introduction of Management

1. Management
An Overview

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OUTLINE
• What is Management?
• Nature & Scope of Management
• Management-Science/Art/Profession?
• Management Vs Administration
• Managerial roles, functions & skills
• Development of Management thought
• Early management approaches
• Modern management approaches

3. • Management is a dynamic life, giving element in every
organization. It is the element that coordinates current
organizational activities and plan future ones.
• In the present context , the term management is used in
three alternative ways:
1. Management as a discipline.
2. Management as a group of people.
3. Management as a process.
Concept of management

4. • AS A DISCIPLINE: discipline refers to a field of
study having well define concepts and
principles.
• AS A GROUP OF PEOPLE: In it we include all
those personnel's who perform managerial
functions in the organization.
• AS A MANAGEMENT PROCESS: systematic
method of handling activities of management.
………….

5. DEFINITION OF MANAGEMENT
• The term ‘management’ can be interpreted in
a variety of ways. To gain a better insight into
the nature of management, let us look at
some of the definitions of management:

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Some definitions
• “Management is the art of getting things done
through and with the people in formally organised
groups”…..Koontz H.

7. • Management as a process “ consisting of
planning, organizing, directing and
controlling, performed to determine and
accomplish the objectives by the use of
people and resources”.
---GEORGE . R. TERRY

8. Lawrence A. Appley – Management is accomplishment of
results through the efforts of the other people.
H. Koontz – Management is art of getting things done
through and with people in formally organized groups.
G. Terry – Management is process of planning, organizing,
actuating and controlling to determine and accomplish the
objectives by the use of people and resources.
Mc. Farland – Management is process by which managers
create, direct, maintain and operate purposive organizations
through systematic, coordinated, cooperative human effort.

9. • Management
– The process of getting things done, effectively and
efficiently, through and with other people
– Efficiency
• Means doing the thing correctly; refers to the
relationship between inputs and outputs; seeks to
minimize resource costs
– Effectiveness
• Means doing the right things; goal attainment

10. Efficiency and Effectiveness

11. Definitions of Effectiveness and Efficiency
• Productivity implies effectiveness and
efficiency in individual and organizational
performance
• Effectiveness is the achievement of objectives
• Efficiency is the achievement of the ends with
the least amount of resources (time, money,
etc.)

12. Therefore we have seen that term ‘management’ can be interpreted in a
variety of ways. To gain a better insight into the nature of management,
we classified it into four orientation:-
1. Production oriented
2. Decision oriented
3. People oriented
4. Function oriented
Definition of management

13. • Management is the art of knowing what you want to do and
then seeing that it is done in the best and cheapest way.
1............Production oriented definition

14. • Management is simply the process of decision making and
controlling over the action of human beings for the purpose
of attaining pre-determine goals.
2………….Decision oriented definition

15. • Management is the art of getting things done through the
people and with the people in formally organized group.
3……………People oriented definition

16. • Management is a process involving planning, organizing,
staffing, directing and controlling human efforts to achieve
stated objectives in an organization.
4…………..Function oriented definition

17. • The nature of management can be described
as follows:
1. Multidisciplinary
2. Dynamic nature of principles
3. Relative, not absolute principles
4. Management: science or art
5. Management as a profession
6. Universality of management.
Nature of management

18. • Management is basically multidisciplinary. It
has drawn knowledge concepts and
principles from various disciplines.
• EXAMPLE:
1. Economist have treated management as a
factor of production.
2. Sociologist have treated management as a
class or group of persons.
1………………….Multidisciplinary

19. • Management framed certain principles, these
principles are flexible in nature and change
with the changes in the environment in which
an organization exists, because of the
continuous development in the field, many
older principles are being changed by new
principles.
2………..Dynamic nature of principles

20. • Management principles are relative , not
absolute, and they should be applied acc. to
the need of the organization. Each
organization may be different from others ,
the difference may exist because of time ,
place etc.
3…….Relative, not absolute principles

21. • management is both science and arts….
• MANAGEMENT AS A SCIENCE: science based
on logical consistency, systematic explanation,
critical evaluation, and experimental analysis,
so we can say management as a science.
4……….Management: science or art

22. • MANAGEMENT AS A ART:
 Management is creative like any other art like painting , music
etc.Creativity is the measure dimension in managerial success.
It creates new situations for further improvements.
 Management is personalized meaning hereby that there is no
‘ one best way of managing’ every person in this profession
has individual approach and technique in solving the
problems. The success of managerial task is related with the
personality of the person apart from the character and quality
of general body of knowledge.
……...

