j. Describe the different Levels and Skills
of managers.
Learning Objectives (cont….)

Management
Management means many things to many people.
To a layman management means an impressive
person occupying an air-condition chamber with an
overstaked table and cushioned chair.
Some people suggest management as commanding
other.
To many others, management is nothing more than
clerical work and putting fancy signatures.

Meaning of Management
The word MANAGEMENT originated from the
Latin word “Managiare” which means, “to train
up the horses”.
But by the passage of time, it relates human
being in lieu of horses.
So the meaning of the word ‘MANAGEMENT’
is “to handle” the overall activities of the
organization.

Manage + Men + T = Management
Manage = to manage
Men = people
T = Tactfully
So, MANAGEMENT= Tactfully manage the
People
Now question comes Why people should be
managed?

People must be managed to achieve the
organizational objectives in a systematic
process.
To achieve the goals, all elements (6 ‘M’; Men,
Machine, Materials, Money, Market and
Method) of the organization must be utilized
efficiently and effectively by the authoprity in
Management.

Definition of Management
As there is no universally accepted definition for
management, it is difficult to define it.
A simple traditional definition, "art of getting
things done by others".
This definition brings in two elements
accomplishment of objectives, and
direction of group activities towards the goal.
The weaknesses of this definition is that firstly it
uses the word "art", whereas management is not
merely an art, but it is both art and science.
Secondly, the definition does not state the various
functions of a manager clearly.

Management is a distinct Process Consisting of
planning, organizing, actuating and controlling
performed to determine and accomplish stated
objectives with the use of human beings and
other resources.
To manage is to forecast and plan to organize
to command to coordinate and to control.
Management is the art of directing and
inspiring people.

Kreitner’s definition :
‘Management is a problem solving process of
effectively achieving organizational objectives
through the efficient use of scarce resources in a
changing environment.’
F.W. Taylor (father of scientific management)
‘Management is an art of knowing what to do,
when to do and see that it is done in the best and
cheapest way‘.

Henri Fayol (father of modern management)
"Management is the process by which co-operative
group directs actions towards common goals."
Joseph Massie
"Management is that process by which managers
create, direct, maintain and operate purposive
organisation through systematic, coordinated and
cooperative human efforts."
McFarland
"Management is the coordination of all resources
through the process of planning, organising,
directing and controlling in order to attain stated
goals."

P
Traditional view point Modern view point
Art of getting things
done by others
Prime mover of organization
making it functional and
productive.
Process of Planning,
organizing, staffing,
directing and controlling
activities of others
Process of creating conducting
and proper internal
environment in the
organization
Mobilizing and utilizing
physical and human
resources for achieving
organizational goals.
Process of coping with changing
external environment by
relating strength and weakness
of organization with it.

Nature of Management
An analysis of management process will enable us to
know the functions which managers perform.
Goal oriented Process: The process of management
comes with the purpose of achieving the organizational
goals correctly and meaningfully. Hence, it is a goal
oriented process.
All Pervasive: Management is used by all departments
of an organization and by all organizations, irrespective
of size, nature and location. It is also practiced at each
level of an organization.
Multidimensional: Management covers all aspects of an
organization ranging from work, people and operations.
Different mechanisms and systems are set up for each aspect.

Nature of Management
Continuous Process: A series of functions are
performed in organization by all its managers
simultaneously. It keeps running in a cycle that repeats
itself over and over again.
Group Activity: Management is never done in solidarity.
It is a group activity that involves participation of all the
people of an organization, including the managers and
the workers, for the desired achievement of objectives.
Intangible Force: Management in its essence cannot be
seen or touched, and hence is termed as intangible. But
its effect can be felt and measured based on the results
achieved by way of the organizational functions.

Objectives of Management
 The primary objective of management is to run the
enterprise smoothly.
 The profit earning objective of a business is also to
be kept in mind while undertaking various functions.
Following are the broad objectives of management:
1. Proper Utilization of Resources:
2. Improving Performance:
3. Mobilizing Best Talent
4. Planning for Future

1. Proper Utilization of Resources:
a. proprietors want more returns on their investments,
b. employees, customers and public expect a fair deal
from the management.
2. Improving Performance:
a. improving the performance of each and every factor of
production.
b. environment should be so congenial that workers are
able to give their maximum to the enterprise.
c. fixing of objectives of various factors of production
will help them in improving their performance.

