INTRODUCTION TO MANAGEMENT

What is management?
Management is the process of planning and organizing the resources,
operations and workflow of a business to achieve specific goals in the most
effective and efficient manner possible. Efficiency in management refers to
the completion of tasks correctly and at minimal costs. Effectiveness in
management relates to the completion of tasks within specific timelines to
yield tangible results.

“Management is the creation of an internal environment where individuals

working in a group can perform effectively and efficiently for the achievement of
organizational goals.” – Koontz and Donnell

 “Management is defined as the process of planning, organizing, actuating,

and controlling of an organization’s operations in order to achieve
coordination of the human and material resources essential in the effective
and efficient attainment of objectives.”– Trewelly and Newport
 “Management is the process of working with and through others to
effectively achieve organizational objectives by efficiently using limited
resources in the changing environment.”– Kreitner
 “Management consists of getting things done through others. A manager is
one who accomplishes objectives by directing efforts of others.” – C.S.
George
 “Management is the art of getting things done through others.” – Follett

Characteristics of Management
1. Continuous Process: Management is a continuous process. It means that the
process of business management goes on until the company exists, as it helps in
achieving the organizational goals. Every manager of an organization has to
perform the different functions of management in a series (planning, organizing,
staffing, directing, and controlling).
2. Goal-oriented: Every organization has a set of predetermined goals or
objectives that it aims to accomplish during its existence. Every organization has
different goals. Hence, management helps these organizations in fulfilling their
goals by utilizing the given limited resources in the best optimum manner. For
example, If the objective of Airtel is to add a billion Airtel Extreme customers in
a year, then all of its managerial activities will be directed toward the
achievement of this objective.
3. All Pervasive: The process of business management is universal in nature.
Every organisation, whether small scale, large scales, economic, social, etc., uses
the process of management at every level or stage. Besides, the activities
involved in the management of an organisation are common for all whether it is
a social, political, or economic enterprise.
4. Multidimensional: Management is a multidimensional process as it does not
involve only one activity. The three main activities involved in management are
Management of Work, Management of People, and Management of Operations.
 Management of Work: Every organization is set up to perform some work or
goal, and the management aims at achieving these goals or tasks. The work
of an organization depends upon the nature of Business;
 Management of People: People are the most essential assets of an
organisation and refer to human resources. It is the duty of the management
to get the work completed through human resources/people by making their
strengths effective and weaknesses irrelevant. Managing people have two
dimensions; viz., Taking care of a group of people and Taking care of
employees’ individual needs.
 Management of Operations: Operations are the activities of an
organisation’s production cycle, like purchasing inputs, converting them into
semi-finished goods, and finished goods. Simply put, Management of
operations consists of a mix of Management of Work and Management of
People, and decides what work has to be done, how it has to be done, and
who will do it.
5. Dynamic Function: There are different internal and external factors that
affect the working of an organisation. An organisation has to change and adapt
itself on the basis of changing environment to accomplish the organisational
goals and objectives. Hence, management is a dynamic function.
6. Management is a Group Activity: Management involves a group of people
performing managerial activities. The functions of management can be executed
only when every individual performs his/her role their respective status and
department. And as the result of management affects every individual and every
department of an organization, it always refers to a group effort.
7. Management is an Intangible Force: Management is a function that cannot
be physically seen but its presence can be felt by watching the orderliness and
coordination in work environment and happy faces of the employees when the
task is completed.
Importance of Management
1. Increases Efficiency: The management process of an organisation
increases its efficiency by reducing cost and increasing productivity by
utilization of the available resources in the best possible and optimum
way. The aim of a manager is to reduce costs and increase productivity
through better planning, organizing, directing, staffing and controlling the
activities of the organization
2. Management helps in achieving group goals: Management is required not
for itself but for achieving the goals of the organization. The task of a
manager is to give a common direction to the individual effort in achieving
the overall goal of the organization.
3. Management creates a dynamic organization: All organizations have to
function in an environment which is constantly changing. It is generally
seen that individuals in an organization resist change as it often means
moving from a familiar, secure environment into a newer and more
challenging one. Management helps people adapt to these changes so that
the organization is able to maintain its competitive edge.
4. Management helps in achieving personal objectives: A manager
motivates and leads his team in such a manner that individual members are
able to achieve personal goals while contributing to the overall
organizational objective. Through motivation and leadership the
management helps individuals to develop team spirit, cooperation and
commitment to group success.
5. Management helps in the development of society: An orgaReprint 2024-
25 12 Business Studies nisation has multiple objectives to serve the purpose
of the different groups that constitute it. In the process of fulfilling all
these, management helps in the development of the organization and
through that it helps in the development of society. It helps to provide good
quality products and services, creates employment opportunities, adopts
new techno-logy for the greater good of the people and leads the path
towards growth and development
Functions of management

