2. MANAGEMENT The word Management has been derived from the
word menaggiare which means to train up the horses According to
L.A.Allen- Management is what a manager does According to Peter
Drucker, "Management is a multi-purpose organ that manages business
and manages managers and manages workers and work." This definition
of management was given by Peter Drucker in his book "The
Principles of Management".
3. MANAGEMENT According to Mary Parker Follet, Management is
the art of getting things done through people Management is a set
of activities (including planning and decision making, organizing ,
leading, and controlling ) directed at on organizations resources (
human , financial , physical & information )with the aim of
achieving organizational goals in an efficient & effective
manner-R.W. Griffin
4. MANAGEMENT Management is simply the process of decision
making and control over the action of human beings for the
expressed purpose of attaining predetermined goalsStanly Vance
5. MANAGEMENT
6. LEVELS OF MANAGEMENT:
7. LEVELS OF MANAGEMENT: Generally, there are Three Levels of
Management, viz. Administrative or Top Level of Management.It
involves director general, assistant director general, general
manager, assistant general manager, directors etc. Executive or
Middle Level of Management.It involves various departmental
directors like- production manager, financial manager , purchase
manager etc. Supervisory or First line Level of Management.It
involves junior executives like supervisors, foreman etc. At each
level, individual manager has to carry out different roles and
functions.
8. LEVELS OF MANAGEMENT:
9. LEVELS OF MANAGEMENT:
10. MANAGEMENT FUNCTION: For theoretical purposes, it may be
convenient to separate the function of management but practically
these functions are overlapping in nature i.e. They are highly
inseparable. Each function blends into the other & each affects
the performance of others. 1.Planning: 2. Organizing: 3. Staffing:
4. Leading: 5. Controlling:
11. MANAGEMENT FUNCTION: Planning: Setting the organizational
goals and deciding how best to achieve them Organizing: Determining
how best to group activities and resources. Staffing: Positioning
right people right jobs at right time. Leading: Motivating members
of the organization to work in the best interest of the
organization. Controlling: Monitoring and correcting ongoing
activities to facilitate goal attainment.
12. PLANNING:
13. ORGANIZING
14. STAFFING
15. LEADING
16. CONTROLLING:
17. MANAGEMENT ROLE
18. MANAGEMENT ROLE: A role is any of the several behaviors a
manager display as he or she functions in the organization. 1.
Figurehead Role : A manager is the head of his or her work unit
,division , department , or section. 2. Leadership Role: The
manager is the environment creator . He or she plays this role by
working to improve employees performance, reducing conflict ,
providing feedback on performance and encouraging growth.
19. MANAGEMENT ROLE: 3. Liaison Role. Building the relation
between superiors and subordinates. 4. Monitor Role. Constantly
monitoring the environment to determine what is going on . 5.
Disseminator Role. Passes the information through subordinates
20. MANAGEMENT ROLE: 6. Spokesperson or representative Role:
Speaks internal and external work unit people out side the work
unit. 7. Entrepreneur Role. Expose new ideas that may improve the
work units operations, he or she assumes the entrepreneur role. 8.
Disturbance handler Role. Handle the crises occurring in the
organization.
21. MANAGEMENT ROLE: 9. Resource Allocator Role: managers are
responsible for determining who , in the work unit, gets the
resources and how much each person gets. 10. Negotiator Role.
Negotiating may be required on contracts with suppliers or simply
on trading off resources inside the organization.
22. MANAGEMENT SKILLS: Three skills need all managers. These
are: Technical Skill: is the knowledge of and ability to use the
processes, practices, techniques, or tools of a specialty
responsibility area. Example :-Accountants ,Engineers , Sales
Persons. Human Skill :is the ability to interact with other persons
successfully. a manager must be able to understand , work with ,
and relate to individuals and groups to build a term-work
environment. Conceptual Skill :deals with ideas and abstract
relationships. It is the mental ability to view the organization as
a whole and to see how the parts of the organization relate to and
depend on one another
23. MANAGEMENT SKILLS:
24. THE DECISION MAKING PROCESS: Decision making is the process
of making rational choices among alternatives.
