MANAGEMENT

MANAGEMENTWhat is Management?A set of activitiesplanning and decision making, organizing, leading, and controllingdirected at an organizations resources human, financial, physical, and informationwith the aim of achieving organizational goalsin an efficient and effectivemanner.

What is a Manager?Someone whose primary responsibility is to carry out the management process.Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources.

Kinds of Managers by LevelTop ManagersThe relatively small group of executives who manage the organizations overall goals, strategy, and operating policies.Middle ManagersLargest group of managers in organizationsImplement top managements policies and plans.Supervise and coordinate lower-level managers activities.First-Line ManagersManagers who supervise and coordinate the activities of operating employees.Management in OrganizationsInputs from the environmentHuman resourcesFinancial resourcesPhysical resourcesInformation resourcesPlanningand decisionmakingLeadingOrganizingControllingGoals attainedEfficientlyEffectivelyThe Management Process

The Management Process (contd)Planning and Decision MakingSetting an organizations goals and selecting a course of action from a set of alternatives to achieve them.OrganizingDetermining how activities and resources are grouped.Leading Getting organizational members to work together to advance the interests of the organization.Controlling Monitoring organizational progress towards goals.79Skills and the ManagerFundamental Management SkillsTechnical SkillsInterpersonal SkillsConceptual SkillsDiagnostic SkillsCommunication SkillsDecision-Making SkillsTime-Management SkillsFundamental Management SkillsTechnicalSkills necessary to accomplish or understand the specific kind of work being done in an organization.InterpersonalThe ability to communicate with, understand, and motivate both individuals and groups.ConceptualThe managers ability to think in the abstract.DiagnosticThe managers ability to visualize the most appropriate response to a situation.917Fundamental Management SkillsCommunicationThe managers abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others.Decision-MakingThe managers ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities.Time-ManagementThe managers ability to prioritize work, to work efficiently, and to delegate appropriately.1017Management: Science or Art?The Science of ManagementAssumes that problems can be approached using rational, logical, objective, and systematic ways.Requires technical, diagnostic, and decision-making skills and techniques to solve problems.The Art of Management Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights.Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities.1118CONCEPTS OF MANAGEMENTDEFINITION: It is difficult to define Management because it is looked in to by different scholars from different way The Economist consider Management as a resource like Land, Labour, Capital and Organisation.

The Bureaucrats consider it as an authority

The Sociologists consider managers as a part of the class elite classHenry L.SiskDefines Management is the coordination of all resources through the process of Planning, Organizing, Directing and Controlling in order to attain stated objectivesRalph C.DavisDefines Management as a function of Executive Leadership

Peter DruckerDefines Management as a Multi purpose organ that manager a business, Manager Mangers and Managers workers and work.Concepts of ManagementThe terms management has been interrupted in several ways as below.Management as an Activity:It is an activity like playing, studying, teaching etc. It is an art of getting things done through the effort of othersii. Management as a Process:It is include the process of Planning, Organizing, Staffing, Directing and Controlling functions. As a process the management includes social process, integrated process, continuous process and interactive processiii. Management as an Economic Sources:Management occupies the central place among other 4 ms Men, Machine, Material and MoneyMan PowerMoneyMachineManagementMaterialManagement as a TeamManagers operate at different levels of authority like top, Middle, Operating etc. Management is managing all these activities in a team sprit. Managers have become elite class in society occupying position with enormous power and prestige.Management as an Academic Discipline Management has became a very popular field of study since offers a very rewarding and challenging career.Management as a groupManagement means the group of persons occupying managerial position like executives, departmental head, supervisor etc.22Define roleA role is a set of behaviours associated with a particular job.Mintzberg published his Ten Management Roles in his book, "Mintzberg on Management: Inside our Strange World of Organizations," in 1990.Managers constantly switching roles as tasks, situations, and expectations change.

