MANAGEMENT

1. MANAGEMENT Dr. ANANDA KUMAR Professor, Department of Management Studies, Christ College of Engg. & Tech. Puducherry, India. Mobile: +91 99443 42433 E-mail: searchanandu@gmail.com

2. MANAGEMENT “Management is the process of designing and maintaining of an environment in which individuals working together in groups efficiently accomplish selected aims.” Koontz & Weihrich “Management is the art of knowing what do you want to do and then seeing that it is done in the best and cheapest way.” - F. W. Taylor

3. MANAGEMENT “Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated goals.” - Henry L. Sisk

4. MANAGERIAL SKILLS 1. Technical Skill 2. Human Skill 3. Conceptual Skill

5. Technical Skill It refers to the ability to the tools, equipment, procedures and techniques. Effective supervision and coordinating of the work of the subordinates. Therefore depends on the technical possessed by the lower level market.

6. Human Skill Human skill refers to the ability of the manager to work effectively as a group member and to build cooperative effort in the team he leads. Human skills are concerned with understanding of ‘people’. Manager’s skill in working with others is natural and conditions.

7. Conceptual Skills This skill also called design and problem. Solving skill involves the ability. To see the organisation and the various components of it as a whole. To understand how its various parts and functions mesh together. A higher degree of conceptual skill helps in analyzing the environment and in identifying the opportunities.

8. Top Level Management Middle Level Management Lower Level Management MANAGEMENT LEVELS

9. Top Level Management: The main functions of top management are To formulate goals and policies of the company. To formulate budgets. To appoint top executives. To provide overall direction and leadership of the company. To decide the distribution of profits etc.

10. Middle Level Management: The important functions of middle level management. To monitor and control the operating performance. To train, motivate and develop supervisory level. To co-ordinate among themselves so as to integrate the various activities of a department.

11. Lower Level or Supervisory Management: The main functions of lower level management To train and develop the efficiency of the workers. To assign jobs to workers To give orders and instructions. To maintain discipline and good human relations among workers. To report feedback information about workers.

12. FUNCTIONS OF MANAGEMENT 1. Planning 2. Organising 3. Staffing 4. Directing 5. Controlling

13. 1. Planning: Planning is simple looking ahead. It is preparing for the future. Effective planning leads to efficient management. Effective planning provides answers to questions like – what to do? When to do? How to do? Who is to do?

14. Organising: Organizing establishes harmonious relationship among all the workers of an organization by providing them with suitable authority and responsibility. According to Louis A. Allen “Organisation involves identification and grouping the activities to be performed and dividing them among the individuals and creating authority and responsibility relationships among them for the accomplishment of organizational objectives”.

15. 3. Staffing Staffing process involves selecting candidates for positions, fixing salary, training and developing them for effective organizational functions. The manager performs the duties of job analysis, job description etc. which come under the staffing function.

16. 4. Directing One plans are made and the organisation is created next step is to achievement of objectives of the organisation. Directing is involves activities like guiding, supervising and motivating the subordinates in their jobs. Motivation, leadership and communication are three important sub function of directing. Motivation helps to increase the performance of the workers. Communication provides with proper information to improve the effective management. Leadership the process by which a manager guide and influences the work of his subordinates.

17. 5. Controlling Controlling as a function of management deals with checking and verifying the activities against the predetermined standards. The process of ensuring that actual activities conform to planned activities. Controlling process involves the following steps. 1. Establishing standards 2. Measuring current performance. 3. Comparing this performance to the established standards. 4. Taking corrective actions of deviation are detected.

18. IMPORTANCE OF MANAGEMENT 1. Attainment of group goals 2. Effective functioning of business 3. Resource development 4. Management control the organisation 5. Integrates individual efforts 6. Motivation 7. Communication 8. Coordination 9. Decision-making 10. Leadership quality

19. DIFFERENCE BETWEEN ADMINSTRATION & MANAGEMENT

21. NATURE & CHARACTERISTICS OF MANAGEMENT 1. Management is Universal 2. Management is Purposeful 3. Management is an Integrative Force Management is a Social Process Management is Multidisciplinary Management is a Continuous Process Management is Intangible Management is an Art as well as a Science

22. MANAGEMENT AS A SCIENCE OR AN ART?

23. What is Science? The science portion of management is apparent in the body of management knowledge, its fundamental principles and what experience and experimentation have shown. In some management subjects, we can build models and use mathematics to prove our study toward the scientific end of the spectrum. Management as a discipline fulfills the science criterion. The application of these principles helps any practicing manager to achieve the desired goals.

24. What is Science? Science classified into two types. They are exact science and inexact science. Exact science where the results are accurate. In the case of management it is an inexact science.

25. What is Science? Management is inexact science because Every organizations human resources are different attitude, aspirations and perceptions. So standard results may not be obtained. Readymade and standard solutions cannot be obtained Management is complex and unpredictable. Every organisation decisions are influenced by the environment. The environment is so complexes and unexpected changes.

26. What is an art? Art means application of skill in finding a desired result. Art is the way of doing things skillfully. Management is an art because of the following facts. Management process involves the use of practical knowledge and personal skill. Management is creative. Application of practical knowledge and certain skills helps to achieve concrete results.

