Management process is a subject by itself. In that the overview of management is shared with you.

1. MANAGEMENT PROCESS
Overview
H Ramasubramanian
(HRS)

2. OVERVIEW OF MANAGEMENT
Definitions of management
Key aspects of management process
Resource, Management Function, Attainment of Organisational
Goals
Role of management,
including Mintzberg’s 10 managerial roles;
Functions of management:
Planning, organising, staffing, leading, controlling;
Levels of management:
Top, middle, and first levels, functions at various levels of
management
Top Management responsibilitiesleader, vision, decisions, management, board development;
middle management;
first level
Approaches to management:
• Empirical/ case approach;
• Interpersonal behaviour approach;
• Group behaviour approach;
• Cooperative social systems approach;
• Socio clinical system approach;
• Contingency/ situational approach;
• Managerial roles approach;
• McKinsey’s 7S framework;
• Operational approach.
• Their characteristics and evaluation.
Management skills and organisational hierarchy:
• Technical skills;
• Human skills;
• Conceptual and design skills;
• Their relative combinations at various managerial levels.
Overview of management - MANGEMENT PROCESS
2

3. Overview of management - Definition of Management
•
Definition
– The organisation and coordination of the activities of an enterprise in accordance
with certain policies and in achievement of clearly defined objectives.
– Includes as one of the factors of production – along with machines, materials and
money.
• The basic task of a management – Peter Drucker
1. Marketing
2. Innovation
• Marketing: Is a key essence for business success
• Innovation: Product / Process innovation is a central strategic marketing issue.
•
•
Key aspects of management process
Resource: Manipulation of the human capital of an enterprise.
– This implies
• effective communication
• Human motivation
• Successful progress or system outcome.
Overview of management - MANGEMENT PROCESS
3

4. Overview of management - Definition of Management
• Manipulation: Not of a mechanism (machine or automated program)
• Not the herding of animals
• Management must have humans, communication and a positive enterprise
endeavour.
Management Function
– Henry Fayol (1841-1925) one of the most influential contributor to
modern concept of management. – 6 functions
1. Forecasting
2. Planning
3. Organising
4. Commanding
5. Coordinating
6. Controlling
– Towards the end of 20th century, it has become six separate branches
1. Human Resource management
2. Operations / Production management
3. Strategic management
4. Marketing management
5. Financial management
6. Information Technology management for MIS
Overview of management - MANGEMENT PROCESS
4

5. Overview of management - Definition of Management
•
Management Function
Basic
Functions
What it is
Forecasting
What is the need of the market, when, how ……
Planning
Deciding what needs to happen in the future. Generate plans for action.
Organising
(Implementation)pattern of relationships among workers, making optimum use
of the resources required to enable the successful carrying out of plans.
Staffing
Job analysis, recruitment and hiring for appropriate jobs.
Leading /
directing
Determining what must be done in a situation and getting people to do it.
Controlling / Checking progress against plans.
monitoring:
Motivation:
Motivation is also a kind of basic function of management, because without
motivation, employees cannot work effectively. If motivation does not take
place in an organisation, then employees may not contribute to the other
functions (which are usually set by top-level management).
Overview of management - MANGEMENT PROCESS
5

6. Overview of management - Definition of Management
•
Attainment of Organisational Goals
– Define goals and plans and explain the relationship
– Explain the concept of organisation mission
– How the mission influences the goal setting and planning
– Define the characteristics of effective goals
– GOAL: a desired future state that the organisation attempts to realise.
– PLAN: a blue print specifying the resource allocation, schedules and other actions
necessary for attaining goals.
Mission
• concerns what an organization is all about.
• answers the questions such as:
– who we are,
– who are our customers,
– what do we do and
– how do we do it.
Overview of management - MANGEMENT PROCESS
6

7. Overview of management - Definition of Management
•
Attainment of Organisational Goals
Mission Statement
Strategic Goals / Plans
Senior Management
Organisation as a whole
Tactical Goals / Plans
Middle Management
Major Divisions, Functions
External Message
Legitimacy for:
Investors
Suppliers
Customers
Community
Internal Message
Legitimacy,
Motivation
Guides
Rationale
Standards
Operational Goals / Plans
Lower Management
Departments, individuals
Overview of management - MANGEMENT PROCESS
7

