Introduction to management and organization

2. Definition of Management
 According to Harold Koontz, “Management is an art of
getting things done through and with the people in
formally organized groups. It is an art of creating an
environment in which people can perform and
individuals and can co-operate towards attainment of
group going”.

3. Levels of management

4. TOP LEVEL
MANAGEMENT
It consists of Board of
directors, chief
executives or
managing directors.
The top management
is the ultimate source
of authority and it
manages goals and
policies for an
enterprises.
It devotes more time
on planning and
coordinating
functions.
 Roles & Responsibilities:
 Framing the objectives and
policies f the enterprises.
 Issues necessary instruction for
preparation of department
budgets, procedures, schedules
etc.,
 It provides guidance and
directions.
 Responsible towards the
shareholders for the
performance of the enterprises.

5. Middle level
management
The branch
managers and
departmental
managers constitute
middle level.
They are responsible
to the top
management for the
functioning of their
department.
They devote more
time to
organizational and
 Roles & Responsibilities
 They executes the plans of the
organization in accordance with
the policies and directives of the
top management.
 They make plans for the sub
units of the organizations.
 They participate in employment
& training of lower level
management.
 They evaluate performance of
junior management.

6. Lower Level
Management
Lower level
management is also
known as supervisory /
operative level of
management.
It consists of
supervisors, foreman,
section officers,
superintendent etc.,
They are concerned with
direction and
controlling functions of
management
 Roles & responsibilities
 Assigning of jobs and tasks to
various workers
 They guide and instruct workers
for day to day activities.
 They are responsible for the
quality and quantity of
production.
 They help to solve the grievances
of the workers.
 They motivates workers.

7. Functions of management
 https://www.youtube.com/watch?v=LRR6nCpQdwc

8. Functions of management
Planning
The plan is a future course of actions
Planning is a systematic thinking about
ways and means for accomplishment of
pre-determined goals.
According to koontz,” Planning is deciding
in advance – what to do, when to do & how
to do. It bridges the gap from where we are
& where we want to be”.

9. Functions of management
Organizing
 It is the process of brining together physical, financial
and human resource and developing productive
relationship amongst them for achievement of
organizational goals.
 According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e.,
raw material, tools, capital and personnel's”.

10. Functions of management Staffing
 It is the function of manning the organization structure
and keeping it manned.
 The main purpose of staffing is to put right man on right
job.
 Staffing involves the following:
 Man power planning
 Recruitment, selection & placement
 Training & development
 Remuneration
 Performance appraisal
 Promotions & transfers

11. Functions of management
Directing
 It is that part of managerial function which actuates
the organizational methods to work efficiently for
achievement of organizational purposes.
 Directing has the following elements:
 Supervision
 Motivation
 Leadership
 Communications

12. Functions of management
 Controlling
 It implies measurements of accomplishment
against the standards and corrections of
deviations if any to ensure achievement of
organizational goals.
 According to Theo Haimann, “Controlling is
the process of checking whether or not
proper progress is being made towards the
objectives and goals and correcting if
necessary to correct any deviation”.

13. Roles of manager

14. Roles of manager
Interperson
al Role
 Leader – responsible for
staffing, training and
associated duties.
 Figurehead – the symbolic
head of the organization
 Liaison – maintains the
communication between all
contacts and informers that
composes the organizational
network.

15. Roles of manager
Information
al Role
 Monitor – personally seek and
receive information, to be able
to understand the organization.
 Disseminator – transmits all
import information received
from outsiders to the members
of the organization.
 Spokes person –here the
manager transmits the
organizations plans, policies and
actions to outsiders.

16. Roles of manager
Decisional Role
 Entrepreneur – Seeks
opportunities, basically they
search for change, respond to it,
and exploit it.
 Negotiator – Represents the
organization at major
negotiations.
 Resource allocator – Makes or
approves all significant decisions
related to the allocation of
resources.
 Disturbance handler –
Responsible for corrective action
when the organization faces
disturbances.

