Understanding Management: Definition, Roles, and Skills

1. Unit 1 Definition and meaning of Management- Role of professional managers- Evolution of management thought- Environmental factors affecting Management-Levels of Management.

2. Definition and meaning of Management “Management is the art of getting things done through others and with formally organised groups.” – Harold Koontz “Management is the art of knowing what you want to do and then seeing that they do it in the best and the cheapest manner.”- F.W.Taylor “Management is a multipurpose organ that manage a business and manages managers and manages workers and work.” – Peter Drucker “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.”- Koontz and Weihrich

3. Meaning of Management • Management is thus a continuous effort aimed at shaping an organization and contributing to its overall growth. • The functions of managers include planning, organizing, staffing, leading and controlling. • These functions are essential to any kind of organization. • It applies to managers at all hierarchical levels. • The aim of managers is to increase productivity, effectiveness and efficiency

4. Management: Science or Art? Science is a collection of systematic knowledge, collection of truths and inferences after continuous study and experiments. It has fundamental principles discovered. Art uses the known rules and principles and uses the skill, expertise, wisdom, experience to achieve the desired result. Management has got two faces like a coin; on one side it is art and on the other it is science. Management has got scientific principles which constitute the elements of Science and Skills and talent which are attributes of Art. Management is both art and science.

5. Managerial skills Managerial Skills • Secondary Skills • Design Skill • Communication Skill • Leadership Skill • Primary Skills • Conceptual Skill • Technical Skill • Human Skill

6. Managerial skills Cont’d Conceptual skills: • This refers to the ability to think and conceptualize abstract situations. These abilities are required for making complex decisions. In short it is: • The mental capacity to develop plans, strategies and vision Human or interpersonal skills: • This includes the ability to understand other people and interact effectively with them. The human skills are also important in creation of an environment in which people feel secure and free to express their opinions. In short it is: The ability to work with other people in teams

7. Managerial skills Cont’d Technical skills: • These skills include the knowledge, abilities of and proficiency in activities involving methods, processes and procedures in the relevant fields as accounting, engineering, manufacturing etc. Or in short: • The ability to use the knowledge or techniques of a particular discipline to attain ends Design skills: • These skills enable a manager to handle and solve any kind of unforeseen or actual problems, that may crop up in the organization. Such problems could arise due to internal factors or external factors and/or both. In short it is: • The problem solving skill

8. Managerial skills Cont’d Communication skills: • The abilities of exchanging ideas and information effectively. To understand others and let others understand comprehensively. Leadership skills • The abilities to influence other people to achieve the common goal.

9. Skill distribution at various management levels

10. Roles of manager In 1960, Henry Mintzberg conducted a study to understand about the managerial roles. He identified 10 managerial roles that are common to all managers. These 10 managerial roles are grouped under: Interpersonal, decisional, and informational roles. Roles of Manager • Informational • Monitor • Disseminator • Spokesperson • Decisional • Entrepreneur • Disturbance handler • Resource allocator • Negotiator • Interpersonal • Figurehead • Leader • Liaison

11. Roles of manager Cont’d Inter-personal Role • Figurehead: Represents the company on social occasions. Attending the flag hosting ceremony, receiving visitors or taking visitors for dinner etc. • Leader: In the role of a leader, the manager motivates, encourages, and builds enthusiasm among the employees. Training subordinates to work under pressure, forms part of the responsibilities of a manager. • Liaison: Consists of relating to others outside the group or organization. Serves as a link between people, groups or organization. The negotiation of prices with the suppliers regarding raw materials is an example for the role of liaison.

12. Roles of manager Cont’d Decisional Role: 1. Entrepreneur: Act as an initiator and designer and encourage changes and innovation, identify new ideas, delegate idea and responsibility to others. 2. Disturbance handler: Take corrective action during disputes or crises; resolves conflicts among subordinates; adapt to environmental crisis. 3. Resource allocator: Decides distribution of resources among various individuals and groups in the organization. 4. Negotiator: Negotiates with subordinates, groups or organizations- both internal and external. Represents department during negotiation of union contracts, sales, purchases, budgets; represent departmental interests

13. Roles of manager Cont’d Informational role: 1. Monitor: Emerges as nerve center of internal and external information about Information. 2. Disseminator: Transmits information received from other employees to members of the organization. 3. Spokesperson:Transmits information to the people who are external to the organization, i.e., government, media etc. For instance, a manager addresses a press conference announcing a new product launch or other major deal.

