2. Man is a social being as he likes to live
together with other people. It is by working
and living together in organised groups and
institutions that people satisfy their economic
and social needs.
As a result there are several
types of groups like family, school,
government, army, a business firm, a cricket
team. Such formal groups can achieve their
goals effectively only when the efforts of the
people working in these groups are properly
coordinated and controlled.
3. The task of getting results through others
by coordinating their efforts is known as
management. Just as the mind coordinates
and regulates all the activities of a person,
management coordinates and regulates the
activities of various members of an
organisation.
4. Meaning of management
Management is art of getting things done through or by the
group of peoples with the effective utilization of resources i.e.
men, money, methods, materials & machines (5M’s) now
additional it includes 3 more i.e. motivation, market &
management.
Resources of management or (5R’s) of management:
(5M’s) i.e. men, money, methods, materials & machines are
called resources of management or (5R’s) of management.
5. “Management is the process involving
planning, organizing, staffing, directing and
controlling human efforts to achieve stated
objectives in an organization.”
6. Management is the process of achieving goals and objectives
effectively and efficiently through and with the people.
Management Definition
"Management is a process of designing and maintaining an
environment in which individuals work together in groups to
effectively and efficiently accomplish selected aims".
- Koontz & Weihrich
1
2
7. DEFINITION:
Management is a process of working with &
through others to achieve organization &
objective in a changing environment.
“Management utilizes the limited resources
effectively & efficiently”
- KOONTZ & O’DONEL
9. Efficiency - getting the most output from the least
amount of inputs
“doing things right”
concerned with means
Achieving the objectives in time
Effectiveness - completing activities so that
organizational goals are attained
“doing the right things”
concerned with ends
Achieving the objectives on time
14. Top Level Management-
The top level management is
generally occupied by the
ownership group. It is
the highest level in the
managerial hierarchy and
the ultimate source of
authority in the organisation.
15. TOP Levels of management
- first top level of the hierarchy
- Have the most authority
- Responsible for entire organization
- functions
To formulate budgets
To formulate goals & polices of the company
To appoint top executives
To provide overall direction & leadership of the
company
To decide the distribution of profits
16. Middle Level Management-In order
to fill up the gap which exists between
functional and operative level, some
managerial positions are created at the
middle level of management. Middle level
management consists of
departmental managers,
deputy managers,foreman
and administrative
officers etc.
17. Middle Levels of management
- In between the top & supervisory level
- Manage the work of first line supervisors
- Main functions
To monitor & control the operating performance of
the sub- units & individual managers who report to
them
To implement overall organizational plans so that
organizational goals are achieved
To train, motivate & develop supervisory level
To implement changes generated by top
management
18. Lower Level or Supervisory Level
Management- It consists of factory
supervisors, superintendents, foremen,
sales supervisors, accounts officers etc.
They directly guide and control the
performance of rank and file workers.
They issue orders and instructions and
guide day to-day activities.
19. Low Levels of management
- Have the least authority
- Responsible for the work of operating employees
- Main functions
To train & develop the efficiency of the workers
To assign jobs to the workers
To give orders & instructions
22. Planning:
Planning is the process of “thinking before
doing”, it means deciding in advance, it bridges
the gap between where we are to? And where we
want to go? It arises the questions like
Where we want to go?
Where we are?
Where to do it?
Who is to do it?
How to do it?
How the results to be evaluated?
It is the basic functions of management, proper
planning ensures effective utilization of
resources at all levels of management.
23. ORGANIZING
Organizing is the process by which managers
create the structure of working relationships
between organizational members that allows
them to work together and to achieve
organizational goals. Managers’ group people
into departments according to the tasks
performed and delegate authority and
responsibility to members.
24. Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation
of responsibility.
Coordinating authority and
responsibility relationships.
25. STAFFING
Staffing is concerned with managing human
recourse. It deals with selection, training,
developing, utilizing & maintaining an effective
work force of an employee. It is concerned with
development of an employee rather than
directing them.
