UNIT I OVERVIEW OF MANAGEMENT
Definition - Management - Role of managers - Evolution of Management thought
Organization and the environmental factors – Trends and Challenges of Management in
Global Scenario.
Management
- as how the mind controls the human body and its function similar management (mind)
controls the various activities ( human body) in the Organisation
- Collection of physical equipments, 4 M’s in Organisation – Men, Machine, Materials,
Money, and leads to nothing. For efficient and profitable functioning it is necessary that
all these factors are put to work in a co-ordinated manner.
Management Definition
Management is the art of getting things done through others. Harold Koontz Def as “
Management is the process of designing and maintaining an environment in which individuals,
working together in groups efficiently to accomplish selected aims”
• Managers carry out their managerial function
• Applies to any kind of Organisation
Applies to managers at all Organisational levels
Aim is to create a surplus
Concerned with productivity, implies effectiveness and efficiency
Mgt of 4 M’s in the Orgn – Men, Machine, Materials & money
Characteristics of Management
• Mgt is Universal
• Mgt is dynamic
• Mgt is a group of managers
• Mgt is Purposeful
• Mgt is goal oriented
• Mgt is integrative Function
• Mgt is a Social process
• Mgt is a Multi-faceted discipline
• Mgt is a continuous process
• Mgt is a system of authority
• Mgt is a resource
• Mgt is intangible
• Mgt is profession, an art as well as a science
ADMINISTRATION VS MANAGEMENT
Basis of Administration Management
Distinction
and Implementation of Policies
Policy Determination of objectives &
objectives policies
1
, Main
Legislative & determination Executive Function
Functions
function
Planning, Organising staffing
Directing, Motivating,
Coordinating Controlling
Provides a sketch of the enterprise Provides the entire body
Influence
Influenced mainly by publicInfluenced mainly by
opinion & other outside force administrative function
of Mainly middle level
Levels Mainly top level function involves
function involves doing and
Management thinking & planning
acting
Owners/ Board of Directors MD, GM & Managers
Level of
Executives
Position Acts as a principal Acts as an agency
Knowledge
Requires more admin ability than Requires more technical ability than
technical ability admin ability
Management as an Art
The main elements of an art are –
Personal Skills
• Practical know-how
• Application of knowledge
• Result orientation
• Creativity
• Constant practice aimed at perfection
Management is basically an art because of the following reasons
• A manager applies his knowledge and skills to coordinate the efforts of his people
• Mgt seeks to achieve concrete practical results
• Mgt is creative. It brings out new situation and converts into output
• Effective Mgt lead to realization of Organizational and other goals. Mastery in Mgt requires
a sufficiently long period of experience in, managing.
Management as Science
2
,The essential elements of Science
• Systematised body of Knowledge
• Underlying principles and theories developed through continuous observation, inquiry,
experimentation and research.
• Universal truth and applicability.
• Organised body of knowledge can be taught and learnt in class room and outside.
• Mgt is a social science. It contains all the essentials of science. It is an inexact science.
• PERT, CPM, Cost A/C, Finance, MBO etc
Thus, the theory (Science) and practice (art) of Mgt go side by side for the efficient functioning
of an organisation.
Management as a Profession
The essential attribute of a profession
• A well-defined and organised body of knowledge
• Learning and Experience
• Entry restricted by qualification
• Recognised national body
• Ethical code of conduct
• Dominance of service motive
Mgt is not a full fledged profession now due to the following shortcomings
• Skills not fully developed
• No uniform method of entry
Objective is monetary rather than service
Ethical code is not strict
Associations are not statutory bodies
But in India it is developing into a profession and it will be achieved in due course.
Managerial Skills
• Conceptual skills
• Human Skills
• Technical Skills
• Design Skills – Decision making
Need for Management
1. To increase efficiency
2. To crystallize the nature of Mgt job
3. To improve research in Mgt
4. To attain social goals Levels of Management
1. Top Level Mgt –
Board of Directors, MD, Owners, Chief Executives
• To analyse, evaluate and deal with th environmental forces
• To establish overall long term goals and broad policies of the company
including the master budget
• To appoint departmental and other key executives
• To represent the company to the outside world
3
, • To coordinate the activities and efforts of different department
2. Middle Level Mgt –
Sales Executives, Production Executives, Production executives etc.
