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Ch - 1 Introduction.pptx

  1. Chapter one Over view of management 1
  2. Definitions of Management There is no single, comprehensive and universally accepted definition of management. This holds true due to the following major reasons among others: • Different scholars view management from different perspectives • It has many areas of applications. It is applied in profit, not for profit, private, government, social and business organizations. • Management as a discipline is recent in origin and hence there are a number of theories being added to the field. 2
  3. cont’d • It is so broad that is difficult to encompass all its aspects in a single definition. • It has undergone changes because of the developments in behavioral science and quantitative techniques. • There are different approaches to management, definitions change as the environment changes. The environment of an organization changes due to changes in the political, social, economic, ethical and others factors. 3
  4. The following are among the most widely accepted definitions of management: • Management is … the organ of society speciafically charged with making resources productive - Peter Drucker • Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims - Koontz and Weihrich. • Management is a distinct process of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources - Terry and Franklin. • Management is the art of getting things done through people effectively and efficiently - Mary Parker Follett.  Effectiveness: is a way that produces a desired result.  Efficiency: is being capable of achieving the desired result with the minimum use of resources like time, effort and so on4
  5. Significance of Management  Encourages Initiative: do the right thing at the right time without being told or influenced by the superior. The employees should be encouraged to make their own plans and also to implement these plans.  Encourages Innovation: Innovation brings new ideas, new technology, new methods, new products, new services, etc. This makes the organization more competitive and efficient.  Facilitates Growth And Expansion: Management makes optimum utilization of available resources. This results in growth, expansion and diversification of the organization. 5
  6. Cont’d  Improves Life Of Workers: Management shares some of its profits with the workers. It provides the workers with good working environment and conditions. It also gives the workers many financial and non-financial incentives.  Improves Corporate Image: If the management is good, then the organization will produce good quality goods and services. This will improve the goodwill and corporate image of the organization.  Motivates Employees: Management motivates employees by providing financial and non-financial incentives. These incentives increase the willingness and efficiency of the employees. This results in boosting productivity and profitability of the organization. 6
  7. Cont’d  Optimum Use of Resources: It makes optimum (best) use of these resources. This brings best results to the organization.  Reduces Wastage: Management reduces the wastage of human, material and financial resources. Wastage is reduced by proper production planning and control. If wastage is reduced then productivity will increase.  Increases Efficiency: Efficiency is the relationship between returns and cost. Management uses many techniques to increase returns and to reduce costs. Higher efficiency brings many benefits to the organization.  Improves Relations: Management improves relations between individuals, groups, departments and between levels of management. Better relations lead to better team work. Better team work brings success to the organization. 7
  8. Cont’d Reduces Absenteeism and Labor Turnover: Absenteeism means the employee is absent without permission. Labor turnover means the employee leaves the organization. Labor absenteeism and turnover increases the cost and causes many problems in the smooth functioning of the organization. Encourages Team Work: Management encourages employees to work as a team. It develops a team spirit in the organization. This unity brings success to the organization. 8
  9. An Overview of Managerial Functions Management functions are the activities that managers are supposed to perform as result of the position held in the organization. Regardless of the type and size of firms, all managers have certain basic functions- planning, organizing, staffing, leading and controlling. The scope and nature of these functions vary from one management level to another and from firm to firm. these functions are briefly described below. 9
  10. A. Planning: Planning is the first and foremost function in management. Also it is one of the fundamental and pervasive of all functions. Planning is a process of establishing goals and a suitable course of action for achieving these goals. It is a decision making process that determines what to do, how to do it, why it is done, when it is to be done, by whom it is to be done and with what resources. It serves as a bridge that connects the present with the future as; in planning what should be done in the future is determined today. It is a conscious determination of future actions. 10
  11. B. Organizing  Organizing is the process of distributing the work among the group members and establishing the relationships b/n them.  It involves identification of activities to be carried out, grouping these activities into working units, assignment of responsibilities to each unit with corresponding authority.  It is also the process of combining and integrating resources for achieving the objectives. 11
