Chapter 1 Notes
Chapter 1 Notes
Use basic management principles to execute daily
activities.
b. Use principles of planning and organizing for
accomplishment of tasks.
Use principles of directing and controlling for
implementing the plans.
Apply principles of safety management in all activities.
e. Understand various provisions of industrial acts.
Marking scheme
Theory
ESE PA
70*# 28 30* 00
CH-1
Introduction to
management concepts
and managerial skills
Unit Outcomes
The concept and principles of management.
Explain functions of management.
Features of the planning
Steps in organizing in the given situation.
Type of organizations
Functional areas of management.
Managerial skills
Concept of management
The concept of Management can be defined as the process
of achieving things with the aim of achieving goals
effectively and efficiently.
Management is the art of getting things done through
those people. It involves many tasks.
Management is a science because management techniques
are concepts based on measurements and factual
determinations
Contd..
Art of
Getting
Things done
Planning,
Organizing, Art of
Directing What is increasing
and Management Production
Controlling
Art of
Decision
Making
Contd..
Optimum utilization
of resources.
Is a science.
Definitions of management
Peter Drucker: Multipurpose organ that manages business,
managers, workers & work.
Donald J. Clough: Art & science of decision making &
leadership
Mary Parker Follet: Art of getting things done through others.
Henry Fayol: To manage is to forecast and to plan , to organize,
to command, to co-ordinate and to control.
Howard M. Carlisle: the process by which the elements of a
group are integrated, co-ordinated or utilized so as to
effectively achieve organizational objectives.
Contd..
Harold Koontz: Redefined “Follets” definition as: Is the art of getting
things done through and with people in formally organized groups.
And by many more such as J.D. Mooney, A.C.Railey, Jon F. Mee, Mary
Cushing Niles, Association of Mechanical Engineers U.S.A……
Role of Management
The role of the management is to ensure that the goals of the
organization are achieved.
culture, etc
Contd..
Management ensures that all the activities are designed
effectively for the attainment of the organizational goal.
and Technology to provide industries with the latest machines and the
Minimizing wastage:
Management minimizes the wastage of materials, men and monetary
resources by doing work through proper arrangement, manufacturing and
control. Managers motivate subordinate to reduce wastage.
Contd..
Team work:
Motivation:
Higher efficiency:
Management offers bonus and incentives to the employees for their work. It
provides a healthy work environment.
Management, Administration
and Organization
Management:
An art of managing people and their work, for achieving a common goal by using
the optimum resources. It creates an environment under which the manager and
his subordinates can work together for the attainment of objectives of organization.
Administration:
Administration relates to top level of management. They are the either owners or
business partners who invest their capital in starting the business. The functions of
administration are legislative and largely determinative. It does not need technical
ability. It is mainly concerned with decision making, policy making and making
necessary adjustments. It coordinates finance, production and distribution.
Contd..
Organization:
organizations, whether profit-making or not, require management for managing their activities.
Goal Oriented:
All organizations have objectives that are laid down. Management achieves the organizational goals
Continuous process:
The process of management consists of functions like planning, organizing, directing and
controlling the resources to ensure that resources are used to the best advantages of the
operations, which makes it a multi-dimensional. It is the unifying force which integrates human and other
Group activity:
An organization consists of various members who have different needs, expectations and beliefs. Every
person joins the organization with a different motive, but after becoming a part of the organization, he
works for achieving the same goal. This requires supervision, teamwork and coordination, and it is achieved
by, management.
Dynamic function:
Management is not static. Over a period of time new principles, concepts and techniques are developed and
Henry Fayol
Scientific Management
Scientific management concept was developed by F.W.
Taylor who implemented the scientific techniques such
as observation, logic, analysis and combination to study
the working conditions and management at the floor
level in the factories and production units.
Born on 20 Marh 1856 and died on 21 March 1915.
An American mechanical engineer and a consultant
who proposed the concept of scientific management in
1911
He was also known as the ‘Father of Scientific
Management’
Scientific Management
FAYOL’s PRINCIPLE OF
MANAGEMENT
Henri Fayol was a French mining engineer and
theorist of business administration.
4. Unity of command
11. Equity
5. Unity of direction
12. Stability
6. Subordination of individual interest to
the common good (good interest)
13. Initiative
7. Fair Remuneration
14. Esprit de corps (team spirit)
Contd.
Division of work
Dividing work according to skills and aptitude.
Leads to specialization.
Results in efficiency.
Contd..
Authority & Responsibility
Should go hand in hand
If authority given, person
should also be made
responsible.
Authority without
responsibility makes
irresponsible.
Responsibility without
authority makes ineffective.
Contd..
Discipline
means obedience,
Authority should be
impartial
No discrimination
Contd..
Stability
Employee should not be moved
frequently from one position to
another.
It is created by co-ordination,
understanding
Proper communication is
essential.
Tactical level
Middle
Branch Mangers and Departmental
Managers
(Organizing & Directing)z
Operational level
Lower
Supervisors, Section officers, Superintendent etc.
(Directing & Controlling)
Administration and Management
Decides what is to be done and when it Decides who should do it and how should do
6.
is to be done. it.
Functions of Management
1. Planning
2.
Organizing
7.
Decision
making
3.
Functions of
coordinating
management
6.
