M1 - ME

Module-1

– Introduction
1. Management is a critical element in the economic growth of a country.
2. Management is essential in all organized efforts.
3. Management is the dynamic, life-giving element in every organization.
Difference between manager and other personnel in the organization:
A manager is one who contributes to the organizational goals indirectly by directing the
efforts others by not performing the task by himself
A person who is not a manager makes his contribution to the organization’s goals directing
by performing the task himself.

– Meaning

– nature and characteristics of Management:

1. Management is a universal process.
2. Goal oriented.
3. Social process.
4. Co-ordinating process.
5. Intangible (i.e. cannot be measured).
6. Dynamic (i.e. always changes).
7. Multidisciplinary.
8. Creative activity.
9. Decision making.
10. Profession.
 Characteristics Defining Management

Universal
Profession Process

Decision
Goal-Oriented
Making

Creative
Social Process
Activity

Coordinating
Multidisciplinary
Process

Dynamic Intangible
– Scope of Management:
The management is a must for every organization which encompasses for profit as well
as nonprofit organizations, government as well as non government organizations, and
service as well as manufacturing organizations.
It is in fact difficult to find an area of activity where management is not applicable.
Management is not only limited to business enterprises for profits but also to the for non-
profit organizations like educational institutions, health care organizations, financial
organizations, stores management for keeping their cost of the operation at the optimal
levels.
Government organizations like municipal corporations, water supply departments,
electricity boards in providing best possible services to the public.
Non-government agencies like environmental agencies benefit from management in
achieving their social objectives in cost effective manner.
Manufacturing organizations extensively use management to increase production to
enhance the quality of the products manufactured and similarly Service organizations
benefit from management in providing an exemplary service experience to the customers
Production Management
Financial Management
Personal Management
Marketing
Maintenance
Materials
Transport
Systems
Rural
Office
 Management Functions

Production Management
Financial Management
Organizations
Personnel Management
Marketing For-Profit
Maintenance Scope of Non-Profit
Management
Materials Government
Transport Non-Government
Systems
Rural
Office
 Planning

Organizing

— Functional areas of management

Staffing
1. Planning
2. Organizing
3. Staffing
Directing
4. Directing
5. Controlling

Controlling
Planning:
Is a function that determines in advance what should be done which is looking ahead and
preparing for the future.
Is a process of determining the objectives and charting out the methods of attaining those
objectives.
Is determination of what, where and how it is to be done and how the results are to be
evaluated.
Is done for the organization as a whole but every division, department or subunit of the
organization.
Is a function which is performed by the managers at all levels-top (which may be as long
as five years),middle(shorter may be week) and supervisory.

Planning

Setting Organizational Managerial

Objectives Planning Levels

Charting Division/Dep Top Middle Supervisory

Methods artment Management Management Management
Planning

Determining
What, Where,
How

Evaluating
Results
Organizing and staffing
Is a function which may be divided into two main sections namely the human
organization and material organization.
Once the plans have been developed and the objectives established, they must design and
develop a human organization to carry out plans successfully.
May defined as a structure which results from identifying and grouping work, defining
and delegating responsibility and authority and establishing the relationships.
Staffing is also considered an important function in building the human organization
Involves building the right person for the right job.
Fixes responsibility for a manager to find the right person for the right job and ensures
enough manpower for the various positions needed for the organization which involves
selection and training of future managers and suitable system of compensation
Different objectives require different kinds of organizations
 Human Organization Staffing

Identifying Work Right Person for Right Job

Grouping Work Organizing Selection Process
and Staffing
Delegating Responsibility Training Programs
Establishing Relationships Compensation Systems