24Mintzbergs Managerial RolesHenry Mintzberg studied CEOs at work and created a scheme to define what managers do on the job. These are commonly referred to as Mintzbergs managerial roles.These can be grouped into three primary headings: interpersonal, informational and decisionalInterpersonal CategoryThe managerial roles in this category involveprovidinginformation and ideas.Figurehead As a manager, you have social, ceremonial and legal responsibilities. You're expected to be a source of inspiration. People look up to you as a person with authority, and as a figurehead.Leader This is where you provide leadership for your team, your department or perhaps your entire organization; and it's where you manage the performance and responsibilities of everyone in the group.Liaison Managers must communicate with internal and external contacts. You need to be able to network effectively on behalf of your organization.Decisional CategoryThe managerial roles in this category involveusinginformation.Entrepreneur As a manager, you create and control change within the organization. This means solving problems, generating new ideas, and implementing them.Disturbance Handler When an organization or team hits an unexpected roadblock, it's the manager who must take charge. You also need to help mediate disputes within it.Resource Allocator You'll also need to determine where organizational resources are best applied. This involves allocating funding, as well as assigning staff and other organizational resources.Negotiator You may be needed to take part in, and direct, important negotiations within your team, department, or organization.

Informational CategoryThe managerial roles in this category involveprocessinginformation.Monitor In this role, you regularly seek out information related to your organization and industry, looking for relevant changes in the environment. You also monitor your team, in terms of both their productivity, and their well-being.Disseminator This is where you communicate potentially useful information to your colleagues and your team.Spokesperson Managers represent and speak for their organization. In this role you're responsible for transmitting information about your organization and its goals to the people outside it.

28INTERPERSONALRoleDescriptionIdentifiable ActivityFigureheadManager serves as an official representative of the organization or unitGreeting visitors; signing legal documentsLeaderManager guides and motivates staff and acts as a positive influence in the workplaceStaffing, trainingLiaisonManager interacts with peers and with people outside the organization to gain informationAcknowledging mail/email; serving on boards; performing activities that involve outsiders

29INFORMATIONAL RoleDescriptionIdentifiable ActivityMonitorManager receives and collects informationReading magazines and reports; maintaining personal contactsCommunication (Disseminator)Manager distributes information within the organizationHolding meetings; making phone calls to relay information; email/memosSpokespersonManager distributes information outside the organizationHolding board meetings; giving information to the media

30DECISIONALRoleDescriptionIdentifiable ActivityEntrepreneurManager initiates changeOrganizing sessions to develop new programs; supervises design of projectsDisturbance HandlerManager decides how conflicts between subordinates should be resolvedSteps in when an employee suddenly leaves or an important customer is lostResource AllocatorManager decides how the organization will use its resourcesScheduling; requesting authorization; budgetingNegotiatorManager decides to negotiate major contracts with other organizations or individualsParticipating in union contract negotiations or in those with suppliers

31Processes or tasks (activities: planning, organizing, leading, controlling)Roles (behaviours: interpersonal, informational and decisional)Skills are abilities crucial to success in a managerial position.Review ~32MANAGEMENT SKILLSWhat are the critical skills that are related to managerial competence?Generally speaking, effective managers must be proficient in four general skill areas:ConceptualInterpersonalTechnicalPoliticalNATURE AND CHARACTERISTICS OF MANAGEMENT(i) Management as a goal oriented(ii) Management is Universal(iii) Management is an interactive force(iv) Management is a social process(v) Management is Multidisciplinary(vi) Management is a Continuous process(vii) Management is intangible(viii) Management Art as well as SciencesNATURE AND CHARACTERISTICS OF MANAGEMENT(i) Management as a goal orientedThe main goal of Management is to ensure efficiency and economy is the utilisation of human, physical and financial resources(ii) Management is Universal All type of organization like family, club, university, government, army, cricket team (a) business, require management

(iii) Management is an interactive forceManagement reconciles the individual goals with organizational goals. It integrates human and other resources(iv) Management is a social processManagement is done by the people, through the people and for the people concerned with interpersonal relationship. A good manager is a leader and not a boss(v) Management is MultidisciplinaryManagement depends up on wide knowledge derived from several discipline like engineering, sociology, psychology, economics etc.(vi) Management is a Continuous processManagement is a continuous process which continues until the goal is achieved(vii) Management is intangibleIt is invisible force. It cannot be seen but its presence can be felt(viii) Management Art as well as SciencesManagement consists of theoretical knowledge as well as practical application of such knowledgeObjectives of ManagementOrganisational objectives :- It includes(a) Reasonable Profit(b) Survival and solvency of business(c) Growth and expansion of the enterprise(d) Improve the Good will and reputation(ii) Personal Objectives (a) Fair remuneration (b) Reasonable working conditions (c) Training and Development (d) Participation is Management (e) Security of Service

(iii) Social Objectives (i) Prompt payment of Taxes (ii) Conservation of energy (iii) Preservation of ethical value

