INTRODUCTION

Organization: A group of people working together in a structured and coordinated

fashion to achieve a set of goals (profit, discovery of knowledge, social satisfaction).

Management:
„ Knowing exactly what you want (workers) to do, and then seeing that they
do it in the best and cheapest way. (Frederick Taylor)
„ Management is essentially an act of getting things done through the efforts
of other people. (L. Appley)
„ Management is what a manager does. ( L. A. Allen)
Management: A set of activities (including 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

Basic Purpose of Management

EFFICIENTLY
Using resources wisely and
in a cost-effective way
(Example: Toyota produces high quality product at relatively low costs is efficient)
And
EFFECTIVELY
Making the right decisions and
successfully implementing them
(Example: Toyota Produces stylish and designed cars that inspire
consumer confidence)

Management in Organization

Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources

Controlling Leading
Manager
Manager is someone whose primary responsibility is to carry out the management
process.

The Management Process

Planning and Organizing

Decision Making
Setting theorganiza- Determining
tion ’s goals and best to
deciding how best activities
to achieve them resource

Controlling Leading
Monitoring Motivating
and of the
ongoing to work in the
to facilitate interests of
attainmen organizatio

† Planning: setting an organization’s goals and deciding how best to achieve them.
† Decision making: part of the planning process that involves selecting a course of
action from a set of alternatives
„ Setting an organization’s goals and selecting a course of action from a set
of alternatives. Decision making is the part of planning.
„ Serving as guides for future activities
„ Helps managers know how to allocate their time and resources
† Organizing: grouping activities and resources in a logical fashion
„ Determining how activities and resources are grouped.
„ Job design, departmentalization, authority, line and staff role
† Leading: the set of processes used to get members of the organization to work
together to further the interest of the organization.
„ Understanding basic individual and interpersonal process
† Controlling: Monitoring organizational progress toward goal attainment.
„ setting standard, evaluating performance and making corrections in case of
deviations
Kinds of Managers by Level and Area

Levels of Management

Top managers

Middle managers

First-line managers

Marketin Financ Operation Othe

Human Administratio

Areas of management
M t
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 who are primarily responsible
for implementing the policies and plans of top managers. They supervise
and coordinate the activities of lower-level managers.
† First-Line Managers
„ Managers who supervise and coordinate the activities of operating
employees.

Kinds of Managers by Areas

† Marketing Managers
„ Work in areas related to getting consumers and clients to buy the
organization’s products or services.
† Financial Managers
„ Deal primarily with an organization’s financial resources. (accounting,
investment, cash management)
† Operations Managers
 „ Concerned with creating and managing the systems that create
organization’s products and services. (production control, inventory,
quality, plan layout site selection
† Human Resource Managers
„ Involved in human resource planning, recruiting and selection, training
and development, designing compensation and benefit systems,
formulating performance appraisal systems.
† Administrative Managers
„ Generalists who are familiar with all functional areas of management and
who are not associated with any particular management specialty.
† Other Kinds of Managers
„ Specialized managerial positions directly related to the needs of the
organization.

Basic Managerial Roles (REF: Henry Mintzberg)

Interpersonal Roles
† Figurehead (Visitor to dinner, Ribbon cutting)
† Leader (Hiring, training, encouraging employee)
† Liaison (coordinating between people, groups, or organisation)
Informational Roles
† Monitor (Scanning industry reports)
† Disseminator (transmitting information)
† Spokesperson (out side the unit or org)
Decisional Roles
† Entrepreneur (Developing new idea)
† Disturbance handler (Resolving conflict)
† Resource allocator (Distribution of resources)
† Negotiator (Supplier and labor union)

Managerial Skills
† Technical Skills

† Interpersonal Skills

† Conceptual Skills

† Diagnostic Skills
Management Skill Mixes at Different levels of Org.

Scope of Management
† Profit Seeking
„ Large Business
„ Small and Start-up business
„ International Management

† Not for Profit

„ Government Org
„ Educational Org
„ Healthcare Facilities
„ Management in Non-traditional Setting

Perspectives of Management
† Classical Perspective
„ Scientific Management
„ Administrative Management
† Behavioral Perspective
† Quantitative Management Perspective
„ Management science
„ Operations management
† The Systems Approach
† The Contingency Approach
Classical Management Perspective
† Scientific Management (Frederick Taylor,1856–1915)
„ Concerned with improving the performance of individual workers (i.e.,
efficiency).
„ Grew out of the industrial revolution’s labour shortage at the beginning of
the twentieth century.
„ Replaced old methods of how to do work with scientifically-based work
methods to eliminate “soldiering,”
„ Believed in selecting, training, teaching, and developing workers.
„ Used time studies of jobs, piece-work pay systems to control and motivate
employees.
„ Treat people mechanistically

1 2
Develop a science Scientifically select
for each element of employees and then
the job to replace old train them to do the job
rule-of-thumb methods as described in step 1
3 4
Supervise employees
Continue to plan
to make sure they
follow the prescribed the work, but use
methods for performing workers to get the
work done
their jobs

† Administrative Management
„ A theory that focuses on
managing the total organization.
„ Henri Fayol (1841 -1925) was the pioneer
„ Identification of the specific management functions planning, organizing,
leading, and controlling.
„ Also introduced 14 principles of management
• Division of labour
• Authority
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of individuals to the common good
• Remuneration
• Centralization
• Scalar Chain
• Order
• Equity
• Stability
• Initiative
• Esprit de corps
• [details: table 2.1]
Behavioral Perspective
† Emphasizes individual attitudes and behaviors, and group processes
† Elton Mayo one of the pioneers was popular for the Hawthorne study
† Resulted in human relations movement i.e. the workers respond to the social
context of the workforce
† Consequence was the development of field like Organizational behavior,
industrial psychology
† Provided important insights into motivation, group dynamics, and other
interpersonal processes in organization

Quantitative Management Perspective

† Applies quantitative techniques to management
† Two branches of this approach are
„ Management science
„ Operations Management
† Management science focuses on the development of mathematical models
† Operations management concerns with helping the org. more efficiently produce
its products or services
† Cannot predict or fully explain human behavior in org.

The Systems & The Contingency Approaches

† Systems Approach
„ Considers the management of org. as a system consisting of variety of
dynamic elements.
„ Assumes an input – transformation - output – feedback process in
management
† Contingency Approach
„ Suggests that appropriate managerial behavior in a given situation depends
on or is contingent on, a wide variety of elements