26. Staffing involves:
Manpower Planning (estimating man
power in terms of searching, choose the
person and giving the right place).
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.
27. DIRECTING
Directing means giving instructions, guiding, and
counseling, motivating and leading the staff in an
organization in doing work to achieve
Organizational goals.
Direction has following elements:
Supervision
Motivation
Leadership
Communication
28. Motivation:
Motivation is the state if mind in which the
persons is to act or behave in certain ways.
Motivation may be defined as the inner states
mind that activates and directs an individual’s
behavior.
It is always internal to us and externalized by a
behavior.
Definition of motivation:
“Motivation is the willingness to exact high levels
of efforts towards organization goals conditions
by the effort ability to satisfy some individual
needs.”
29. CONTROLLING
Controlling is the process of checking,
regulating, verifying or making adjustments to
keep things on track.
Controlling is the processes by which managers
take evaluate how well the organization is
achieving its goals & takes corrective action to
improve performance. Controlling always
maximize the use of scarce resources to achieve
the purposeful behaviour of employees in an
organization.
30. Therefore controlling has following
steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the
standards and finding out deviation if any.
Corrective action.
31. Co-ordination
Co-ordination is the synchronization(or unification or
integration) of the actions of all individuals, working
in the enterprise in different capacities; so as to lead
to the most successful attainment of the common
objectives.
Co-ordination is included in every managerial
function; Eg
(i) Planning and co-ordination,
(ii).Organising and co-ordination,
(iii) Staffing and co-ordination,
(iv) Directing and co-ordination,
(v) Motivation and co- ordination and
(iv) Controlling and co-ordination.
33. Innovation
Innovation refers to the preparation of personnel
and organisation to face the changes made in the
business world. Continuous changes are being
made in the business. Consumers are satisfied
through innovation.
Innovation includes developing new material, new
products, new techniques in production, new
package, new design of a product and cost
Reduction.
34. 2. Representation
A manager has to act as representative of a
company. Manager has dealings with customers,
suppliers, government officials, banks, financial
institutions, trade unions and the like. It is the
duty of every manager to have good relation
with others.
35. Decision-making
Every employee of an organisation has to take a
number of decisions every day.
Decision- making helps in the smooth
functioning of an organisation.
36. Communication
Communication may be defined as the sharing or exchange of
messages, facts, opinions, ideas or attitudes and emotions
between a sender(manager) and receiver(employee)or between
two or more people.
Communication is the transmission of human thoughts,
views or opinions from one person to another person.
Workers are informed about what should be done, where it
is to be done, how it is do be done and when it is to be done.
Communication helps the regulation of job and co-ordinates
the activities.
37. Management is Multidisciplinary.
Management is Universal activity
Management is continuous process.
Management is a group activity
Management is a system of authority
Management implies good leadership
Management is Intangible.
Management implies skill & experience
in getting things done through people
Management is Science as well as art
38. Attainment of group goals
Effective functioning of business
Resource development
Integrates individual efforts
Motivation
Communication
Co ordination
39. A person who plans, organizes,
directs and controls the allocation
of human, material, financial, and
information resources in pursuit
of the organization’s
goals.
40. Types of Managers
First line managers - Responsible
for day-to-day operations.
Supervise people performing
activities required to make the
good or service
Middle managers - Supervise first-
line managers. Are responsible to
find the best way to use departmental
resources to achieve goals
41. Types of Managers
Top managers - Responsible for
the performance of all departments
and have cross-departmental
responsibility. Establish
organizational goals and monitor
middle managers
42. Managerial Roles
Managerial role - The set of specific tasks that a
person is expected to perform because of the
position he or she holds in the organization
Mintzberg identified three categories of roles –
Decisional, Informational, Interpersonal
44. Interpersonal Roles
Roles that managers assume to provide direction and
supervision, both to employees and to the
organization as a whole.
