Unit I

INTRODUCTION TO MANAGEMENT
AND ORGANIZATION
Definition of Management

Management is the process of planning, organizing, leading, and

controlling resources, including human, financial, material, and informational,
to achieve organizational goals effectively and efficiently. It involves coordinating
and overseeing the work activities of others to ensure that their tasks are completed
in a way that contributes to the organization's objectives.
Key functions of Management:

1. Planning: Setting objectives and determining the best course of action to achieve them.

2. Organizing: Arranging resources and tasks in a structured manner to implement plans.

3. Leading: Motivating, directing, and otherwise influencing people to work hard to achieve the

organization’s goals.

4. Controlling: Monitoring and evaluating the progress towards goal achievement and making

necessary adjustments.
Nature and Scope of Management

 Multidisciplinary: Incorporates ideas and practices from various fields such as economics,
sociology, psychology, and engineering. This interdisciplinary approach helps managers tackle
diverse challenges and make informed decisions.

 Goal-Oriented: Management focuses on achieving specific objectives, directed towards

reaching organizational goals, ensuring that resources are used effectively and efficiently.

 Universal: Management principles apply to all types of organizations, regardless of their

nature, size, or geographical location.

 Dynamic: Management practices are not static; they evolve with changes in the external and
internal environment.
 Social Process: Management involves managing people and their interactions within the
organization. It emphasizes teamwork, communication, and collaboration to achieve common
goals, recognizing that human resources are crucial for success.

 Continuous Process: Management is an ongoing activity that involves continuous planning,

organizing, leading, and controlling. These functions are interrelated and cyclical, requiring
constant adjustment and refinement to meet organizational objectives.

 Intangible: While management itself is not a physical entity, its presence is felt through the
outcomes of organizational activities. Effective management leads to enhanced productivity,
employee satisfaction, and goal attainment, making it a vital but intangible asset.
Functions of Management

1. Planning: Planning involves setting objectives and determining the best course of action to achieve them and it
includes
o Setting goals and objectives - Forecasting future conditions - Developing strategies and plans -
Establishing policies and procedures - Allocating resources

2. Organizing:

•Organizing involves arranging resources and tasks in a structured way to implement plans and it includes
o Designing organizational structure - Defining roles and responsibilities - Coordinating activities -
Allocating resources - Establishing relationships and workflows
Staffing:

•Staffing involves recruiting, selecting, training, and developing employees to fill roles within the
organization and it includes
o Job analysis and design- Recruitment and selection - Training and development - Performance
appraisal - Compensation and benefits

Leading:

•Leading involves motivating, directing, and influencing people to work hard to achieve
organizational goals.
o Communicating effectively - Motivating employees - Leadership and guidance - Building team
spirit - Conflict resolution
Controlling:

•Controlling involves monitoring and evaluating progress towards goal achievement and making
necessary adjustments.

Setting performance standards - Measuring actual performance - Comparing performance with

standards - Identifying deviations - Taking corrective actions

Coordinating:

•Coordinating ensures that all parts of the organization work together harmoniously.

Aligning activities across departments - Ensuring smooth communication - Synchronizing efforts -

Facilitating cooperation and collaboration

Decision Making:

Decision making involves choosing the best course of action among alternatives.
Contributions of FW Taylor (14 principles of Management)

1. Division of Work

• If an employee is given a specific task to do, they will become more efficient and skilled in it.

• Look at the current skill sets of each employee and assign them a task that they can become
proficient at. This will help them to become more productive, skilled, and efficient in the long run.

Example: At a school, every department has a different responsibility, like academics, sports,
administration, sanitation, food, beverages, etc. These responsibilities are taken care of by
employees specializing in that particular department, increasing efficiency and productivity and
making them specialists in their field.
2. Authority

•A manager needs to have the necessary authority in order to ensure that his instructions
are carried out by the employees.

•If managers did not have any authority, then they would lack the ability to get any work
done. However, this authority should come along with responsibility.

•If there is more authority than responsibility, the employees will get frustrated. If there is
more responsibility than authority, the manager will feel frustrated.

Example: If an employee has been responsible for managing the decor department while
planning an event but has no authority to make design decisions or contact the vendors to get
the work done, no efficiency or productivity will be achieved.
3. Discipline

•Discipline is required for any organization to run effectively. Bending rules or slacking should not be allowed in any
organization.

