Basics of Management

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What is Management ?

• Where this word is used?

• What is the meaning?

-Manage Men

- Old French ménagement.: ‘the art of conducting ,directing ‘

-Latin Manuagere : ‘to lead by the hand’

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DEFINITION:

• Management in all business areas and organizational activities are the acts of getting people together to accomplish desired goals and objectives.

• Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more

people or entities) or effort for the purpose of accomplishing a goal.

• “Management is an art of getting things done throughand with people”.

• “The process by which execution of given purpose putinto operation and supervise”.

• “Management is the art of securing maximum resultswith the minimum of efforts so as to get maximumprosperity and happiness for both employer andemployee”

Applicability of Management in life and job

• Management in life:

- Daily planning, future planning

- Various occasions i.e., marriage, parties

- To achieve any goal i.e., 80% in BA 4TH SEM

• Management at job:

- proper authority and

responsibility

- achieving targets

- stress management

- measuring deviation

- smooth functioning

- co-ordination/ communication

- employee satisfaction

Scope of management :(Relation with other subjects/Sectors )

Marketing

• - Deciding promotional activities/ strategies/ setting targets – planning

• - Recruiting/training sales exe. – staffing

• - Giving targets by manager – Directing

• - Why targets are not achieved – Controlling

Finance

- Preparing budget – Planning and controlling

- Recruiting/training executives – staffing

- Maximum result with min. efforts/resources

Human resource

• - How many employees will be required? - Planning

• - Recruiting/training executives – Staffing

• - Performance appraisal – Controlling

• - which task given to whom? - Organizing

What Managers Do

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Managerial Activities

•Making decisions

•Allocating resources

•Directing activities of others to attain goals

Managers

Individuals who achieve goals through other people.

Where Managers Work

Organization

A consciously coordinated social unit, composed of two or more people, that functions on a relatively continuous basis to achieve a common goal or set of goals.

The Four Functions of Management

Planning

Select goals & ways to

attain themOrganizing Assign responsibility for

tasks

Leading Use influence to

motivate

Controlling

Monitor activities &

make corrections

Planning

– defining goals and objectives

– deciding what type of activities the company will engage in

– determining the resources needed to achieve the organization’s goals & objectives.

3

Organizing

– Grouping of activities

– Conflict resolution.

– Authority and responsibility

– delegation

– Allocation of resources

Directing/ leading

– Leading for better work

– Stimulating to work more

– Giving motivation

– Specifying job responsibilities

– Creating good working conditions

– Giving guidance

– Showing path

4

Controlling

Checking performance

Comparing actual targets with performance

Finding deviation

Taking corrective action

Monitoring performance of people & units.

• Identification of performance problems & actions to correct problems

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6

Management hierarchy/ Levels of management

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• Top level Posts/job title:

Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational Officer(COO), Chief Information Officer (CIO), Chairperson of the Board, President, Vicepresident, Corporate head

• Middle level Posts/job title:

General manager, Plant manager, Regional manager, and Divisional manager

• Lower level Posts/job title:

• Office manager, Shift supervisor, Department manager, Foreperson, Crew leader, Store manager

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Skills at managerial levels

Skills at managerial levels

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MANAGEMENT LEVELS AND TIME SPENT ON FUNCTIONS

Plan. Organ. Lead. Control.

Top 28% 36% 22% 14%

Middle 18% 33% 36% 13%

Lower 15% 24% 51% 10%

Approaches in Management thought

• Classical

- scientific

- bureaucratic

- administrative

• Behavioral

- Maslow, McGregor, Chris, Elton Mayo, Mary Parker

• Quantitative and Modern

- contingency theory

- theory Z

Taylor and scientific management (Frederick Winslow Taylor (1856-1915)

• The concept emerged in early 1900s.

• “SM is concerned with knowing exactly that you wantmen to do and then see in that they do it in the best andcheapest way”

• Taylor experimented and found –how human beingscould be made more efficient by standardizing thework and better method of doing the work.

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Elements of scientific management

1. Separation of planning and doing:

• Supervisor- Planning

• Worker – doing, operational work

2. Functional foremanship:

- work divided acc. To functions

2. Functional foremanship:

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3. job analysis:

- to find a best way of doing the things

- Time study

- Motion study

- Fatigue study

4. Standardization:

- Standardization is a means of achieving economicsof production.

• It seems to ensure –

– The line of product is restricted to predetermined type,form, design, size, weight, quality. Etc

– There is manufacture of identical parts and components.

– Quality & standards have been maintained.

– Standard of performance are established for workers at alllevels.

5. Scientific selection and training of workers.

- based on education, exp, aptitude, physical strength

- training to be more effective and efficient

6. Financial incentives- Piece rate system

7. Economy & Profit

-cost estimation and cost control

8. Mental revolution

- co-operation and co-ordination

H.Fayol’s Administrative Management (29 July 1841, (29 July 1841 ,19 November 1925)

• French industrialist

Fayol’s 14 principles of management

1. Division of work2. Unity of Command3. Order4. Equity5. Initiative6. Esprit de corps7. Stability of tenure8. Scalar chain9. Centralization10. Remuneration of employees

11. Subordination of individual interest to general interest

12. Unity of direction13. Discipline14. Authority and Responsibility

Fayol’s 14 principles of MGT.

1. Unity of Command:instructions/orders from only one boss. Ex. peon

Fayol’s 14 principles of MGT.

2. Division of Work:job /work is divided into specialized/small tasks i.e.,departments

Fayol’s 14 principles of MGT.3. Order:• Arrangement of things and people• All materials and personnel have a prescribed place, and they must

remain there.

Fayol’s 14 principles of MGT.

4. Initiative:• Workers should be encouraged to develop and carry out

their plans for improvements

Fayol’s 14 principles of MGT.

5. Equity:• Fairness to all employees

• No favoritism

Fayol’s 14 principles of MGT.

6. Authority and Responsibility: “Authority is the right to give

orders & obtain obedience, and responsibility is the effect of authority”

-should be divided properly

ex. Sales exe., Vodafone cust. care

7. Discipline: Rules and regulations

8. Unity of Direction: same objective for all with coordinated efforts

9. Subordination of Individual Interest to General Interest:

10. Remuneration of Employees: Employees receive fair payment for services

11. Centralization and Decentralization: ex. GTU, Panchayat

12. Scalar Chain: Formal chain of command running from top to bottom of the organization, like military

13. Stability of Personnel: Limited turnover of personnel. Lifetime

employment for good workers.

14. Espirit De Corps: team spirit of unity and harmony among employees