Business

Management
- Introduction

Dr. Manjunath Shettigar

MA (Econ), MBA, MPhil, PhD
 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
 Management
The English word "management" comes from
the Italian maneggiare (to handle, especially
tools or a horse), which derives from the two
Latin words manus (hand) and agere (to
act). ...
 What Is Management?
Management
refers to the practice and process of planning,
organizing, leading, and controlling of human and
other resources to achieve organizational goals
effectively and efficiently.
Managers
The people responsible for supervising the use of
an organizations resources to meet its goals.
Resources are organizational assets
People Skills Knowledge Information
Raw materials Machinery Financial capital
 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.
Management
Management
Management
Management
 Management
Effectiveness is doing right thing

Efficiency is doing things right

Management
Management
Efficiency and
Effectiveness
Efficiency, Effectiveness, and Performance in an Organization
 Organizational Performance
Organizational Performance
A measure of how efficiently and effectively
managers are using organizational resources to
satisfy customers and achieve goals.
Efficiency
A measure of how well or productively resources
are used to achieve a goal.
Effectiveness
A measure of the appropriateness of the goals an
organization is pursuing and the degree to which
they are achieved.
 Definitions of Management

Harold Koontz & Heinz Weihrich defined

management as the process of designing
and maintaining an environment in which
individuals, working together in groups,
efficiently accomplish selected aims.

Louis E. Boone & David L. Kurtz defines

management as the use of people and
other resources to accomplish objectives.
 Definitions of Management

Delton E. McFarland defines management as

a process, by which managers create,
direct, maintain, and operate purposive
organizations through systematic,
coordinated, cooperative human efforts.

Mary Parker Follett termed management as

the act of getting things done through
people.
 Management

Management is a set of activities including

planning and decision making, organizing,
leading, and controlling, directed at using
an organizations resources (human,
financial, physical, and information) with
the aim of achieving organizational goals
in an efficient and effective manner.
 Some practical aspects of
Management

All these definition suggest the following

aspects of management:
Managers carry out the functions of Planning,
organizing, leading & controlling.
Management is essential to all kinds of organizations.
Management is necessary at all levels of hierarchy.
The goal of all managers is to accomplish the objective
of creating surplus.
The aim of managers is to improve productivity,
efficiency and effectiveness.
 Why Study Management?
Proper management directly and positively
impacts the well-being of a society.
Studying management helps people to
understand what management is and
prepares them accomplish managerial
activities in organizations/ professions.
It helps in skill building soft skills/ hard skills/
competencies
Studying management opens a path to a well-
paying job and a satisfying career.
 Managerial Functions
Henri Fayol
First outlined the four managerial functions in his
book General Industrial Management.
Fayol spoke of 5 managerial functions
Planning, Organizing, Commanding, Coordinating
and Controlling

Today we speak of 4 basic managerial

functions -

Planning, Organizing, Leading

and Controlling
- People responsible for
directing the efforts aimed
at helping organizations
achieve their goals.
- A person who plans,
organizes, directs and
controls the allocation of
human, material, financial,
and information resources
in pursuit of the
organizations goals.
 Types of Managers
Levels of Management
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.
Top managers
Responsible for the performance of all departments and
have cross-departmental responsibility.
Establish organizational goals and monitor middle
managers.
Form top management team along with the CEO and COO.
Levels of Management
Basic Levels of Management

Top
Managers

Middle Managers

First-Line Managers

Non-managers
Relative Amount of Time That Managers
Spend on the Four Managerial Functions
 Levels of Management
First-line Managers: have direct responsibility for
producing goods or services, working with others.
Supervisors, / Team leaders/ Assistant Managers, etc.
Middle Level Managers:
Coordinate employee (team) activities
Determine which goods or services to provide
Decide how to market goods or services to customers
Manager (Section Head), Division Heads, Regional
Managers, etc.
Top Level Managers: provide the overall direction of an
organization Chief Executive Officer, President, Vice
President, etc.
 First-line Managers

Directly responsible for production of goods or services

Employees who report to first-line managers do the
organizations work
Spend little time with top managers in large organizations
Technical expertise is important
Rely on planning and administration, self-management,
teamwork, and communication competencies to get work
done
 Middle Managers

Responsible for setting objectives that are consistent with

top managements goals and translating them into specific
goals and plans for first-line managers to implement
Responsible for coordinating activities of first-line
managers
Establish target dates for products/services to be delivered
Need to coordinate with others for resources
Ability to develop others is important
Rely on communication, teamwork, and planning and
administration competencies to achieve goals
 Top Managers

Responsible for providing the overall direction of an

organization
Develop goals and strategies for entire organization
Spend most of their time planning and leading
Communicate with key stakeholdersstockholders,
unions, governmental agencies, etc., company
policies
Use of multicultural and strategic action
competencies to lead firm is crucial
 Managerial Skills