•Example: Every employee must follow certain rules and regulations and keep a disciplined attitude in the workplace for
smooth working and efficient results.

4. Unity of Command

•The employees should be clear on whose instructions to follow. An employee should receive orders from only one
manager. If an employee works under two or more managers, then authority, discipline, and stability are threatened. Moreover,
this will cause a breakdown in management structure and cause employees to burn out.

•Example: If in a company, an employee has been given a task to finish within 3 to 4 hours as ordered by their immediate
superior. But the head of the department asks them to deliver the task within 1 hour. In this case, no unity of command can
create confusion and pressure in the workplace.
• 5. Unity of Direction

•Work to be done should be organized in such a way that employees work in harmony towards the same
objective, using one plan, under the direction of one manager. The different activities can be broken down for
different sub-managers, but they should all work towards a common goal under the direction of one main person in
charge of the whole thing.

•Example: Different sets of activities within a department should be managed by different managers to avoid
confusion and lesser efficiency within the workflow.

• 6. Collective Interest Over Individual Interest

•The overall interest of the team should take precedence over personal ones. The interest of the organization
should not be sabotaged by the interest of an individual. If anyone goes rogue, the organization will collapse.

•Example: While planning a team outing, the employee making the travel and stay decisions must make
arrangements according to comfort and affordability, not just as per their liking.
• 7. Remuneration

•Employees should be paid fair wages for the work that they carry out. This remuneration should include
both financial and non-financial incentives. Also, there should be a structure in place to reward good performance
to motivate employees.

•Example: Any organization must be fair regarding their remuneration policies where all the employees must
receive a salary worth their efforts irrespective of their gender, tenure, and other factors.

• 8. Centralization

•Centralization refers to the concentration of power in the hands of the authority and following a top-
bottom approach to management. In decentralization, this authority is distributed to all levels of management. In a
modern context, no organization can be completely centralized or decentralized. Complete centralization means
that people at the bottom have no authority over their responsibilities. Similarly, complete decentralization means
that there will be no superior authority to control the organization.
9. Scalar Chain

• A scalar chain refers to a clear chain of communication between employees and their superiors.
Employees should know where they stand in the hierarchy of the organization and who to go to in a chain
of command.

• Example: Every organization has a specific chain of authority from the highest level of superiors, like
the founder or CEO, to the lowest level of subordinates following a hierarchy for maximum productivity.

10. Order

• This principle states that there should be an orderly placement of resources (manpower, money,
materials, etc.) in the right place at the right time.

• Example: Employees should be given a designated space and the right tools or equipment to
complete their work efficiently.
11. Equity

• Equity is a combination of kindness and justice. This principle states that managers should use kindliness
and justice towards everyone they manage. This creates loyalty and devotion among the employees towards the
organization they work for.

Example: All employees, irrespective of gender, religion, race, and sexuality, must feel safe, seen, and heard and
be given equal opportunities to grow and flourish in their careers within the organization.

• 12. Stability of Tenure of Personnel

• Organization should work to minimize staff turnover and maximize efficiency.. There should also be a clear
and effective method to handle vacancies when they arise because it takes time and expense to train new ones.

Example: Every new employee must be given a proper induction of both the technical aspect of the company as
well as the work culture and office environment for them to mingle well. Old employees should be given alum
awards for completing certain tenures to boost morale.
13. Initiative

•Employees should be encouraged to show initiative. Organizations should listen to the concerns of their
employees and encourage them to develop and carry out plans for improvement.

Example: Taking suggestions from employees regarding their specific department can make them feel seen in an
authoritative position and can give them a sense of achieving something for the team.

14. Team Spirit

•The management should strive to create unity, morale, and co-operation among the employees. Team spirit
is a great source of strength in the organization. Happy and motivated employees are more likely to be productive
and efficient.

Example: While discussing the new plan of action for achieving the next month's targets, using the word 'We'
instead of 'I' brings a teamwork spirit to the group.
Mayo’s Management Theories

1. Industrial problems are primarily caused by human and social factors.

a. Human Relations is the main way to resolve industrial problems

2. Workplace rules and procedures influence workers’ attitudes.

3. Workers’ attitudes determine the characteristics informal rules within workplace social groups.

4. Interactions with supervisors and coworkers can cause stress and fatigue.

5. If group attitudes are negative, informal rules can take precedent over formal rules, in turn
negatively impacting production.
1. A lack of attention paid to workers can result in intentional underproduction. Workers should be given an
appropriate amount of attention by managers and supervisors.

