INTRODUCTION TO

MANAGEMENT

By
Vinay Kumar
Learning objectives

Understand the meaning and nature of management

Define the terms Organization and Administration

Understand the concepts of Productivity, Efficiency

and Effectiveness

Debate whether Management is a science or an Art

Examine Management as a profession

Learning objectives

Understand basic characteristics of Management

Describe the scope and functional areas of

Management

Describe the various roles of Management

Describe various levels of Management and skills

needed for managers
Learning objectives

Understand how Management thought evolved

Describe various approaches to Management

Definition of Management
Management is the art of getting things done through
people

Managers achieve organizational goals by enabling others

to perform the necessary tasks by effectively identifying
the right person for the right task

Management is the process of planning, organizing,

leading and controlling the efforts of the organization
members and using all organizational resources to
achieve related organizational goals
Organization

An organization is a deliberate arrangement of people to

accomplish some specific purpose.

Organization is a structure or a mechanism consisting a

group of people who are interrelated and interdependent
with each other, who work collectively together to
achieve some common objectives.
Organization

Distinct purpose

Deliberate structure People

Administration

Administration involves setting up of policies and

procedures.

It is policy making function.

It is done at top level management and lower level

management is responsible for execution of policies
and operations.
Universal nature of Management

All sizes of
organization

Small Large

All organizational All types of

areas- manufacturing, organizations
Management is
accounting, finance,
human resource, etc needed in
Profit Non-profit

All organizational levels

Bottom Top
Nature of Management

All the managers carry out the managerial functions

of planning, organizing, staffing, leading and
controlling

Management applies to any kind of organization.

It applies to managers at all organization levels

 Contd.

The aim of all managers is same: to create a

surplus.

Managing is concerned with productivity, which

implies effectiveness and efficiency.
Characteristics of Management

Management is intangible, but its presence can be

felt by efforts in the production , sales and revenues.

Management is universal and it is applicable to all

sizes and forms of organizations

Management is a group activity and it involves

getting things done with and through others
Characteristics of Management

Management is a goal oriented and all actions of

management are directed at achieving specific goals

Management is a science as well as an art

Management is emerging as a profession

Management is multidisciplinary and it has

contributions from psychology, sociology,
anthropology etc
Levels of Management

Top level

Middle level

Bottom level
Top level management

To make corporate plan for entire organization

To decide upon matters which are vital for survival

like profitability, and growth of organization

To allocate resources for various projects and

departments

To set goals
Top level management

To design structure of the organization

To frame policies

To exercise control

To direct middle and lower levels of management

Middle level Management

To prepare departmental plans within framework of

corporate plans given by top level management.

To establish departmental goals.

To decide about means of achieving these goals.

To monitor lower level managers by coordinating their

activities
Lower level Management or
Supervisory level of Management

To get the things done by core group of workers at the

operational level.

To prepare the plans for their activities

To issue orders and instructions

To guide and assist workers

To motivate workers
Managerial skills

Technical skills: Technical skills include knowledge and

proficiency in activities involving methods, processes
and procedures

Human skills: Human skills involve the ability to work

well with other people both individually and in a group
Managerial skills

Conceptual skills: These are the skills to think and to

conceptualize about abstract and complex situations.
Managerial skills

Conceptual
Top Skill
Level

Human
Middle Relation
Skill
Level

Technical
Lower Skill
Level
Functions of Management

Planning

Organizing

Staffing

Motivating
 Contd..

Leading

Controlling
Planning

Itis the primary function of management

Planning is formulation of future course of action
Planning makes things happen
Planning function is performed by managers at
all levels

Failure to plan is planning to failure

Planning

Planning involves determination of

What is to be done?

Why it is to be done?

Who is to do?

When it is to be done?

Where it is to be done?

How it can be done?
Organizing

Organizing is the process of creating a mechanism

consisting of group of people interrelated with each
other and working towards common objectives

It is the process of determining the authority and

responsibility relationship between individuals
Organizing

Organizing involves

Determination of objectives

Listing the activities

Grouping the activities

Assigning definite responsibilities to individuals

Delegating the required authority

Providing physical facilities
Staffing

Staffing is the process of supplying the required man

power to the organization and maintaining the human
resources.