17. Nature and Purpose of
Management
 Multidisciplinary
 Goal Oriented
 System of authority
 Dynamic nature of principle
 Social process
 Management make things happen
 Intangible force
 Management science or art
 Management as profession

18. Skills needed by a manager

19. Skills needed by a manager
Technical Skill: This skill requires the ability to
use a special proficiency or expertise to perform
particular tasks. Manager acquire these skills initially
through formal education and then further develop
them through training and job experience.
 Eg: Accountants, Engineers, Market researchers and
computer scientists

20. Skills needed by a manager
Human Skill: This skill demonstrates the ability
to work well in cooperation with others.
 Human skills emerge in the workplace as a spirit of
trust, enthusiasm and genuine involvement in
interpersonal relationships.
 A Manager with good human skills has a high degree
of self-awareness and a capacity to understand or
empathize with the feelings of others.

21. Skills needed by a manager
Conceptual Skill: This skill calls for the ability
to think analytically.
 Analytical skills enable managers to break down
problems into smaller parts, to see the relations among
the parts, and to recognize the implications of any one
problem for others.

23. Management is a Science or Art
 Management is a science
 Science is based on logical consistency, systematic
explanation, critical evaluation and experimental analysis.
 The construction of theory to provide answers to the
problem or problems based on inductions from
observations.
 Science may be viewed in terms of its structure, its goals
and its methods.
 One of the most important rules of science is that concepts
have to be defined clearly in terms of the procedures
involved in their measurement.
 Management is considered “Young Science” and internal
consistencies is approximate and not exact like that of
other mature science.

24. Management is a Science or Art
Management is a Art
 Management can be regarded as an art also. The
meaning of art is related with the bringing of a desired
result through the application of skills.
 Under science, one learns the ‘why’ of a phenomenon,
under art, one learns the ‘how’ of it.
 Art is thus concerned with the understanding of how
particular work can be accomplished. Thus, art has to
do with applying of knowledge or science or of
expertness in performance.
 The process of management is directed to achieve
certain concrete results as other fields of art do.

25. Management is a Science or Art
Management is both science as well
as art
 Managing as practice is an art, the organized
knowledge underlying the practice may be referred to
as a science. Thus to be a successful manager, a person
requires the knowledge of management principles and
also the skills of how the knowledge can be utilized.
Absence of either will results in inefficiency.

26. Difference between Management
and administration
Basis of Difference Management Administration
Level in Organization Top Level Middle and Lower Level
Nature of Functions Determinative Executive
Major Focus Policy formulation and
objective determination
Policy execution and
objective achievement.
Scope of Functions Broad and conceptual Narrow and operational
Factor Affecting
decisions
Mostly external Mostly internal
Employees-Employee
relation
Entrepreneurs and owners Employees
Qualities required Administrative Technical

27. Organization culture and the
Environmental Factors
External
Environment
Internal
Environment
Macro Environment:
1.Political & Legal
Factors
2.economic Factors
3.Socio-cultural
Factors
4.Technological
Factors
Micro Environment:
1. Stalk Holders
2. Suppliers
3. Distributors
4. Customers
5. Competitors
6. Media
1. Resources
2. Capabilities
3. Culture

28. Macro
Environment
Political
Factors –
government
regulation and
legal issues
 Tax policy
 Employment laws
 Environmental regulations
 Trade restrictions and tariffs
 Political stability

29. Macro
Environment
Economic
factors –
purchasing
power of
potential
customers and
the firms cost
of capital
 Economic growth
 Interest rates
 Exchange rates
 Inflation rates

30. Macro Environment
Social
factors –
demographic and
cultural aspects
of the external
macro
environment
 Health Consciousness
 Population growth rate
 Age distribution
 Career attitudes
 Emphasis on safety

31. Macro
Environment
Technological
factors – lower
barriers to entity ,
reduce minimum
efficient production
levels and influence
outsourcing
decisions.
 R & D Activity
 Automation
 Technology incentives
 Rate of technological change

32. Micro Environment

33.  1. Division of Work. Specialization increases output by making employees more
efficient.
 2. Authority. Managers must be able to give orders, and authority gives them this
right.
 3. Discipline. Employees must obey and respect the rules that govern the
organization.
 4. Unity of command. Every employee should receive orders from only one
superior.
 5. Unity of direction. The organization should have a single plan of action to
guide managers
 and workers.
 6. Subordination of individual interests to the general interest. The interests of
any one
 employee or group of employees should not take precedence over the interests of the
 organization as a whole.
 7. Remuneration. Workers must be paid a fair wage for their services.
 8. Centralization. This term refers to the degree to which subordinates are
involved in
 decision making.
 9. Scalar chain. The line of authority from top management to the lowest ranks is
the
 scalar chain.