Unit -1

Introduction to Management
Concept of Management
Organization comprises of different people with their own objective from different socio
economomic background. They might have different attitude, personality, perception and
behaviour, which will directly or indirectly affect organization’s goal. So that, their attitude,
personality, perception should be clearly analysed and understood for obtaining organization’s
goal.
The term “management” origins from the French “Management” which means, the directing
and from the Latin “menu agree”, this means to lead by the hand. This clearly indicates that
management is necessary to direct and lead organization. It directs, coordinates and integrates
the individual activities of group and secure teamwork to accomplish organizational goal.
According to F.W. Taylor: “Management is knowing exact what you want to do and then seeing
that they do in the best and cheapest way.”
According to Ricky W. Griffen, “Management is a set of activities (including planning, organizing,
leading and controlling) directed at an organization’s resources (human, financial, physical and
informational) with the aim of achieving organizational goals effectively and efficiently in a
changing environment.
Thus, management is what manager does in an organization to accomplish the pre-
determined goal in the changing environment. Further, management can be studied under
various approaches:-
a. Management as an activity.
b. Management as a process.
c. Management as a discipline.
d. Management as a group.

Characteristics of Management.
I. Management is universal.
II. Goal oriented
III. Group activity.
IV. Continuous process.
V. Efficiency and effectiveness
VI. Multidisciplinary
VII. Environmental Influence
VIII. Intangible
IX. Both Science and art.

Process of Management
Functions of Management
In every organization, the managers perform certain basic functions, which may differ from
organization to organizations as per its nature. Some general functions of Management is as
below:-
1. Planning and decision making.
Planning is the process of deciding in advance about what to do, how to do it, when and where
to do it and who is capable of doing it. In other words, planning is the process of setting goals
and choosing best action to achieve it. Further, planning is a process which comprise several
steps like environmental scanning, establishing decision premises, establishing goals , developing
alternative strategies, evaluating alternatives, selection of course of action and implementation.
Decision making is the part of planning process which involves selecting best course of action
from predetermined alternatives.
2. Organising and staffing.
Organising is process of creating structure. It also involves determining the authority and
responsibility relationships among functions, departments and personnel at various levels to
ensure smooth and effective function together in accomplishing the objective. Thus, the
organizing function of management is primarily concerned with identifying the tasks involved
and grouping them into units and departments, and defining the duties and responsibilities of
people in different positions within each department for well coordinated and cooperative effort
in the organization.
Staffing is concerned with employing people for the various activities to be performed. It
includes the functions of recruitment, training and development, placement and remuneration,
and performance appraisal of the employees.
3. Leading
Leading means to keep subordinates to work together in the interest of an organization.
Leadership plays an important role to achieve goal or objective of an organization. Leader
should guide and influence the subordinates to achieve goal effectively and efficiently. As per
the nature of organization and its goal, leadership style might be different (autocratic,
democratic). Leading includes or consists further other functions too.
a. Directing
b. Motivation
c. Communication
d. Supervision

4. Controlling
This function of management consists of the steps taken to ensure that the performance of
work is in accordance with the plans. It involves establishing performance standards and
measuring the actual performance with the standards set. If differences are noticed,
corrective steps are taken which may include revision of standards, regulate operations,
remove deficiencies and improve performance.
• Hierarchy/Levels of Management
Management hierarchy is the level of management of organization which indicates the
division of management. Management level is obtained with the division of responsibility and
authority. Hierarchy fixes responsibility and authority with clearly identifiable classification or
division of functions. There should be proper levels of authority. Main motive of hierarchy is
to avoid confusions regarding implementation of command. In general, there are three
heirarchical levels, which are:-
1. Top Level Management
They are also called executive level management and have overall responsibility for the survival,
growth and welfare of the organization. They are generally titled with Chairman, President, GM, CEO,
ED e.t.c. as per the nature of the organization. Some general responsibilities of top level management
are:-
• Determining overall goal of organization
• Preparation of overall plan, policies, strategies to achieve goal.
• Setting standard for controlling
• Directing employees for organizational goal.
• Managing resources
• Representing organization in external world.