A skill is an ability/ competence acquired

through education, training and practice that
enables one to perform a specific task/ work
effectively and efficiently
 Managerial Skills
Conceptual Skills
Ability to think holistically, abstract thinking, the
ability to analyze and diagnose a situation and
distinguish between cause and effect. Ability to see
the big picture and to think outside the box.
Human Skills
The ability to understand, alter, lead, and control
the behavior of other individuals and groups.
Technical Skills
The specific/ specialized knowledge and techniques
required to perform an organizational role.
Management Level and Skills
Skill Types Needed by Managerial Level
 Managerial Skills
Other skills people speak of -
Diagnostic skills
Analytical skills
Problem solving skills
Political skills
 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.
Roles are defined into three role categories (as
identified by Henry Mintzberg):
Interpersonal Informational Decisional
 Interpersonal Roles
Roles that managers assume to provide
direction and supervision to both employees
and the organization as a whole:
Figureheadsymbolizing the organizations
mission and what it is seeking to achieve.
Leadertraining, counseling, and mentoring high
employee performance.
Liaisonlinking and coordinating the activities of
people and groups both inside and outside the
organization/department.
 Informational Roles
Roles associated with the tasks needed to
obtain and transmit information in the process
of managing the organization:
Monitoranalyzing information from both the
internal and external environment.
Disseminatortransmitting information to
influence the attitudes and behavior of employees.
Spokespersonusing information to positively
influence the way people in and out of the
organization respond to it.
 Decisional Roles
Roles associated with methods managers use
in planning strategy and utilizing resources:
Entrepreneurdeciding which new projects or
programs to initiate and to invest resources in.
Disturbance handlermanaging an unexpected
event or crisis.
Resource allocatorassigning resources between
functions and divisions, setting the budgets of lower
managers.
Negotiatorreaching agreements between other
managers, unions, customers, or shareholders.
 Management Science or Art or Both
Managing as a Science
Management science is a body of
systematized knowledge accumulated and
accepted, with reference to the understanding
of general truths concerning management.
It is, however, inexact, so a soft science at
best social science.
Human behavior is unpredictable.
Nevertheless, the study of the scientific
elements in management methodologies can
certainly improve the practice of management.
 Science any field of study that makes use of
the scientific method
The scientific method
ObservationTheoryDataTesting

Natural Science / Social Science

 Management Science or Art or Both
Managing as an Art
The art of managing is a personal creative
power of the manager which is, more often
than not, enriched by his skill in performance.
In fact, the art of managing involves the
conception of a vision of an orderly whole
created from chaotic parts and the
communication and achievement of this vision.
Managing is the "art of arts" because it
organises and uses human talent.
 Management Science or Art or Both
Managing as Both Science and Art
Science teaches us to know, while art teaches us to
do. In order to be successful, managers have to know
and do things effectively and efficiently.
This requires a unique combination of both science
and art of managing in them.
It may, however, be said that the art of managing
begins where the science of managing stops. Since
the science of managing is imperfect, the manager
must turn to artistic managerial ability to perform a job
satisfactorily.
CHARACTERISTICS OF MANAGEMENT
(a) Management is universal
(b) Management is goal directed
(c) Management is a continuous process
(d) Management is an integrating process
(e) Management is intangible
(f) Management is multi-disciplinary
(g) Management is a social process
(h) Management is situational
 Scope of Management
The scope of Management includes the 4
functional areas of
Planning
Organizing
Leading
Controlling
Four Functions of Management
 Planning
Identifying and selecting appropriate goals
and courses of action for an organization.
The planning function determines how effective and
efficient the organization is and determines the
strategy of the organization.
Three Steps in the Planning Process:
Deciding which goals to pursue.
Deciding what courses of action to adopt.
Deciding how to allocate resources.
 Organizing
Structuring working relationships in a way
that allows organizational members to work
together to achieve organizational goals.
Organizational Structure
A formal system of task and reporting
relationships that coordinates and motivates
organizational members.
Creating organizational structure:
Grouping employees into departments according to
the tasks performed.
Laying outlines of authority and responsibility for
organizational members.
 Leading
Articulating a clear vision to follow, and
energizing and enabling organizational
members so they understand the part they
play in attaining organizational goals.
Leadership involves using power, influence, vision,
persuasion, and communication skills.
The outcome of leadership is highly motivated and
committed organizational members.
 Controlling
Evaluating how well an organization is
achieving its goals and taking action to
maintain or improve performance.
Monitoring individuals, departments, and the
organization to determine if desired performance
standards have been reached.
Taking action to increase performance as required.
The outcome of control is the ability to measure
performance accurately and to regulate the
organization for efficiency and effectiveness.
Function: A classification referring to a group of
similar activities in an organization like marketing or
operations or finance or production.
Functional Managers: A manager responsible for
just one organizational activity such as accounting,
human resources, sales, finance, marketing, or
production
Focus on technical areas of expertise

Use communication, planning and

administration, teamwork and self-
management competencies to get work
done
 (contd)

General Managers: responsible for the operations

of more complex unitsfor example, a company or
division

Oversee work of functional managers

Responsible for all the activities of the unit
Need to acquire strategic and multicultural
competencies to guide organization

Many Other types of managers like

Project managers, Divisional managers,
Area managers, Country Managers, etc.