1. MANAGEMENT
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2. What is Management? A set of activities
planning and decision making, organizing, leading, and controlling
directed at an organization’s resources
human, financial, physical, and information
with the aim of achieving organizational goals in an efficient and effective manner.
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3. What is a Manager?
Someone whose primary responsibility is to carry out the management process.
Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.
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4. Kinds of Managers by Level
Top Managers
The relatively small group of executives who manage the organization’s overall goals, strategy, and operating policies.
Middle Managers
Largest group of managers in organizations
Implement top management’s policies and plans.
Supervise and coordinate lower-level managers’ activities.
First-Line Managers
Managers who supervise and coordinate the activities of operating employees.
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5. Management in Organizations
Inputs from the environment •
Human resources
Financial resources
Physical resources
Information resources
Planning
and decision
making
Leading
Organizing
Controlling
Goals attained
Efficiently
Effectively
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6. Figure 1.2 The Management Process
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7. The Management Process (cont’d)
Planning and Decision Making
Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them.
Organizing
Determining how activities and resources are grouped.
Leading
Getting organizational members to work together to advance the interests of the organization.
Controlling
Monitoring organizational progress towards goals.
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8. Fundamental Management Skills
Skills and the Manager
Technical Skills
Interpersonal Skills
Conceptual Skills
Fundamental Management Skills
Diagnostic Skills
Communication Skills
Decision-Making Skills
Time-Management Skills
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9. Fundamental Management Skills
Technical
Skills necessary to accomplish or understand the specific kind of work being done in an organization.
Interpersonal
The ability to communicate with, understand, and motivate both individuals and groups.
Conceptual
The manager’s ability to think in the abstract.
Diagnostic
The manager’s ability to visualize the most appropriate response to a situation.
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10. Fundamental Management Skills (cont’d)
Communication
The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.
Decision-Making
The manager’s ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.
Time-Management
The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately.
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11. Management: Science or Art?
The Science of Management
Assumes that problems can be approached using rational, logical, objective, and systematic ways.
Requires technical, diagnostic, and decision-making skills and techniques to solve problems.
The Art of Management
Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights.
Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.
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12. CONCEPTS OF MANAGEMENT
DEFINITION:
It is difficult to define ‘Management’ because it is looked in to by different scholars from different way
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13. The Bureaucrats consider it as an authority
The Economist consider Management as a resource like Land, Labour, Capital and Organisation.
The Bureaucrats consider it as an authority
The Sociologists consider managers as a part of the class elite class
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14. Henry L.Sisk
Defines Management is the coordination of all resources through the process of Planning, Organizing, Directing and Controlling in order to attain stated objectives
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15. Ralph C.Davis Peter Drucker
Defines Management as a function of Executive Leadership
Peter Drucker
Defines Management as a Multi purpose organ that manager a business, Manager Mangers and Managers workers and work.
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16. Concepts of Management
The terms management has been interrupted in several ways as below.
Management as an Activity:
It is an activity like playing, studying, teaching etc. It is an art of getting things done through the effort of others
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17. ii. Management as a Process:
It is include the process of Planning, Organizing, Staffing, Directing and Controlling functions. As a process the management includes social process, integrated process, continuous process and interactive process
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18. iii. Management as an Economic Sources:
Management occupies the central place among other 4 m’s Men, Machine, Material and Money
Man Power
Money
Material
Management
Machine
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19. Management as a Team
Managers operate at different levels of authority like top, Middle, Operating etc. Management is managing all these activities in a team sprit. Managers have become elite class in society occupying position with enormous power and prestige.
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20. Management as an Academic Discipline
Management has became a very popular field of study since offers a very rewarding and challenging career.
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21. Management as a group
Management means the group of persons occupying managerial position like executives, departmental head, supervisor etc.
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22. NATURE AND CHARACTERISTICS OF MANAGEMENT
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23. (i) Management as a goal oriented
The main goal of Management is to ensure efficiency and economy is the utilisation of human, physical and financial resources
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24. (ii) Management is Universal
All type of organization like family, club, university, government, army, cricket team (a) business, require management
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25. (iii) Management is an interactive force
Management reconciles the individual goals with organizational goals. It integrates human and other resources
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26. (iv) Management is a social process
Management is done by the people, through the people and for the people concerned with interpersonal relationship. A good manager is a leader and not a boss
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27. (v) Management is Multidisciplinary
Management depends up on wide knowledge derived from several discipline like engineering, sociology, psychology, economics etc.