2. Middle level Management.

This is the department level of the organization which is formed to conduct similar activities from a
unit. This is formed with department heads or managers of different functions like Humar Resource,
Marketing, Production, Sales, Promotion, Operation e.t.c. Major role of middle level management is
to implement the plans and policies formed by top level management. Middle level management is
responsible for following activities:-
• Formulation of departmental goals, plans, policies and strategies for individual department
on the basis of overall goal.
• Interpretation and communicating plans, policies set or developed by top level
management.
• Guiding, instructing and controlling respective department.
• Hiring and placement of suitable staffs

3. Lower Level Management

This is also called operation level management or first line management of supervisory level
of management. Operating level is strongly responsible for day to day activities which ensure
short term goal. General titles of lower level management are section officer, supervisors,
sales officer, finance officer, production officer e.tc. In general, they have the primary
responsibility for the actual production of goods and services in the organization. Some
general responsibilities of lower level management are as below:-
• Management of tools, equipments for workers.
• Maintaining discipline and good relation in organization.
• Directing and motivating employees.
• Arrangement of training for workers or employees.
• To report necessary task to higher authorities.

Types of Managers
Managers are those persons in an organization, who has special responsibility of management
functions and has different managerial skill. Managers are involved in planning, decision making,
implementation of plans and policies, directing and controlling organizational activities. As per the
nature of organization and its goal, managers having different skills are hired to attain organization
goal. On the basis of levels, managers can be top level, middle level and lower level managers. On
the basis of functions, managers can be classified as Marketing manager, HR manager, Production
manager, Operation manager, Sales Manager etc. For our purpose, managers are generally
classified on the basis of level of organization. They are:-
1. Top Level Managers.
CEO, President, Chairman, Managing directors are some examples or titles of top level managers
who are responsible in making strategic plans and are also called strategic managers. They have
major responsibility in formulating long term plans, policies, mission, vision of an organization.
Generally, top level manager has following function:-
• Analysing external environment for SWOT.
• Establishment of overall plans, policies, strategies.
• Authorising capital budgets, capital plans, analysing financial statements.
• Formulation of organizational structures and revising as per the need.
• Delegating authority and decentralization.
• Negotiating and making contracts for business activities.
• Representing organization in external environment.
2. Middle Level Managers
Managers who are responsible to look after departmental jobs are middle level managers.
They are under direct guidance of top level managers and they supervise lower level
managers. In general, department heads are middle level managers. And they are responsible
for:–
• Helping top level managers.
• Providing suggestions to increase organizational effectiveness.
• Formulating departmental strategies to attain overall goal of organization.
• Planning and making decision for departmental goals.
• Cordinating among departments
• Supervising and monitoring lower level managers.

3. Lower Level Managers.

They are first line managers or operating level managers which includes, supervisors,
cordinators, office mangers, unit manager etc. They are responsible for operation of day to
day activities which is directed towards overall goal of the organization. They play crucial role
to achieve goal of organization. General functions of lower level managers are:-
• Formulating day to day plans and policies under departmental goals.
• Assigning task to workers or employees.
• Management of raw materials, machines, information for easeness.
• Supervising, directing, controlling, motivating workers or employees.
• Management of leave for employees or workers.
• Maintaining descipline and good working environment.
• Timely reporting to middle level managers as per the routine and urgency.
• Suggesting middle level managers for effectiveness of work or plans, policies etc.