Management is defined as the procedure of organizing, directing, planning and

controlling the efforts of organizational members and of managing organizational
sources to accomplish particular goals.

 Planning is the purpose of ascertaining in advance what is supposed to be

done and who has to do it. This signifies establishing goals in advance and
promoting a way of delivering them effectively and efficiently. In an
establishment, the aim is the obtainment and sale of conventional Indian
handloom and workmanship articles. They trade furnishings, ready-mades,
household items and fabrics made out of classical Indian textiles.
 Organizing is the administrative operation of specifying grouping tasks,
duties, authorizing power and designating resources needed to carry out a
particular system. Once a definite plan has been set for the completion of
an organizational intent, the organizing party reviews the actions and
resources expected to execute the program. It ascertains what actions and
resources are needed. It determines who will do a distinct job, where and
when it will be done.
 Staffing is obtaining the best resources for the right job. A significant
perspective of management is to make certain that the appropriate people
with the apt skills are obtainable in the proper places and times to achieve
the goals of the company. This is also called the human resource operations
and it includes activities such as selection, placement, recruitment and
coaching of employees.

 Directing involves directing, leading and encouraging the employees to

complete the tasks allocated to them. This entails building an environment
that inspires employees to do their best. Motivation and leadership are 2
chief elements of direction. Directing also includes communicating
efficiently as well as managing employees at the workplace. Motivating
workers means simply building an atmosphere that urges them to want to
work. Leadership is inspiring others to do what the manager wants them to
do.
 Controlling is the management operation of controlling organizational
achievement towards the accomplishment of organizational intentions. The
job of controlling comprises ascertaining criteria of performance,
 computing the current performance, comparing this with organized rules
and taking remedial action where any divergence is observed. Here
management should ascertain what activities and outputs are important to
progress, how and where they can be regulated and who should have the
power to take remedial response.

What is the scope of management?

The scope of management refers to the various functions, responsibilities, and
activities that managers undertake to achieve the goals and objectives of an
organization.It encompasses the broad range of tasks and areas that managers
are responsible for in the process of planning, organizing, leading, and controlling
organizational resources.

The scope of management typically includes the following key aspects:

 Planning: This involves setting organizational goals, defining strategies to achieve

them, and creating plans and budgets. It also includes forecasting, decision-
making, and establishing objectives.
 Organizing: This encompasses the design of the organizational structure,
allocation of resources, delegation of authority, and establishing communication
channels. Organizing ensures that tasks are efficiently and effectively carried out.
 Leading: Leadership involves motivating and guiding employees, fostering
teamwork, and resolving conflicts. Managers play a crucial role in inspiring and
influencing their teams to achieve the organization's goals.
 Controlling: This involves monitoring the performance of the organization,
comparing it to established standards, and taking corrective actions when
necessary. Control mechanisms ensure that the organization stays on track and
deviations are addressed.
 Decision-Making: Managers are responsible for making important decisions
related to the organization's operations, resources, and strategies. Decision-
making is a critical aspect of management and impacts all other functions.
 Human Resource Management: Managing people, including hiring, training,
performance appraisal, and employee development, is a vital part of the scope of
management.
 Financial Management: Ensuring the organization's financial health by budgeting,
financial planning, cost control, and financial analysis is crucial for management.
 Marketing Management: Developing and implementing marketing strategies to
promote products and services, understand customer needs, and create value for
the organization.
 Operations Management: Overseeing the day-to-day operations and processes of
the organization, optimizing efficiency and quality in production or service
delivery.
 Strategic Management: Developing long-term strategies, setting the direction of
the organization, and adapting to changing business environments.
 Information Technology Management: Utilizing technology to enhance business
processes, data management, and communication within the organization.
 Environmental and Social Responsibility: Addressing ethical and environmental
concerns, as well as being socially responsible in the organization's operations.
The scope of management can vary based on the type of organization, its size,
industry, and specific goals.

