( An IACBE Accredited Institution )

Foundation Course
Principles of Management
Post Graduate Programme (2008 – 10)
(PGP)

Alliance Business School

Bangalore
 Chapter 1
Introduction To
Management

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 1.1

Learning
Objectives
After reading this chapter, you should be able to:
o Define Management

o Understand why one should study Management

o Define an Organization

o Explain who are Managers

o Explain what Managers do

o Describe the changing context of managerial work

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TATA
Motors
o Rana Pratap – Helper – Mechanical Maintenance
Dept. – applied for 10 days’ leave from 15 June –
native place.
o Leave regretted – by Foreman – other helper in sick
leave.
o Rana started absenting from 15 June – on 18 June
Foreman received application – leave on medical
ground – high fever – doctor recommended medical
leave for 15 days.
o Company’s Standing Order No. 23(ix) – permanent
employee 30 days SL if certified by doctor.
o Rana has 25 days medical leave to his credit.
o How would you handle this case?

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HCL
Technologies
Limited
o Workers canteen opens at 8 am – employees purchase tea and
snacks – open for 30 minutes – stand in a queue.
o May 21, 8.15 am, Joginder, Khalasy, – generally avoids queue -
came and tried to purchase through Vipin.
o Ramlal protested – argument started – Joginder slapped Ramlal –
canteen supervisor intervened and separated them.
o Company’s Certified Standing Order No. 3(i) – ‘Riotous, disorderly
behaviour in the com. premise is a misconduct’ – Works Manager
is the disciplinary authority.
o Advice the W.M. on the step for handling this case.

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Basic Idea

MANAGE
MEN
T
MANAGEMENT

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 Management Process

Basic Resources Fundamental Functions

Attainment of
• Men
Planning the stated
• Materials
objective
• Machinery
Organizing
• Methods
• Money
Staffing
• Market Goal of
Leading Organization

Controlling

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Management -
Definitions
o The act of getting people together to accomplish desired goals. It
characterizes the process of leading and directing all or part of an
organization through the deployment and manipulation of resources
(human, financial, material, intellectual or intangible) (Wikipedia).

o The process of designing and maintaining an environment in which

individuals, working together in groups, efficiently accomplish selected
items (Koontz and Weihrich).

o A process by which managers create, direct, maintain, and operate

purposive organizations through systematic, coordinated, cooperative
human effort (McFarland).

o The act of getting things done through people (Mark Parker Follet).

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Basic Idea - Again

MANAGE
MEN
T
MANAGEMENT

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Why Study
Management?
o It brings order to endeavors by combining
isolated events and disjointed information into
meaningful relationships. These relationships
then work to solve problems and accomplish
goals.
o It makes human efforts more productive. It
brings better equipment, plants, offices,
products, services and human relations to the
society.
So, there is no substitute for Good
Management.
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Value of Studying
Management
o The universality of management
– Good management is needed in all organizations.
o The reality of work
– Employees either manage or are managed.
o Rewards and challenges of being a manager
– Management offers challenging, exciting and creative
opportunities for meaningful and fulfilling work.
– Successful managers receive significant monetary
rewards for their efforts.

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Universality of
Management

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Efficiency and Effectiveness
in Management

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What Is An Organization?

o An Organization Defined
– A deliberate arrangement of people to accomplish some
specific purpose
– A group of people that agree or accept responsibilities to
act together with a common purpose.
o Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Composed of people
– Have a deliberate structure

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Characteristics of
Organizations

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 The Changing
Organization
Traditional Organization New Organization
• Stable • Dynamic
• Inflexible • Flexible
• Job-focused • Skills-focused
• Work is defined by job positions • Work is defined in terms of tasks to be
done
• Individual-oriented • Team-oriented
• Permanent jobs • Temporary jobs
• Command-oriented • Involvement-oriented
• Managers always make decisions • Employees participation in decision
making
• Rule-oriented • Customer-oriented
• Relatively homogeneous workforce • Diverse workforce
• Workdays defined as 9 to 5 • Workdays have no time boundaries
• Hierarchical relationships • Lateral and networked relationships
• Work as organizational facility during specific • Work anywhere, anytime
hours
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The Evolving Structure of
Organizations
1980 1990

2000

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Who Are Managers?

