Introduction to Management PDF

ORGANIZATION When two or more people work in a structured way to achieve a specific goal or a set of goals. 1  An Organization Defined – A deliberate arrangement of people to accomplish some specific purpose Common Characteristics of Org...

ORGANIZATION When two or more people work in a structured way to achieve a specific goal or a set of goals. 1  An Organization Defined – A deliberate arrangement of people to accomplish some specific purpose Common Characteristics of Organizations – Have a distinct purpose (goal) – Are composed of people – Have a deliberate structure  GOALS OR OBJECTIVES The purpose that an organization strives to achieve.  Managers – The people responsible for supervising the use of an organization’s resources to meet its goals. Resources are concrete materials and tangible assets that support programs, practice improvements, and service delivery in orgazation i.e. Human- skills and knowledge of employees Financial- capital, cash, investments, and loans Physical- land, buildings, raw materials, and machinery Information- data, knowledge, information systems  DEFINITIONS OF MANAGEMENT There are as many definitions numbers of authorities in this field.  As per Mary Parker Follet:” The art of getting things done through others.”  As per George R. Terry: ”Management is a process of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by use of people and resources.  Definition of Productivity Productivity is the output-input ratio within a time period with due consideration for quality 6  Definitions of Effectiveness and Efficiency Productivity implies effectiveness and efficiency in individual and organizational performance Effectiveness is the achievement of objectives Efficiency is the achievement of the ends with the least amount of resources (time, money, etc.) 7  Scope of Management We can divide its scope into two sections for better understanding. 1. Activities: Planning, Organizing, Leading, & Controlling 2. Branches: Following are the operational aspects or branches of management Production Management, Financial Management, Marketing Management, Human Resource Management , Office Management, Supply Chain Management, & Information/IT Management  Functions of Management  Management has four basic functions - planning, organizing, leading, and controlling, also called the POLC framework in management. Without these in place, there would be little to no structure and focus in an organization.  Planning Planning is deciding in advance what is to be done in the future “According to koontz and O ‘Donnell defines planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen”  Organizing  It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals.  According to Henri Fayol “To organize a business means to provide it with everything useful to its functioning-raw materials, tools, capital and personnel”  Leading  Definition: Leading involves motivating, influencing, and guiding employees to work toward organizational goals. Key Activities:  Communicating effectively with team members.  Inspiring and motivating employees to perform at their best.  Encouraging teamwork, collaboration, and a positive organizational culture.  Controlling  The purpose of controlling is to ensure that everything occurs in conformities with the standards.  According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”.  According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Operative Functions/ Functional Areas of Management Production Management (Work analysis planning , Quality control, Inventory control and Inspection) Financial Management (Financing decision , Investment decision & Dividend decision) Human Resource Management (Manpower planning, Recruitment & selection , Training and development of employees, Compensation) Marketing Management (Marketing mix decisions) Supply Chain Management Information/IT Management Levels of Management  Top Management  Also called as Strategical management.  It is represented by  Board of Directors (BOD)  Chief Executive Officer (CEO)  Chairman/ President  Managing Directors (MD)  General Managers (GM)  They are handling overall Functions.  Top Management  Functions of Top Level Management  To do overall strategic work.  To determine and finalise aims/ goals.  To define vision of work.  To workout long term plans.  Top management is the highest authority of the organization.  Responsible for overall developments in an organization.  Middle Management  Also called tactical level of managers.  It is represented by  Factory Manager  Heads of Department  Plant Manager  Senior Managers.  They are Accountable for the work done by juniors.  Middle Management  To plan the executive strategies.  To plan medium scale policies.  To transmit ideas of Top level management to lower level management.  To help Top management in strategic decisions.  To guide Lower Management in operation work.  Lower Management  Also called as operational level managers.  It represents-  Shift in-charges  Senior supervisors  Junior Managers  Trainee Engineers.  Foreman  They have direct responsibility of machinery and materials.  Lower Management  Functions-  To supervise the operations.  To plan and execute daily work schedules.  To solve bottleneck problems & difficult situations of workers.  To keep daily records.  Skilled workers, operators are working below them.  