23. • There are various characteristics of
profession by which we can say
management as a profession:
a) Existence of knowledge
b) Acquisition of knowledge
c) Profession association
d) Ethical codes
e) Service motive
5……….Management as a profession

24. • The development of knowledge in
management field has been due to need for
managing complex and large organization in
the better way. Thus management satisfies
the requirement of a profession in the form of
existence of knowledge.
a)----------Existence of knowledge

25. • An individual can enter a profession only after
acquiring knowledge and skills through formal
training. now a days management knowledge
is very important for being a managerial
person.
b)---------Acquisition of knowledge

26. • A profession association consist of firm and
individuals whose membership is based on
common professional, scientific and technical
aims . In the field of management , there are
associations at various levels.
EXAMPLE: In India ,there is all India
management association.
c)-----------Profession association

27. • For profession, some ethical standard are
provided and every individual of the
profession is expected to maintain conformity
with these standards. In management also
code of conduct has been formulated to
suggest the behavior pattern of professional
managers.
d)-----------Ethical codes

28. • Service motive concept suggest that
professionals should keep social interest in
there mind while charging fees for their
professional services. And the management is
also having a service motive in the interest of
society , this is important contribution of
management cannot be measured in term of
money alone because without the integrating
efforts of management, resources worth
million of rupee may be useless.
e)------------Service motive

29. • Management is a universal phenomenon.
However management principles are not
universally applicable but are to be modified
according to the needs of the situation.
6………..universality of management

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Importance of Management
• Determination of objectives
• Achievement of objectives
• Optimum /Effective use of resources
• Effective leadership and motivation/ coordinated
human efforts.
• Establishes sound industrial relations
• Achievement of goals/Meeting Challenges
• Economic Development

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Functions of Management
• No consensus on the classification
• No similar terminology amongst the experts
• Newman & Summer:
– Organizing, planning, leading & controlling
• Henry Fayol:
– Planning, organizing, commanding, coordinating &
controlling

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Functions of Management
• Luther Gullick: POSDCORB
P : planning
O : organizing
S : staffing
D : directing
CO: coordinating
R : reporting
B : budgeting

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Functions of Management
Planning
– The process of establishing goals and a suitable
course of action for achieving those goals.

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Functions of Management
Organizing
– The process of engaging two or more people in
working together in a structured way to achieve
a specific goal or set of goals.

35. Functions of Management
Staffing
– Selecting and training the individuals for specific
job functions & charging them with the associated
responsibilities.

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Functions of Management
Directing/Leading
– It is the process of influencing and motivating
employees to perform essential tasks in a n
organization.

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Functions of Management
CO: coordinating
– The integration of the activities of the separate
parts of an organization to accomplish
organizational goals.

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Functions of Management
• Controlling
– The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations

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Management :Science or Art ?
 Elements of Science
• Systematic body of
knowledge
• Scientific inquiry and
Observation
• Experimentation
• Universal truths
 Elements of Art
• Application of Knowledge
• Doing things creatively
• Personalized skill
• Perfection through
practice

40. Management: Science or Art?
• The Science of Management
– Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
– Requires technical, diagnostic, and decision-making
skills and techniques to solve problems.
• The Art of Management
– Decisions are made and problems solved using a
blend of intuition, experience, instinct, and personal
insights.
– Requires conceptual, communication, interpersonal,
and time-management skills to accomplish the tasks
associated with managerial activities.

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Management as Science
• Distinct discipline
• Offers principles & guidelines
• Social science
• An inexact science
• Scientific & systematic.

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Management as Art
• Uses the practical knowledge acquired in tackling
problems.
• Combines human & nonhuman resources in a
creative way to achieve results.
• A personalized activity
• Constant practice leads to good management

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Management: Science as well as Art
• Art of management is as old as civilization.
• Science of management is young and developing
• Both are complementary & mutually supportive

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Management: Science as well as Art
• According to Peter Drucker:
“Every organization has the same resources to work
with. It is the quality of management that spells the
difference between success and failure”.
• Ability to solve problems requires sound knowledge
& constant practice

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Management as a Profession
 Essential features of profession:
– Well defined body of knowledge
– Formal education and training
– Minimum qualification
– Representative body
– Service above self
– Ethical code of conduct

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Management as a Profession
• Management has well defined body of knowledge,
tools and techniques, research & consultancy
• Acquiring management education through formal
training is possible
• No representative body unlike for doctors, lawyers,
etc
• No universal code of conduct.

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Management as a Profession
• No regulatory body and code of conduct leads to
neglection of service motto.
• Not a recognized profession ,but moving in that
direction .
• Some initiatives are: separation of ownership from
management, state regulation of business activities,
proliferation of management institutions, etc.

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Management & Administration
• Controversy over the meaning of the terms
Management and Administration.
• Three schools of Thought- administration is broader
than management, administration is part of
management, management and administration are
identical.
• American School of thought: Administrators think,
managers act; administration is a top level activity,
management is a lower level function. Proponents-
Ordway Tead, Oliver Sheldon, W.Spriegel.