3. Mobilizing Best Talent
a. management try to employ persons in various fields for better results
are possible.
b. specialists in various fields will be increasing the efficiency of various
factors of production.
c. better pay scales, proper amenities, future growth potentialities will
attract more people in joining a concern.
4. Planning for Future
a. important objective of management is to prepare plans.
b. No management should feel satisfied with today’s work if it has not
thought of tomorrow.
c. Future plans should take into consideration what is to be done next.
d. Future performance will depend upon present planning.

Management: Art or science?
Management involves characteristics of both art
and science. While certain aspects of management
make it a science, certain others which involve
application of skills make it an art.
Robert H. Hilkert: "In the area of management,
science and art are two sides of the same coin".
In the beginning of development of management
knowledge, it was considered as an art.

Management is an Art
Management can be an art in the sense that it has the following
characteristics:
Just like other arts it has to be practiced and performed. The
knowledge should be learned and practiced, just as medical or
legal practitioners practice their respective sciences.
The manager gains experience by continual application of
management knowledge and facing new experiences. This helps to
develop more skills and abilities for translating knowledge into
practice.
Application calls for innovativeness and creativity.
The fourth reason is that in many situations, theoretical
knowledge of management may not be adequate or relevant for
solving the problem. It may be because of complexity or unique
nature of the problem.
The art is in knowing how to accomplish the desired results.
This implies that there exists a body of knowledge which
management uses to accomplish the desired results in organization

Management is a Science
Management as a science has the following characteristics:
Its principles, generalizations and concepts are systematic. In
this case the manager can manage the situation or organization
in a systematic and scientific manner.
Its principles, generalizations and concepts are formulated on
the basis of observation, research, analysis and
experimentation, as is the case with the principles of other
sciences.
Like other sciences, management principles are also based on
relationship of cause and effect. It states that same cause
under similar circumstance will produce same effect. Suppose if
workers are paid more (cause), the produce more (effect).
Management principles are codified and systematic, and can
be transferred from one to another and can be taught.
Management principles are universally applicable to all
types of organizations.

Management and Administration
There has been a controversy regarding the
interpretation of these two terms. There are
different views in this regard:
According to first view (William Newman, Peter
Drucker, etc), there is no basic difference between
the two terms, and they are interchangeable. If
there is any difference, it may perhaps be in their
usage in practice. The term administration is used
for non-business activities, and management is
used for business activities.

According to second view (Kimball, Brech, other
British writers, etc), management is a more
comprehensive term which includes administration.
Management involves "thinking" and administration
involves "doing". Management is responsible for
planning and organizing, and administration is
responsible for directing and controlling. Whereas
management refers to a high level of managerial
activities such as goal-setting, policy formulation and
strategy making, administration refers to an operative
part concerned with lower level management
activities such as execution of policies.

According to third view (Sheldon, Speriegal, Milward,
etc), administration is a more comprehensive term which
includes management. Administration involves
"thinking" and management involves "doing".
Administration is a top level function which concentrates
on determination of plans, policies and objectives,
whereas management is a lower level function which
deals with the execution and direction of policies and
operations. It doesn't mean that we need two separate sets
of personnel, but each manager performs both the
managerial as well as administrative functions. At top
level more time is spent in administrative activity and as
one moves down, more time is spent in management
activity.

Difference between Administration and Management
1. Management is the act or function of putting into
practice the policies and plans decided upon by the
administration.
2. Administration is a determinative function, while
management is an executive function.
3. Administration makes the important decisions of an
enterprise in its entirety, whereas management
makes the decisions within the confines of the
framework, which is set up by the administration.

Difference between Administration and Management
4. Administrators are mainly found in large and multi-
layered enterprises such as governments, military,
religious and educational organizations or
corporations. Management, on the other hand, is
used by mid-size to small enterprises and may take
administrative functions or even be labeled as
administration but granted mostly a management
function.
For example the administration of a condominium is
mostly a managerial body that is needs to convey an
assembly to reach most decisions.

Management Process
A Process is a systematic way of doing things.