2. Job satisfaction, group dynamics, and individual and group attitudes toward work all have a strong influence
on motivation and productivity

3. Increased communication and cooperation improves group cohesion.

a. Managers and supervisors should be trained to be effective listeners and communicators/interviewers in order
to understand and address the personal problems of workers.

4. Job satisfaction, motivation, and productivity depend more on recognition, involvement, and cooperation than
physical working conditions. In order to increase job satisfaction, motivation, and productivity, employees should
be given:

5. Management can ally with workers to the detriment of the organization.

6. Managers must also agree with workplace rules, procedures, and conditions in order to work in the
organization’s best interests.
Herbert A. Simon
• 1. Bounded Rationality

• While individuals aim to make rational decisions, their ability to do so is limited by cognitive
constraints, incomplete information, and time constraints.

• Managers often work under constraints that prevent them from making perfectly rational
decisions. Instead, they make "satisficing" decisions that are good enough given the circumstances.

• 2. Administrative Behavior

• Explores how decisions are made within organizations and the nature of administrative
processes.

 Decision-Making Process: Understanding how decisions are made, including the role of
procedures and organizational structures.
• 3. Satisficing

•Rather than optimizing to find the best possible solution, individuals often settle for a satisfactory solution
that meets their needs sufficiently.

•Implications for Management: Managers should understand that seeking the optimal solution may not always
be feasible or practical. Instead, focusing on satisfactory solutions that meet the organization's goals can be more
effective.

• 4. Decision-Making Models

•Developed models to describe how decisions are made within organizations, including the concept of
"bounded rationality" and the procedural approach to decision-making.

•Implications for Management: Emphasizes the need for structured decision-making processes and the
importance of organizational procedures to guide decision-making.
 Peter F. Drucker
• 1. Management by Objectives (MBO)

MBO is a performance management approach where managers and employees set specific objectives that
are aligned with organizational goals.

o Goal Setting: Objectives are set collaboratively between managers and employees.

o Performance Measurement: Regular reviews are conducted to measure progress towards objectives.

o Implications for Management: Encourages goal alignment, performance measurement, and accountability,
leading to improved organizational effectiveness.

• 2. The Practice of Management

•Role of managers in setting objectives, organizing work, and making decisions – Innovation and
Entrepreneurship: Emphasized the importance of innovation and entrepreneurial thinking in management.
• 3. Decentralization and Simplification

•Decentralized decision-making and simplifying organizational structures to improve

efficiency and responsiveness.

•Implications for Management: Encourages delegation of authority, which empowers lower-

level managers and employees, leading to increased organizational agility.

• 4. Focus on Results

•Managers should focus on results rather than just activities or processes.

•Implications for Management: Shift from activity-based management to results-oriented

management, ensuring that efforts contribute directly to achieving organizational goals
• 5. Knowledge Workers

•Introduced the idea of "knowledge workers," individuals whose primary job is to think,
analyze, and create rather than perform manual tasks.

• Implications for Management: Recognizes the need to manage and motivate knowledge workers
effectively, emphasizing continuous learning and development.

• 6. Customer Focus

•Primary purpose of a business is to create and serve customers.

•Implications for Management: Shifts the focus of management to understanding and

meeting customer needs, thereby enhancing customer satisfaction and business success.
 Basis Entrepreneur Manager

Enter established businesses to maintain and improve

Origin Create and start businesses.
operations.

Responsible for the strategic direction and

Risk Work to mitigate risks within an established business.
vision of the company.

Responsible for the strategic direction and Focus on the execution of these strategies and day-to-
Responsibility
vision of the company. day operations.

Known for their innovative thinking and Focus on improving efficiency within existing
Innovation
ability to identify new opportunities frameworks

Own the business and bear the financial Usually employees and do not bear the financial risk,
Ownership
risks. though they might hold shares or other incentives.

Resource Responsible for securing resources (like Tasked with efficiently utilizing these resources to
Allocation funding) needed for the business. achieve the company’s goals.

Make decisions based on their vision and Make decisions within the framework set by the
Decision-
long-term goals for the company. They business and primarily focused on operational
Making
have the freedom to take calculated risks. efficiency and effectiveness.
Types of Managers Managerial Roles and Skills

•Managers play critical roles across different business settings.

