Unit-1-Introduction-to-Management
- 1. 1
- 2. Contents: Introduction Definition of management Nature of management Purpose and functions Levels and Types of managers Managerial roles Skills for managers Social responsibility of manager Evolution of management thought Recent trends in management.
- 4. Organization An organization is a systematic arrangement of people and other resources brought together to accomplish some specific purpose expressed in terms of objectives or goals. Every organization is made up of people with different kinds who are formed into groups to combine their efforts to achieve the organizational goals. To manage different kinds of people andwork they do the concept of management came into existence 4
- 5. Introduction to Management Management is the force that unifies human as well as non human resources in the service of organizational goal. It is a process of getting results with & through people. MANAGEMENT = MANAGE MEN 5
- 6. Introduction to Management Management is the force that unifies human as well as non human resources in the service of organizational goal. It is a process of getting results with & through people. “Getting things done through others” 6
- 7. What Is Management? Managerial Concerned with Efficiency “Doing things right” Getting the most output for the least inputs Effectiveness “Doing the right things” Attaining organizational goals 7
- 8. 8
- 9. Definition of Management • According to Koontz “ Management is the art of getting things done through & with the people.” • According to Sisk “Management is the coordination of all resources through the process of planning, organizing, directing & controlling in order to attain stated objectives.” 9
- 10. Definition of Management According to F.W Taylor “Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way” According to Stanley “Management is the process of decision making and control over the action of human beings for the purpose of attaining pre-determined goals” 10
- 11. Nature/Characteristics of Management Management is intangible Management is result oriented Management is goal oriented Management is universal in character Management is a social process Management is a system of authority Management is an profession Management is a dynamic function Management is Multidisciplinary 11
- 13. Purpose of Management Guide organization towards goal accomplishment Making things happen Meeting the competition Optimum use of resources Organizing the people, resource, process Leading, directing, motivating or influencing the people within the organization Sound industrial relation 13
- 14. 14
- 15. Functions of Management 1. Planning 2. Organizing 3. Staffing 4. Directing 5. Coordination 6. Controlling 15
- 16. PLANNING Planning is a process of making decisions about future Planning is the process of setting goals, and charting the best way of action for achieving the goals. This function also includes, considering the various steps to be taken to encourage the necessary levels of change and innovation. Planning is the management function that involves: Setting goals Formulating vision, missions Making plans Charting the best way of action Adopt changes
- 17. ORGANIZING Organizing is concerned with bring together , arrangement and developiong productive relationship of organizations resource(people, materials, technology, finance) in order to achieve organizational objectives. Developing the organization structure. Organizing is the process of allocating and arranging work, authority and resources, to the members of the organization so that they can successfully execute the plans.
- 18. STAFFING Staffing is the process of filling the positions in the organization and keeping them filled. Staffing is the process of recruiting and selecting the right person for the right job at the right time in the right place. Staffing is a activity where people are recruited, selected, trained, developed, motivated and compensated for managing various positions 18
- 19. LEADING/DIRECTING Leading is the management function that involves influencing others to engage in the work behaviours necessary to reach organizational goals. It includes communicating with others, providing direction and motivating people. Leading involves directing, influencing and motivating employees to perform essential tasks. This function involves display of leadership qualities, different leadership styles, different influencing powers, with excellent abilities of communication and motivation.
- 20. CO-ORDINATING The process of ensuring that persons who perform interdependent activities work together in a way that contributes to the achievement of overall objectives/goals of an organization. 20
- 21. CONTROLLING Controlling is the management function aimed at regulating organizational activities so that actual performance meets the expected objectives and standards of company. It helps in keeping the organizational activities on the right path and aligned with plans and goals Controlling is the process of devising various checks to ensure that planned performance is actually achieved.
- 22. 22
- 23. Levels of Management Top Level Management Middle Level Management Lower Level Management 23
- 24. Levels of management 1. Top Level: Top management sets the mission and goals, develops policies, evaluates the overall performance of various departments, responsible for the business as a whole and is concerned mainly with long-term planning 2. Middle Level: Middle level management develops departmental goals, executes the policies, plans and strategies determined by top management , develops medium- term plans and supervises and coordinate lower-level managers’ activities 3. Lower (Supervisory, frontline) Level: Lower level management takes charge of day-to-day operations, is involved in preparing detailed short-range plans, is responsible for smaller segments of the business, executes plans of middle management , guides staff in their own subsections and keep close control over their activities 24
- 25. 25
- 26. 26
- 27. Manager A manager is one who Makes things happen Accepts challenging jobs Never accepts defeats Accelerates the achievement of results Generates enthusiasm Energizes the system Recruits right persons for the right job 27
- 28. Manager A manager is one who gets things done through others. A manager is someone whose primary responsibility is to carry out the management process within an organization to achieve the organizational goals. A manager is one who contributes to the organizational goals indirectly by directing the efforts of others and not by performing the task himself. An individual who is in charge of a certain group of tasks, or a certain subset of a company. A manager often has a staff of people who report to him or her.
