Principles of Management Introduction to Management and Organizations CHAPTER-1

AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:  Define Business and describe the characteristics of Organization.  Differentiate between managerial and non- managerial employees.  Describe Management.  Explain the functions, roles, and skills of managers and how the manager's job is changing.  Recognize the value of studying Management

SOME IMPORTANT TERMS TO KNOW

4 a. Business  The term “Business” signifies individual & group activities directed towards wealth generation through goods & services (recognized by the law).

5 b. Organization A group of people working together in a structured and coordinated fashion to achieve a set of goals is called organization. Structure Goals A B

6 c. Goals d. Objectives Objectives are sub goals. Goals are the end results towards which all the activities are directed. Different organizations may have different goals. e.g. Profitability, Growth, Market Penetration, Productivity, Leadership, Client Satisfaction etc.

7 What is Management?

8 Management... Coordination and oversight of the work activities of others so that their activities are completed efficiently and effectively.

9 Effectiveness VS Efficiency Doing the right things, or completing activities so that organization goals are attained, called Effectiveness. Doing the things right, or getting the most output from the least amount of inputs, called Efficiency.

Why Efficiency & Effectiveness are important to Management

11 What are the functions of Management? OR What is Management Process?

12 Four Functions of Management Planning Choose Goals Organizing Working together Leading Coordinate Controlling Monitor & measure 1-8

13 1-Planning A Management function that involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. Planning Process consists of five steps Objective-setting Forecasting Strategy formation Setting specific standards Continual review and revision

14 2-Organizing Organizing is the establishment of relationship between:  Activities  Persons  Physical factors or Structuring working relationships in a way that allows organizational members to achieve organizational goals. Function of Organizing involves: 1.Division of Labor 2.Departmentalization 3.Staff positioning 4.Assigning authority or Delegation of power 5.Equalizing authority and responsibility

15 3-Leading Management function that involves working with and through people to accomplish organizational task. In leading functions subordinates are guided, supervised and motivated by managers Components involve in leading function are: 1.Supervision 2.Motivation 3.Communication 4.Bringing about change 5.Managing conflict

16 4-Controlling Management function that involves monitoring actual performance,comparing standards, and taking corrective actions if necessary. Process consist of: 1.Measuring 2.Comparing 3.Correcting

17 SET PERFORMANCE STANDARDS WITHIN LIMITS CONTINUE WORK PROGRESS TAKE CORRECTIVE ACTION COMPARE MEASURE PERFORMANCE DETERMINE DEVIATION NOYES Controlling Process

Management Functions

19 Management as Systematic Approach Goals Inputs i.Human Resources ii.Financial Resources iii.Physical Resources iv.Information Resources MANAGEMENT PROCESS ORGANIZING PLANNING Effectively Completion of Goals + CONTROLLING Leading

20 Managers are those people who work with and through other people for getting activities completed in order to accomplish organizational goals. Manager

21 Difference between Managers and Operatives  Operatives are people who work directly on a job or task & have no responsibility for overseeing the work of others. In contrast  Managers direct the activities of other people in the organization.

22 What are their Objectives? To achieve the organizational goal, managers pursue the following objectives. Efficient use of resources Customer satisfaction Adequate return on capital Satisfied workforce Improved work conditions Building supplier relationship Contribution to national goal

23 Kinds of Managers Basically there are three levels of managers i.Top Managers ii.Middle Managers iii.First-line Managers TOP LEVEL MIDDLE LEVEL FIRST-LINE MANAGER

24 Top Managers Managers at or near the top of the organization who are responsible for making organizational- wide decisions and establishing the goals and overall strategy are called Top Managers. Titles found in this group include President, Vice President, CEO, Chairman of the Board etc.

25 Middle Managers Middle Level Managers are primarily responsible for implementing policies and the plans developed by the top managers and for supervising and coordinating the activities of lower level mangers. Titles found in this group are Plant Manager, Operational manager, Branch Manager or Departmental Head etc.

26 First-line Manager First-line Managers supervise and coordinate the activities of operating employees. Titles found in this group are supervisors, Coordinator, Shift and Office Managers.

27 Basic Managerial Roles & Skills

28 Managerial Role. The managerial roles are divided into three basic categories identified by Henry Mintzberg. 1.Interpersonal Role 2.Informational Role 3.Decisional Role

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30 Managerial Skills There are number of skills that a Manager needs but three of them are pre-requisite to their success Technical Skills Interpersonal Skills Conceptual Skills

31 Technical Skills Job specific Knowledge and techniques in a specialized field is termed as Technical Skills. Technical skills are specially input for first line managers. These manager spend much of their time in training subordinates and answering questions about work related problems. They must know how to perform the task assigned to those they supervise if they are to be effective managers.

32 Interpersonal Skills The ability to communicate, with understand and motivate both individual and groups is called Interpersonal Skills or human skills. Manager spend considerable time in interacting with people both inside and outside the organization. e.g. Workers, customers, suppliers, investor. Manager with good communication skills are able to get the best out of their people. They know how to communicate, motivate, lead and inspire. These skills are equally important at level of managers.

33 Conceptual Skills The manager’s ability to think and to conceptualize about abstract and complex situations are called Conceptual Skills. Using these skills manager must be able to see the organization as a whole, understand the relationship among various subunits, and visualize how the organization fits into its broader environment, these skills are most important at top level management.

Skills Needed at Different Management Levels

35 HOW THE MANAGER’S JOB IS CHANGING

37 The Universality of Management The reality that management is needed in all types and sizes of organization, at all organizational levels, in all organizational areas, and in organization no matter where located.

Universal Need for Management

39 The Reality of Work CHHALLANGES FACED AS A MANAGER. Keeping pace with a continuous changing business environment. Energizing and motivating the team and managing ambitions and idiosyncrasy of star performance. Meeting deadlines and targets and walking the talk (read promises & commitments made) REWARDS OF BEING MANAGERS. Satisfaction of creating a winning team. Making a difference in developing the careers of your junior reportees. Ability to turn around an organization through difficult situation. Create an impact among all stakeholders. Recognition & incentives both monetary and nonmonetary.

Roles Skills Manager Interpersonal Informational Decisional Liaison Leader Figure Head Spokes person Disseminator Monitor Entrepreneur Resource Allocator Negotiator Disturbance Handler Technical Skills Interpersonal skills Conceptual Skills Diagnostic Skills Levels Top Level Middle Level First level Components of Management MANAGEMENT Changes and Management Universality of Management All sizes of Organizations All Types of Organizations All Organizational Levels Effectiveness Efficiency Motivation Communication Bringing Change Managing Conflicts Supervision Measuring Comparing Correcting Functions PLANNING ORGANIZING LEADING CONTROLLING Goal setting Forecasting Strategy Formation Review & Revision Standard Setting Division of labor Departmentalization Staff Positioning Delegation of Power Equalizing authority & Responsibility Digitization Changing security threats Organizational & Managerial Ethics Increased Competitiveness