8. Overview of management - Definition of Management
•
•
Attainment of Organisational Goals
Purposes of goals & plans
– Legitimacy:
• An organisation mission describes what the organisation stands for and its
reason for existence.
• It symbolises legitimacy to external audience such as investors, suppliers and
customers
– Source of motivation and commitment
• Goals and plans facilitates employees’ identification with the organisation and
help motivate them by reducing uncertainty and clarifying what they should
accomplish.
– Goals provides the “why” of an organisation existence
– Plan tells “how”
– Guides to action
• Goals and plans provide a sense of direction. They focus attention on specific
targets and direct employee efforts toward important outcome.
Overview of management - MANGEMENT PROCESS
8

9. Overview of management - Definition of Management
•
•
Attainment of Organisational Goals
Purposes of goals & plans
– Rationale for decisions
• Through goal setting and planning, managers learn what the organisation is
trying to accomplish.
– Standard of performance
• Because goals define desired outcomes for the organisation, they also serve as
performance criteria.
Overview of management - MANGEMENT PROCESS
9

10. Overview of management - Definition of Management
Mission
Manufacture both standard and custom metal products for various
applications in the machine tool industry
Strategic Goals




President
12% Return On Investment
5% Growth
No employee layoff
Excellent service to the customer
Tactical Goals




Finance VP
Keep outstanding accounts below Rs 5 Lacs
Keep borrowing below Rs 40 Lacs
Provide monthly budget statements for departments.
Have delinquent accounts of no more than 2% of total
Production VP
 Manufacture 10 lac products at an average cost of Rs 20
 Increase manufacturing productivity by 2%
 Resolve employee grievances within 3 working days
Operational Goals




Accounts Manager
Issue invoices within 5 days of sale
Check new customers’ credit within 1 working day
Allow no account to be overdue more than 5 months
Call delinquent accounts weekly
Overview of management - MANGEMENT PROCESS
Production Manager
 Produce 1.5 lac standard units at average cost of Rs 17
 Have machine downtime of less than 7%
 Respond to employee grievances within 24 hours
10

11. Overview of management - Definition of Management
•
Basic roles
– Interpersonal: roles that involve coordination and interaction with employees
– Informational: roles that involve handling, sharing, and analysing information
– Decisional: roles that require decision-making
Mintzberg's Management Roles
The ten roles are:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Figurehead.
Leader.
Liaison.
Monitor.
Disseminator.
Spokesperson.
Entrepreneur.
Disturbance Handler.
Resource Allocator.
Negotiator.
Overview of management - MANGEMENT PROCESS
Category
Interpersonal
Informational
Decisional
Role
Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator
11

12. Overview of management - Definition of Management
Mintzberg’s Managerial Roles
Category
Role
Activity
Examples
Perform social and legal
duties, act as symbolic
leader
Greet visitors, sign legal documents,
attend ribbon cutting ceremonies,
host receptions, etc.
Leader
Direct and motivate
subordinates, select and
train employees
Includes almost all interactions with
subordinates
Liaison
Interpersonal
Figurehead
Establish and maintain
Business correspondence,
contacts within and outside participation in meetings with
the organisation
representatives
of other divisions or organisations.
Overview of management - MANGEMENT PROCESS
12

13. Overview of management - Definition of Management
Mintzberg’s Managerial Roles
Category
Role
Activity
Examples
Seek and acquire work- Scan/read trade press, periodicals,
related information
reports; attend seminars and
training; maintain personal contacts
Disseminator
Informational
Monitor
Send memos and reports; inform
Communicate/
disseminate information staffers and subordinates of
decisions
to others within the
organisation
Spokesperson
Communicate/transmit Pass on memos, reports and
information to outsiders informational materials; participate in
conferences/meetings and report
progress
Overview of management - MANGEMENT PROCESS
13