Someone who works with and through other

people by coordinating and integrating their
work activities in order to accomplish
organizational goals.

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Managerial Levels

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Managerial
Competencies
Communication
Competency
Teamwork Planning and
Competency Administration
Competency
Managerial
Effectiveness
Global Strategic
Awareness Action
Competency Competency
Self-
Management
Competency

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 Classifying Managers
o First-line Managers
- Are at the lowest level of management and
manage the work of non-managerial employees.
o Middle Managers
- Manage the work of first-line managers.
o Top Managers
- Are responsible for making organization-wide
decisions and establishing plans and goals that
affect the entire organization.

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What Do Managers Do?

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 1.4

Basic Managerial
Functions

Organizing

Planning Leading

Controlling

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 Mintzberg’s 10
Managerial Roles
Category Role Activity Examples
Scan/read trade press, 
Seek and acquire periodicals, reports;
Monitor work-related attend seminars and
information training; maintain
personal contacts

Informational Communicate/ Send memos and

disseminate reports; inform staffers
Disseminator information to others and subordinates of
within the decisions
organization
Pass on memos,
reports and
Communicate/transmit
Spokesperson informational
information to
materials; participate
outsiders
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 Mintzberg’s 10 Managerial
Roles (Contd.)
Category Role Activity Examples

Greet visitors, sign legal

Perform social and
Figurehead legal duties, act as documents, attend ribbon
cutting ceremonies,
symbolic leader
host receptions, etc.
Direct and motivate Includes almost all
Interpersonal Leader
subordinates, select interactions with
and train employees subordinates

Establish and Business correspondence,

maintain contacts participation in meetings
Liaison within and outside with representatives of
the organization other divisions or
organizations. 

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Mintzberg’s 10
Managerial Roles (Contd.)
Category Role Activity Examples
Identify new ideas and Implement innovations;
Entrepreneur initiate improvement Plan for the future
projects

Settle conflicts between

Deals with disputes or subordinates; Choose
Disturbance problems and takes
Handler strategic alternatives;
Decisional corrective action Overcome crisis
situations

Resource Decide where to apply Draft and approve of

resources plans, schedules,
Allocator
budgets; Set priorities
Takes charge over Represent departmental
Negotiator
important negotiation interests.
of union contracts,
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sales, purchases, etc.
 Knowledge and Skills
Requirements
Organizational Level

Conceptual

Top

Middle Human

Supervisory
Technical

Knowledge and Skill required

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Knowledge and Skills
Requirements

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 Conceptual Skills
o Using information to solve business problems.
o Identifying of opportunities for innovation.
o Recognizing problem areas & implement solutions.
o Selecting critical information from masses of data.
o Understanding of business uses of technology.
o Understanding of organization’s business model.

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 Communication Skills
o Ability to transform ideas into words and actions.
o Credibility among colleagues, peers &
subordinates
o Listening and asking questions.
o Presentation skills; spoken format.
o Presentation skills; written and/or graphic formats.

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 Effectiveness Skills
o Contributing to corporate mission or departmental objectives
o Customer focus
o Multitasking: working at multiple tasks in parallel
o Negotiating skills
o Project management
o Reviewing operations and implementing improvements
o Setting and maintaining performance standards internally and
externally
o Setting priorities for attention and activity
o Time management

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Interpersonal Skills
o Coaching and mentoring skills
o Diversity skills
(working with diverse people & cultures)
o Networking within the organization
o Networking outside the organization
o Working in teams; cooperation and
commitment
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How The Manager’s Job
Is Changing
oThe Increasing Importance of Customers
o Customers: the reason that organizations exist
- Managing customer relationships is the responsibility of all
managers and employees.
- Consistent high quality customer service is essential for
survival.
oInnovation
o Doing things differently, exploring new territory, and
taking risks
- Managers should encourage employees to be aware of and
act on opportunities for innovation.

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Rewards and Challenges of
Being A Manager

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 ?
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