- 29. Types of Managers Based on Vertical difference in hierarchy Based on horizontal across the organization
- 30. Types of Managers Based on Vertical difference in hierarchy 1. Top Level Managers 2. Middle level Managers 3. Lower level managers (First line managers)
- 31. First-line Managers Foreman, Supervisors, Office Managers Middle level Managers Plant Managers, Division Managers, Department Managers Top level ManagersS President, CEO, Executive Vice Presidents Types of Managers Non- Managerial Employees Based on Vertical difference in hierarchy 31
- 32. TOP LEVEL MANAGER 32 Responsible for… Decide goals, policies and strategies for entire organization Developing attitudes of commitment and ownership in employees Creating a positive organizational culture Monitoring their business environments
- 33. MIDDLE LEVEL MANAGERS 33 Responsible for… Implements the plans and policies of the top managers Coordinating and linking groups, departments, and divisions Monitoring and managing the performance of subunits and managers who report to them Implementing the changes or strategies generated by top managers
- 34. FIRST LINE MANAGERS 34 Responsible for… Managing the performance of entry-level employees Teaching entry-level employees how to do their jobs Making schedules and operating plans based on middle management’s intermediate-range plans Managing day-to – day working of the organization
- 35. Planning Planning Planning Organizing Organizing Organizing Staffing Staffing Staffing Directing Controlling Directing Directing Controlling Controlling Top Managers Middle Managers First-Line Managers Least Important Most Important Importance of management functions to managers in each level 35
- 36. Types of Managers Based on horizontal across the organization: 1. Functional manager (HR manager, Marketing manager, financial manager, production manager, etc) 2. General manager (divisional manager, project manager, public relation manager, etc) 36
- 37. 37
- 38. 38 Managerial Roles (Mintzbergs manageial roles developed by Henry Mintzberg) Interpersonal Roles Figure head Leader Liaison Informational Roles Monitor Disseminator Spokesman Decisional Roles Entrepreneur Disturbance handler Resource Allocator Negotiator
- 39. Roles of manager A: Inter-personal Role 1. Figurehead: Represents the organization in formal matters and on social occasions. Attending the flag hosting ceremony, receiving visitors or taking visitors for dinner etc. 2. Leader: In the role of a leader, the manager motivates, encourages, and builds enthusiasm among the employees. Training subordinates to work under pressure, forms part of the responsibilities of a manager. 3. Liaison: Developing external link with outside the organization. Serves as a link between people, groups or organization. The negotiation of prices with the suppliers regarding raw materials is an example for the role of liaison. 39
- 40. Roles of manager Informational role: 1. Monitor: receiving and collecting information, see through that every one gets the information and understands it in the same way. 2. Disseminator: Transmits information received from management to employees of the organization. 3. Spokesperson: Transmits information to the people who are external to the organization, i.e., government, media etc. For instance, a manager addresses a press conference announcing a new product launch or other major deal. 40
- 41. Roles of manager Decisional Role: 1. Entrepreneur: Act as an initiator and designer and encourage changes and innovation, identify new ideas, delegate idea and responsibility to others. 2. Disturbance handler: Take corrective action during disputes or crises; resolves conflicts among subordinates; adapt to environmental crisis. 3.Resource allocator: Decides distribution of resources among various individuals and groups in the organization. 4.Negotiator: Negotiates with subordinates, groups or organizations- both internal and external. Represents department during negotiation of union contracts, sales, purchases, budgets; represent departmental interests 41
- 42. Managerial skills 42 Managerial Skills Primary Skills • Conceptual Skill • Technical Skill • Human Skill Secondary Skills • Problem solving Skill • Communication Skill • Leadership Skill