Staffing involves human resource planning,

recruitment and selection, placement, induction,
training and development, compensation
management, performance appraisal and employee
welfare activities.
Motivating

Motivation refers to the inner drive within an

individual to put efforts for achieving a goal.

Motivation is which accounts for intensity, quality and

persistence of efforts for achieving a goal.

Motivating is the ability to inspire others in putting the

efforts for attaining a goal.
Leading

Leadership is the ability of an individual to influence

the behavior of others for achieving desired goals.

Leaders influence the followers and create shared

vision and energize their behavior for working
towards common objectives.

A manager must be a good leader

Controlling

It is the process of checking the actual work and

comparing it with predetermined standards in order to
find any deviations so that timely corrective actions can
be taken.

Planning and controlling are two closely related

functions

Controlling ensures completion of a task as per the plan

Controlling

Controlling involves

Establishment of standards

Measuring actual work

Comparison and taking corrective actions.
Is management a science or an art?

What is a science?

Science is a body of systematic knowledge obtained

through study and practice.

Science comprises of clear concepts, theory, and

other accumulated knowledge developed from
hypothesis, experimentation and analysis
 Contd

Six important elements of science are thinking,

discovery of facts, verification, prediction,
measurement and expression.
Science

Any branch of science must satisfy following conditions

Existence of a systematic body of knowledge
encompassing a wide array of principles.

The principles must be evolved on the basis of
constant enquiry and examination.

The principles must explain a phenomenon by
establishing cause effect relationship.

.
Management as a science

Management is a systematic body of knowledge

consisting of principles, generalizations, approaches,
and concepts applied in practical situations.

This knowledge serves for managers to understand

the process of management and problems involved
in it.
Management as a science

The principles, generalizations and concepts of

management have been developed and formulated
on the basis of observation, research analysis and
experimentation as in case of principles of other
sciences.

Like other science, management principles are also

based on relationship of cause and effect.
Management as a science

Management knowledge and its principles can be

transferred from one manager to another and it can
be taught.

Management principles are universally applicable to

all types of organizations.
Art

Art refers to know-how-the ways of doing things

The focus is on skills with which activities are performed.

Art basically refers to application of knowledge, personal

skills, and knowing-the specific way for efficiently
achieving a given objective.

It is concerned with best way of doing things and hence

it is personalized in nature.
Management as an art

Management involves getting things done through

people.

Compared to other resources; people, who

constitutes the human resource of an organization
are unique in respect to their aspirations, attitudes,
perceptions etc.

Understanding human behavior and developing good

interpersonal relations is a skill.
Management as an art

The management knowledge like any other art has

practical application.

The application is personalized, depending on the

individual manager.

Though the concepts, principles and generalizations

may be same, the manner in which they are used
differs from manager to manager.
Management as an art

Manager gains experience with continuous

application of management knowledge to practical
situations with the passage of time, the manager
gathers more and more experience which becomes
his personal possession.

It is similar to any art as practice makes a manager

perfect.
Management as an art

Application of management calls for innovations and

creativity. Creative thinking with application of
management principles makes a manager more
efficient.

Business organizations exists in an environment, and

changes in the environment will affect the organization.

Prediction of environmental changes may require

intuition and judgment.
Management as a profession

The existence of an organization and systematic

body of knowledge.

Formalized methods of acquiring knowledge and

skills.

Existence of ethical code to regulate the behavior of

the members of the profession.

A concern for social responsibility

Ten manager roles- Harry Mintzberg

Category Role
Informational Monitor
Disseminator
Spokesperson
Interpersonal Figurehead
Leader
Liaison
Decisional Entrepreneur
Disturbance handler
Resource allocator
Negotiator
Development of management thought

Management Theories

Historical Scientific Administrative Quantitative Behavioral

Background Management Management Approach Approach

Early Early
Examples Advocates

Industrial Hawthorne
Revolution Studies
 FW Taylor (1856-1915)
Fredrick Winslow Taylor is known as father of Scientific
management

Taylors concern through out his life was to increase

productivity and efficiency.