27. Management is both – science and an art: Management is a science because it contains general principles. It is also an art because it requires certain personal skills to achieve desired results.

28. HENRY FAYOL’S CONTRIBUTION – (1841 – 1925) Fayol was a contemporary of Taylor. He started his career as a junior engineer in a coal mining company in France in 1860 and became its general manager in 1880. We published his famous book Administration Industrielle et Generale in 1916 which was published in English in 1949 under the title ‘General and Industrial Management’. This book is now considered to be one of the best classics in management.

29. Principles of Management 1. Division of Work Authority & Responsibility Discipline 4. Unity of Command 5. Unity of Direction Subordination of Individual interest to General interest Remuneration of personnel 8. Centralization

30. 9. Scalar Chain Order Equity Stability of Staff Initiative Esprit-de-corps

31. Case Study ABI Ltd., is a medium sized company Mr. Pramod has been working in the company for over 12 years as a secretary. He has got an excellent track record and recently he has been raised to the position of Administrative Manager. As a result of this change, the output of his work in the office dropped considerably and morale become low. There was alarming increased in Staff turnovers.

32. To study the situation, the managing director engaged a consultant. His report while praising the aspects of office administration pointing out his incapabilities especially in dealing with people. Surprisingly, Mr. Pramod enjoyed much popularity of the senior executives of the company. He won their appreciation for his valuable service as a manager. They were much worried over the incapabilities of Mr. Pramod in dealing with people. They were helpless.

33. Questions: What is the real possible cause of this problem? What can be done to rectify the situation considering Mr. Pramod’s value to the company?

34. ROLE OF A MANAGER 1. Director Motivation Human being Guide Friend Planner Supervisor Reporter

35. TASKS / RESPONSIBILITIES OF A PROFESSIONAL MANAGER 1. Planning of work 2. Proper and Effective Communication 3. Co-ordination of Efforts 4. Getting co-operation of employees 5. Encourages a team spirit 6. Better utilization of Resources 7. Selecting the Procedure 8. Maintaining good human relations 9. Solve the problem 10. Arranging training and development facilities

36. QUALITIES OF MANAGER Physical Mental Moral General Education Special knowledge Experience

37. SYSTEM APPROACH TO MANAGEMENT Introduction: Like a human organism an organisation is a system. In an organisation also people, tasks and the management are interdependent.

38. System concepts: System theory was first applied in the fields of science and engineering. “A system is essentially a set or assemblage of things interconnected or independent, so as to form a complex unity”. Just as a doctor effective manager should collect information about all parts of the organisation in order to diagnosis a problem and take necessary corrective action.

39. Some key concepts: Subsystem: While an organisation as a whole is a system, the various components or parts within it are called the subsystem. Thus a department is a subsystem of the organisation. Closed system: A system that does not interact with its environment. A closed system has fixed boundaries, its operation is relatively independent of the environment outside the system. Open system:A system that interacts with its environment. Thus an open system is one which constantly comes into contact with the environment. Synergy: Synergy means that departments that interact cooperatively are more productive than they would be if they operated in isolation.

40. External Environment Open system model of an Organisation Information OUTPUTS Goods & Services INPUTS Human Machines Money Technology Transformation Feedback

41. SOCIAL RESPONSIBILITIES OF A BUSINESS 1. Responsibility towards shareholder/owners 2. Responsibility towards Employees 3. Responsibility to customers 4. Responsibility towards Government 5. Responsibility towards community

42. 1. Responsibility towards shareholder/owners a fair return on investment safety of investment steady appreciation of investment regular, accurate and full information about the working and progress of the company.

43. 2. Responsibility towards Employees Fair wages and salaries Good and safe working conditions Adequate service benefits such as housing, medical facilities insurance cover, retirement benefits Recognition of workers’ rights to form trade unions, to collective bargaining and strike Opportunities for education, training and promotion. Workers’ participation in decision-making.

44. 3. Responsibility to customers Regular supply of quality goods at right time and place Change reasonable prices Supply goods that meet the needs of different classes and taste with different purchasing power. Prompt, adequate and continuous service Prompt, redressal of customers’ grievances True and fair information through advertisements Avoid unfair and unethical practices like adulteration, hoarding and black marketing.

45. 4. Responsibility towards Government To abide by the laws of the land To pay taxes honestly and in time To avoid corrupting public servants To encourage fair trade practices To avoid monopoly and concentration of economic power

46. 5. Responsibility towards community To make the best possible or efficient use of the society’s resources To provide maximum possible employment opportunities To keep the environment healthy and free from all types pollution To refrain from indulging in anti-social and unethical practice To improve public health, education and cultural life of the community.

47. PLANNING Planning is the most basic of all management functions. Lots of planning activities are done by the management people at all levels. Planning is the process of selecting objectives and determining the course of action required to achieve these objectives. Planning bridges the gap from where we are and where we want to go.

48. Definition According to Koontz and O’Donnell, “Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it. It is the selection among alternatives of future course of action for the enterprise as a whole and each department within it. Plans involve selecting enterprise objectives and determining ways of achieving them”.

49. Definition In the words of Mary Cushing Niles, “Planning is the conscious of selecting and developing the best course of action to accomplish an objective. It is the basis from which future management action spring”.

50. STEPS IN PLANNING PROCESS