25. THE DECISION MAKING PROCESS: Define the problem Identify
the limiting or critical factors Develop potential alternatives
Analyze the alternatives Select the best alternatives Implement the
solution Establish a control and evaluation system
26. ORGANIZATION CREATING AN ORGANIZATION An organization is a
group of two or more people that exists and operates to achieve
clearly stated, commonly held objective. Example: Churches, Social
clubs, Athletic teams, Local government and Nonprofit
organization
27. THE ORGANIZATIONAL PROCESS: Managers build organizations by
using the organizing process. The organizing processes are:
Consider objective and plans Objectives and plans are the starting
point. The objectives must consider the personal, social,
environmental, and financial components of the business. Plan, and
then annually review, business objectives to check they are still
appropriate and achievable.
28. Determine the necessary work activities Creating a list of
tasks to be accomplished begins with those that will be ongoing
tasks and ends with the unique or one time line tasks. Classify and
Group Activities Managers perform three processes: I. Examine each
activity identified to determine its general nature.(Marketing,
Production , Finance , Personnel) II. Group the activities into
these related areas. III. Establish the basic department design for
the organization structure.
29. Classify and Group Activities
30. Organizational structure Abc Company Finance Production
Marketing Western Region Division Typewriters Calculators
Government Retail Hospital Western Region Division Personnel
31. Assign work and delegate appropriate authority The
activities must be assign to individuals who are simultaneously
given the appropriate authority to accomplish the tasks. Design a
hierarchy of relationships: It requires the determination of both
the vertical and horizontal operational relationships of the
organization as a whole. This structure is shown by an organization
chart------- -------
32. President Vice- President- Production GM- Manufacturing
GM-Quality Control Vice-President- Marketing GM-Sales
GM-Advertising GM-Research
33. Key Terms: Chain of command : Hierarchy of decision making
levels in the company. Span of control :The number of subordinates
under the direction of a manager. Organizational chart :The visual
representation of the way an organization and each of its parts fit
together.
34. MANAGING THE ORGANIZATION STRUCTURE: Managers need to
understand and utilize the concepts of Authority , Delegation ,
Responsibility , Accountability, Span of Control , Centralization
and Decentralization Authority: Authority is a managers tool, it
can be described that commit resources or the legal right to give
orders. There are three types authority: Authority Line Authority
Staff Authority Functional Authority
35. Line Authority is direct supervisory authority from
superior to subordinate. Staff Authority is the authority to serve
in an advisory capacity. Functional Authority is the authority to
make decisions on specific activities that are undertaken by
personnel in other departments.
36. Line organization President Sales Manager Sales Person
Sales Person Sales Person Production Manager Machinist Welder
Assembler
37. The flow of line and staff authority President
Manufacturing Finance Production Legal Research and
DevelopmentStaff authority Line authority
38. Functional Authority President Marketing Advertising Sales
Production Finance Credit Fund Acquisition Personnel Functional
Authority
39. Delegation: Delegation is a concept describing the downward
transfer of formal authority from one person to another. When
Manager chooses to delegate a sequence of events is created.
Assignment of tasks: Specific tasks or duties that are to be
undertaken are identified by the manager for assignment to the
subordinates. Delegation of authority: Manager should delegate
authority to the subordinates for the accomplishment of the work.
Acceptance of responsibility: Responsibility is the obligation to
carry out ones assigned duties to the best of ones ability..
Responsibility will not be delegated by the manager . Creation of
accountability: Accountability is having to answer to someone for
your action .
40. Span of Control: Span of Control refers to the number of
subordinates a manager supervises. The exact number for each
manager is determined by 1.The complexity and variety of the
subordinates work 2.The ability of the manager 3.The ability and
training of the subordinates themselves 4.The supervisors
willingness to delegate the authority.
41. Spans of control Narrow Span Of Control President
Vice-President- Marketing Vice- President- Production Manager-
Manufact ure Employee -1 Employee -2 Employee -3 Employee ----
Manager- QC Vice- President- Personnel Wide span of control
42. Centralization and Decentralization: Centralization --- The
top level management may centralize all decision.
Decentralization--- The hiring the decisions to first level
management for clerical workers and let operational decisions be
made where appropriate.