- 43. Managerial skills Conceptual skills: This refers to managers mental ability to co-ordinate all organizations interest and activities, the ability to think out of box and conceptualize different situations. In short it is: The mental capacity to develop plans, strategies and vision Human or interpersonal skills: This includes the ability to understand other people and interact effectively with them. Managers ability to work with, understand, mentor and motivate others, both individually and in group. In short it is: The ability to work with other people in teams 43
- 44. Managerial skills Technical skills: These skills include the managers ability to use the tools,procedures and techniques of a specialized field, ability to Use knowledge, methods and techniques in performing work. In short: The ability to use the knowledge or techniques of a particular discipline to attain ends Problem solving skills: These skills includes the ability of managers to handle and solve any kind of unforeseen or actual problems, that may crop up in the organization. Such problems could arise due to internal factors or external factors and/or both. In short it is: The problem solving skill 44
- 45. Managerial skills Communication skills: The abilities of exchanging ideas and information effectively. To understand others and let others understand comprehensively. Leadership skills: The abilities to influence other people to achieve the common goal. 45
- 46. Skills Needed at Different Levels of Management
- 47. 47
- 48. Characteristics of successful manager Self-Motivation Dependability/Reliability Confidence Calmness Flexibility Creativity Knowledge Being human Role model Discipline/Focus Make your team members feel that you are there with them always Honest and fully committed Leave your ego Communicator Motivator Should be ambitious but not greedy 48
- 49. Characteristics of successful manager Be available/ approachable Be A Collaborator, Not A Dictator Good listener Provide feedback Be inspirational Trust Do not be partial Remember personal details Admit your mistake Analysing power Empathy Ability to maintain privacy Acknowledge staff “Praise in public, punish in private” 49
- 50. 50
- 51. “Social responsibilities” - Obligation of managers to take actions that protect and improve the welfare of society as a whole as well as their employees along with their own interests. Social responsibility is an ethical Framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society.
- 52. RESPONSIBILITIES TOWARDS EMPLOYEES Meaningful Work (right person for right job) Fair remuneration Job security and safety Job Satisfaction Best Physical and Mental Atmosphere Training, Promotion and Welfare Schemes Recognition of Trade union Proper Personnel Policies Employee participation in management Health and Safety Measures Grievance Procedure Equal opportunity for growth and development
- 53. RESPONSIBILITIES TOWARDS SOCIETY To produce customized products To establish fair prices of products consistent with quality, efficiency and reasonable profit to the firm. To provide prompt, adequate, and friendly service to customers. To ensure fairly wide distribution of products among all sections of consumers. To improve their standard of living in society by producing goods and services which they need Strictly observing the laws & enactments Maintain environmental ecology/Anti-pollution measures Social welfare programmes.
- 54. 54
- 55. Evolution of management thoughts Classical theory/Scientific Management approach Neo-classical theory/Behavioral approach Quantitative approach System approach Contingency theory approach 55
- 56. Chronological Development of Management Perspectives
- 57. Classical Perspective on Management Focuses on the individual worker’s productivity Focuses on the functions of management Focuses on the overall organizational control system (rules and regulation)
- 58. 1a) Scientific Management: Frederick Winslow Taylor (1856-1915) - F.W.Taylor is Father of “Scientific Management”. - He was an mechanical engineer and consultant. His interest was in management. Attempted to define “the one best way” to perform every task through systematic study and other scientific methods. Believed that improved management practices lead to improved productivity and efficiency.