Skill–mix at different management levels. Lower level Middle Level Top level managers managers managers Conceptual skills- the ability to understand complex situations and develop creative solutions Human skills- the ability to work well in cooperation with other people Technical skills- the ability to apply expertise and perform special tasks with proficiency  Manager’s Roles by Mintzberg Interpersonal role Informational role Decisional role  INTERPERSONAL ROLE Figurehead- state the organizations ethical guidelines and the principles of behavior employees are to follow in their dealings with customers and suppliers Leader- provide an example for employees to follow; give direct commands and orders to subordinates and make decisions Liaison-coordinate between different departments and establish alliances between different organizations  INFORMATIONAL ROLE Monitor- Evaluate the performance of managers in different functions; watch for changes occuring in the external and internal environments that may affect the organization in the future Disseminator- inform employees about changes taking place in the external and internal environments that will affect them and the organization; Communicate to employees the organization’s vision and purpose Spokesperson- launch a national advertising campaign to promote new goods and services; give a speech to inform the local community about the organization’s future intentions  DECISIONAL ROLE Entrepreneur- commit organization resources to develop innovative goods and services Disturbance handler- to take corrective action to deal with unexpected problems facing the organization from the external as well as internal environment Resource allocator- allocate existing resources among different functions and departments Negotiator- work with suppliers, distributors and labor unions  WHAT MAKE MANAGERS SUCCESSFUL? Clear Vision and Goal Setting Clear communication Leadership Skills Adaptability Emotional Intelligence Collaborative relationship Problem-solving and Decision-making Reading and acquiring knowledge Ethical consciousness Art of Delegation Difference between administration and management Basis Administration Management Nature of work Mainly concerned It puts the policies & with the plans into action determination of objective & and major policies of an org. Type of function Thinking or It is a doing or determinative executive function. function Top level activity Middle level activity Level of authority Decision making Decision are generally It is a ‘doing’ or influenced by public executive function opinion, thinking or determinative function Main function Planning and Motivation and organising controlling Administrative & It needs administrative It require technical technical ability rather than technical ability more than ability administrative ability. Co-ordination and Co-ordinates finance, It uses org. for control production and achievement of the distribution. Frame targets fixed by org. structure & administration. exercises control over the enterprise. Administration Vs Management  Management as an Art Art is the systematic and personalised application of theoretical principles and personal skills to achieve desired results. Management requires personal skills, intuition, creativity, and judgment to solve problems and make decisions. So its an art. 12/07/24  Management as a Science Science is an organised body of knowledge pertaining to a particular field of enquiry, which accomodates general facts explaining a phenomenon. Management is based on research, systematic knowledge, and principles. It provides managers with a structured approach to analyze data, make informed decisions, and predict outcomes. Thus its a Science. 12/07/24  Management as both an art as well as a Science Management is considered both an art and a science, as it involves a combination of scientific principles and artistic skills. Successful managers are able to combine both science and art to be effective. The science of management provides the knowledge, while the art of management is about applying that knowledge. 12/07/24  Management as a Profession What is a Profession? A profession refers to a specialized occupation that requires specific knowledge, skills, and expertise in a particular field. Professions are typically characterized by a higher level of commitment, education, and training. They often involve the application of theoretical knowledge and adherence to professional standards or codes of conduct. Professions often require obtaining professional licenses or certifications, and they are governed by professional bodies or associations that oversee ethical guidelines and regulatory practices. Examples of professions include doctors, lawyers, engineers, architects, and accountants.  Is Management a Profession? Management is often considered a developing profession rather than a fully- fledged profession. As it exhibits some characteristics of a profession, such as a specialized body of knowledge, formal education and training, and a code of ethics. However, it lacks some key features like a regulated entry and a governing body that oversees its practice. 12/07/24  Features of management 1. Goal-Oriented 2. Pervasive 3. Continuous Process 4. Multidisciplinary 5. Dynamic and Flexible 6. Decision-Making 7. Team-Oriented and People-Centric 8. Multidimensional 9. Hierarchy of Authority 10. Intangible Force 11. Art and Science  Importance of management 1. Achievement of group goals 2. Minimization of cost 3. Change and growth 4. Effective and smooth running of business 5. Higher profit 6. Provide innovation 7. Social benefits 8. Effective utilization of resources 9. Development of resources 10. Sound organization structure 11. Useful for developing countries 12. Integration various interest groups 13. Stability in the society