Managerial Roles or Roles of Manager

As per the nature of organization and its goal, managers working at different level of
organization need to perform various roles according to their roles and responsibility. To
achieve results, they shift gears and restructure and reorganize things continually. The diverse
roles played by managers in discharging their duties have been summarized by Henry
Mintzberg in the late 1960s, under three broad headings: interpersonal roles, informational
roles and decisional roles.
1. Interpersonal Roles
Interpersonal roles deals with relationship among different personalities and departments.
Such roles are expected at maintaining good human as well as organizational relationships
within and outside organization. It is characterised by following roles:-
• Figurehead role
Managers play the figurehead role when they perform duties that are ceremonial and
symbolic in nature. These include greeting the visitors, attending social functions involving
their subordinates (like weddings, funerals), handing out merit certificates to workers showing
promise etc.
• Leader role
The leadership role includes hiring, training, motivating and disciplining employees.
• Liaison role
Managers play the liaison role when they serve as a connecting link between their
organization and others or between their units and other organizational units. Mintzberg
described this activity as contacting outsiders who provide the manager with information.
Such activities like acknowledgements of mail, external board work, etc., are included in this
category.
2. Informational Role
Mintzberg mentioned that receiving and communicating information are perhaps the most
important aspects of a manager’s job. In order to make the right decisions, managers need
information from various sources, refine them and transmit them to respective or needy
departments, units and sometime to outside organization too. Informational role are
characterized as below:-
• Monitor role
Reading magazines, talking others about the change in organization is primary role of the
manager. Main aim of manager is to collect and scan the information which is required for an
organization. Based on the information, managers develop strategies and cope with the
dynamic environment.
• Disseminator role
Information collected from different sources are to be transmitted or distributed to
subordinates via proper channels. Managers need to recognize information and supply right
information to right person for effective and efficient execution of plans, policies and
strategies.
• Spokesperson Role
Managers also perform the spokesperson role when they represent the organization to
outsiders like media, government agencies etc.
3. Decisional Role
This is another very important role of manager. According to the responsibility and authority,
manager should take effective decision. Decisional role is performed via below other roles:-
• Entrepreneur role
Managers to create innovative ideas, analysis of SWOT, create new job opportunities, plans
and policy making and formulation. Need to plan for environmental changes.
• Disturbance handler role
As disturbance handlers, managers respond to situations that are beyond their control such
as strikes, shortages of materials, complaints, grievances, etc.
• Resource allocator role
Managers are responsible for allocating human, physical and monetary resources.
• Negotiator Role
As negotiators, managers not only mediate in internal conflicts but also carry out
negotiations with other units to gain advantages for their own unit. As manager he bargains
with supplier, dealer, trade unions, agents etc for the faith of organization.
Skills of an effective Manager
Skills are defined as ability to perform task within acceptable standard. Managers required to
accomplish all the managerial functions effectively and efficiently. An effective manager must
possess certain skills in the areas of planning, organizing, leading, controlling and decision-
making in order to process activities that are presented to him from time to time. In order to
be effective, a manager must possess and continuously develop several essential skills.
Robert L. Katz has identified three basic types of skills - technical, human and conceptual -
which he says are needed by all managers.
1. Technical skill.
It is the ability to use the tools, procedures or techniques of a specialized field. Technical skill
is considered to be very crucial to the effectiveness of lower level managers because they are
in direct contact with employees performing work activities within the firm. Technical skills are
related to handling some mechanical devices and technology. These skills are important for
middle and top level managers also.
2. Human Skill.
It is the ability to work with, understand, motivate, lead and communicate other people. This
skill is essential at every level of management within the organization, but it is particularly
important at lower levels of management where the supervisor has frequent contact with
operating personnel.
3. Conceptual Skill.
The mental ability to coordinate and integrate the organization's interests and activities. It
refers to the ability to see the ‘big picture’, to understand how a change in any given part can
affect the whole organization. Conceptual skill of manager specially includes clear vision and
concept about policies, planning , strategies , SWOT analysis for an organization. Generally, top
level managers must have high level of conceptual skill in comparison to other managers.
Emerging Challenges for Management
There are several challenges for managers to attain goal of an organization because of an
internal environment and external environment. Among them, some challenges are listed
below:-
1. Globalization
2. Quality and productivity
3. Ethics and social responsibility
4. Technological advancement
5. Workforce diversity
6. Temporary workforce
7. Change Management
8. Employee empowerment.
Organization and Management
According to the nature and size of organization, predetermined objective or goal can be
achieved only with the help of effective management. Below points describe relationship
between organization and management.
1. For acquisition and utilization of resources.
2. For environmental adaptation.
3. To bear social responsibility.
4. For effective controlling and monitoring.
5. To achieve goal.
6. To make effective decision.