Management Hierarchy

Management hierarchy is a workplace leadership structure where authority is

given according to ranks, and employees take direction from their superiors. This
structure can vary depending on the business and company.

Common management hierarchies include entry-level employees at the bottom,

managerial employees in the middle, and executive roles at the very top.
Management hierarchy can also be broken in terms of pay, responsibility, role,
and power.

Most management hierarchies can be broken down even further into three
different levels of management. These include:

1. Top-level Management

Top-level management roles are those that oversee and manage the direction of
an entire company or business. These managers' main objective is to increase
 growth and profits. They also employ strategies that ensure their company gets or
remains in good standing regarding its reputation.

Top-level managers have the most authority in a company and are also
accountable for a company's successes and failures. Other responsibilities include
creating business plans, setting company goals, and establishing contact with
other external businesses.

Top-level management positions can vary from company to company, but

common positions include:

 Chief executive officer (CEO)

 Chief operating officer (COO)
 Chief financial officer (CFO)
 President
 Vice president
 Board of directors

2. Mid-level Management

Mid-level managers are sometimes referred to as executor managers because

they execute the plans of top-level managers. They also direct first-line managers
and other employees. They work in somewhat of a liaison capacity by being the
link between top-level management and everyone else in a company.

Oftentimes mid-level managers will be in charge of a specific department or

division. Within these, they direct teams of employees in achieving specific
company goals and also ensure company policies are being followed.

Many mid-level managers also evaluate employee performance and make records
that are then viewed by top-level management or other relevant professionals.

Some common mid-level manager positions include:

 General manager
 Branch manager
 Department manager
 Regional manager
 Plant manager
 Division manager

3. First-line Management
First-line managers often also listen to employee ideas, grievances, or concerns
and then discuss them with mid-level management.

Most first-line management roles involve working directly with employees by

helping them understand company objectives.

Here are some common roles in first-line management:

 Supervisor
 Section lead
 Team lead
 Foreperson
 Floor manager
 Area coordinator
Types of Managers
1. Top-Level Managers

As you would expect, top-level managers (or top managers) are the “bosses” of
the organization. They have titles such as chief executive officer (CEO), chief
operations officer (COO), chief marketing officer (CMO), chief technology officer
(CTO), and chief financial officer (CFO). A new executive position known as the
chief compliance officer (CCO) is showing up on many organizational charts in
response to the demands of the government to comply with complex rules and
regulations. Depending on the size and type of organization, executive vice
presidents and division heads would also be part of the top management team.
The relative importance of these positions varies according to the type of
organization they head. For example, in a pharmaceutical firm, the CCO may
report directly to the CEO or to the board of directors.

Top managers are ultimately responsible for the long-term success of the
organization. They set long-term goals and define strategies to achieve them.
They pay careful attention to the external environment of the organization: the
economy, proposals for laws that would affect profits, stakeholder demands, and
consumer and public relations. They will make the decisions that affect the whole
company such as financial investments, mergers and acquisitions, partnerships
and strategic alliances, and changes to the brand or product line of the
organization.

2. Middle Managers

Middle managers must be good communicators because they link line managers
and top-level management.

Middle managers have titles like department head, director, and chief supervisor.
They are links between the top managers and the first-line managers and have
one or two levels below them. Middle managers receive broad strategic plans
from top managers and turn them into operational blueprints with specific
objectives and programs for first-line managers. They also encourage, support,
and foster talented employees within the organization. An important function of
middle managers is providing leadership, both in implementing top manager
directives and in enabling first-line managers to support teams and effectively
report both positive performances and obstacles to meeting objectives.

3. First-Line Managers

First-line managers are the entry level of management, the individuals “on the
line” and in the closest contact with the workers. They are directly responsible for
making sure that organizational objectives and plans are implemented effectively.
They may be called assistant managers, shift managers, foremen, section chiefs,
or office managers. First-line managers are focused almost exclusively on the
internal issues of the organization and are the first to see problems with the
operation of the business, such as untrained labor, poor quality materials,
machinery breakdowns, or new procedures that slow down production. It is
essential that they communicate regularly with middle management.