14. Overview of management - Definition of Management
Mintzberg’s Managerial Roles
Category
Role
Activity
Examples
Identify new ideas and Implement innovations; Plan for the
initiate improvement
future
projects
Disturbance
Handler
Deals with disputes or Settle conflicts between subordinates;
problems and takes
Choose strategic alternatives;
corrective action
Overcome crisis situations
Resource
Allocator
Decide where to apply Draft and approve of plans, schedules,
resources
budgets; Set priorities
Negotiator
Decisional
Entrepreneur
Defends business
interests
Overview of management - MANGEMENT PROCESS
Participates in and directs negotiations
within team, department, and
organisation
14

15. Overview of management - Definition of Management
In the real world, these roles overlap and
• a manager must learn to balance them in order to manage effectively.
• While a manager’s work can be analysed by these individual roles,
• in practice they are intermixed and interdependent.
• According to Mintzberg:
• “The manager who only communicates or only conceives never gets anything
done, while the manager who only ‘does’ ends up doing it all alone.”
Levels of management
• Most organisations have three management levels
first-level, middle-level, and top-level managers.
• These managers are classified in a hierarchy of
authority, and perform different tasks.
• In many organisations, the number of managers
in every level resembles a pyramid.
Overview of management - MANGEMENT PROCESS
15

16. Overview of management - Definition of Management
Top-level managers
• The top consists of the board of directors (including non-executive directors and
executive directors), president, vice-president, CEOs and other members of the C-level
executives.
• They are responsible for controlling and overseeing the entire organisation.
• They set a tone at the top and develop strategic plans, company policies, and make
decisions on the direction of the business.
• In addition, top-level managers play a significant role in the mobilisation of outside
resources and are accountable to the shareholders and general public.
• The board of directors is typically primarily composed of non-executives which owe a
fiduciary (trust, confidential, responsible) duty to shareholders and are not closely
involved in the day-to-day activities of the organisation, although this varies depending
on the type (e.g., public versus private), size and culture of the organisation.
• These directors are theoretically liable for breaches of that duty and typically insured
under directors and officers liability insurance.
• Fortune 500 directors are estimated to spend 4.4 hours per week on board duties, and
median compensation was Rs 1.2 crore in 2010.
Overview of management - MANGEMENT PROCESS
16

17. Overview of management - Definition of Management
Top-level managers
• The board sets corporate strategy, makes major decisions such as major acquisitions,
and hires, evaluates, and fires the top-level manager (Chief Executive Officer or CEO)
and the CEO typically hires other positions.
• However, board involvement in the hiring of other positions such as the Chief Financial
Officer (CFO) has increased.
• In 2013, a survey of over 160 CEOs and directors of public and private companies found
that the top weaknesses of CEOs were "mentoring skills" and "board engagement", and
10% of companies never evaluated the CEO.
• The board may also have certain employees (e.g., internal auditors) report to them or
directly hire independent contractors; for example, the board (through the audit
committee) typically selects the auditor.
• In addition, the CEO is responsible for executing and determining (within the board's
framework) the broad policies of the organisation.
• Executive management accomplishes the day-to-day details, including: instructions for
preparation of department budgets, procedures, schedules; appointment of middle level
executives such as department managers; coordination of departments; media and
governmental relations; and shareholder communication.
Overview of management - MANGEMENT PROCESS
17

18. Overview of management - Definition of Management
Middle-level managers
• Consist of general managers, branch managers and department managers.
• They are accountable to the top management for their department's function.
• They devote more time to organisational and directional functions.
• Their roles can be emphasised as
– executing organisational plans in conformance with the company's policies and the
objectives of the top management,
– they define and discuss information and policies from top management to lower
management, and
– most importantly they inspire and provide guidance to lower level managers towards
better performance. Their functions include:
– Design and implement effective group and inter-group work and information systems.
– Define and monitor group-level performance indicators.
– Diagnose and resolve problems within and among work groups.
– Design and implement reward systems that support cooperative behaviour.
Overview of management - MANGEMENT PROCESS
18