•Providing leadership for a department or an entire business, responsible for creating and
implementing strategies, directly overseeing shift workers, or ensuring projects are completed
on time and within budgetary parameters.

Types of Managers:

1. Top-Level Managers

2. Middle Managers

3. First-Line Managers

4. Team Leaders
• Top-Level Managers

•Who represent the highest level of executive management - often have the word “chief” in their job titles,
such as chief executive officer, chief financial officer. Help sustain the company’s growth and execute plans over
the long term.

•Make major business decisions - such as launching a new product or restructuring departments — with the
goal of seeing the company thrive, not just in the moment but into the future

• Middle Managers

•Middle managers usually report to the top-level managers - Have a lot of autonomy to make decisions within
their area or department of the company.

•These managers often have job titles that include the word “director.” They may also be department heads.

•Middle managers tend to function as points of contact between first-line managers and top-level management,
ensuring that the two groups maintain productive two-way communication.
First-Line Managers

• First-line managers work directly with non-management employees and project team
members.

• Role is to supervise employee productivity and hold employees accountable for achieving
company goals.

• First-line managers handle internal work only and are not responsible for larger-scale business
decisions, like whether to take the company public, rebrand, or partner with another business.

Team Leaders

• Team leaders are managers who specialize in a particular task, product, or project. Their role is
to oversee all the logistics of their assignment, which may include completing a project on time,
onboarding new employees, and assigning specific tasks to various team members.
Current Trends in Management

Digital Transformation

o Automation and AI: Implementing artificial intelligence (AI) and automation to streamline operations, improve decision-
making, and enhance customer experiences.

o Data Analytics: Leveraging big data and analytics to gain insights, predict trends, and inform strategic decisions.

o Cloud Computing: Utilizing cloud services to enhance flexibility, scalability, and collaboration.

Remote and Hybrid Work Models

o Remote Work: Increasing adoption of remote work practices, driven by technological advancements and the COVID-19
pandemic.

o Hybrid Models: Combining remote and on-site work to provide flexibility while maintaining collaboration and productivity.

o Work-Life Balance: Emphasizing the importance of work-life balance and employee well-being.
Agile Management

o Agile Methodologies: Implementing agile practices to increase responsiveness, flexibility, and customer focus.

o Scrum and Kanban: Using frameworks like Scrum and Kanban to manage projects and workflows efficiently.

Sustainability and Corporate Social Responsibility (CSR)

o Sustainable Practices: Integrating sustainability into business operations to address environmental concerns and
reduce carbon footprints.

o CSR Initiatives: Engaging in CSR activities to contribute to social and environmental causes and enhance brand
reputation.

Employee Well-Being and Mental Health

o Well-Being Programs: Offering programs and resources to support employee mental and physical health.

o Workplace Wellness: Creating a supportive work environment that promotes overall well-being.
 Current Issues in Management

Talent Acquisition and Retention

o Skill Shortages: Addressing the gap between the skills needed and the available workforce.

o Employee Turnover: Implementing strategies to retain top talent and reduce turnover rates.

Cybersecurity

o Data Protection: Ensuring robust cybersecurity measures to protect sensitive data from breaches
and cyberattacks.

o Regulatory Compliance: Adhering to data privacy regulations and standards.

Ethical Management

o Corporate Governance: Maintaining high standards of corporate governance and ethical behavior.

o Transparency and Accountability: Ensuring transparency in decision-making processes and holding leaders
accountable for their actions.

Change Management

o Managing Change: Navigating organizational change effectively, including technological, structural, and cultural
changes.

o Employee Buy-In: Gaining employee support and engagement during times of change.

Globalization and Multicultural Management

o Global Operations: Managing operations across different countries and cultures, addressing the challenges of
globalization.

o Cultural Competence: Developing cultural competence to effectively lead and collaborate with diverse teams.
Innovation and Disruption

o Fostering Innovation: Encouraging a culture of innovation to stay competitive and adapt to market changes.

o Managing Disruption: Responding to disruptive technologies and business models that challenge traditional
practices.

Economic Uncertainty

o Economic Fluctuations: Navigating economic instability and its impact on business operations and strategies.

o Financial Management: Ensuring sound financial management practices to maintain stability and growth.

Regulatory Changes

o Compliance: Keeping up with changing regulations and ensuring compliance to avoid legal and financial
penalties.

o Adapting to New Laws: Adapting business practices to meet new regulatory requirements.