Fundamentals of Management: Functions, Roles, and Skills

1. 27th September, 2017 M. Sc. (C.A. & I.T.) Semester 1 Fundamentals of ManagementCourse Credit 2

2. Functions of Management / Process • POSDCORB – LutharGullik • Planning, Organizing, Leading and Controlling – Newman and Summer • Planning, Organizing, Commanding, Coordinating and Controlling – Henry Fayol • Decision-making, Orgnizing, Staffing, Planning, Controlling Communicating and Directing – Warren Haynes and Joseph Massie • Innovation and Representation – Ernest Dale

3. Functions of Management • Planning – Determines in advance what should be done… - future – objectives and means – All levels – W, W, W… - Years to Week • Organizing – Structure with identifying and grouping work, authority and responsibility and relationships - Human Organization and Material Organization – Different types of organization • Staffing – Right person for right job – manpower planning – recruit – selection – training – compensation

4. Functions of Management • Directing = Motivating = Leading = Actuating • What employees have to do and what best help he can offer • Sub functions – Communication, Leadership and Motivation • Communication = Passing of information and understanding from one person to another • Leadership = Process by which a manager guides and influence workers • Motivation = Arousing desires in the mind of workers to give their best to employees

5. Functions of Management • Controlling - Establish standards of performance, Measuring current performance with standards and taking corrective actions • Control and plans are linked with each other. • Innovation – Creating new ideas to develop new products or new uses of same product – part of planning • Representation – Manager

6. Roles of a Manager • Interpersonal 1. Figure Head – Duty of a Ceremonial Nature – 2. Leader – Motivate and encourage 3. Liaison - Cultivate contacts with outsiders • Informational • Monitor – Scanning, Constant collection of information – even unsolicited information • Disseminator – Pass the collected information • Spokesman – Inform to outside organization • Decisional – • Entrepreneur – Innovation in organization • Disturbance Handler – Solution to unanticipated problems • Resource Allocator – Divide work and authority and various resources • Negotiator – Negotiate for different matters

7. Levels of Management • First line, middle and top levels • First – Lower Level – made up of foreman and white collar supervisors • Middle – Vast and diverse groups – Sales manager, plant manager, personnel managers • Top – Board Chairman, President, Vice – President

8. Managerial Skills – Ability to transfer Knowledge into action • Technical - Knowledge and proficiency in process or technique, more imp at lower levels • Human – Ability to interact with people at all levels, ability to recognize the feelings and sentiments of others, to judge the possible reactions and outcomes of various courses of action • Conceptual – broad and foresighted view of the organization, ability to think in abstract, analyze the forces and conceptualize the environment, creative and innovative ability

9. Management and Administration • Are they same ? • 3 different view • 1) Sheldon, Spriegal and Milward – Administration involves thinking - top level – determination of plans, policies and objectives of business enterprise.. • Management involves doing – execution and direction of policies and operations – • No separate personnel – manager manage activities

10. Management and Administration • 2) E.F.L Breach and others * Management includes administration * Management embraces planning, organizing, directing and controlling, where administration includes planning and controlling * Management functions in two categories – administrative management ( upper level ) and operative management ( lower level management )

11. Management and Administration • 3 ) Peter Drucker * Use of words in different field * Use in non – business institutions – e.g. government, army, church etc. – administration * Governance of business enterprise – management * Economic performance is main dimension – Economic Consequences first in business enterprise and economic consequences are secondary in non business enterprise

12. Management – Art, Science and Profession • Science: Why * Systematic ( order and unbiased ) empirical inquiry ( observation / experience ) – ordered and analysed – cumulative and communicable * Pure / Exact and Behavioral / Inexact * Management is …. Inexact science. * Management are culture bound ? – Theory and principles are same…

13. Management – Art, Science and Profession • Art: How * Expression / Application of human creative skill * How a work can be accomplished ? * Get the work done – * Must know the skill of management principles and theories

14. Management – Art, Science and Profession • Profession: * Prolonged training and formal qualification * Characteristics: - Existence of organized and systematic knowledge - Formal methods of training and experience - Association - Code of conduct - Fees with service motive * Peter Drucker Viewpoint

15. Management – Meaning, Features, Objectives and Significance ( L. M. Prasad ) • Meaning: • Features: • 1. Organized activities • 2. Existence of objectives • 3. Relationship among resources • 4. Working with and through groups • 5. Decision making • Objectives: • Significance:

16. Objectives in Management

17. Significance of Management • 1. Effective utilization of resources • 2. Development of resources • 3. To incorporate innovations • 4. Integrating various interest groups • 5. Stability in the society

18. 11th October, 2017 M. Sc.

