What is Management ?

DEFINITION: it is a distinct process consisting of activities of planning, organizing, staffing, and controlling , performed to determine and accomplish stated objectives with the use of human beings and other resources. It is an art of knowing what is to be done and seeing that it is done in the best possible manner.-F.W.Taylor Management is to forecast, to plan, to organize, to command, to coordinate and control activities of others the process of designing and maintaining and environment were people working together can accomplish certain objectives

Mgmt is applicable to all organization Mgmt is applicable to all levels of org. It includes planning, organizing, staffing, directing, and controlling The goal of manager is to create surplus. Aim of manager is to improve productivity. Manager works to improve the efficiency and effectiveness.

NEED OF MANAGEMENT It facilitates efficient accomplishment of predetermined goals Optimum utilization of organizational resources Attain individual goal or career goal of employee It enables managers to think analytically and conceptually

Management Process

LEVELS AND FUNCTIONS OF MANAGEMENT

TOP LEVEL MANAGEMENT

Develop and review the long range plans and strategies. Evaluate the overall performance of various departments and ensure cooperation. Involved in selection of key personnel Consult subordinates managers on subjects or problem of general scope.

MIDDLE LEVEL MANAGEMENT

Make intermediate range and prepare long range plans for review by top level. Analyze managerial performance to determine capability and readiness for promotions. Review of daily and weekly reports on productions or sales. Select and recruit personnel.

LOWER LEVEL MANAGEMENT

Make detail and short range plans. Review performance of subordinate. Supervise day to day operations. Make specific task assigned.

 Maintain close relationship with employees.

ROLES OF MANAGERS
Interpersonal role

Figure head

Leadership Liaison role Informational role

monitoring

Disseminator Spokesperson Decision making role Entrepreneur Disturbance and conflict handler Resource allocator

negotiator

Functions of management
Planning Organizing Staffing Directing Controlling Planning Planning is selecting information and making assumptions regarding the future to formulate activities necessary to achieve organizational objectives. - Terry and Franklin Planning involves selecting mission and objectives and the actions to achieve them, it requires decision-making, it is rational approach to achieving those objective. Planning process
Planning is referred as a process since it involves sequential order of steps to be carried out for its successful implementation. Steps of planning

Identification of goals Analyze the present situation

Identification of barriers to planning Development of alternative course of actions Evaluation of different course of action Selection of best course of action feedback

Above steps are summed up as Terry and Franklins five ws and how of planning: why must it be done? What action is necessary? Where will it take place? When will it take place? Who will do it? How will it be done?

ORGANIZING

Definition: It refers to formal structure of arrangement of work among different members of the organization and clear identification of authority and responsibility associated with that work so that the overall organization goal can be achieved effectively. the form of every human association for the attainment of common purpose. It is the process of relating specific duties or functions in a coordinated whole.

Importance of organizing
Facilitates administrations. Growth and diversification. Creation of synergy Establishment of accountability. Optimum use of technology. Facilitates communication. Facilitates creativity.

Principles of organization
Clear definition of jobs. Authority responsibility. End results areas. Flexibility. Exhibition of informal relationships. Control.

Processing of organizing
o Determination of objectives. o Division of activities. Greater output Increase in efficiency Facilitates training of less-skilled workers. Grouping of activities. Defining authority and responsibility. Co-ordination of activities. Reviewing and re-organizing.

o o o o

Organization structure
it provides a formal pattern of interactions and coordination designed by management to link the tasks of individual and groups in achieving the organizational objective. - Kathryn M. Bartol & Davis C. Martin

Types of organizational structures

Functional Product

 Geographical / territorial

FUNCTIONAL
Also called Traditional organization structure. Based on the sub-division of disciplines into separate

departments together with vertical hierarchy vertical lines of authority work that is partitioned according to specialties of discipline (i.e., the function). Objective is to emphasize technical excellence.

Functional Departments

Advantages of functional organization

Simple Specialization Coordination In-depth skills Delegation of power and authority

Disadvantages of Functional Organization

Boredom and monotony Poor decision making Sub unit conflicts No Single point of responsibility as project scope moves from one department to another department leading to coordination chaos It offers excellent facility within its own department ; but for a multi-disciplined projects which calls for interaction with other department then the system may be lacking Lengthen the lines of communication and slow down the response time Formal line of communication is through the functional managers Department work may take priority over project work

PRODUCT STRCTURE
In this the organization is divided depending up the product and services produced. It can relatively homogeneous set of products or services It suits for large companies and multi-product based company The organization structure is dependent on the output of the org

Advantages of product division

It provides diversification of product and services It facilitates the use of specialized equipment Performance of each product line is analyzed and the unprofitable product line is dropped It may come with new product line

Disadvantages of product division

It requires people with general managerial abilities Managerial cost is higher as the structure is decentralized It create the problem of controlling at top level It may create the problems in coordination and decision making.

Geographical division
The organization division is based on the geographical area. In this division the territory or the location is considered as the basis. It is mainly used by organization which are spread over large geographical area. It is also adopted when the products and services provided need to be customized.

Advantages of geographical division

It will help the manager to focus on local market It helps the organization to utilize the local resources, likes and dislikes of customer. It helps the organization to customize the product and services according to local needs. It helps the org. to diversify

Disadvantages of geographical division

It require more people with managerial capabilities Communication problem Cost of operations will be high There will be problem of control

Staffing
It deals with appointing people and placing them at the appropriate jobs. filling and keeping filled, positions in the organization structure Knootz and Weihrich Placing the right people, at right place, at right time.

Importance of staffing
Emphasis on human element Facilitates leadership Facilitates control Motivation at work increase the efficiency Enables the org. to face competition

Directing
Definition Directing is the managerial function that involves the responsibility of managers for communicating to others what their roles are in achieving the company plans. - Pearce & Robinson getting all the members of the group to want and to strive to achieve objective of the enterprise and of the member because the members want to achieve these objective. - Terry and Franklin

Definition:

Controlling

it is process of determining what is being accomplished i.e. evaluating the performance and if necessary apply corrective measures so that the performance takes place according to plans. - Terry & Franklin the process of monitoring and adjusting the organizational activities in such a way as to facilitates accomplishment of organization objective. - Pearce & Robinson

Types of managers

Functional managers:- managers perform one type of

activity, may it be finance, marketing, HRM. People working under finance manager would be engaged in financial related activities.

General mangers:- Manger looks after an entire unit or

an independent division of an organization. Such as subsidiary of a company. All functional activities like production, finance, marketing, personnel etc. of that unit are taken are by general manager.

Line and staff managers Line : line functions are those which have direct bearing on the
achievement of organization objective.

Staff:

refers to those elements of organization that help the line to work effectively in accomplishing the primary objectives of enterprise. Organization objectives determine the line and staff functions, so any change in objectives may result in change of line and staff functions. Therefore, what is considered staff functions may be line functions in another. Eg personnel function in employment agency is line function but it will be staff function in manufacturing unit.

Line manager is generalist

Staff manager is specialist whose knowledge is limited

Line manager directs others Staff manager assists others

Line manager delegates authority Line manger exerts control over his or her Subordinates

staff manager serves authority Staff manager makes plan

Line manger has veto power Staff manager supports line effort

Line manger makes operatingStaff manager provides ideas to decisions line manger

Line manger bears final responsibility

Staff manager has expertise in special field.