LEVELS OF MANAGEMENTBoard of Director

Managing Director Top Level

General Manager

Departmental Manager

Middle Level Deputy Manager

Asst. Manager

Supervisors Lower LevelWorkersKinds of Managers by Level and Area

Distinction Between Management and Administration Oliver Sheldon defines administration as a function concerned with the determination of corporate policies, the coordination of finance, production, distribution, structure under the ultimate control of the executiveDistinction Between Management and Administration (Contd.)On the other hand Management is concerned with the executives of policy within the limit set by the administration. Thus administration is a thinking process and management as doing process Three points of viewAdministration is different from ManagementThis view is largely held by American experts. They held that administration is a higher level activity while management is a lower level function. The administration involves decision making while the management is concerned with the execution of policies and supervision of work. According to American school of thought Administration is superior to management.(ii) Administration is a part of ManagementAccording to European school of thought of management is inclusive of Administration and Organisation.Management is the policy making including planning and guidance, where as Administration is executive of above planning. Thus management is planning agency while administration is an implementation agency. Thus European just appropriate view of Americans(iii) Administration and Management are oneMany writers like Henri Fayol, New man viewed that the management and administration are one and same used interchangedly. The term Administration is more popular in Government and other Public sector organisation and the term Management is more commonly used in other business world. iii) Administration and Management are one (Cont.d)To solve this conflict of Opinions between administration and management. Management classified into (i) Administrative Management(ii) Operative ManagementPoints of distinctionAdministrationManagementNatureIt is a determinative or thinking functionIt is an executive or doing function2. Type of WorkIt is concerned with the determination of majorIt is concerned with the implementation of policies3. Levels of authorityIt is mainly a top level functionIt is largely a middle and lower level functionDistinguish Between Administration and ManagementDistinguish Between Administration and Management4. Influence Decision are influenced by Public opinion and outside forcesDecision influenced by Objectives and Policies of the Company5. Direction of Human EffortsNot directly concernedActively concerned6. Main FunctionsPlanning and Control are main functionsDirecting and Organizing are main functionsDistinguish Between Administration and Management7. Skills requiredConceptual and Human SkillsTechnical and Human Skills8. Usage Government and Public sectorBusiness Organizations9. IllustrationsCommissioner, Registrar, Vice-Chancellor, Governor etcManaging Director , General Manager, Sales Manager, Branch Manager etc.

Meaning of PlanningPlanning is the process of deciding in advance what is to be done, how it is to be done, where, when and whom.According to L.F.Ur WickPlanning is fundamentally a mental predisposition to do things is an orderly way, to think before and to act in the light of the fact rather than of guesses.Features of PlanningPlanning is good orientedPlanning is future orientedPlanning is an mental exercise involves creative thinking Planning is a primary functionDifferent planning is required for different levels of organisation (Pervasiveness)Planning is Continuous Planning aims at efficiencyImportance of PlanningMake objectives clearHelps the organisastion a right pathIt reduces risks and uncertaintyIt improves efficiency of operationIt provides the basis of controlIt facilitate decision makingEffective co-ordination

Limitation of PlanningAssumptions not fully reliableThe condition under which plans are implemented may differ from assumed conditions.Availability of time is a limiting factor for planningCost involved in planningMental attitude

Steps in Planning

Principles of PlanningPrinciples of contribution to objectivesPrinciples of PervasivenessPrinciples of Limiting factorPrinciples of FlexibilityPrinciples of Navigational change

Kinds of PlanningLong range PlanShort range PlanStrategic PlanningOperational PlanningFunctional Planning

Decision MakingDefinition:According to Lereitner :Decision Making is a process of identifying and choosing alternative courses of action in a manner appropriate to the demand of the situation According to Peter Drucker:Whatever Manager does, he does through Decision Making