19. Overview of management - Definition of Management
First-level managers
• Consist of supervisors, section leads, foremen, etc.
• They focus on controlling and directing.
• They usually have the responsibility of
– assigning employees tasks,
– guiding and supervising employees on day-to-day activities,
– ensuring quality and quantity production,
– making recommendations, suggestions, and up channeling employee problems, etc.
• First-level managers are role models for employees that provide:
– Basic supervision
– Motivation
– Career planning
– Performance feedback
Overview of management - MANGEMENT PROCESS
19

20. Overview of management - Management skills and organisational hierarchy:
Management skills and organisational hierarchy:
• A manager’s job is varied and complex.
• Hence, managers need certain skills to perform the functions associated with their jobs.
• During the early 1970s, Robert K. Kalz identified three kinds of skills for administrators.
• These are technical, human and conceptual skills.
• A fourth skill – the ability to design solutions – was later added to the above mentioned
skills.
Technical Skills
• Technical skills refer to the ability of a person to carry out a specific activity.
• In order to do so, one needs to have knowledge of methods, processes and procedures.
• Engineers, computer specialists, accountants and employees in manufacturing
departments all have the necessary technical skills for their specialized fields.
• Technical skills are essential for first-level managers.
• For example, employees at the operational level work with tools, and their supervisors
must be able to teach them how to perform the tasks assigned to them using these tools.
• First-level managers spend much of their time in training subordinates and clarifying
doubts in work-related problems.
Overview of management - MANGEMENT PROCESS
20

21. Overview of management - Management skills and organisational hierarchy:
Human Skills
• Human skills or interpersonal skills refer to the ability of a person to
work well with other people in a group.
• It is the ability to lead, motivate, and communicate with people to accomplish certain
objectives.
• Human skills are of paramount importance in the creation of an environment, in which
people feel comfortable and are free to voice their opinions.
• These skills aid employees during interaction with their supervisors, peers and people
outside the work unit such as suppliers, customers and the general public.
• These skills are important for all levels in the organization.
Conceptual Skills
• Conceptual skills refer to the ability of a person to think and
conceptualise abstract situations.
• It is the ability to understand and coordinate the full range of corporate objectives and
activities.
• These skills are most important at the top management level, as top-level managers
have the greatest need to see the “big picture,” to understand how the various parts of
the organization relate to one another and associate the organization with the external
environment.
Overview of management - MANGEMENT PROCESS
21

22. Overview of management - Management skills and organisational hierarchy:
Design Skills
• Design skills refer to the ability of a person to find solutions to
problems in ways that would benefit the organisation.
• Top managers should not only recognize a problem but also suggest ways to overcome
them.
• If they only see the problem, they become mere “problem watchers,” and will prove
ineffective.
• Managers at upper organisational levels should be able to design a rational and feasible
solution to the problem by considering the various internal and external factors.
Overview of management - MANGEMENT PROCESS
22

23. Overview of management - Management skills and organisational hierarchy:
Relative Need for the Main Categories of Skills
• First-level managers require more technical skills in order to supervise operational
employees.
• They need to have good human skills for they need to interact with their subordinates on
a regular basis.
• However, conceptual skills are usually not very essential for the managers at the
supervisory level.
• The need for technical skills is lesser
at the middle-management
level. Here, human skills
and conceptual skills are
more significant.
• At the top-management level,
conceptual, design and
interpersonal skills are of
greatest importance;
there is little need for
technical skills.
Overview of management - MANGEMENT PROCESS
23

24. Overview of management - Management skills and organisational hierarchy:
Management skills and organisational hierarchy:
• Technical skills;
• Human skills;
• Conceptual and design skills;
• Their relative combinations at various managerial levels.
Technical skills
expertise in one's particular functional area.
Interpersonal
used to communicate, motivate, mentor and delegate
Conceptual
used to analyse complex situations.
Diagnostic
ability to visualise most appropriate response to a situation
Political
used to build a power base and establish connections
Overview of management - MANGEMENT PROCESS
24