43. TYPES OF FORMAL ORGANIZATION STRUCTURE: Formal organization
structures are developed by companies to help achieve their
specific objectives. Four types of organization, these are: 1. Line
Organization: A straight line of authority originating from the top
manager that connects each successive management level until it
reaches the operating employee level
44. 2. Line-and-staff Organization: It blends into the line
organization staff personnel that advise and serve the line
managers. Staff personnel advise the line managers in case of
decision making. 3. Functional Organization: is an attempt by
management to provide expert technical supervision to operating
employees by providing separate supervisors for each task. it
violates the principles of unity of command 4. Matrix Organization:
It temporary groups together specialists from different divisions
to work on special projects
45. Line organization President Sales Manager Sales Person
Sales Person Sales Person Production Manager Machinist Welder
Assembler
46. Line-and-staff organization President Research Sales
manager Sales person Sales person Sales person Production manager
Legal
48. INFORMAL ORGANIZATION: The informal organization is a
network of personnel and social relationships that arises
spontaneously as people associate with each other in the work
environment.
50. ACQUIRING AND DEVELOPING HUMAN RESOURCES HUMAN RESOURCES
MANAGEMENT (HRM): HRM is the staffing function of the organization.
It is includes the activities of human resources planning,
recruitment, selection, orientation, training, performance
appraisal, compensation and safety.
51. HUMAN RESOURCES PROCESS: Human Resources Planning
Recruiting Selection Orientation Orientation Training Performance
Appraisal Separation
52. HUMAN RESOURCES PROCESS: Human resource planning process
The process for an organization , which includes forecasting the
demand for and supply of personnel. It includes 1. Forecasting the
personnel 2.Comparing the requirements with the talents of present
employees 3.Developing specific plans for how many people to
recruit
53. Human Resource Planning Process Employee History
(Retirement,Resignations
54. RECRUITMENT By Recruitment the organization attempts to
identify and attract candidates to meet the requirements of
anticipated or actual job opening. There are two sources of
applicants---- Internal source External source
55. SELECTION: Selection is the process of deciding which
candidate out of the pool of application developed in recruiting
has the abilities, skills and characteristics that most closely
match job demands. SELECTION PROCESS: Application Blank Preliminary
Interview Testing In-depth Interview Reference Checks Physical
Examination Offer of Employment
57. Orientation An orientation program is a series of
activities that gives the new employees information to help them
adapt to the organization and their new jobs. Its purpose is to
turn them (new employees) and us (the company ) into we.
58. TRAINING: Training supplies the skills, knowledge and
attitude needed by subordinates to improve their abilities to
perform their jobs. Several training methods can be used. Classroom
training (It is training conducted away from the pressures of the
work environment. The employee learns the basic skills of the job
and then is sent to the work force) On-the-job training ( It is a
technique of teaching job skills while the person performs the job)
Vestibule training ( It is training conducted in a simulated work
environment complete with sample equipment)
59. Performance Appraisal: Performance Appraisal is a formal
measure or rating of an employees job performance compared with
established job standards. A company may use two types Performance
Appraisal: Subjective Performance Appraisal System (is based on the
personal viewpoint of the manager)(Page-155, Table-6.3) Objective
Performance Appraisal System (In this system the specific
performance areas are identified for the employee as are the
results expected) Page-156, Table-6.4)
60. PERSONNEL CHANGES: MOVING UP AND MOVING ON Promotion : A
promotion is a movement by a person into a position with higher pay
and greater responsibly Transfer : A transfer is a lateral move
from one position to another that has similar pay and
responsibility levels. Demotion : A demotion is a movement from one
position to another that has less pay or responsibility attached to
it .
61. Separation Separation is the loss of an employee to an
organization through layoff, termination ,retirement or
resignation. A layoff is a temporary separation dictated by the
level of business a company is experiencing when and if business
condition improve employees are recalled to work.
62. Termination is a permanent separation from the company . An
employee is terminated, or fired , owing to unsatisfactory
performance or violation of work rules. Retirement is a persons
intention to stop working for the rest of his or her life.
Resignation is a voluntary separation in which a worker leaves to
accept another position.
63. Compensation: Compensation is the total amount of the
monetary and non-monetary pay provided to an employee by an
employer in return for work performed as required.
64. Types of compensation ----- Wages, Salary: Wages is
compensation based on hours worked while salary is compensation
based on weeks or months worked. Piece work :pays employees
according to the number of units they produce. Commission : A
percentage paid to a salesperson of the price of each item sold.
Bonus : is an incentive money paid to employees in addition to
their regular compensation . Profit Sharing: refers to paying a
portion of company profits to employees as a performance incentive
in addition to their regular compensation. Stock Option: A stock
option is a plan that permits employees to buy shares of stock in
the employees firm at or below the present market price.