4. Team Leaders

A team leader is a special kind of manager who may be appointed to manage a

particular task or activity. The team leader reports to a first-line or middle
manager. Responsibilities of the team leader include developing timelines,
making specific work assignments, providing needed training to team members,
communicating clear instructions, and generally ensuring that the team is
operating at peak efficiency. Once the task is complete, the team leader position
may be eliminated and a new team may be formed to complete a different task.

Types of Management Skills

According to American social and organizational psychologist Robert Katz, the

three basic types of management skills include:

1. Technical Skills

Technical skills involve skills that give the managers the ability and the knowledge
to use a variety of techniques to achieve their objectives. These skills not only
involve operating machines and software, production tools, and pieces of
equipment but also the skills needed to boost sales, design different types of
products and services, and market the services and the products.

2. Conceptual Skills

These involve the skills managers present in terms of the knowledge and ability
for abstract thinking and formulating ideas. The manager is able to see an entire
concept, analyze and diagnose a problem, and find creative solutions. This helps
the manager to effectively predict hurdles their department or the business as a
whole may face.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’
ability to interact, work or relate effectively with people. These skills enable the
managers to make use of human potential in the company and motivate the
employees for better results.

4. Effective communication

Being a manager involves interacting with people regularly. On any given day, you
might run a staff meeting, make a presentation to board members, or resolve a
conflict between two employees. In addition to conveying information, listening
when communicating is essential. Practicing good listening helps you be present,
maintain eye contact, and paraphrase what your speaker says.
5. Problem-solving

Problem-solving goes hand-in-hand with decision-making. The process involves

identifying a problem, weighing solutions, choosing the best one, and evaluating
whether or not it works. Managers who are good problem solvers have an easier
time meeting company goals and objectives.
6. Strategic thinking

Managers who can strategically think offer great value to companies. Strategic
thinking involves the following:
Analyzing data to come up with strategies
Creating strategies for meeting company goals and objectives
Thinking of ways to implement strategies
Directing others in the completion of goal-related tasks
Communicating the results to company stakeholders
7. Ability to delegate

As a manager, the ability to delegate can offer you a variety of benefits. First,
sharing tasks with others saves you time at work and reduces your stress levels.
Delegating also engages and empowers your employees, helps build their skill sets,
and boosts productivity in the workplace.
8. Ability to inspire and motivate

Employees depend on managers for support and guidance. By providing goals and
objectives and a clear vision for how to meet them, you can keep employees
motivated to perform their best. Other ways to inspire and motivate employees
include finding ways to make work more engaging and rewarding and providing
positive and helpful feedback.

What is a managerial role?

Managerial roles are behaviors adopted to perform various management

functions, like leading and planning, organizing, strategizing, and solving
problems. Within an organization, managers of different levels have different
responsibilities that may overlap.

Henry Mintzberg classified managerial roles based on their purpose. He

developed 10 managerial roles and divided them in 3 categories, grouping the
roles that share similar features. Some of these features can be applied to two or
more roles at the same time.

Figurehead
This role requires performing social, ceremonial, and legal responsibilities. The
Figurehead represents the organization, as well as motivates the team to achieve
goals. For people, this managerial role is a source of power and authority.
Examples:

 Managers in the figurehead role attend social event where they promote
their company.
 Greeting a potential business client and giving a tour.

Leader
The leader role is the most pivotal as it shows to which extent a manager’s
potential is realized. Managers are in charge of their people's performance, which
may mean leading a team, a department, or an entire organization.

The responsibilities include hiring and training (direct leadership) and

encouragement of employees (indirect leadership). Leaders influence and
motivate people, giving them a sense of purpose to reach organizational goals.

Example:

 A manager sets a goal for the team and communicates his expectations,
making sure that people understand them. He monitors their progress and
provides feedback and resources if needed.

Liaison
Managers in the liaison role develop and maintain internal and external
relationships. They are a connection link that bridges the gap between employees
of different levels to ensure work is done smoothly. Liaisons transfer knowledge
through different members of the organization, up and down the chain of
command, and can also involve their business contacts from outside the
company.