• To interpret and explain the policies framed by top management
• To compile and issue detailed instruction regarding operations
• To Cooperate among themselves so as to integrate various parts of the division or
a department
• To motivate supervisory personnel to work for Orgn goals To develop and train
supervisory and operative personnel.
3. Supervisory / Operating / Lower Level Mgt –
Superintendents, Branch managers, General Foremen
• To plan day to day production within the goals lay down by higher authority
• To assign jobs to workers and to make arrangement for their training and development
To supervise and control workers and to maintain personal contact with them.
Roles of a manager ( Mintzberg)
1. Interpersonal Role - Interacting with people inside and outside the Orgn
• Figurehead – as a symbolic head of an organisation, the manager performs routine
duties of a legal nature
Leader – Hiring, Training, motivating and guiding subordinates
Liason - Interacting with other managers outside the orgn to obtain favours and
information
2. Informational Role – Serving as a focal point for exchange of Information
Monitor – Seeks and receive information concerning internal and external events so as to
gain understanding of the Orgn and its environment.
Disseminator – Transmits information to subordinates, peers and superiors within the
Organisation
• Spokesperson – Speaking on behalf of the Orgn and transmitting information on Orgn
plans, policies and actions to outsiders.
3. Decisional Role – Makes important decision
Entrepreneur – Initiating changes or improvements in the activities of the Orgn
Disturbance handler- Taking charge and corrective action when Orgn faces unexpected
crises
Resource allocator – Distributing Orgn’s resources like money, time, equipment and
labour
Negotiator – Representing the Orgn in bargaining and negotiations with outsiders and
insiders
Importance of Management
Management is the dynamic life –giving element in every business. Without it the
resources of production remain resources and never become production. Sound Management
provides the following benefits .
• Achievement of group goals
4
Definition - Management - Role of managers - Evolution of Management thought
Organization and the environmental factors – Trends and Challenges of Management in
Global Scenario.
Management
- as how the mind controls the human body and its function similar management (mind)
controls the various activities ( human body) in the Organisation
- Collection of physical equipments, 4 M’s in Organisation – Men, Machine, Materials,
Money, and leads to nothing. For efficient and profitable functioning it is necessary that
all these factors are put to work in a co-ordinated manner.
Management Definition
Management is the art of getting things done through others. Harold Koontz Def as “
Management is the process of designing and maintaining an environment in which individuals,
working together in groups efficiently to accomplish selected aims”
• Managers carry out their managerial function
• Applies to any kind of Organisation
Applies to managers at all Organisational levels
Aim is to create a surplus
Concerned with productivity, implies effectiveness and efficiency
Mgt of 4 M’s in the Orgn – Men, Machine, Materials & money
Characteristics of Management
• Mgt is Universal
• Mgt is dynamic
• Mgt is a group of managers
• Mgt is Purposeful
• Mgt is goal oriented
• Mgt is integrative Function
• Mgt is a Social process
• Mgt is a Multi-faceted discipline
• Mgt is a continuous process
• Mgt is a system of authority
• Mgt is a resource
• Mgt is intangible
• Mgt is profession, an art as well as a science
ADMINISTRATION VS MANAGEMENT
Basis of Administration Management
Distinction
and Implementation of Policies
Policy Determination of objectives &
objectives policies
1
, Main
Legislative & determination Executive Function
Functions
function
Planning, Organising staffing
Directing, Motivating,
Coordinating Controlling
Provides a sketch of the enterprise Provides the entire body
Influence
Influenced mainly by publicInfluenced mainly by
opinion & other outside force administrative function
of Mainly middle level
Levels Mainly top level function involves
function involves doing and
Management thinking & planning
acting
Owners/ Board of Directors MD, GM & Managers
Level of
Executives
Position Acts as a principal Acts as an agency
Knowledge
Requires more admin ability than Requires more technical ability than
technical ability admin ability
Management as an Art
The main elements of an art are –
Personal Skills
• Practical know-how
• Application of knowledge
• Result orientation
• Creativity
• Constant practice aimed at perfection
Management is basically an art because of the following reasons
• A manager applies his knowledge and skills to coordinate the efforts of his people
• Mgt seeks to achieve concrete practical results
• Mgt is creative. It brings out new situation and converts into output
• Effective Mgt lead to realization of Organizational and other goals. Mastery in Mgt requires
a sufficiently long period of experience in, managing.
