MANAGEMENT

Chapter outline
 What is Management?
 Environment
 Management Art or Science? A Profession
 Management Vs. Administration
 Functions of Management
 Managerial Skills
 What Managers Do?
 Management Levels
 Functional areas
WHAT IS MANAGEMENT?
 1.Field of Study -Management principles, techniques, functions, etc
-Profession

 2.Team or Class of people-Individual who performs

managerial activities or may be a group of persons

 3.Process-Managerial activities
 -planning
 - organising
 -staffing
 -directing
 -controlling.
DEFINITION
 F.W. Taylor -“Art of knowing what you want to do and
then seeing that it is done the best and cheapest way”.
 Henry Fayol –“To Manage is to forecast, to plan, to
organise, to command, to co-ordinate and to control”.
 Peter F.Drucker –”Management is work and as such it
has its own skills, its own tools and its own techniques”.

 “Management is the art of getting things done

through and with people”.
CHARACTERISTICS OF MANAGEMENT

1) Is a Process /a function.
2) Is a Social Process.
3) Involves Group Effort.
4) Aims at achieving predetermined objectives.
5) Required at all levels of management
6) Is a Profession
7) Is comprised of following functions:
 Planning
 Organising
 Directing
 Controlling
 Co-ordination
8) Is an art and science.
 Management & Environment
Internal
Social Technical

Human Resource

Material Resources Management of Business / Machines & Technology

customers & clients

Financial Resources

External
Economic Political
External Environment

● Task environment
- Affects directly
- Influences operations and
performances

● Internal environment – elements

within the organization’s boundaries
 Management: Is it an art or science?

MANGEMENT IS AN ART AND SCIENCE

Art
•Practical know how
•Technical skills
•Concrete results
•Creativity
•Personalised nature

Science
•Empirically Derived
•Critically tested
•General principles
•Cause and effect relationship
•Universal applicability

MANAGEMENT AS A SCIENCE PROVIDES PRINCIPLES AND AS AN ART

HELPS IN TACKLING SITUATIONS.
Management as a Profession
McFarland gives the following characteristics of a profession:

 existence of an organized and systematic body of

knowledge,
 formalized methods of acquiring knowledge and skills,
 existence of an apex level body with professionalization as
its goal,
 existence of an ethical code to regulate the behavior of the
members of the profession,
 charging of fees based on service, and
 concern for social responsibilities.
 Management Administration

Definition Art of getting things done through others by directing Formulation of broad objectives,
their efforts towards achievement of pre-determined plans & policies.
goals
Decision making function, thinking function
Nature executing function, doing function
Scope Decisions within the framework set by the Major decisions of an enterprise as a
administration. whole.
Level of Middle level activity Top level activity
authority
Status Group of managerial personnel who use their Consists of owners who invest capital
specialized knowledge to fulfill the objectives of an in and receive profits from an
enterprise enterprise.
Usage Used in business enterprises Popular with government, military,
educational, and religious
organizations.
Influence Decisions are influenced by the values, opinions, Influenced by public opinion,
beliefs and decisions of the managers. government policies, customs etc.

Main Motivating and controlling Planning and organizing

functions
Abilities Handles the employees Handles the business aspects such as
finance.
 Functions of Managers

•Planning: Selecting missions and objectives.

Requires decision making.

•Organizing: Establishing the structure for the

objective.

•Staffing: Keeping filled the organization structure

•Leading: Influencing people to achieve the

objective

•Controlling: Measuring and correcting the activities

Management Levels

Top-level management
(president, executive vice president)

Middle managers
(chief engineer, division head etc.)
First-line managers
(foreman, supervisor, section chief)
 Level Type of Job
 Directly supervise non-managers.
 Carry out the plans and objectives of higher management using
the personnel and other resources assigned to them.
First-line Managers  Short-range operating plans governing what will be done
tomorrow or next week, assign tasks to their workers, supervise
the work that is done, and evaluate the performance of individual
workers.
 Manage through other managers.
 Make plans of intermediate range to achieve the long-range goals
set by top management, establish departmental policies, and
evaluate the performance of subordinate work units and their
Middle Management managers.
 Provide and integrating and coordinating function so that the
short-range decisions and activities of first-line supervisory
groups can be orchestrated toward achievement of the long-range
goals of the enterprise.
 Responsible for defining the character, mission, and objectives of
the enterprise.
 Establish criteria for and review long-range plans.
Top Management
 Evaluate the performance of major departments, and they evaluate
leading management personnel to gauge their readiness for
promotion to key executive positions.
 Managerial Level

Lowest Middle Top

Skills required versus management

Managerial Skills:

Managers need three types of skills:

Technical: Specific subject related skills such as engineering,

accounting, etc…

Interpersonal: Skills related to dealing with others and leading,

motivating, or controlling them

Conceptual: Ability to discern the critical factors that will determine

as organization’s success or failure.
Ability to see the forest in spite of the trees.
Managerial skills
Conceptual Skills
Also called design and problem-solving skills involve the ability to:
 see the organization and the various components of it as a
whole;
 understand how its various parts and functions are related in a
network fashion;
 to foresee how changes in any one of these may affect the
others
 extend to visualizing the relation of the organization to
industry, to the community and to the political, economic and
social forces of the nation as a whole and even to forces which
operate beyond the national boundaries
 A high degree of conceptual skill helps in analyzing the
environment and in identifying the opportunities and threats
Managerial Roles (What Managers Do)

• Interpersonal roles

• Informational Roles

• Decisional Roles
 Managerial Roles (What Managers Do)

• Interpersonal roles
Outward
Figurehead role: Outward relationship
Leader role: Downward relation
Liaison role: Horizontal relation
Horizontal

Downward
Managerial Roles (What Managers Do)

• Informational Roles
Monitor Role: Collects information about internal
operations and external events.

Disseminator Role: Transforms information

internally to everybody in organization (like a
telephone switchboard)

Spokesman Role: Public relations

 Managerial Roles (What Managers Do)

• Decisional Roles
Entrepreneurial Role: Initiates changes, assumes
risks, transforms ideas into useful products.

Disturbance Handler Role: Deals with unforeseen

problems and crisis.

Resource Allocator Role: Distributing resources

Negotiator Role: Bargains with suppliers, customers

etc. in favor of enterprise