14. Functions of management 1 Planning Planning is the process of setting goals, and charting the best way of action for achieving the goals. This function also includes, considering the various steps to be taken to encourage the necessary levels of change and innovation. 2 Organizing Organizing is the process of allocating and arranging work, authority and resources, to the members of the organization so that they can successfully execute the plans. 3 Staffing A: Staffing is the process of filling the positions in the organization and keeping them filled. B: Staffing is the process of recruiting and selecting the right person for the right job at the right time in the right place. 4 Leading Leading involves directing, influencing and motivating employees to perform essential tasks. This function involves display of leadership qualities, different leadership styles, different influencing powers, with excellent abilities of communication and motivation. 5 Controlling Controlling is the process of devising various checks to ensure that planned performance is actually achieved. It involves ensuring that actual activities conform to the planned activities. Monitoring the financial statements, checking the cash registers to avoid overdraft etc., form part of this process.

15. Levels of management 1. Top Level: Top management sets the mission and goals, develops policies, evaluates the overall performance of various departments, responsible for the business as a whole and is concerned mainly with long-term planning 2. Middle Level: Middle level management develops departmental goals, executes the policies, plans and strategies determined by top management , develops medium- term plans and supervises and coordinate lower-level managers’ activities 3. Lower (Supervisory, frontline) Level: Lower level management takes charge of day-to-day operations, is involved in preparing detailed short-range plans, is responsible for smaller segments of the business, executes plans of middle management , guides staff in their own subsections and keep close control over their activities

16. TopManagementPresident, CEO,ExecutiveVice Presidents Middle ManagementPlant Managers, Division Managers,Department Managers First-Line ManagementForeman, Supervisors, Office Managers Levels of management Non- Managerial Employees

17. Importance of management functions to managers in each level MostImportant Controlling Controlling Controlling Organizing Organizing Organizing Directing Directing Directing Planning Planning Staffing Staffing Staffing Planning LeastImportant TopManagers MiddleManagers First-LineManagers

18. Environmental Factors affecting Management Business environment consist of all those factors that have a bearing on the business. The term 'business environment implies those external forces, factorsand institutionsthat are beyond the control of individual business organizations and their management and affect the business enterprise.

19. INTERNAL ENVIRONMENT The internal environment is the environment that has a direct impact on the business. Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment. Components: VALUE MISSION,VISION AND OBJECTIVES MANAGEMENT STRUCTURE AND NATURE

20. EXTERNAL ENVIRONMENT It refers to the environment that has an indirect influence on the business. The factors are uncontrollable by the business. There are two types of external environment: Micro Environment The micro environment is also known as the task environment and operating environment because the micro environmental forces have a direct bearing on the operations of the firm. Components: Suppliersof rawmaterial and components, Customer, Market Intermediaries, Financiers and Public

21. Macro Environment Macro environment is also known as General environment and remote environment. Macro factors are generally more uncontrollable than micro environment factors. When the macro factors become uncontrollable , the success of company depends upon its adaptability to the environment. Components: Economic Environment, Socio-Cultural Environment, Political Environment and Legal Environment

22. EVOLUTION OF MANAGEMENT THOUGHT

23. DIFFERENT APPROACHES

24. SCIENTIFIC MANAGEMENT: Taylor

25. SCIENTIFIC MANAGEMENT:Henry Gantt and The Gilberths

26. BUREAUCRATIC MANAGEMENT

27. BUREAUCRATIC MANAGEMENT: Weber

28. ADMINISTRATIVE MANAGEMENT

29. Henry Fayol: Managers need specific roles in order to manage work and workers. He enumerated 6 functions / roles of management. 1. Forecasting 4. Commanding 2. Planning 5. Coordinating 3. Organizing 6. Controlling These roles evolved into 14 principles of management. Division of work, Authority, Discipline, Unity of Command, Unity of Direction, Subordination of Interests, Remuneration, Centralization, Scalar Chain, Equity, Order, Stability of Tenure of Personnel, Initiative, Esprit de Corp.

30. Division of Work : Work should be divided among individuals and groups to ensure  that effort and attention are focused on special portions of the task. Authority : The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.

31. Discipline: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.     Unity of Command: Workers should receive orders from only one manager. Unity of Direction: The entire organization should be moving towards a common objective.  Subordination of Individual Interests to the General Interests: The interests of one person should not take priority over the interests of the organization as a whole.

32. Remuneration: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay. • Centralization: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working. • Scalar Chain: ayol defines the scalar chainas the chain of supervisors ranging from the ultimate authority to the lowest rank. An employee should feel free to contact his supervisor about anything through the scalar chain. 

33. Order: employees in an organization must have the right resources at their disposal so that they can function properly in an organization.In addition to social order (responsibility of the managers) the work environment must be safe, clean and tidy. • Equity: employees must be treated kindly and equally. • Stability Of Tenure Of Personnel: Management strives to minimize employee turnover and to have the right staff in the right place. • Initiative: employees should be allowed to express new ideas.This encourages interest and involvement and creates added value for the company. • ESPIRIT DE CORPS:Managers are responsible for the development of morale in the workplace; individually and in the area of communication.