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28. (vi) Management is a Continuous process
Management is a continuous process which continues until the goal is achieved
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29. (vii) Management is intangible
It is invisible force. It cannot be seen but its presence can be felt
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30. (viii) Management Art as well as Sciences
Management consists of theoretical knowledge as well as practical application of such knowledge
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31. Objectives of Management
Organisational objectives :- It includes
(a) Reasonable Profit
(b) Survival and solvency of business
(c) Growth and expansion of the enterprise
(d) Improve the Good will and reputation
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32. (ii) Personal Objectives
(a) Fair remuneration
(b) Reasonable working conditions
(c) Training and Development
(d) Participation is Management
(e) Security of Service
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33. (iii) Social Objectives
(i) Prompt payment of Taxes
(ii) Conservation of energy
(iii) Preservation of ethical value
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34. Managing Director Top Level
LEVELS OF MANAGEMENT
Board of Director
Managing Director Top Level
General Manager
Departmental Manager
Middle Level Deputy Manager
Asst. Manager
Supervisors
Lower Level
Workers
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35. Figure 1.1 Kinds of Managers by Level and Area
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36. Distinction Between Management and Administration
Oliver Sheldon defines administration as a function concerned with the determination of corporate policies, the coordination of finance, production, distribution, structure under the ultimate control of the executive
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37. Distinction Between Management and Administration (Contd.)
On the other hand Management is concerned with the executives of policy within the limit set by the administration. Thus administration is a thinking process and management as doing process
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38. Three points of view Administration is different from Management
This view is largely held by American experts. They held that administration is a higher level activity while management is a lower level function. The administration involves decision making while the management is concerned with the execution of policies and supervision of work. According to American school of thought Administration is superior to management.
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39. (ii) Administration is a part of Management
According to European school of thought of management is inclusive of Administration and Organisation.
Management is the policy making including planning and guidance, where as Administration is executive of above planning. Thus management is planning agency while administration is an implementation agency. Thus European just appropriate view of Americans
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40. (iii) Administration and Management are one
Many writers like Henri Fayol, New man viewed that the management and administration are one and same used interchangedly. The term Administration is more popular in Government and other Public sector organisation and the term Management is more commonly used in other business world.
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41. iii) Administration and Management are one (Cont.d)
To solve this conflict of Opinions between administration and management. Management classified into –
(i) Administrative Management
(ii) Operative Management
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42. Distinguish Between Administration and Management
Points of distinction
Administration
Management
Nature
It is a determinative or thinking function
It is an executive or doing function
2. Type of Work
It is concerned with the determination of major
It is concerned with the implementation of policies
3. Levels of authority
It is mainly a top level function
It is largely a middle and lower level function
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43. Distinguish Between Administration and Management
4. Influence
Decision are influenced by Public opinion and outside forces
Decision influenced by Objectives and Policies of the Company
5. Direction of Human Efforts
Not directly concerned
Actively concerned
6. Main Functions
Planning and Control are main functions
Directing and Organizing are main functions
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44. Distinguish Between Administration and Management
7. Skills required
Conceptual and Human Skills
Technical and Human Skills
8. Usage
Government and Public sector
Business Organizations
9. Illustrations
Commissioner, Registrar, Vice-Chancellor, Governor etc
Managing Director , General Manager, Sales Manager, Branch Manager etc.
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46. Meaning of Planning
Planning is the process of deciding in advance what is to be done, how it is to be done, where, when and whom.
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47. According to L.F.Ur Wick
Planning is fundamentally a mental predisposition to do things is an orderly way, to think before and to act in the light of the fact rather than of guesses.
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48. Features of Planning Planning is good – oriented
Planning is future oriented
Planning is an mental exercise involves creative thinking
Planning is a primary function
Different planning is required for different levels of organisation (Pervasiveness)
Planning is Continuous
Planning aims at efficiency
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49. Importance of Planning
Make objectives clear
Helps the organisastion a right path
It reduces risks and uncertainty
It improves efficiency of operation
It provides the basis of control
It facilitate decision making
Effective co-ordination
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50. Limitation of Planning
Assumptions not fully reliable
The condition under which plans are implemented may differ from assumed conditions.
Availability of time is a limiting factor for planning
Cost involved in planning
Mental attitude
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51. Steps in Planning
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52. Principles of Planning
Principles of contribution to objectives
Principles of Pervasiveness
Principles of Limiting factor
Principles of Flexibility
Principles of Navigational change
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53. Kinds of Planning Long range Plan Short range Plan Strategic Planning
Operational Planning
Functional Planning
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54. Decision Making Definition: According to Lereitner :
Decision Making is a process of identifying and choosing alternative courses of action in a manner appropriate to the demand of the situation
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55. According to Peter Drucker:
Whatever Manager does, he does through Decision Making
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56. Six Steps in Decision Making
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Figure 7.4

57. Theories of Decision Making
Marginal Theory : This theory stresses an profit maximization
Psychological Theory : This theory stresses on customer satisfaction
Mathematical Theory: This theory arrives decision making using models like Linear Programming, Probability etc.
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58. Problems in Decision Making
Correctness of Decision
Timing of Decision
Effective Communication of Decisions
Participation in Decision Making
Decision Environment
Implementation Decision
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59. Modern Quantitative Techniques of Decision Making
Linear programming : It is based on the assumption that there exist a linear relationship between the variables.