Figurehead— perform ceremonial & symbolic duties,
such as greeting visitors & signing legal documents
Leader—training, counseling, and mentoring high
employee performance.
Liaison—linking and coordinating the activities of
people and groups both inside and outside the
organization.
45. Informational Roles
Roles associated with the tasks needed to obtain
and transmit information in the process of
managing the organization.
Monitor—analyzing information from both the
internal and external environment.
Disseminator—transmitting information to
influence the attitudes and behavior of
employees.
Spokesperson—using information to positively
influence the way people in and out of the
organization respond to it.
46. Decisional Roles
Roles associated with the methods managers use in
planning strategy and utilizing resources.
Entrepreneur—deciding which new projects or
programs to initiate and to invest resources in.
Disturbance handler—managing an unexpected event
or crisis.
Resource allocator—assigning resources between
functions and divisions, setting the budgets of lower
managers.
Negotiator—reaching agreements between other
managers, unions, customers, or shareholders.
50. Technical skills
Ability to use principles, tools,
techniques, procedures etc…
Top managers require least
technical skills
Supervisory managers require a
high degree of technical skills
52. Conceptual skills
Ability to understand relationship
between the organisation and its external
environment
“Ability to see the big picture”
Must crucial for managers at top level
Includes recognizing how the various units
of the organisation depend on one another
and how changes in one part affect all the
others
53. Design skills
Ability to design a workable as well as
practical solution to the problem in
the light of realities they face
Getting to the root of the problems
and recommending solutions
55. Administrative skills
Ability of getting the things done through
others by implementing the plans
Ability to communicate, cooperate and
coordinate with others to get the things
done .
57. Production Management:
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)Inventory cost and Quality Control
f) Research and Development etc.
59. Marketing Management:
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
61. Financial Management:
a)Selecting the appropriate source of
funds
b) Raising the required funds at the
right time
c)Administration of earnings
d)Estimating the volume
of fund.
85. 1.. F.W. TAYLOR’S SCIENTIFIC
MANAGEMENT
He is called as the ‘Father of Scientific Management’ (1878).
He started his experiment with the concept of scientific management at Midvale
Steel Co.
He tried to analyze the causes of low efficiency in industry & he found much of
waste & inefficiency is due to the lack of order & system in the methods of
management.
He saw that the employees were consciously working at a place slower than their
capabilities.
He found three reasons behind it:
a)Fear of losing their jobs if they increase their output
b)Faulty wage systems
c)Outdated methods of working.
Two major managerial practices:
Piece-rate incentive system
Time-and-motion study
86. Principles of scientific management
Replacement of Rule of Thumb
Co-operation
Development of Workers
Maximum Output
Distribution of Work
Elements of scientific management
Separation of planning & doing
Work Study / scientific task & rate- setting
Method study ( best tools , plant)
Motion study ( movement of an operator)
Time study ( proper time for performing the
operation)
Fatigue study ( physical & mental , frequency of rest
required
to do the job)
Rate – setting ( piece wage system, standard wage
system)
Standardisation of Tools and Equipment
Specialisation : Route clerk, Instruction card clerk, time &
cost clerk, shop disciplinarian, gang boss, repair boss
Scientific Selection, Placement and Training
Financial incentives
Mental Revolution ( conflict replaced by co operation)
87. 2. HENRY FAYOL’S ADMINISTRATIVE
MANAGEMENT (1841-1925)
• He started his career as a junior engineer in a coal mine company in
France and became its General Manager in 1980.
• His contribution may be classified under three categories: classification of
business activities, functions of management, principles of management.
• It focused on principles that could be used by managers to coordinate the
internal activities of organizations.
102. ESPRIT DE CORPS: ‘ UNITY IS STRENGTH’.
PEOPLE SHOULD WORK AS A TEAM TO ENJOY
THE BENEFITS OF SYNERGY.