34. BEHAVIOURAL APPROACH • The behavioural school of management emphasized what the classical theorists ignored. • Acknowledged the importance of human behavior in shaping management style. • Contributors: • Mary Parker Follett • Douglas McGregor • Chester Barnard • Elton Mayo

35. HIERARCHY’s HUMAN NEEDS

36. FOLLETT ON EFFECTIVE WORK GROUPS

37. McGregor's PROPOSED STYLES

38. ELTON MAYO’s VIEW

39. HAWTHORNE EXPERIMENTS(1924 – 1932) The Hawthorne studies, were conducted by Elton Mayo and Fritz Roethlisberger in the 1920s with the workers at the Hawthorne plant of the Western Electric Company. • Hawthorne researchers hypothesized that choosing one's own coworkers, working as a group, being treated as special (as evidenced by working in a separate room), and having a sympathetic supervisor were reasons for increases in worker productivity. • The Hawthorne studies found that monetary incentives and good working conditions are generally less important in improving employee productivity than meeting employees' need and desire to belong to a group and be included in decision making and work.

40. Illumination Experiments: Illumination experiments were undertaken to find out how varying levels of illumination (amount of light at the workplace, a physical factor) affected the productivity. The hypothesis was that with higher illumination, productivity will increase. Result: illumination did not have any effect on productivity Relay Assembly Test Room Experiments: Relay assembly test room experiments were designed to determine the effect of changes in various job conditions on group productivity. • The incentive system was changed so that each girl’s extra pay was based on the other five rather than output of larger group • Two five- minute rests one in the morning session and other in evening session were introduced and increased to 10 min. • Changes in working hours and workday were introduced, such as cutting an hour off the end of the day and eliminating Saturday work. Result: As each change was introduced, absenteeism decreased, morale increased, and less supervision was required.

41. Mass Interviewing Programme: During the course of experiments, about 20,000 interviews were conducted between 1928 and 1930 to determine employees’ attitudes towards company, supervision, insurance plans, promotion and wages. Result: During the course of interviews, it was discovered that workers’ behaviour was being influenced by group behaviour. Bank Wiring Observation Room Experiment: These experiments were conducted to find out the impact of small groups on the individuals. In this experiment, a group of 14 male workers were formed into a small work group. Hourly wage for each worker was fixed on the basis of average output of each worker. Bonus as also payable on the basis of group effort. Result: It was expected that highly efficient workers would bring pressure on less efficient workers to increase output and take advantage of group incentive plan. However, the strategy did not work and workers established their own standard of output a

42. The Hawthorne Effect: • Productivity increases when workers believe that they are being observed closely. • Employees perform better when managers and co-workers make them feel valued. • Financial rewards are not necessarily conducive to increasing worker productivity. • Workers care about self-fulfillment, autonomy, empowerment, social status and personal relationships with co-workers.

43. Quantitative Perspective During World War II, mathematicians, physicists, and other scientists joined together to solve military problems. The quantitative school of management is a result of the research conducted during World War II. The quantitative approach to management involves the use of quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making.

44. System Perspective Systems theory treats an organization as a system. A system can be either closed or open, but most approaches treat an organization as an open system. An open system interacts with its environment by way of inputs, throughputs, and outputs. An organization is also a system with parts such as employees, assets, products, resources, and information that form a complex system. In the systems approach, attention is paid towards the overall effectiveness of the system rather than the effectiveness of the sub-systems.

45. CONTINGENCY THEORY

46. MERGER COMPONENTS INTO CONTINGENCYPERSPECTIVE

47. AN EXAMPLE OF CONTINGENCY

48. Unit 2 UNIT II PLANNING Nature and purpose of planning- Planning process- Types of plans- Objectives- Managing by Objective (MBO) strategies- Types of strategies – Policies – Decision Making- Types of decision-Decision making process- Rational decision making process- Decision making under different conditions.

49. What Is Planning? • Planning • Planning is the primary function of management. • It focuses on the future course of action. • A primary managerial activity that specifies the objectives to be achieved in future and selects the alternative course of action to reach defined objectives. Thus, it involves: • Defining the organization’s goals • Establishing an overall strategy for achieving those goals • Developing plans for organizational work activities.

50. Planning is deciding in advance what to do, how to do, when to do and who is to do it. Planning bridges a gap between from where we are to where we want to go” -Harold, Koontz and O’Donnel • “Planning is that function of manner in which he decides in advance what he will do. It is a decision making process of a special kind, its essence is futurity.” -Hayness and Massie