Examples:

 A manager coordinates with people inside the company, as well as

coordinating work between the company’s units.
  A manager coordinates with people outside the organization, such as
buyers, suppliers, and strategic partners.
 Manager-client-employee interaction. A manager communicates with a
client to see what the client's needs are, providing this information to the
employees after the fact.

Monitor
In the monitor role, managers are expected to look for information necessary for
their organization, as well as for information that can concern potential industry
changes. They gather internal and external sources, trying to identify problems
and opportunities for growth. In other words, they scan the environment to
assess the current state of things in a company and see if corrective action is
needed.

Examples:

 Seeking customer feedback to see how exactly you can improve your
products or services.
 Monitoring industry trends, like products made by competitors or
government regulatory changes, in order to meet standards and stay on
track.

Disseminator
Receiving information from various sources, a manager in the disseminator role is
responsible for sharing it with those who may need it. This can be done in both
verbal and written forms.

A manager can pass on information directly to the appropriate person, or pass it

on between subordinates if they lack contact. The information can concern the
organization's direction or strategy, as well as specific technical issues.

Examples:
  A one-on-one conversation between a manager and an employee where a
certain issue is discussed.
 Developing a proposal for a new product design, submitting it to upper
management for approval, and providing it to the employees so that they
can get familiarized with it.

Spokesperson
Managers in a spokesperson role speak for their organization, defending the
company's interests. Their responsibility is to make the organization look good in
the eyes of potential or new clients and the general public.

Examples:

 A manager attends the annual shareholders’ meeting, informing the

attendees about the results her team has achieved this year and presenting
statistics.
 A manager speaks on behalf of the company at a conference.
 Division leaders talk to other division leaders, informing them about
strategies and resource requirements.
 CEOs meet with investors or government officials to give them information
about the company which they may find useful. This way, they can
persuade investors that their company is pursuing a good strategy, and
raise some capital.

Entrepreneur
In the entrepreneur role, a manager organizes and runs business processes. This
role develops and implements new ideas or strategies, which often means coming
up with innovative solutions. Entrepreneurs create conditions for change since
innovation and change are needed for a company to stay competitive. Besides,
they make sure a company adopts new products and processes pioneered by
others or change the organizational structure.
Examples:

 A manager decides to use social media to increase sales.

 A manager reorganizes a weak department, or uses mergers or
acquisitions.

Disturbance handler
A manager solves issues as they arise – like sales that grow too slowly, a client
breaking a contract, or valuable employees leaving. The task of the manager in
the disturbance handler role is to fix the problem, maintaining productivity.

Example:

 When two members of a team have a conflict, it’s the manager’s

responsibility to help them resolve it.

Resource Allocator
The resource allocator role requires a manager to determine how and where to
apply organizational resources. By resources we mean equipment, staff, funding,
facilities, and time. Typically, the resources an organization has are limited, so it
takes some effort to decide how to best allocate them.

Example:

 A manager divides funding between the departments of his organization,

based on their current and future needs.
 A marketing manager divides funding between media advertizing and
promotions.
 A resource manager distributes project workload across people.
Negotiator
Managers participate in negotiations, trying to reach their goals. This managerial
role includes negotiating with external parties, where they represent the interests
of their organizations, as well as negotiating with internal parties, such as other
departments or team members.

The better negotiation skills managers have, the higher their chances to come to
an agreement with customers, better organize the work process, and gain access
to more resources.

Examples:

 A manager negotiates pricing, delivery, and design with customers.

 A manager negotiates over access to capital and personnel with seniors.
Emerging Challenges for Management

1) Globalization of business:

Companies that experience saturation in local markets find new ways to promote
and sell their products in other territories of the globe where the laws, culture,
and customer needs differ. Businesses need to tackle globalization when they
expand their operations to other regions, dive into the markets and compete with
companies of that region. It helps them build new revenue sources. As businesses
begin to transact globally, you have to deal with the following:

 increase in foreign projects

 handling multicultural workforce
 anti-capitalism backlash
 tax and legal compliance
 compete with similar organizations in new market segments
 cost-effective workforce
2) Ethics and social responsibility:

Business ethics is about making the right choices, and social responsibility is about
making ethical decisions. Both elements assist businesses:
  Obtain an advantage over rivals and draw in more customers
 Create a positive work culture to attract and retain candidates

Increasing societal expectations from business organizations increase the

complexity of ethical decision-making. Organizations need to play a part in
improving the well-being of people in society by addressing deforestation, toxic
wastage, pollution of land, water, and air, and changing climate conditions.