25. Overview of management - Approaches to management
Approaches to management:
• Since based on cases and past experiences, it has not contributed anything fundamental
to the development of management as a discipline because of contradictions in various
management experiences.
• The proposition that a successful technique applied in the past will be good for future is
untenable.
• 1) Management is not based on precedents
• 2) Situations can not be exactly identical.
Approach
Empirical/
case
approach
What it is
Study of
managerial
experiences and
cases
Overview of management - MANGEMENT PROCESS
Features
–Study of Managerial
Experiences
–Managerial experience
passed from industry to
students for continuity in
knowledge management.
–Study of Successful &
failure cases help
practicising managers.
–Theoretical research
combined with practical
experiences.
Uses
Learning through
experience of
others
Limitations
No Contribution for
the development of
management as a
discipline
Situations of past
not the same as
present.
25

26. Overview of management - Approaches to management
Approaches to management:
Approach
What it is
Organisation as
people
a) Interpersonal
Behaviour
Interpersonal
Approach
behaviour
Individual
approach
Psychology
b) Group
Behaviour
ApproachOrganisation
Overview of management - MANGEMENT PROCESS
Features
Uses
–Draws heavily from
psychology & sociology.
Demonstrates how
–Understand human
management can
relations.
be effective by
–Emphasis on greater
applying knowledge
productivity through
motivation & good human of organisation
behaviour.
relations
–Motivation, leadership,
participative management
& group dynamics are core
of this approach.
Limitations
Treating
management as
equivalent to human
behaviour.
Talks about
organisation &
organisation
behaviourin vague
terms.
26

27. Overview of management - Approaches to management
Approaches to management:
Approach
What it is
Features
Uses
Social System, a system
of cultural relationship
Relationship exist between
external and internal
Organisational
environment of the
decisions should
organisation.
Cooperative Understanding the Formal Organisationnot be based on
social
behaviourof
desires of one
Cultural relationships of
systems
groups &
group alone but
social groups
approach
individuals.
should reflect the
working within the
interests of all the
organisation.
Co-operation necessary parties.
Efforts directed -harmony
between goals of
organisation & goals of
groups.
Overview of management - MANGEMENT PROCESS
Limitations
Broader than
management & its
practice
Overlooks many
management
concepts principles
& techniques that
are important to
practising managers.
27

28. Overview of management - Approaches to management
Approaches to management:
Approach
Socio
technical
system
approach
What it is
Features
Uses
Organisational
effectiveness
Social & technical systems depends on looking
interact. This interaction is at people and their
important for
interactions and
The socioorganisational
also at the
technical systems
effectiveness.
technical
approach of
environment in
management
which they operate.
views an
organization as a
combination of 2 –Organisation–governed Change in
systems – a social by social laws as well as technology
psychological forces.
system and a
technical system.
–Technical aspects of
organisation modified by
the social aspects.
Overview of management - MANGEMENT PROCESS
Limitations
Lack of total
managerial view
Concentrate on
factory or other
production system
No new contribution
People aware about
Change in social
the role of
interactions at work technology of the
place
social system of the
work place
28

29. Overview of management - Approaches to management
Approaches to management:
Approach
W hat it is
Features
it is the most recent development in the field of
management.This attempts to integrate all the management
approaches.
In developing
management
concepts the
Appropriateness of a
environment within
management technique
which the
depends on situation.
concepts are to be
applied has to be
considered.
Contingency /
Internal
situational
environment
approach
Structure,
Processess,
Technology.
If -Then approach.
External
Environment
Social,
Economic,
Political etc.
Overview of management - MANGEMENT PROCESS
29

30. Overview of management - Approaches to management
Approaches to management:
Approach
What it is
Management is a
process.
Universalist/
Classist/
Traditional
Approach.
Features
Functions of managers
remain same
Functions of management
Uses
Limitations
core of good management
Operational
Flexible & practical but not universal.
This concentrates Framework of
approach.
on the role and management
functions of
managers and
Principles of management
distills the
principles to be
followed by them.
Overview of management - MANGEMENT PROCESS
30