65. Pension Plan: is a program to provide a retirement income
to workers by holding a percentage of their earning s in reserve.
Fringe Benefits : Non financial rewards provided for employees.
1.Life,health,and Dental insurance 2.Paid vacations 3.Sick pay. 4.
Holidays 5.Paid lunch 6.Discounts on merchandise or service 7.Child
care
66. MANAGING PEOPLE Motivation: Motivation basically means an
individuals needs, desires and concepts that cause him or her to
act in a particular manner. Feeling that drive someone toward a
particular time or things that are missing from a person's
life
68. Basic motivation model Tension ( Stimuli ) Food Cook rice
Eat rice No more hunger I m hungry
69. MASLOWS HIERARCHY OF NEEDS:
70. MASLOWS HIERARCHY OF NEEDS:
71. Physiological need: is the fundamental need for food,
clothing , and shelter. Safety and security need : is the need to
avoid bodily harm and uncertainty about ones well-being. Social
need :is the need to be accepted by people whose opinions and
companionship you value. Esteem needs :is the need to feel
important , admired, and worthwhile. Self actualization or self
realization needs : is the need to get the maximum reward from one
, s life experience: to maximize one , s skills, abilities , and
potential.
72. Physical needs Safety needs Social needs Esteem needs Self-
realization needs 1.Food 1.Security for Self & possessions
Companion ship Responsibility Reaching your potential 2.Clothing 2.
Avoidance of risks acceptance Self-respect Independence 3.Sheiter
3.Avoidance of harm Love & affection Recognition Creativity
4.Comfort & Self- preservation 4. Avoidance of pain Group
membership Sense of accomplishment Self-expression
73. HERZBERGS MOTIVATION- MAINTENANCE MODEL: Frederick Herzberg
developed a theory of motivation in his motivation-maintenance
model. he indicates that two sets of factors, or conditions ,
affect how people behave in organizations. These two are
maintenance and motivation factors. Maintenance factors
:Maintenance or hygiene factors are those job factors that prevent
dissatisfaction but do not generate satisfaction or motivate
workers to generate effort.
74. 1.Salary: Adequate wages, salaries, and fringe benefits
2.Job security : Company grievance procedures and seniority
privileges 3.Working conditions : Adequate heat, light ,
ventilation, and hours of work 4.Status : Privilege , job titles,
and other symbols of rank and position 5.Company policies :The
policies of the organization and fairness in administrating those
policies 6.Quality of technical supervision :Whether or not the
employees is able to receive answers to job-related questions.
Quality of interpersonal relations among peers , supervisors , and
subordinates . Presence of above facility will not satisfy staffs ,
but absence of those facility will make them dissatisfied.
75. Motivation factors : Motivation factors are those job
factors that provide satisfaction and therefore motivation, but
whose absence causes no satisfaction to be achieved. Herzberg,s
motivation factors are ; 1.Achievement: Opportunity for
accomplishment and for contributing something of value when
presented with a challenge 2.Recognition : Acknowledgement that
contributions have been worth the effort and that the effort has
been noted and appreciated 3.Responsibility: Acquisition of new
duties and responsibilities, either through the expansion of a job
or by delegation. 4. Advancement: Opportunity to improve ones
organizational position as a result of job performance. 5. The work
itself: Opportunity for self-expression, personal satisfaction and
challenge.
76. LEADERSHIP
77. LEADERSHIP: Leadership is the process of encouraging and
helping others to work enthusiastically toward objective. STYLES OF
LEADERSHIP: Leadership style is the approach a manager uses to
influence subordinates. This influence may take the form of making
a decision for a subordinate, guiding the subordinate in decision
making. Thus a manager has a number of option s for a
decision-making style. The range of styles shown on the continuum
can be grouped under three heading: 1. Autocratic Leadership Style:
The autocratic leadership style is characterized by decision making
solely by the manager, subordinates are excluded from the
process.
78. 2. Participative leadership style: The participated
leadership style is characterized by the manager involving the
subordinates in the decision. 3. Free-rein or Laissez-faire
leadership style: The free-rein or laissez-faire leadership style
by the leader permitting the subordinates to function
independently. The leader exercises little direct supervision over
subordinates, allowing them to use considerable judgments in
accomplishing tasks.