Environmental issues are a cause for concern, thereby increasing the need for
managers to protect and preserve natural resources by adopting renewable
energy sources, utilizing technologies that reduce energy consumption,
preserving the natural environment and habitat, and conserving water for future
benefits.

3) Workforce diversity:

One of the main aspects businesses need to focus on to improve organizational

culture and productivity is handling diversity in the workplace. Organizations
should facilitate inclusive work environments for employees with varying
individual characteristics, values, preferences, behaviors, beliefs, experiences, and
backgrounds.

There is a consistent increase in diversity due to transformation in population

dimensions, improved workforce, societal pressure, and globalization. Businesses
face challenges in adapting their management approach to suit diverse individuals
with different lifestyles, family needs, and work styles. Organizations need an
eclectic mix of individuals to interact, share ideas and adapt to changes to
maintain an edge over competitors’ global business environment.

4) Empowering the workforce:

Businesses are adopting a participative management approach by empowering

assembly line workers in making decisions as they have awareness and knowledge
of the actual problems and can contribute more. Best management practices
emphasize making decisions at the place where work is performed concerning
schedules and processes and solving work-related problems. Educating and
encouraging assembly line workers to make the best decisions gives them
authority, increasing their value and morale. Also, consulting employees of
interdependent departments improves consistency in executing tasks.

5) Integrating advancements:

The business climate is evolving with best practices and advancements, and
organizations must make way for continuous learning to adapt to new concepts,
theories, strategies, and innovations. Adapting to technological advancements
enhances the business process, products, and manner of delivering services.
Failure to adapt to changes has led to the downfall of several leading businesses.
It would be best for organizations to recruit skilled individuals willing to
continuously learn, share ideas and knowledge, and work together as a team.

6) Implementing quality management systems:

Increasing performance by utilizing fewer resources does not guarantee optimal

outcomes. Implementing business process reengineering or total quality
management systems, which emphasize the need for transforming processes and
approaches, and achieving customer satisfaction, improves efficiency and profits.

7) Knowledge management:

Knowledge management is collecting, analyzing, and organizing information and

making it accessible to employees to facilitate learning, problem-solving, decision-
making, strategic planning, and efficiency. Knowledge can be technical resources,
frequently asked questions, training documents, or people skills. The main
objective is to share information with the right people at the right time to:

 manage specific business tasks/projects

 improve processes and technology
8) Outsourcing:

Outsourcing specific processes in production to third-party manufacturing

companies helps to bring down labor costs and enhance product quality. Since
the organization cannot perform every activity by itself, outsourcing the
production process to other companies offers several benefits:

 Utilize existing infrastructure without the need for additional investments.

  Allows business owners to focus on core activities.
 Allocate operations profitably.
 Choose suppliers who are leaders in that particular segment and have the
advantage of providing superior-quality products.
 Redirect the company’s resources to work on core operations.
9) Time management:

Time management is critical when you are working on multiple tasks or projects.
Effectively plan your time and control the amount of time you spend on specific
tasks to improve efficiency. You can develop your skills in effective time
management with practice by:

 Plan your work in advance

 Prioritize your work and work on a single task/project at a time
 Avoid distractions

It offers:

 Work-life balance
 Improve your performance
 Complete tasks within the timeframe
 Reduces stress and boosts productivity and confidence
10) Deal with stress:

Work hours, fewer resources, and job insecurity significantly contribute to work-
related stress. It can lead to various health risks ranging from mild to potentially
serious health conditions. Adopt effective strategies to minimize stress:

 Prepare a plan and approach your work systematically

 Be clear on job roles and duties and work on specific tasks at a time
 Stay away from perfectionism and aim to put in your best efforts
11) Handle conflicts:

Conflicts can sometimes significantly bring down productivity and affect

emotional wellness. Or trigger new ideas and innovation, and improve flexibility
and interpersonal relationships at work. Effectively handling conflicts helps
organizations to make progress:
 Identify the cause/reasons that triggered the problem
 Plan to have a constructive conversation by adopting active listening
 Investigate and find ways to arrive at a mutual solution
 Evaluate and take preventive measures to avoid issues in future