31. Overview of management - Approaches to management
Approaches to management:
Approach
What it is
Features
Uses
Problem Solving
mechanism with the help of
mathematical tools and
Managementtechniques.
logical entity
Problems Expressed in
Provided
mathematical symbols.
Mathematical
Variables in management Exactness in
approach
management
–quantified.
Scope -Decision making, discipline.
•Actionssystem analysis & some
Mathematical
aspect of human
symbols,
behaviour.
Relationships and
Tools -Operations
measurable data.
research, simulation etc.
Overview of management - MANGEMENT PROCESS
Limitations
Not a separate
school
Technique in
decision making.
31

32. Overview of management - Approaches to management
Approaches to management:
Approach
What it is
Features
Uses
Management is decision
making.
Manager
Members of Organisation –Decision maker
decision makers and
Managerial
problem solvers.
roles
Decision making -control Tools for making
approach or
suitable decisions
•Organisation–Dec point in management
Decision
ision making unit. Increasing efficiency -the in organisations.
Theory
quality of decision
approach
MIS, process & techniques
of decision making are the
subject matter of study.
Overview of management - MANGEMENT PROCESS
Limitations
Does not take the
total view of
management
Decision making one aspect of
management
32

33. Overview of management - Approaches to management
Approaches to management:
• McKinsey’s 7S framework
• It is a management model developed by well-known business consultants Robert H.
Waterman, Jr. and Tom Peters in the 1980s. This was a strategic vision for groups, to
include businesses, business units, and teams.
• The 7S are
– structure,
– strategy,
– systems,
– skills,
– style,
– staff and
– shared values.
• The model is most often used as a tool to assess and monitor changes in the internal
situation of an organization.
• The model is based on the theory that,
– for an organization to perform well,
– these seven elements need to be aligned and mutually reinforcing.
Overview of management - MANGEMENT PROCESS
33

34. Overview of management - Approaches to management
• McKinsey’s 7S framework
Strategy
Way to achieve competitive
advantage
Structure
Ways in which task and people are
specialised and divided and authority
is distributed.
Systems
Formal processes and proceedures
to manage the organisation
Staffing
People, their background and
competencies
Skills
Style
Shared
Values
Distinctive competencies in the
organisation
Leadership style of top mangement
and overall operating style of
organisation
Core values shared in the
organisation and serve as guiding
principles of what is important
Overview of management - MANGEMENT PROCESS
Low-cost strategy through economic
production or delivery
Product differentiation through distinct features
or innovative sales
Four main structures
Functional Structure
Divisional Structure
Matrix Structure
Network Structure
Performance Measurements
Reward Systems
Planning
Budgeting
Resource Allocation
Information System
Distribution
Organisation's approach to recuitment,
selection, socialisation, training and employee
development
Can be of people, Management Practices,
systems and / or technologies.
Impacts norms followed by people, how they
work and interact with each other and
customers.
Helps focus attention and provides a broader
sense of purpose.
34

35. Overview of management - Approaches to management
• McKinsey’s 7S framework
– So, the model can be used to help identify what needs to be realigned to improve
performance, or
– to maintain alignment (and performance) during other types of change.
• Whatever the type of change –
– restructuring,
– new processes,
– organizational merger,
– new systems,
– change of leadership, and so on
• the model can be used to understand how the organizational elements are interrelated,
and so ensure that the wider impact of changes made in one area is taken into
consideration.
Using the 7-S model
Each S is consistent with and reinforces the other S's
Recognise the full range of elements that need to be changed
and focus on the ones that will have the greatest effects.
All seven variables are interconnected- it is decided by diagnosis
of the alignment of the organisation.
Overview of management - MANGEMENT PROCESS
35

36. Overview of management - Approaches to management
• McKinsey’s 7S framework
• Objective of the model:
– To analyse how well an organization is positioned to achieve its intended objective
• Usage:
– Improve the performance of a company
– Examine the likely effects of future changes
within a company
– Align departments and processes during
a merger or acquisition
– Determine how best to implement a
proposed strategy
• The Seven Interdependent Elements
– The basic premise of the model is that there are seven internal
aspects of an organization that need to be aligned if it is to be successful
• Hard Elements: (Easier to change) Strategy, Structure, Systems
• Soft Elements: (Harder to change directly and take longer) Shared Values, Skills,
Style, Staff
Overview of management - MANGEMENT PROCESS
36