Controlling
4.
staffing
5.
directing
Planning
Planning is concerned with the determination of the
objectives to be achieved and the course of action to
be followed to achieve.
Planning is a detailed programme regarding future
courses of action.
It is rightly said “Well plan is half done”.
Contd..
Planning: Deciding in advance what to do, when to do,
how to do and who should do it. (Harold Koontz)
do it. (Harold Koontz)
“Planning is deciding in advance what to do, how to do it, where to do it and who
is to do it. Planning bridges the gap from where we want to go. It makes possible
for things to occur while would not otherwise happen.” – Koontz and o’ Donnell.
✓ What to do
✓ How to do
✓ When to do
✓ Who will do
✓ Where to do.
Types of Planning
Sr Classification Types
No Criteria
1 Coverage of Corporate Planning
activity Functional Planning
2 Importance of Strategic Planning
contents Tactical/operational planning
3 Time period Long term Planning
involved Short term planning
4 Approach Proactive Planning
adopted Reactive planning
5 Degree of Formal Planning
formalization Informal planning
Contd..
Types of Planning
1. Coverage of activity
a) Corporate ➢Planning is done at corporate level.
Planning
achieve objectives.
➢Determine long term objectives as a whole and to generate plans to
a) Long term ➢Strategic in nature and involves more than one year period
Planning and can extend to 15 to 20 years or so.
b) Short term ➢Usually covers one year.
Planning ➢ Short term plans are made with reference to long term
plans because short term plans contribute to long term
plans.
4. Approach adopted
a) Proactive ➢Proactive planning involves designing suitable courses of
Planning action in anticipation of likely changes of environment
➢Managers adopting proactive changes do not wait for
environment to change, but take action in advance of
environmental changes . Ex: Emergency management.
b)Reactive ➢Reactive planning is the process whereby future action is
planning dictated in response to whatever comes from environment
changes.
➢This type of planning is suitable in the environment which
is fairly stable over a long period of time.
Contd..
Types of Planning
5. . Degree of formalization
a) Formal Planning
➢This type of planning is rational, systematic, regular and
well documented and called formal planning .
➢It is a structured plan prepared by experts like engineers,
economists at higher level.
➢Based on results obtained from environment scan .
➢When environment shows some change, these experts
analyses the environment and suggest suitable measures to
take the advantage of the changing environment .
Determine
Review the
alternative
plan
courses
Evaluate
Implement
alternative
the plan
courses
Select
optimum
course
Contd..
1) Establishing goals/objectives:
➢ Setting of the enterprise objectives
➢ Setting of objectives section wise or department
wise
2) Establishing premising:
➢ To view the conditions under which planning
activities
➢ Planning premising are planning assumptions or
factors like the expected environmental factors, facts
and information relating to the future.
Contd..
3) Deciding the planning period:
Once the long term objectives and planning are decided, the next task is
to decide the period of the plan. s
4) Identification of alternatives:
The next step in planning is identifying alternatives to achieve the
objective through various actions.
After the best plan is selected, various other plans are derived so as to
support the main plan. These may be plans for buying equipment,
buying raw material etc. They are derivative plans /supportive plans
formulated to support the main plan.
A social unit of people , systematically structured and managed to achieve
the collective goals on a continuing basis.
Need of Organisation:
Organisation Structure:
➢ plan that outlines who reports to whom and who is responsible for what.
Organization Structure For a large and complex organisation
( A multispecialty Hospital)
Steps in organizing
STEP 5
STEP 4 STEP 6
STEP 1 STEP 3
STEP 2 Coordinate
Determine Delegate Provide
Assign authority &
the Group the authority & Physical
grouped responsibili
activities activities fix facilities &
activities to ty
responsibili proper
individuals relationship environment
ties
s
TYPES OF ORGANISATION
Line
Line
& staff
Functional
Project
LINE ORGANISATION
The oldest as well as the most common
Also known as the Scalar or “Military System” as this
type is usually found in the army.
Characteristic feature
line of authority flows vertically from the top.
The authority is greatest at the top.
LINE ORGANISATION
LINE ORGANISATION
Disadvantages
Advantages
(i) Simple (i) Unitary administration
(ii)Fixed Responsibility (ii) Overloading with work
(iii)Flexibility (iii) Lack of specialization
(iv)Prompt decision (iv) Lack of Communication
(v)Unified control (v) Succession problem
(vi)Well-defined authority (vi) Absence of conceptual
(vii)Fixed channel of thinking
promotions. (vii) Favoritism
(viii) No co-ordination.
LINE & STAFF ORGANISATION
Basically a line organization, but “Staff,” - functional
experts are engaged to advise the line officers in the
performance of their duties.
Line officers are the executives, and the staff officers
are their advisers.
The Line officers make the decisions and issue
instructions to subordinates,
The staff officers have no authority to issue
instructions. But in decision-making function, the
Line officers receive advise and guidance from the
Staff Officers
LINE & STAFF ORGANISATION
LINE & STAFF ORGANISATION
Functions are
1. Technical Skills
Technical skills involve the knowledge of and proficiency in
activities involving methods, processes and procedures.
These skills involve the use of tools, equipment, procedures,
and techniques of the industry.
Technical skills are most important for supervisory level or
first-level managers.
As we go through a hierarchy from the bottom to higher levels,
the technical skills lose their importance
Managerial Skills- 2. Conceptual Skills