Changing perspective of organization

The concept about organization has been changing over the period. Organizational
development is being one of the major areas of study from the very beginning of the twentith
century. Traditional views considered organization as closed system, operating in stable and
predictable environment but this is not possible in today’s competitive world. Now a days,
organization operates in highly competitive, uncertain and unstable environment. Below are
some perspectives of organization.
1. Organization as machine/mechanistic perspective.
Traditional theorists and practitioners used to take organization as a machine. According to the
mechanistic perspective, an organization is a body like a machine. Therefore it should be
established and operated like a machine, Mechanistic perspectives have advocated the
following things regarding an organization.
• Machines have a fixed system to operate. The mechanistic perspective thinks of an
organization as a machine. So, organizations should define their fixed operating system
• Organizations operate their activities in a stable and predictable environment. In other
words, organizations should not face changes in the environment.
• Organizations attempts to increase economic efficiency via specialization of the division of
work. They establish specific work standards to accomplish.
• There should be a tall structure of organizations having various positions. Formal heredity of
authority and response should be followed.
• An organization should define certain working times, fixed plans, schedules, rules and
regulations etc. should be followed.
• There should be one best method of performing the activities.
The mechanistic perspective only focuses on increasing effectiveness and economic gain. But it
ignores the effect of environmental changes and the human aspect at work. It promotes in
implementation of fixed or rigid rules and regulations.
2. Organic perspective
It views organization as, an organic body. Organization establishes its system per human need
and behavior. Environmental changes and development are analysed plans are formulated to
adapt to the organization. Futher, organic perspective emphasize on following:-
• Organization is an open system which is directly and indirectly influenced by the
environment. Environment is dynamic, which creates uncertainities. Organization should
attempt to adapt its practices to the dynamic environment.
• Organic perspective focus on human behavioral patterns at workplace. Different people have
different bahaviors at one time. Single person might have various behaviors over different
times. Organization should consult and adheres human needs and behavior.
• There should be proper interaction/communication between management and employees.
Creativity and valueable ideas can be collected by open interaction.
• Organic perspective focuses on attention for proper management of diversified human
resources. Different people join organization from different societies, places, religions and
ideologies. Organization success depends upon the effective and efficient management of
workforce diversity.
• Organic perspective focuses on flexible plans, policies, rules, working schedules. Regidity is
discarded and flat structure is made.
3. System perspective
As per system perspective, organization is a system. A system is a total of interrelated and
interdependent parts like input, processing, output and feedback. Environment influences
organization systems. According to system perspective, organization should define their input,
processing, output and feebback properly. Dynamic environment should be carefully analysed
and consulted. Below are the important componenets of system perspective of an
organization.
• Input:– They are utilised to get output. Organization collect input for the environment. Input
are raw factors. Human, financial, physical and information resources are inputs. They differ
as per the nature of organization.
• Processing or transformation
Processing converts input into outputs. It follows various techniques and procedures to add
values to the input.
• Output
These are results. They are consumable. Profit or loss, goods and services can also be
considered as output.
• Feedback
It provides information, which is useful for imporving quality of input, process and output.
• Environment
It affects organization system due to the reason organization is an open system. Parts of
organization, consult and internal environement.
• Synergy
An organization system helps to get better and greater results than that of sum total of its
individual parts.
4. Cultural Perspective
Culture refers to norms, values, beliefs, tradition, practices etc. that are common for groups,
communities, organizations etc. culture defines the functions to be done and not to be done.
It specifies the limitations of the organization’s plans procedures, rules and practices. Some
cultural practices are as below:-
• Integration of interest
Cultural perspective gives emphasis on integrating interest and goals management and
employees. Managers become more careful to fulfill emplyee’s goals and employees become
committed to achive common goal of an organization.
• Open communication
Managers interact and communicate openly with employees. This involves employees in
formulating plans and making decisions. Open interaction helps to reduce misunderstanding
and improve creativity in organization.
• Co operation
Cultural perspective advocates co operation among individuals, group, and teams. Team work
and cooperation may be fruitful to achieve results.
• Performance and reward
There will be proper link between performance and reward. Higher the performance higher the
reward and recognition.
• Autonomy
Employees gets freedom for preparing action, plans, working schedule etc.
5. Organization as learning body or learning perspective
It takes organization as a learning unit. As per learning perspective, organizations should
continuously be updated. Learning from past experience is the motto of learning perspective.
Knowledge can be acquired from research and development, study, experience, interactions,
and information etc. learning helps to update ideas, techniques, and procedures for preforming
activities. Following are some important features of learning organizations.
• Flexible decisions
The organization follows the practices of boundary less organization design. Or, organization
change their design as per the change in situation.
• Continuity
Organization continues focus their attention to learn new things from past and learning helps to
update knowledge.
• Use of information technology
Learning organizations use information technology for effective collection and arrangement of
information.
• Empowerment
Employees are empowered to improve their skills and capability.
6. Global Perspective
It takes organization as multi country operating entity. Global organizations establish head
offices in one country which is called Home country. They establish their branch offices in two
or more country and are termed as host countries. Some of the features are:-
• Global competition
• Advanced and standardized technology
• Multi country operation
• Free flow of factors of production