Material Organization

Resource Allocation
Logistics Management

Directing
• Is the next step after planning, organizing and staffing Involves three sub-functions
• namely communication, leadership and motivation.
• Communication is the process of passing information from one person to another.
 • Leadership is the process of guiding and influencing the work of his subordinates by
the
• manager.
• Motivation is arousing the desire in the minds of the workers to give their best to
their
• enterprise.
o To pull out the weight effectively, to be loyal to their enterprise and carry out the
task effectively.
o Has two types of motivation financial and nonfinancial
o Financial: takes the form of salary, bonus, profit-sharing etc.
o Nonfinancial: takes the form of job security, opportunity of advancement
recognition praise etc.
 Directing

Communication Leadership Motivation

Financial Nonfinancial
Motivation Motivation

Controlling:
Is a function which ensures everything occurs in conformity with plans adopted and
involves three elements:
1. Establishing the standards of performance
2. Measuring current performance and comparing it against the established standards.
3. Taking action to correct any performance that does not meet the standards.
 Controlling Process in Management

Take
Establish Measure Compare to Corrective
Standards Performance Standards Action

– Management as a science, art of profession

Management as a Science
A discipline qualifies as a science if it satisfies these conditions:
1. Systematic and Empirical Inquiry:
• Knowledge must be gathered in an orderly and unbiased manner.
• The inquiry should be based on observable evidence (not mere speculation).
2. Analyzed Information:
• Data collected must be processed and analyzed, often using statistical tools, to
make meaningful conclusions.
 3. Cumulative and Communicable:
• Knowledge is shared and builds upon previous discoveries to ensure learning
from past mistakes and to guide future actions.
Is Management a Science?
• Partial Scientific Nature:
• Management follows systematic methods like planning, organizing, and
controlling, and uses data analysis for decision-making.
• For example, a manager may study the effect of monetary incentives on
productivity.
• Limitations:
• Unlike exact sciences (e.g., physics, chemistry), management cannot isolate and
control factors in the same way.
• Human behavior, workplace conditions, and cultural influences make findings in
management less accurate and reliable compared to physical sciences.
Thus, management is considered a behavioral science, not an exact science.

Management as an Art
Art emphasizes skills and practical application over theoretical understanding. It involves
creativity, intuition, and adaptability.
Why Management is an Art?
• Managers apply unique skills to accomplish tasks, which vary depending on the
situation. For example:
• A musician composes music creatively; similarly, a manager achieves goals by
analyzing situations, coordinating resources, and making decisions.
• Dynamic and Non-repetitive: Managers deal with constantly changing scenarios
requiring creativity and personalized approaches.
 • Even though theoretical knowledge in management helps, managerial success
depends on practical application and personal judgment.
Management as a Profession
A profession typically has the following characteristics:
1. Organized Knowledge: A systematic body of knowledge exists.
2. Formal Training: Professionals undergo formal education and training.
3. Professional Associations: These govern the profession and uphold its standards.
4. Ethical Codes: Members must follow a set of ethical guidelines.
5. Fee-based Service: Professionals charge fees for their expertise.
Is Management a Profession?
• Why It Doesn't Fully Qualify:
1. No fixed norms or universal code of conduct for managerial behavior.
2. Entry into management is not restricted to individuals with specific degrees.
3. Licensing and regulation, which are common in other professions (e.g., law,
medicine), are absent in management.
Conclusion
Management is a combination of science, art, and profession:
1. Science: Management uses systematic approaches, empirical data, and analysis to
make decisions.
2. Art: It involves creativity, intuition, and personal skills in executing tasks effectively.
3. Profession: While it has some professional traits (like organized knowledge), the lack
of formalized regulations prevents it from being a full-fledged profession.