- 59. F.W.Taylor F.W. Taylor made a beginning by joining as an trainee in a small machine-making shop in 1870. Later he became a machinist in 1878. During his working he observed that workers were not enthusiastic and were doing only one third of the efficiency what they had, just to maintain their job. Based on his observation he identified some of the reasons for inefficiency of workers. 59
- 60. Reasons for inefficiency of workers: 1. Workers were hired without due concern for their ability or skills 2. Training was haphazard and inadequate 3. Tasks were accomplished by general “rule of thumb” without standard times, methods. 4. If employees work faster, their jobs would be done and they would then laid off. 5. Workers were given jobs unrelated to their ability and aptitude 6. Managers worked along with workers often ignoring their managerial functions. 60
- 61. Based on his observation he gave importance to Three areas: • Task Performance • Supervision • Motivation Task Performance Scientific management incorporates basic expectations of management, including: • Development of work standards • Selection of workers • Training of workers • Support of worker Supervision: Taylor felt that a single supervisor could not be an expert at all tasks. As a result, each first-level supervisor should be responsible only workers who perform a common function familiar to the supervisor. This became known as “Functional Foremanship. Motivation: Taylor believed money was the way to motivate workers to their fullest capabilities. He advocated a piecework system in which worker’s pay was tied to their output. Workers who met a standard level of production were paid a standard wage rate. Workers whose production exceeded the standard were paid at a higher rate for all of their production output
- 62. Taylor’s principles of management 1. Scientifically study each element of an individuals task and develop the best method for performing the task 2. Carefully select workers and train them to perform the task. 3. Co-operate fully with the workers to ensure that they use proper method of work 4. Divide work and responsibility so that management is responsible for planning work methods and workers are responsible for executing the work. 62
- 63. Taylor’s principles of management Time and motion study (time taken to work and time wasted, actual time required to work) Differential piece rate system (wages based on actual performance of workers) Co-operation between workers and management (employee-employer relationship) Standardization (standards have to be set in advance for work, quality, working conditions, work methods etc) Functional foremanship (supervision given by specialist) 63
- 64. 1b) Administrative Management: Henri Fayol (1841–1925) • Fayol was a mining engineer in profession • He was working in coal and mining company in France and he worked for 30 years in this company. • In 1888 the company was facing very bad financial position and Fayol was promoted as General Managers. • When he became a General Manager based on his observation, he came to know the importance of management and developed the principles of Management • First recognized that successful managers had to understand the basic managerial functions. • Developed a set of 14 general principles of management in 1916.
- 65. Fayol’s General 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 the common goal 7. Remuneration 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability 13. Initiative 14. Esprit de corps
- 66. 1. Division of Labor Work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area. 66 2. Authority & Responsibility Authority (power) refers to the right of superiors to give order and get work from their sub-ordinates. Responsibility means obligation for the performance of the job assigned. 14 Principles of Henri Fayol
- 67. 14 Principles of Henri Fayol Cont’d 3. Discipline: Discipline means sincerity, obedience, respect of authority & observance of rules and regulations of the enterprise. Subordinate should respect their superiors and obey their order. Discipline results form good leadership Two types of discipline 1. Self imposed discipline 2. Command discipline 67
- 68. 14 Principles of Henri Fayol Cont’d 4. Unity of Command A subordinate should receive orders and be accountable to one and only one boss at a time. He should not receive instructions from more than one person 68
- 69. 14 Principles of Henri Fayol Cont’d 5. Unity of Direction People engaged in the same kind of business or same kind of activities must have the same objectives in a single plan. They should be directed by only one manager One head one plan 69
- 70. 70 7. Sub-ordination of Individual Interest to general interest In any organization, the interests of employees should not take priority over the interests of the organization as a whole. 14 Principles of Henri Fayol Cont’d 6. Remuneration Remuneration to be paid to the workers should be fair, reasonable, satisfactory & rewarding of the efforts. It should accord satisfaction to both employer and the employees.
- 71. 8. Centralization 71 Centralization refers to the degree to which subordinates are involved in decision making. Fayol believed that managers should retain final power over decision making, but subordinates should be given some authority to do their job. 14 Principles of Henri Fayol Cont’d The chain of authority from top to bottom through which all communication flow is termed as scalar chain. Fayol introducted the concept of GANG PLANK . 9. Scalar Chain (Hierarchy)
- 72. 10. Equity Equity means combination of fairness, kindness & justice. Managers should be fair in dealing with the employees and should be treated with kindness & equity. 72 11. Order This principle is concerned with proper & systematic arrangement of things and people. Arrangement of things is called material order and Placement of people is called social order. 14 Principles of Henri Fayol Cont’d
- 73. Employees should not be moved frequently from one job position to another i.e. the period of service in a job should be fixed. 73 13. Initiative Initiative means eagerness to initiate actions without being asked to do so. Management should provide opportunity to its employees to suggest ideas, experiences& new method of work. 14 Principles of Henri Fayol Cont’d 14. Espirit De’ Corps It refers to team spirit i.e. harmony in the work groups and mutual understanding among the members. Espirit De’ Corps inspires workers to work harder. 12. Stability of Tenure
- 74. 1c) Bureaucratic Management Max Weber (1864–1920) Weber introduced the concept of bureaucracy in management A German sociologist and professor who felt the need for controlled regulations i.e rules and regulation particularly in large organizations where thousands of people are employed. He developed a theory of bureaucratic management which emphasizes strictly defined hierarchy governed by clearly defined regulations and line of authority.