  12. C. Staffing  Staffing is the process of ensuring that employees are recruited, selected, trained, and developed, and rewarded for successful accomplishment of goals.  It is a continuous and vital function of management which involves filling and keeping filled positions in a given organizational structure.  It is placing right person for right position. D. Leading/Directing Leading involves directing, influencing and motivating employees to perform essential tasks. Leading is the action or implementation phase which emanates from the planning and organizing steps. Leading encompasses three essential elements: motivation, leadership and communication and main function of leading is producing other leaders by being role model. 12
  13. E. Controlling Controlling is the measuring and correcting of activities of subordinates to ensure that events conform to plans or set standards. It measures performance against goals and plans. Controlling function involves the following elements; • Establishing standards of performance • Measuring current performance • Comparing performance to the established standards • Taking corrective actions, if deviations are detected. 13
  14. Management Levels and Types of Managers • Although all managers may perform the same basic duties and play similar roles, the nature and scope of their activities differ from level to level. • Here level refers to hierarchical arrangements of managerial positions in an organization. • The number of managerial levels in an organization depends on the size of the organization. The larger the size, the more will be the number of levels and the smaller the organization in size, the fewer will be its levels. • In most organizations, however, there are three distinct levels as depicted in the figure below. 14
  15. Level of management graphically Top level Middle level First line/Lower level 15
  16. 1. First Line/ Lower Level Managers • First Line/ Lower Level Managers are managers who are responsible for the work of operating employees only and do not supervise other managers. • They are the lowest level of management in the organizational structure. • Typical titles in this level include office managers, section chief, superintendents, foremen, chief clerks, supervisors and the like. • First line managers often called ‘supervisors’. 16
  17. Duties and responsibilities of first line managers Planning of day to day activities Assigning operating employees to specific tasks Keeping a watch on workers’ performance Sending reports and statements to superiors Maintaining close and personal contact with workers Issuing instructions at the work place, following up, motivating and evaluating workers. 17
  18. Middle Level managers • Middle Level managers are managers who direct the activities of lower level managers and sometimes extend to supervision of operating employees. • The middle managers are known in many organizations as the department managers, plant managers, or directors of operations. Duties and Responsibilities of Middle Level managers  Acting as intermediary between top and first line managers  Translating long term plans into medium term plans  Developing specific targets in their areas of responsibility  Coordinating inputs, outputs and productivity of operating level managers  Developing specific schedules to guide action and facilitate control 18
  19. Top Level Managers  Top Level Managers are responsible to the overall management of the organization.  They establish operating policies and guide the organization’s interactions with its environment. Typical titles include chief executive officers (CEOs), president, senior vice president, general manager and the like. Duties and Responsibilities of Top Level managers • Establishing broad objectives and designing major strategies and polices for the achievement of long term objectives • Providing effective organizational structure that ensures integration • Providing overall leadership, direction and making overall control of the organization • Dealing with external parties such as the government, community, businesses by representing the organization • Analyzing the changes in the external environment and responding to them. 19
  20. Managerial Roles and Skills A. Managerial Skills • Regardless of the level of management, managers ought to possess and seek to further develop many critical skills. • Skill is an ability or proficiency in performing particular task. • Management skills are learned and developed. • There are three managerial skills, such as: 1. Technical skills 2. Human skills 3. Conceptual skills 20
  21. 1. Technical skills • Technical Skill is the ability to use specific knowledge, techniques, and resources in performing works. • It is knowledge and proficiency design & use methods, processes, and procedures. • it involves working with tools and specific machines. • Normally technical skills are more important at lower level of management and its importance decreases as we go up the ladder. • This usually includes specialized knowledge and the ability to perform with that specialty 21
  22. 2. Human skill  Human skill is the ability to work with people.  It is cooperative effort, team work and creation of an environment in which people feel secured and free to express their opinions.  It is also the ability to resolve conflict.  Generally, human skill is the skill to motivate and create enthusiasm/eagerness in the minds of followers. Because managers must accomplish much of their work through the efforts of other people, their ability to work with, motivate, counsel and understand others is most important.  Therefore, this skill is equally essential at all levels of management. 22