• Esprit de corps: ‘ Unity is strength’. People should work as a team to
enjoy the benefits of synergy.
127. 1. NATURE OF MANAGEMENT:
• Drucker is against bureaucratic management
and has emphasised management with creative
and innovative characteristics. The basic
objective of management is to read towards
innovation. The concept of innovation is quite
broad. It may include development of new ideas,
combining of old and new ideas, adaptation of
ideas from other fields or even to act as a
catalyst and encouraging others to carry out
innovation.
128. • He has treated management as a discipline as
well as profession. As a discipline,
management has its own tools, skills,
techniques and approaches. However,
management is more a practice rather than a
science. Thus, Drucker may be placed in
’empirical school of management’.
129. • While taking management as a profession. Drucker does
not advocate to treat management as a strict profession
but only a liberal profession which places more emphasis
that managers should not only have skills and techniques
but should have right perspective putting the things into
practice. They should be good practitioners so that they
can understand the social and cultural requirements of
various organisations and countries.
134. 2. MANAGEMENT FUNCTIONS:
• According to Drucker, management is the organ of its
institution. It has no functions in itself, and no existence in
itself. He sees management through its tasks. Accordingly,
there are three basic functions of a manager which he must
perform to enable the institution to make its contribution for:
• (i) the specific purpose and mission of the institution
whether business, hospital or university;
• (ii) making work productive and the worker achieving; and
• (iii) managing social impacts and social responsibilities.
135. • All these three functions are performed simultaneously
within the same managerial action. A manager has to act as
administrator where he has to improve upon what already
exists and s already known. He has to act as an entrepreneur
in redirecting the resources from seas of tow or diminishing
results to areas of high or increasing results.
• Thus, a manager has to perform several functions: setting of
objectives, making, organising and motivating. Drucker has
attached great importance to the objective setting function
and has specified eight areas where clear objective setting is
required. These are: market standing, innovation,
productivity, physical and financial resources, profitability,
managerial performance and development, worker
performance and attitude, and public responsibility.
138. 3. ORGANISATION STRUCTURE:
• Drucker has decried bureaucratic structure because of its
too many dysfunctional effects. Therefore, it should be
replaced. He has emphasised three basic characteristics
of an effective organisation structure.
• These are:
• (i) Enterprise should be organised for performance;
• (ii) it should contain the least possible number of
managerial levels;
• (iii) it must make possible the training and testing of
tomorrow’s top managers—responsibility to a manager
while still he is young
139. • He has identified three basic aspects in organising activity
analysis, decision analysis, and relation analysis. An activity
analysis shows what work has to be performed, what kind of
work should be put together, and what emphasis is to be
given to each activity in the organisation structure.
• Decision analysis takes into account the four aspects of a
decision: the degree of futurity In the decision, the impact of
decision over other functions, number of qualitative factors
that enter into it, and whether the decision is periodically
recurrent or rare. Such an analysis will determine the level at
which the decision can be made. Relation analysis helps in
defining the structure and also to give guidance in manning
the structure.
141. 4. FEDERALISM:
• Drucker has advocated the concept of federalism.
• Federalism refers to centralised control in decentralised structure
Decentralised structure goes far beyond the delegation of authority.
It creates a new constitution and new ordering principle. He has
emphasised the close links between the decisions adopted by the
top management on the one hand and by the autonomous unit on
the other.
• This is just like a relationship between federal government and state
governments. In a federal organisation, local managements should
participate in the decision that set the limits of their own authority.
142. • Federalism has certain positive values over other methods of
organising.
• These are as follows:
• It sets the top management free to devote itself to its proper functions;
• (ii) It defines the functions and responsibilities of the operating people;
• (iii) It creates a yardstick to measure their success and effectiveness in
operating jobs; and
• (iv) It helps to resolve the problem of continuity through giving the
managers of various units education in top management problems and
functions while in an operating position.