– Management & Administration

– Roles of Management,
Interpersonal roles:
1. Figure head: performs duties of ceremonial nature such as greeting the touring dignitaries,
attending the wedding of an employee etc.
2. Leadership: every manager must motivate and encourage their employees, try to reconcile
their individual needs with the goals of the organization.
3. Liaison: in this role, every manager must develop contacts outside the vertical chain of
command to collect information useful for the organization.
Informational roles:
1. Monitor: must perpetually scan his environment for information interrogate his liaison and
subordinates to get any solicited information useful for the organization.
2. Disseminator: manager passes the privileged information directly to the subordinates who
otherwise would not have access to it.
3. Spokesperson: may require to spend a part of the time in representing the organization
before various outside groups having some stake in the organization such as government
officials, labor unions, financial institutions.
Decisional roles:
1. Entrepreneur: in this role the manager proactively looks out for innovation to improve the
organization by means of means creating new ideas, development of new products or
services or finding new uses for the old ones.
2. Disturbance Handler: must act like a firefighter to seek solutions to various unanticipated
problems
3. Resource Allocator: must divide work and delegate authority among his subordinates.
4. Negotiator: must spend considerable time in negotiations. Example: the foreman
negotiating with the workers for the grievance problems
 Roles of
---> IID
Managment

Interpersonal Informational Decisional ---> DERN

---> MDS
Roles ---> FLL Roles Roles

Figurehead Leadership Liaison Monitor Disseminator Spokesperson

Disturbance Entrepreneur Resource Negotiator

Handler Allocator

— Levels of Management.
Top level management:
Examples: Board of directors, Managing director, CEO, General manager etc.,.
Middle level management:
Examples: Production, Financial, Personal managers, Department managers etc.,.
Low level management:
Examples: Foreman, Supervisor, Superintendent etc.
 Hierarchy of Management Levels

Sets strategic Top Level

direction and vision Management

Coordinates
Middle Level
between top and
Management
low levels

Directly supervises Low Level

daily operations Management

— Steps in planning:
1. Establishing verifiable goals or set of goals to be achieved
2. Establishing planning premises
2. (a)internal and external premises
2. (b)tangible and intangible premises
2. (c)controllable and non-controllable premises
2. (d) internal and external premises:
3. Deciding the planning period
4. Finding alternate courses of action
5. Evaluating and selecting the alternate courses of action
6. Developing the derivative plan
7. Measuring and controlling the process
 Steps in Planning Process

Decide Measure and

Establish Planning Evaluate and Control
Goals Period Select Actions Process

Establish Find Alternate Develop

Planning Courses of Derivative
Premises Action Plan

PLANNING: Nature, importance and purpose of planning process

— Objectives
– Types of plans (Meaning Only)
1. single use plans - programs, budgets
2. standing plans - policy, procedure, method, rules
3. tactical plans - in detail, how to use resources
4. strategic plans - overall strategy, not in detail

Standing Plans
Single Use Plans
Policies
Procedures Programs
Methods Budgets
Rules Types of
Plans Tactical Plans
Strategic Plans
Resource Allocation
Overall Strategy Operational Details
Long-term Goals
– Decision making : Decision Making is an integral part of planning. It is defined as “ the
process of choosing among alternatives”
Types:
i. Pragmatic and non-pragmatic decisions
ii. Individual and collective decisions
iii. Minor and major decisions
iv. Strategic and routine decisions
v. Simple and complex decisions
vi. Temporary ( Adhoc) and Permanent decisions etc.
 Exploring the Dimensions of Decision Making

Pragmatic and Non-

Pragmatic Decisions

Individual and
Collective Decisions

Minor and Major

Decisions
Decision Making
Strategic and Routine
Decisions

Simple and Complex

Decisions

Temporary and
Permanent Decisions

steps in decision making:

1. Recognition of problem
2. Deciding priorities among problems
3. Problem diagnosis
4. Development of alternative solutions
5. Studying and comparing the affect of alternatives
6. Implement the decision into action
7. Study the result
 Decision-Making Process in Management

Studying and
Comparing
Recognition Problem the Effects of Studying the
of Problem Diagnosis Alternatives Result

Deciding Development Implementing

Priorities of Alternative the Decision
Among Solutions into Action
Problems
– Importance of planning. (Case studies discussion)