19. Unit 3 Organizing • A talk on Terminology

20. Organising and Organization • Organizing … Arrange systematically; order - Relationship between people, work and resources used to achieve the common objectives / goals. - Organizing is what you do before you do something, so that when you do it, it is not all mixed up. – A. A. Milne.

21. Organization • An organized group of people with a particular purpose, such as a business or government department – company, firm, corporation, institution. • A social unit of people that is structured and managed to meet a need or to pursue collective goals. • Open System – activities – members – roles, responsibilities, authority, tasks

22. Authority and Responsibility • Authority and Responsibility are two sides of the same coin. The term ‘authority’ stands for power or rights assigned to an individual to make decisions, whereas ‘responsibility’ is a duty to maintain and manage the assigned authority.

23. Organization Chart • A graphic representation of the structure of an organization showing the relationships of the positions or jobs within it. • Visual representation of how a firm intends authority, responsibility, and information to flow within its formal organizational structure.

24. Departmentation • Departmentation is a means of dividing the large functional organisation into smaller, flexible administrative units. • Departmentalization (or simply departmentation) refers to the grouping of operating tasks into jobs, the combining of jobs into effective work groups and the combining of groups into divisions often termed as ‘Departments’.

25. Delegation of Authority • Delegation of Authority means division of authority and powers downwards to the subordinate. • Delegation is about entrusting someone else to do parts of your job. • Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.

26. Decentralization • Transfer of decision making power and assignment of accountability and responsibility for results. Centralization • The concentration of control of an activity or organization under a single authority.

27. Decentralization and Delegation • Decentralization refers to the dispersal of powers by the top level management to the other level management. It is the systematic transfer of powers and responsibility, throughout the corporate ladder. • Delegation means the passing of authority by one person who is at a superior position to someone else who is subordinate to him. It is the downward assignment of authority, whereby the manager allocates work among subordinates.

28. Advantages of Decentralization • Reduces problem of communication and red tape • Permits quicker and better decision making • Employees enjoy more autonomy • Competitive climate in the organization • Development of employees • Differentiation of products, activities and markets

29. Advantages of Centralization • Focused vision, fast execution, reduced conflict and control and accountability • Coordination of activities of subordinates is better achieved. • No duplication of efforts or resources. • Decisions are taken in favour of large group of organization. • Strong leadership would be developed, may be required in crisis.

30. Bundle of US pension documents from 1906 bound in red tape

31. Unit 3 – Organizing • Meaning : • Human grouping deliberately structured for common goals • Rational coordination of activities • Defining and delegating responsibility and authority • Mutually agreed purposes

32. Organization Structure • Structural framework to carry out functions of management • It is two dimensional – Horizontal and Vertical • Horizontal shows picture of job into departmentation • Vertical depicts hierarchy from top to bottom in the organization • Higher the level, greater the authority

36. Factors affecting organization structure • Environment: Stable and fast changing with stabilized and constantly redefined; Centralized formal structure and decentralized informal structure • Culture: American very decentralized and Germany not up to that extent • Task : Government; Service; business; clubs • Technology: Complex and tall structure; Mass than flat • Strategy: More changes • Size: 15 to 500 • Span of control: Small and tall structure and big than flat • Form: Cooperative; Bureaucratic and Private • Managerial organizations : Lazy and uncooperative than direction and control and committed and organized than freedom of action • Employee characteristics : Ability, skill and experience

37. Orgnizational ChartWhat ?Snapshot – flow of authority and responsibility and communicationHow ?Who is accountable to whom and who is in charge of which department

38. Difference between Chart and Structure

39. Difference between Org Chart and Structure

40. Organization Chart

42. Forms of Orgnizational Chart • 1. Vertical – top to bottom – chief executive at top and rest on the downward part • 2. Horizontal – left to right – chief executive on left and rest on right • 3. Circular – Chief executive in center and rest are surrounding

43. Organizational Chart Advantages Limitations Does not indicate degree of responsibility and authority Wrong chart meaning may be interpreted Does not show informal communication and relations Conscious for power not with team feeling • Acquaints through size, basis of division, coordination • Understanding of Narrow or wide span of mgt • Shows deficiencies of work load • Reveal the idea of balance of organization

44. Departmentation