Unit 1

Introduction to management

Management

Webster s says
y Manage

y Handle or direct y To achieve one s purpose y Manager y One who manages y Management y The judicious use of means to

accomplish an end

Management
y Management is a set of principles relating to the

functions of planning, organizing, directing and controlling and the application of these principles in harnessing physical, financial , human and informational resources efficiently and effectively to achieve organizational goals.

Nature of Management
y Is an activity y Is a process y Is required for every type of organization y Is required at all organizational levels y Is goal oriented y Is intangible

Nature of Management
- Is a group effort - Is multi institutional - Is a global function - Is dynamic - Is a discipline - A generic function

Management
y The concept of management is as old as the human

race itself. y The basic ingredients of management are always at play whether we manage our lives or our business.

What does a manager do?

y Plans y Organises y Motivates y Communicates y Directs and co-ordinates y Controls

Management: example
y Let us consider a simple housewife to understand the

managerial functions: She appraises her household and its needs. She forecasts the needs of the household for a certain period. She takes stock of her resources and any constraints on these resources. (resource management)

Management: example
She plans and organizes her resources to obtain

maximum benefit out of these resources. She monitors and controls the household budget and the expenses and other activities. In a big house, she divides the work among other members and co-ordinates their activities. She encourages & motivates them to do their best in completing those activities. She is always in search for improvements in goals, resources & in means to attain these goals.

The Functions of Management

7-2

Managers

Planning activities to achieve the organization's objectives

Organizing resources and activities to achieve the organization s objectives

Staffing the organization with qualified people

Directing employees activities toward achievement of objectives

Controlling the organization s activities to keep it on course

Components of management
Human resources Physical resources

Managerial activities

Efficient & effective utilization

goals

Financial resources

Informational resources

Importance of management
y Optimum utilization of organizational resources y Attainment of organizational goals y Enables managers to think analytically and conceptually y Helps in balancing competing goals y Facilitates economic and social development y Helps reform government and society y Helps in bringing about social innovation y It is the dynamic, life-giving element in every organization coordinates present with future.

Managerial Functions
y Planning: A systematic process of reaching a desired

state by establishing goals and formulating strategies to achieve them.

y Define goals for future performance y How to get there? y What tasks needed? y What resources?

Lack of proper planning = Failure Planning determines an organization s direction. It is a rational & systematic way of making decisions today that will affect the future of the company.

Importance of planning
y Fulfills organizational responsibilities y Facilitates decision making y Develops managers y Promotes innovation y Facilitates control y Leads to success

Planning
y Planning involves selecting missions and objectives

and the actions to achieve them. y Planning precedes any other managerial function y Plans need to be made utilizing the least of the resources. y Planning is required in each and every job

How does a manager Plan?

Establish objectives Determining planning premises Develop Strategies Establish policies

Coordinate throughout the planning

Develop program for accomplishments Establish schedules and budgets

Develop preventive &/or contingent action Identify potential problems

Establish procedures

Planning - benefits
y y y y y y y

Stability to organizations Helps in goal attainment Helps in viewing the organization as a whole Optimum utilization of resources Guide for the future Reduces risk Satisfaction levels

Limitations of planning
y y y y y y y y y y y

Unwillingness of individuals to set goals Unwillingness to accept change Unwillingness to give up alternative goals Lack of organizational knowledge Lack of knowledge of environment Lack of confidence Too much priority in day to day work Lack of planning skills Constraints on resources Lack of information Group dynamics

Managerial Functions
y Organizing: The process of structuring and coordinating an
organization s resources to carry out the strategies formulated in the planning phase effectively and efficiently y Stated simply, determining what needs to be done and who is to do it y Organizing involves y Assignment of tasks y Grouping of tasks into departments/teams y Allocation of resources y Allocating the necessary authorities. y Updating management model
y y y

Situation Personnel Constraints

Organising Process
Step:1 Division Step: 2 Coordination

Step: 4 Flow of information

Step: 3 Control of tasks

Managerial Functions
y Directing

getting employees to achieve goals y Give them the plan y Communicate Goals (Why important?) *Communication and reassessment are the keys to success y Controlling: y The process of monitoring activities to ensure they are being accomplished as planned and of correcting any significant deviations Monitoring employee activities y Determining if on target (Feedback Loop) y Make course corrections as necessary
y
y

Re-plan, organize, direct, and monitor

Peter Drucker: What gets measured gets done.

Trust BUT Verify

Controlling Process
y Establish Performance

standards
y Monitor actual

performance
y Measure performance y Correct deviations from

standards

The Well Balanced Organisation

Management: a Science or an Art?

SCIENCE y Systematized body of knowledge including concepts, principles and theories. y Should have a method of scientific enquiry. y Should establish cause and effect relationship y Principles should be verifiable y Presence of causal relationship i.e Should ensure predictive results y Should have universal application SOFT/SOCIAL/IN-EXACT SCIENCE

Management: a Science or an Art?

y Art is the bringing about desired result through the application of skills y Denotes personal skills y Signifies practical knowledge y Helps in achieving concrete results y Creative in nature y Successful communication y Skilled performance

Managerial skills
y Technical skills y Interpersonal skills y Conceptual skills y Analytical / diagnostic skills y Communication skills y Political skills

Technical skills
y Involve the use of knowledge, methods and techniques

in performing a job effectively. y Specialized knowledge & expertise. y Highly necessary at the at the lower level of the management & desirable at the middle management level.

Interpersonal skills
y Ability to work with other people amicably. y Involves patience, trust & a sense of belongingness and

dedication. y Ability to lead and motivate and effectively interact with others.

Conceptual skills
y Ability to view the organization as a whole as well as a

system comprised of several subsystems integrated into a single unit. y Highly needed at the top management level because they have continuous contact with the outside world. y Requires an organized thinking process that deals with understanding of various functions of an organization , their interdependence & relationship with the outside world.

Diagnostic skills
y Manager s analytical ability to logically & objectively

analyze a problem or opportunity to arrive at a feasible and optimal solution. y Overlaps with other skills because a manager needs to use technical, human, conceptual or political skills to solve the problem.

Communication skills
y Important at all the levels of management. y Eliminates delays, misunderstandings, confusions,

distortions and conflicts. y Improves co-ordination & control.

Political skills
y Ability to get your own way without seeming to be selfish or self oriented. y Ability to get your share of power and authority & use it without fear of losing it. y It requires impressing the right people & then skillfully using these connections to your own advantage. y Most important at the middle level as middle managers always aspire to reach the top levels of management.

How does a manager get work done?

y Allocate and co-ordinate work y Delegate responsibility (giving details of what needs to

be done) y Communication y Co-operation and encouraging participation y Motivation

What qualities does a manager need?

y y y y y y y

Judgment Initiative Integrity Energy Foresight Decisiveness Dependability

y y y y y y

Fairness Ambition Emotional stability Co-operation Objectivity Human Relations skills

Fortune (American business journal)

Qualities of a good manager?

A good manager = A good leader

Edward and Townsend (1958)

Qualities of a good manager (..contd.)

y y y y y y

Strength and willingness to work hard Perseverance and determination An understanding of the market place and finances Audacity and willingness to take risks Ability to inspire enthusiasm and co-operation Toughness

Thank you