Management Process:
Organization
s Goal
determine
In Put 6m
Man machine
material
method
money
market
Management
Function
Planning
organizing staffing
leading motivation
coordination
controlling
Human
efforts
Physical,
mental
Out put
Achieve
organizatio
ns goals

Planning
Setting the organizations
goals & deciding how
best to achieve them
Organizing
Determining how best to
assemble resources &
group activities
Controlling
Facilitation goal
attainment through
monitoring & correcting
on going activities
Leading
Motivating & influencing
the human resources to
work for achieving the
organizational goals
Management Process:

Who is a manager?
* A manager is someone whose Primary
responsibility is to carry out the
management Process.
* “Manager is a person who contorts a
business or other concern”.
* Manager is one who organizes other
people’s doings.
Management process

Function of Management
Basic Functions of mgt. Secondary Function of mgt.
Communication
Budgeting
Reporting
Public relation
Innovation
Planning
Organizing
Staffing
Directing
Motivation
Coordinating
Controlling

Planning:
Planning means deciding in advance what shall be done,
where, how and who shall do it.
Planning is the list of course of actions which will be
performed later on .
Organizing:
The purpose of an organization structure is to help in
creating an environment for human performance.
Staffing:
Staffing is the process of recruiting, selecting, training and
developing organizational personnel.

StaffingProcess
Job Analysis
Manpower Planning
Acquisition
Performance Appraisal
Manpower Development

Directing:
Directing means seeing that subordinates do their work
and do it, as well as possible. its includes issuing orders,
providing instructions, enforcing discipline and developing
esprit de-corps.
Motivation:
Motivation is a managerial function to inspire, encourage
and impel people to take required action.
Coordinating:
Coordination is the orderly arrangement of group effort to
Provide unity of action in pursuit of a common purpose.

Controlling:
Controlling is measuring and correcting individual and
organizational performance to ensure that events conform to plan.
Determining area of control
Establishing Standards
Measuring performance against standard
ControllingProcess
Comparing performance against standard
Recognizing positive performance
Detection and Evaluation of deviation
Taking corrective action as necessary

Anything minus management amounts to nothing, The are some
points of importance of management in the industrial
organization of Bangladesh. These points are given be low:
Development of Business components
Proper utilization of production factors.
Economic and Human development
Attainment of objectives.
Development of Relationship
Providing leadership.
Importance of Management

Large scale production
Increase in efficiency
Reduction of wastage
Establishing discipline
Developing environment
Social development
Development of standard of living.
Importance of Management (cont…)

The job of a manager is practically the same. But there is
a difference in a manager’s role depending on the skills,
ability, strength, experience, intellectual ability etc.
So, in the organizational hierarchy, we see three levels of
management. Each level has a different set of jobs and
responsibilities but all are toward fulfilling a goal.
1. Top Level Managers
2. Middle Level Managers
3. Lower Level / First Line Managers.
Level of Management

Jobs of 3 Levels of Management
Top-level
managers
setting goals, creating plans
and supervise the entire
organization.
Middle-level
managers
diverting organizational
activities to attain the goals set
by top management.
The lower-level
managers
running every work unit in the
organization and carrying out
the essential tasks. They are
the foot soldiers of the
company.

Top Level Managers (TLMs)
Leaders of the organization are setting in top-level management.
They are at the top one or two levels in an organization.
They hold titles: Chief Executive Officer (CEO), Chief Financial
Officer (CFO), Chief Operational Officer (COO), Chief
Information Officer (CIO), Chairperson of the Board, President,
Vice president, Corporate head.
TLMs make decisions affecting the entirety of the firm.
TLMs do not direct the day-to-day activities of the firm;
rather, they set goals for the organization and direct the
company to achieve them.
TLMs are ultimately responsible for the performance of the
organization, and often, these managers have very visible jobs.
TLMs require having very good conceptual and decision-making
skills.

Middle Level Managers (MLMs)
Middle-level managers, or middle managers, are those in the levels
below top managers.
Middle managers’ job titles include General Manager, Plant
manager, Regional manager, and Divisional manager.
MLMs are responsible for carrying out the goals set by top
management. They do so by setting goals for their departments
and other business units.
MLMs’ controls, motivate and assist first-line managers to
achieve business objectives.
MLMs also communicate upward, by offering suggestions
and feedback to top managers. Because middle managers are
more involved in the day-to-day workings of a company, they
may provide valuable information to top managers to help
improve the organization’s bottom line.
MLMs’ job’s perfection depends very much on this
communication and interpersonal skills.