Six Steps in Decision MakingFigure 7.4

Theories of Decision MakingMarginal Theory : This theory stresses an profit maximizationPsychological Theory : This theory stresses on customer satisfaction Mathematical Theory: This theory arrives decision making using models like Linear Programming, Probability etc.Problems in Decision MakingCorrectness of DecisionTiming of DecisionEffective Communication of DecisionsParticipation in Decision MakingDecision EnvironmentImplementation DecisionModern Quantitative Techniques of Decision MakingLinear programming : It is based on the assumption that there exist a linear relationship between the variables.For Example:With the help of linear equation, optimum combination of cost, time and utilization of time can be compared. The main object of this techniques is to either maximize benefit or to minimizes cost2. Probability TheoryThis statistical device is based on the assumption that certain things are likely to happen in future depending on assumed probabilities. Ex. Pay-off matrices, Decision trees.3.Queueing TheoryIt is based on the assumption that although delays are costly, eliminating them may be even more costly. This techniques may be used in service organisations hospitals and banks4.SimulationFor example : Instead of studying and analyzing transportation system of Chennai in a real life, its models can be prepared and real solution can be simulated to it 5. Net Work TechniquesThe project evaluation and review techniques (PERT) and critical path method (CPM) are used for planning, monitoring and implementing a project 6. Decision TreesIt is a graphic method used for identifying the alternatives and risk and outcome associated with each alternativesDelegationDefinition :According to Haimann Delegation of authority merely means granting authority to subordinate to operate within prescribed limitsThe Process of DelegationAssignment of DutiesGranting of AuthorityCreating of Responsibility Difference between Authority and Responsibility Sales ManagerSales ManagerSales OfficerBranch ManagerAuthority ResponsibilityAccountabilityIt is the obligation of a subordinate to report back to his superior that the job entrusted to him has been successfully completedCentralisation and DecentralisationAccording to Henri Fayol Every thing which goes to increase the subordinates roles is decentralisation, every thing which goes to decrease it is centralisationIn centralised administration, the staff depend on the top management for guidance on all matters. An organisation is said to be decentralised where managers at middle and lower levels are given the authority to take decision on matters relating to their functions.

Centralisation and Decentralisation (Contd.)For Example : An organisation having branches in different cities may be centralised. Similarly, a company may be decentralised even things all its officer are located in one building.

Merits of Decentralisation Reduces Burden of Top ExecutivesQuick DecisionMotivation to SubordinatesGrowth and DiversificationManagement DevelopmentDiversion of RiskEffective Supervision and Control

Demerits of Decentralisation Cadre of Coordination Difficult to ControlHigh cost of operationNon Availability Talented ManagersExternal Constraints.CONTROLLING

The Control ProcessEstablish objectives and standards.Measure actual performance.Compare results with objectives and standards.Take necessary action.Establish Objectives and StandardsThere are two types of standards:Output Standards - measures performance results in terms of quantity, quality, cost, or time.Input Standards - measures work efforts that go into a performance task.Measuring Actual PerformanceMeasurements must be accurate enough to spot deviations or variances between what really occurs and what is most desired.Without measurement, effective control is not possible.Comparing Results with Objectives and StandardsThe comparison of actual performance with desired performance establishes the need for action. Ways of making such comparisons include:Historical / Relative / EngineeringBenchmarkingTaking Corrective ActionTaking any action necessary to correct or improve things.Management-by-Exception focuses managerial attention on substantial differences between actual and desired performance.Taking Corrective ActionManagement-by Exception can save the managers time, energy, and other resources, and concentrates efforts on areas showing the greatest need.There are two types of exceptions:Problems - below standardOpportunities - above standardEffective ControlsThe Best Controls in Organizationsare

Strategic and results orientedUnderstandableEncourage self-control

Effective ControlsThe Best Controls in Organizations are

Timely and exception orientedPositive in natureFair and objectiveFlexibleTypes of ControlPreliminary Sometimes called the feedforward controls, they are accomplished before a work activity begins. They make sure that proper directions are set and that the right resources are available to accomplish them.Types of ControlConcurrent Focus on what happens during the work process. Sometimes called steering controls, they monitor ongoing operations and activities to make sure that things are being done correctly.Types of ControlPostaction Sometimes called feedback controls, they take place after an action is completed. They focus on end results, as opposed to inputs and activities.Types of ControlsManagers have two broad options with respect to control.They can rely on people to exercise self-control (internal) over their own behavior.Alternatively, managers can take direct action (external) to control the behavior of others.Types of ControlsManagers have two broad options with respect to control.They can rely on people to exercise self-control (internal) over their own behavior.Alternatively, managers can take direct action (external) to control the behavior of others.Types of ControlInternal ControlsAllows motivated individuals to exercise self-control in fulfilling job expectations.The potential for self-control is enhanced when capable people have clear performance objectives and proper resource support.Types of ControlExternal ControlsIt occurs through personal supervision and the use of formal administrative systems.Performance appraisal systems, compensation and benefit systems, employee discipline systems, and management-by-objectives.