  23. 3. Conceptual skill • Conceptual skill is the ability to see the “big picture”, to recognize significant element in a situation and to understand the relationship among elements. • These skills are the abilities needed to view the organization from a broad perspective and to see the interrelationships among its components. • Therefore, they are more important to top level executives than to middle managers and supervisors. • To conceptualize requires imagination, broad knowledge, and the mental capacity to conceive abstract ideas. • Conceptual skills are important in strategic planning. 23
  24. The relationship between management levels and skills Top middle Lower Conceptual skills Human skills Technical skills 24
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  26. B. Managerial Roles • One of the most frequently cited studies of managerial roles was conducted by Henry Mintizberg. • He stated that managers perform ten different but closely related roles and he categorized them into three broad groups. 1. Interpersonal role 2. Informational role 3. Decisional role 26
  27. 1. Interpersonal role • There are three interpersonal roles such as figurehead, leader and liaison roles. • These roles grow from the manager’s formal authority and focus on interpersonal relationships. • These roles require interaction with others in regular basis. 27
  28. A. Figurehead role  This role is played by managers who are required to perform duties of ceremonial and symbolic in nature.  It is the most basic and the simplest of all managerial roles. A president who greets a touring dignitary/notable, a mayor who presents a key of the city to a local hero, the supervisor who attends the wedding of a machine operator, a sales manager who takes an important customer to lunch, and a manager who presents certificates to outperforming employees all are performing ceremonial duties important to the organization’s image and success.  While these duties may not seem important, they are expected of managers as they signify management’s concern for employees, customers and to the society at large. 28
  29. B. Leadership Role  the leadership role involves responsibility for directing and coordinating the activities of subordinates in order to accomplish organizational objectives.  Some aspects involve motivating subordinate to meet the organization’s goals and relate to creating a vision that a company’s employees identify with. C. Liaison Role  There internal and external liaison role  this role refers to dealing with people outside the organization such as clients, government officials, customers and suppliers; it is called external liaison role  It also refers to dealing with managers in other departments, staff specialists, and other department’s employees; it is called internal liaison role 29
  30. 2. Informational role • Effective managers build networks of contacts for sharing information. Because of these contacts, managers emerge as the nerve center system of their organization. • The following three roles describe the informational aspects of managerial work: I. Monitor role  This role involves seeking out, receiving and screening information. Just as a radar unit scans the environment, managers scan their environment for information that may affect their organization.  The information received is oral-gossip or hearsay, formal meetings. 30
  31. II. Disseminator role  Here the manager shares information with subordinates and other pertinent members.  Sometimes the manager may pass along special or ‘privileged’ information to certain subordinates who would not originally have access to it  In practice, passing information along subordinates is often difficult and time consuming. Therefore, a manager must decide which and how much information will be useful. 31
  32. III. Spokesperson Role • In the spokesperson role managers transmit information to others, especially those outside the organization. • The manager is a person who speaks for his or her work unit/organization or to people outside the work unit. • Here the manager represents the unit to other people. 32
  33. 3. Decisional Role: • Decisional roles are managers use information to make decisions about when and how to commit their organization to new objectives and actions. • Decisional roles are perhaps the most important of the three categories of roles. • Managers are the core of the organization’s decision making system as they play the following four decisional roles: 33
  34. • Entrepreneurial Role - this role involves designing and initiating planned changes in order to improve the organization’s position. Managers play this role when they initiate new projects, launch a survey, test a new market, or enter into new business. • Disturbance Handler Role: this role is played by managers when they deal with problems and changes beyond their immediate control. Typical problems include labor strikes, bankruptcy of major suppliers, or breaking of contracts by customers. Sometimes disturbances may arise because a poor manager ignores the situation until it becomes a crisis. However, even good managers cannot possibly anticipate all the consequences of their decisions or control the actions of others. 34