Management as Science
2
,The essential elements of Science
• Systematised body of Knowledge
• Underlying principles and theories developed through continuous observation, inquiry,
experimentation and research.
• Universal truth and applicability.
• Organised body of knowledge can be taught and learnt in class room and outside.
• Mgt is a social science. It contains all the essentials of science. It is an inexact science.
• PERT, CPM, Cost A/C, Finance, MBO etc
Thus, the theory (Science) and practice (art) of Mgt go side by side for the efficient functioning
of an organisation.
Management as a Profession
The essential attribute of a profession
• A well-defined and organised body of knowledge
• Learning and Experience
• Entry restricted by qualification
• Recognised national body
• Ethical code of conduct
• Dominance of service motive
Mgt is not a full fledged profession now due to the following shortcomings
• Skills not fully developed
• No uniform method of entry
Objective is monetary rather than service
Ethical code is not strict
Associations are not statutory bodies
But in India it is developing into a profession and it will be achieved in due course.
Managerial Skills
• Conceptual skills
• Human Skills
• Technical Skills
• Design Skills – Decision making
Need for Management
1. To increase efficiency
2. To crystallize the nature of Mgt job
3. To improve research in Mgt
4. To attain social goals Levels of Management
1. Top Level Mgt –
Board of Directors, MD, Owners, Chief Executives
• To analyse, evaluate and deal with th environmental forces
• To establish overall long term goals and broad policies of the company
including the master budget
• To appoint departmental and other key executives
• To represent the company to the outside world
3
, • To coordinate the activities and efforts of different department
2. Middle Level Mgt –
Sales Executives, Production Executives, Production executives etc.
• To interpret and explain the policies framed by top management
• To compile and issue detailed instruction regarding operations
• To Cooperate among themselves so as to integrate various parts of the division or
a department
• To motivate supervisory personnel to work for Orgn goals To develop and train
supervisory and operative personnel.
3. Supervisory / Operating / Lower Level Mgt –
Superintendents, Branch managers, General Foremen
• To plan day to day production within the goals lay down by higher authority
• To assign jobs to workers and to make arrangement for their training and development
To supervise and control workers and to maintain personal contact with them.
Roles of a manager ( Mintzberg)
1. Interpersonal Role - Interacting with people inside and outside the Orgn
• Figurehead – as a symbolic head of an organisation, the manager performs routine
duties of a legal nature
Leader – Hiring, Training, motivating and guiding subordinates
Liason - Interacting with other managers outside the orgn to obtain favours and
information
2. Informational Role – Serving as a focal point for exchange of Information
Monitor – Seeks and receive information concerning internal and external events so as to
gain understanding of the Orgn and its environment.
Disseminator – Transmits information to subordinates, peers and superiors within the
Organisation
• Spokesperson – Speaking on behalf of the Orgn and transmitting information on Orgn
plans, policies and actions to outsiders.
3. Decisional Role – Makes important decision
Entrepreneur – Initiating changes or improvements in the activities of the Orgn
Disturbance handler- Taking charge and corrective action when Orgn faces unexpected
crises
Resource allocator – Distributing Orgn’s resources like money, time, equipment and
labour
Negotiator – Representing the Orgn in bargaining and negotiations with outsiders and
insiders
Importance of Management
Management is the dynamic life –giving element in every business. Without it the
resources of production remain resources and never become production. Sound Management
provides the following benefits .
• Achievement of group goals
4