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Management & Administration
• English School of thought: Management is rule
making and rule enforcing body, Administration is just
an implementing agency. Proponents- E.F.L.Brech,
Henry Fayol, Kimball and Kimball.
• Newman, Harold Koontz, McFarland , Ernst Dale
maintain that management and administration are
identical.

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Roles of Management
• Management roles refers to specific categories of
managerial behavior.
• Mintzberg identifies ten management roles grouped
under three major heads namely
– interpersonal roles( roles that involve people and other
duties that are ceremonial and symbolic in nature),
– informational roles( roles that involve receiving , collecting
and disseminating information)
– decisional roles( roles that revolve around making
choices).

51. WHAT MANAGERS DO
Management Roles

52. 1–52
Mintzberg’s Managerial Roles
• Interpersonal
– Figurehead
– Leader
– Liaison
• Informational
– Monitor
– Disseminator
– Spokesperson
• Decisional
– Entrepreneur
– Disturbance hander
– Resource allocator
– Negotiator
Source: Adapted from The Nature of Managerial Work (paperback) by H. Mintzberg, Table 2, pp.92–93.
Copyright © 1973 Addison Wesley Longman. Reprinted by permission of Addison Wesley Longman.

53. • Interpersonal Roles
• In the figurehead role, the manager performs the
traditional duties that he is required to take on as the
head of a group.
• As the name suggests, under the leadership role the
manager performs functions like hiring, training,
motivating, and ensuring discipline among the
employees.
• Finally in the liaison role(particularly with outsiders)

54. • Informational Roles
• As a monitor, a manager gathers information with
the help of newspapers, magazines, etc., and also by
communicating with field executives who are in close
contact with customers.
• As a disseminator, a manager is required to convey
the information to other members of the
organization.
• As a spokesperson, a manager performs the role of
representing the organization to the outside parties.

55. • Decision Roles
• The following are the various decision roles of a manager:
• Entrepreneur: As entrepreneurs, managers have to initiate
and carefully choose new projects that enhance the
organization’s performance. They are also responsible for the
successful implementation and constant monitoring of the
project.
• Disturbance handler: Managers need to effectively handle
situations arising out of unforeseen circumstances.
• Resource allocator: Managers have to allocate the
organization’s resources to various departments. They are
required to allocate resources in a way that is most
advantageous to the organization.
• Negotiator: Managers are required to deal with the grievances
of employees and other divisions in such a way that the
outcome proves beneficial to the organization as a whole.

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Roles of Management
• Interpersonal roles include: Figure head, Leader,
Liaison
• Informational roles include: Monitor, Disseminator,
Spokesperson
• Decisional roles include Entrepreneur, Disturbance
handler, Resource allocator, Negotiator

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Management Skills
• According to Robert Katz, the following skills are required
for managers job:
– Technical skills( knowledge and proficiency in a specialized field),
– Human skills( ability to work well with other people individually
and in a group),
– Conceptual skills( ability to think and to conceptualize about
abstract and complex situations).

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Levels of Management
• Three levels exist in Management –
– first line managers( responsible for the overall
direction and operations of an organization),
– middle managers( translate the broad strategies
into specific goals for implementation)
– top line managers( responsible for the production
of goods and services).

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Levels of Management
• First line managers: foremen, white collar supervisors,
Section heads.
• Second line managers : Functional heads and
immediate subordinates.
• Top line managers : CEO, President, Chairman, MD,
COO, CIO .

60. Management Level and Skills

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Relative Skills Needed for Effective Performance
at different levels of Management
CONCEPTUAL
HUMAN
TECHNICAL
Top
Management
Middle
Management
First-line
Management

63. Management Skills and Organizational
Hierarchy
• Robert L. Katz identified three essential skills that are needed by a
manager. They are as follows:
• Technical Skills
• A person’s ability to use methods, processes and procedures in a
specialized field is known as technical skill--example, engineering,
accounts, manufacturing, computers, etc. First-level managers
require technical skills for supervising the daily activities of
production.

64. • Human Skills
• Human skills refer to the ability to work with other people as
individuals and in groups. They help employees to
communicate, motivate, lead and inspire others in an
organization. These skills are equally important for all
managerial levels.

65. • Conceptual and Design Skills
• Conceptual skills are the skills that are required by the
managers to conceptualize abstract and complex situations.
These skills are essential for top-level managers, since they
need to possess a clear understanding of the overall
functioning of the organization and relate it to the external
environment.
• Design skills are required by top level managers to find
solutions to problems in a manner that would benefit the
organization. Top managers should suggest a rational and
feasible solution to a problem apart from recognizing the
problem. The relative significance of these skills varies at
different levels in the organizational hierarchy as shown in