Lower Level Managers (LLMs)
Lower-level managers are also called first-line managers, shop-
level managers, or supervisors.
These managers have job titles such as office manager, Shift Supervisor,
Department manager, Foreperson, Crew leader, Store manager.
First-line managers are responsible for the daily management
of line workers—the employees who actually produce the
product or offer the service.
There are first-line managers in every work unit in the
organization. Although first-level managers typically do not set
goals for the organization, they have a very strong influence on
the company. These are the managers that most employees
interact with on a daily basis, and if the managers perform
poorly, employees may also perform poorly, may lack
motivation, or may leave the company.
A First-level manager requires having technical skill knowledge
for the particular work that he is supervising.

Managers at different levels of the organization engage in different amounts of time
on the four managerial functions of planning, organizing, leading, and controlling
to be successful for achieving the goals of the enterprise.
According to MINTZBERG,
1. Decisional Roles: require managers to plan strategy
and utilize resources.
• Entrepreneur: assign resources to develop innovative
goods and services, or to expand a business
• Disturbance handler: correct unanticipated problems
facing the organization from the internal or external envts.
• Resource allocator: resource allocator, involves
determining which work units will get which resources.
• Negotiator: works with suppliers, distributors, or labor
unions, to reach agreements regarding products and services
Roles of Managers in the Organization

2. Interpersonal Roles : require managers to direct and
supervise employees and the organization.
a) Figurehead : (MLMs) communicate future
organizational goals or ethical guidelines to
employees at company meetings
b) Leader: (all Managers) gives commands
and directions to subordinates, makes decisions,
and mobilizes employee support
c) Liaison: (MLMs) coordinate the work of
others in different work units, establish alliances
between others, and work to share resources.

3. Informational Roles: Informational roles are those in which
managers obtain and transmit information. These roles have
changed dramatically as technology has improved
• Monitor: evaluates the performance of others and
takes corrective action to improve that performance
• Disseminator : requires that managers inform
employees of changes that affect them and the
organization. They also communicate the company's
vision and purpose.
• Spokesperson: communicates with the external
environment, from advertising the company's goods
and services, to informing the community about the
direction of the organization.

Top level Planning
Middle level Organizing Leadership Controlling
Lower level
Levels of Basic Function Manager

The roles that a manager plays in the organization require
having some skills.
These are the skills or qualities that an organization looks
for in a person to assign him as a manager.
Managerial Skills are
1. Technical Skill
2. Conceptual Skill
3. Interpersonal and Communication Skill
4. Decision-Making Skill
5. Diagnostic and Analytical Skill
Managerial Skills

Technical Skill: It is knowledge of and proficiency in
activities involving methods, processes, and procedures.
Thus it involves working with tools and specific techniques.
Technical skill is the ability to use the specialized knowledge,
procedures, and techniques of a field of activities.
Most managers, especially at the lower and middle levels, need
technical skills for effective task performance.
• Project engineers,
• Physicians
• Accountants.
Managerial Skills

Conceptual Skill: Conceptual skill is the ability to coordinate and
integrates all of an organization’s interests and activities.
A manager’s ability to think in the abstract and to view the
organization holistically is important.
Suggesting
a new product line for a company,
introducing computer technology to the organization’s
operations, or entering the international market;
for deciding this magnitude, a manager requires
Conceptual skill is his personality.
Managerial Skills

Interpersonal and Communication Skill:
Communication skill for a manager is a must. The manager must
be able to convey ideas and information to others and receive
information and ideas from others effectively.
A manager’s job is to control the subordinates and gives high-
level managers or administrators information about what’s going
on.
Communication skill enables a manager to perform them properly.
Most of his time, a manager job is to interact with people inside
and outside of the organization.
Managerial Skills

Decision-Making Skill:
A manager’s job is to make decisions that will lead the
organization to the attainment of is goals.
Decision making skill is the skill that makes a manager able to
recognize opportunities and threat and then select an appropriate
course of action to tackle them is an efficient manner so that the
organization can benefit for them.
Managers are not always going to make the best decision.
But a good manager most often makes a good decision and learns
from the bad ones. Decision making is a skill that improves as
managers gain more experience.
Training or educating is also a good method to develop the
Decision making skill of a manager.
Managerial Skills

Diagnostic and Analytical Skill:
Diagnostic skill refers to the ability to visualize the best response
to a situation.
Analytical skill means, the ability to identify the key variables in a
situation.
It helps him to identify possible approaches to a situation. After
that is also helps a manager to visualize the result or outcomes this
approaches.
Managerial Skills

Management lecture 02 class

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