  35. • Resource Allocator Role: this role is about choosing among competing demands for money, equipment, personnel, and other’s demand on manager’s time. What portion of the budget should be earmarked for advertising and what portion for improving an existing product line? Should the firm add a second shift or pay overtime to handle new orders? Whether to automate certain plants or close others requires performing such a role. • Negotiator Role: closely linked to the resource allocator role is the negotiator role. In this role managers meet and discuss their differences with individuals or groups for the purpose of reaching an agreement. Negotiations are an integral part of a manager’s job. They are especially tough when a manager must deal with others like unions and political action groups who do not share the manager’s objectives. 35
  36. Universality of Management • Universality of management refers to the transferability of its principles, techniques, functions and skills from one time, place or job to the other. • All these management practices are equally practicable and applicable everywhere in the world irrespective of the nature of the job, differences in customs, habits and social laws. • Managerial functions and techniques can be practiced in every organized effort. Whether it is a business, shop, industry, government office, education institutions, social, profit making and non-profit making organizations, management principles, functions and techniques are profitability and productively applied. • A successful manager of a company or a field can be equally successful in the other. That is why a manager of a company can be safely transferred from one department, company or are to another. 36
  37. Is Management Science, Art or Profession  The question whether management is a science, art or profession is put to debate quite frequently. There are arguments on both sides. Is management is science?  Properties of Science: Science is a systematized body of knowledge based on certain principles, capable of general application.  This knowledge is obtained through the process of observation, experimentation and testing.  Science thus has four elements: 37
  38. A. Systematic body of knowledge: it is systematized in the sense that it is based on the cause and effect relationship between different variables. B. Scientific Inquiry: Scientific inquiry is unaffected by the personal likes and dislikes of a scientist. C. Experimentation: The principles of science are derived after repeated observations and experiments. D. Universal truths: Scientific principles represent basic truths; they are developed after a series of experiments. They can be applied in all situations and at all times. 38
  39. • Therefore management is science because it has the characteristics of science namely: a) Systematic body of knowledge: Management is distinct discipline. It has a number of principles which can be studied and put to application. b) Management is a social science: Management is a social science, as it deals with human behavior about which little is known at present. As we all know, it is not possible to study human behavior under controlled laboratory conditions. c) Management is an inexact science: Management is not an exact science like physics, chemistry or biology. It can offer only flexible guidelines that would be of use in solving problems. 39
  40.  Is Management Art?  Art is the use of know-how and skills like any other art such as music, painting, sculpture, etc.  Art is the application of science in practice Management is an art because of the following reason Use of knowledge: Just as doctor uses the science of medicine while diagnosing and treating the patients, a manager uses the knowledge of management theory while performing the managerial function. Creative art: Management is creative like any other art. It combines human and non -human resources in a useful way so as to achieve results. Personalized: Like any other art, management is personalized activity. Every manager has his own way of managing things and people, based on his knowledge and experience. Constant practice: Managers learn from mistakes. The application of managerial principles over a period of time enables them to tackle difficult problems with confidence. 40
  41. • Management is thus, an art as well as a science. • The art of management is as old as civilization but the science of management is young and developing. • Both are complementary and mutually supportive. • Managers need to acquire the knowledge of management principles and practice in order to be successful. 41
  42. Is management is profession? • Over the last few decades, factors such as growing size of business units, competition, and separation of ownership from management have led to an increased demand for professionally qualified managers. • The tasks of management have become quite specialized. 42
  43. Characteristics of a Profession • Well-defined body of knowledge: A profession must have a systematic body of principles, techniques and skills. • Formal education and training: Everybody cannot enter a profession. An individual can enter a profession only after acquiring knowledge and skills through formal education and training. • Minimum Qualification: An individual can enter a profession after obtaining a degree or diploma from recognized colleges, universities or institutes. • Representative body: A representative body of professionals exists to regulate and develop the professional activities. • Service above self: a profession must be committed to service. • Ethical code of conduct: Members of a profession are expected to follow the code sincerely and honestly. 43
  44. Characteristics of management Management is purposeful Management makes things happen Management is an activity Management is accomplished by, with and through the efforts of others Management is associated with the efforts of a group Management is aided by the computer Management applies to any kind of organization 44
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