He introduced concept of a fair days work and a fair days

pay.
Scientific management is a kind of management which
conducts business by standards established by facts gained
through systematic observation, experiment and reasoning.
Taylors contributions
Taylors scientific principles

Science, not the rule of thumb. Develop a science for
each element of an individuals work, which will
replace rule of thumb method.

Harmony, not discard. Obtain harmony in group
action rather than discard.

Co-operation, not individualism. Achieve co-operation
of human beings rather than chaotic individualism.
Taylors contributions

Taylors scientific principles

Maximum output, in case of restricted output

Developing the workers to the fullest extent possible
for their own and for their companys prosperity.
Taylors contributions

Time and motion study

Differential payment system

Functional organization

Scientific recruitment and training.

Feature of scientific management

Developed standard method for performing each job.

Selected workers with appropriate abilities for each job

Trained workers in standard method

Supported workers planning and eliminated

interruptions
Provided wage incentives to workers for increased
output
Henry L Gantt

He emphasized on the concept of mutuality of

interest between management and workers and
stressed the need for harmonious relationship.

Gantt believed that willingness to use correct

methods is as important as knowing the methods and
having the skills

He refined Taylors incentive system

Gantt charts
Frank and Lillian Gilberth

Taylors ideas of work study were strongly supported

and developed by famous husband and wife team of
Frank and Lillian Gilberth

Frank classified all movements employed in

industrial work into 17 basic types called Therbligs.

He advocated that morale of workers can be

increased by reducing fatigue in work
Henry Fayol- Administrative Management
( 1841-1925)

He focused more on organizations rather than on

individuals

Developed management functions

Developed broad administrative principles

Was a mining engineer in a coal mine and later

became managing director
Contributions of Fayol

Classification of industrial activities- Technical,

commercial, financial, security, accounting and
managerial

Principles of management

Elements of management- Planning, organizing,

commanding, coordinating and controlling.
Humanistic perspective

Emphasized understanding human behavior,

needs, and attitudes in the workplace

Human relations movement

Human resources Perspective

Behavioral sciences approach

Human relations movement

Emphasized satisfaction of employees

basic needs as the key to increased worker
productivity
Hawthorne studies

Ten year study

Four experimental & three control groups

Five different tests

Test pointed to factors other than illumination for productivity

Elton Mayo, a Harvard psychologist is popularly known
as father of human relations movement undertook famous
experiments at Hawthorne plant
Hawthorne studies

Illumination experiment

Relay assembly test room

Bank wiring observation room

Interviewing program
Human resource perspective

Suggests jobs should be designed to meet higher-

level needs by allowing workers to use their full
potential
Behavioral Sciences approach

Applies social science in an organizational context

Draws from economics, psychology, sociology,

anthropology and other disciplines

Understand employee behavior and interaction in an
organizational setting

OD- Organization Development
Quantitative approach

Emerged after WW II

Applied mathematics, statistics, and other quantitative

techniques to managerial problems

Operations Research- mathematical modeling

Operations management- specializes in physical production
of goods or services

Information technology- reflected in management
information systems
Recent Historical trends

Systems theory

Contingency view

Total quality management ( TQM )

Systems view of organizations
Contingency view of management
Functional areas of management

Marketing management: Management process through

which goods and services move from concept to the
customer.

As a philosophy, it is based on thinking about the

business in terms of customer needs and their
satisfaction.

1. Identification, selection and development of a product

2. Determination of its price
3. Selection of a distribution channel to reach the customers place
4. Development and implementation of a promotional strategy
Functional areas of management

Human resource management: Human resource

management is defined as acquiring, developing,
motivating and maintaining human resources to meet
the organizational goals.

HRM functions include recruitment, selection, training

and development, employee relations, compensation
management, employee welfare, career planning etc.
Functional areas of management

Finance management: planning, directing, monitoring,

organizing, and controlling of the monetary resources of
an organization.

It is the branch concerned with resource allocation as well

as resource management, acquisition and investment.

Finance deals with matters related to money and markets

Functional areas of management
Production and operations management: It is the
management of an organizations productive
resources or its production system, which converts
inputs into organizations products or services.
Scope of management

Management as an economic resource

Management as a system of authority

Management as class