For Example:
With the help of linear equation, optimum combination of cost, time and utilization of time can be compared. The main object of this techniques is to either maximize benefit or to minimizes cost
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60. 2. Probability Theory
This statistical device is based on the assumption that certain things are likely to happen in future depending on assumed probabilities. Ex. Pay-off matrices, Decision trees.
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61. 3.Queueing Theory
It is based on the assumption that although delays are costly, eliminating them may be even more costly. This techniques may be used in service organisations hospitals and banks
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62. 4.Simulation
For example : Instead of studying and analyzing transportation system of Chennai in a real life, its models can be prepared and real solution can be simulated to it
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63. 5. Net Work Techniques
The project evaluation and review techniques (PERT) and critical path method (CPM) are used for planning, monitoring and implementing a project
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64. 6. Decision Trees
It is a graphic method used for identifying the alternatives and risk and outcome associated with each alternatives
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65. Delegation Definition :
According to Haimann “Delegation” of authority merely means granting authority to subordinate to operate within prescribed limits
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66. The Process of Delegation
Assignment of Duties
Granting of Authority
Creating of Responsibility
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67. Difference between Authority and Responsibility
Sales Manager
Branch Manager
Authority
Responsibility
Sales Officer
Sales Manager
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68. Accountability
It is the obligation of a subordinate to report back to his superior that the job entrusted to him has been successfully completed
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69. Centralisation and Decentralisation
According to Henri Fayol “Every thing which goes to increase the subordinates” roles is decentralisation, every thing which goes to decrease it is centralisation”
In centralised administration, the staff depend on the top management for guidance on all matters. An organisation is said to be decentralised where managers at middle and lower levels are given the authority to take decision on matters relating to their functions.
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70. Centralisation and Decentralisation (Contd.)
For Example :
An organisation having branches in different cities may be centralised. Similarly, a company may be decentralised even things all its officer are located in one building.
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71. Merits of Decentralisation
Reduces Burden of Top Executives
Quick Decision
Motivation to Subordinates
Growth and Diversification
Management Development
Diversion of Risk
Effective Supervision and Control
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72. Demerits of Decentralisation
Cadre of Coordination
Difficult to Control
High cost of operation
Non Availability Talented Managers
External Constraints.
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73. CONTROLLING
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74. The Control Process Establish objectives and standards.
Measure actual performance.
Compare results with objectives and standards.
Take necessary action.
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75. Establish Objectives and Standards
There are two types of standards:
Output Standards - measures performance results in terms of quantity, quality, cost, or time.
Input Standards - measures work efforts that go into a performance task.
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76. Measuring Actual Performance
Measurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.
Without measurement, effective control is not possible.
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77. Comparing Results with Objectives and Standards
The comparison of actual performance with desired performance establishes the need for action.
Ways of making such comparisons include:
Historical / Relative / Engineering
Benchmarking
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78. Taking Corrective Action
Taking any action necessary to correct or improve things.
Management-by-Exception focuses managerial attention on substantial differences between actual and desired performance.
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79. Taking Corrective Action
Management-by Exception can save the managers time, energy, and other resources, and concentrates efforts on areas showing the greatest need.
There are two types of exceptions:
Problems - below standard
Opportunities - above standard
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80. Effective Controls The Best Controls in Organizations are
Strategic and results oriented
Understandable
Encourage self-control
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81. The Best Controls in Organizations are
Effective Controls
The Best Controls in Organizations are
Timely and exception oriented
Positive in nature
Fair and objective
Flexible
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82. Types of Control Preliminary
Sometimes called the feedforward controls, they are accomplished before a work activity begins.
They make sure that proper directions are set and that the right resources are available to accomplish them.
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83. Types of Control Concurrent
Focus on what happens during the work process. Sometimes called steering controls, they monitor ongoing operations and activities to make sure that things are being done correctly.
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84. Types of Control Postaction
Sometimes called feedback controls, they take place after an action is completed. They focus on end results, as opposed to inputs and activities.
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85. Types of Controls
Managers have two broad options with respect to control.
They can rely on people to exercise self-control (internal) over their own behavior.
Alternatively, managers can take direct action (external) to control the behavior of others.
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86. Types of Controls
Managers have two broad options with respect to control.
They can rely on people to exercise self-control (internal) over their own behavior.
Alternatively, managers can take direct action (external) to control the behavior of others.
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87. Types of Control Internal Controls
Allows motivated individuals to exercise self-control in fulfilling job expectations.
The potential for self-control is enhanced when capable people have clear performance objectives and proper resource support.
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88. Types of Control External Controls
It occurs through personal supervision and the use of formal administrative systems.
Performance appraisal systems, compensation and benefit systems, employee discipline systems, and management-by-objectives.
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