- 75. Bureaucratic Management: Principles of Weber: Division of labor Hierarchy of authority Rules and procedures for dealing with work Records Impersonal relation with people Employee selection and promotion based on technical competence and excellence. 75
- 76. 2) Neo-classical theory/ Behavioral Perspective Followed the classical perspective in the development of management thought. - Acknowledged the importance of human behavior in shaping management style - Is associated with: • Elton Mayo • Mary Parker Follett • Douglas McGregor
- 77. 2.a) Elton Mayo Elton Mayo recognized as father of human relation approach His work represents the transition from scientific management to the early human relations movement. Conducted the famous Hawthorne Experiments.
- 78. Hawthorne Experiments. Three phases in Hawthorne experiment Phase 1: Illumination experiments Phase 2: Relay Assembly test group Phase 3: Interviewing Programme Phase 4: The Bank wiring observation room experiment Here the concept of human relation came into existence 78
- 79. 2.b) Mary Parker Follett Mother of modern management Mary was convinced that labour and management shared a common goals/purpose as members of the same organization. She believed that the distinction between management(order giver) and subordinates(order takers) hindered the partnership . She concluded that a key to effective management was coordination. Felt that managers needed to coordinate and harmonize group effort rather than force and coerce people.
- 80. Mary on Effective Work Groups Four principles of coordination to promote effective work groups: Coordination requires that people be in direct contact with one another. Coordination is essential during the initial stages of any effort. Coordination must address all factors and phases of any effort. Coordination is a continuous, ongoing process.
- 81. 2.c) Douglas McGregor Proposed the Theory X and Theory Y styles of management. - Theory X managers perceive that their subordinates have an inherent dislike of work and will avoid it if at all possible. People must be coerced, controlled and threatened with punishment to get the work done. - Theory Y managers perceive that their subordinates enjoy work and that they will gain satisfaction from performing their jobs. People may exercise self-direction and self control.
- 82. Comparison of Theory X and Theory Y Assumptions Factor Theory X Assumptions Theory Y Assumptions Employee attitude Employees dislike work and Employees enjoy work and toward work will avoid it if at all possible. will actively seek it. Management view Employees must be directed, Employees are self-motivated of direction coerced, controlled, or threatened and self-directed toward achieving to get them to put forth adequate effort. organizational goals. Employee view Employees wish to avoid responsibility; Employees seek responsibility; of direction they prefer to be directed and told what they wish to use their creativity, to do and how to do it. imagination, and ingenuity in performing their jobs. Management style Authoritarian style of management Participatory style of management
- 83. 3. Quantitative approach This approach encourages the use of statistical and mathematical tools which are known as operation research and mainly used in operations management. Eg: X*Y=XY RESOURCE*EMPLOYEE = WORK Here the variables in management are expressed in the form of equation. They are used in the field of inventory management, production planning, quality assurance etc.(queuing theory helps in inventory control, six sigma in quality assurance etc But most of the managerial decisions involves human judgment where quantitative approach will not be suitable. It does not give any weightage to human elements. 83
- 84. 4) The system Approach Developed by Herbert Alexander Siman – Father of system management The system view takes a look at how organizations import resources from the external environment, convert them into more useful goods and services, and export them to the market. The system is a set of interrelated by separate parts working towards common purpose. System approach views the organization as a unified, directed system of interrelated parts. The systems sees each change in a part of the system as having an impact on all others parts. The system helps managers to realize that every action has consequences somewhere inside as well as outside the organization.
- 85. System approach Environment Input Processes/Throughputs Outputs Remedial action Feedback Environment Men, Material, Money Activities, Operation Goals, Sales, Profit, Satisfaction Targets
- 86. 5)The Contingency Perspective It is even called as situational approach This approach was developed by Management psychologist Fred Fielder The managers and researchers who tried to apply the concepts of major contribution on management noticed that success of methods in one situation was failure in another situation. A view that proposes that there is no one best approach to management for all situations. This theory lays emphasis on what managers do in practice depends upon the situation or circumstance in which they function.
- 87. The Contingency Perspective Challenges in implementing: 1. Perceiving organizational situations as they really exist. 2. Adapting the best strategy suiting to the situation. 3. Effective implementation of the chosen strategy. 87
- 88. 88
- 89. Recent Trends in Management Inducting more technical people then managerial for higher position Downsizing Contingent workers (part time workers) Work force diversity Flexi time Team work Business process outsourcing Total quality management Work environment flexibility (work from home) Changing role of managers 89
- 90. 90