3. Management
• People became forming groups, achieve more & accomplish aims,
managing became essential to ensure coordination of individual
efforts.
• According to HaroldKoontz,
"Management is the art of getting things done through and with people
in formally organized groups.“
• According to HenriFayol,
"To manage is to forecast and to plan, to organize, to
command, to co-ordinate and to control.“
• Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims.
4. • People carry out managerial functions of planning,
organizing, staffing, leading and controlling
• Management applies to any kind of organization, College, IT firm,
football team, cricket team etc.
• Concerned with productivity, implies efficiency and
effectiveness
• Organizing is a systematic process of structuring, integrating,
co-ordinating task goals, and activities to resources in order to
attain objectives.
• Organization could be defined as a group of people with a
particular purpose, working together to create a surplus.
• Enterprise- a business, hospital, government agency,
university or any other type of organization
5. 1. Robert Owen (1778-1858)
Performance & Working conditions
2. Charles Babbage (1792-1871)
Used Science & Mathematics, Technology and accurate data
3. James Watt Jr. (1796-1848) & Robinson Boulton (1770-1842)
Forecasting, Planned Layout, Production Planning, Standardization of
Parts, Elaborate Statistical records,Welfare of workers.
6. The fundamental principles that Taylor saw underlying the scientific
approach to management are
1. Replacing rules of thumb with science.
2. Obtaining harmony in group action, rather than discord.
3. Achieving cooperation of human beings, rather than chaotic
individualism.
4. Working for maximum output, rather than restricted output.
5. Developing all workers to the fullest extent possible for their own
and their company’s high prosperity.
7. Management is finding one best way to do a job.
Management is the process of getting things done, effectively and
efficiently, with and through other people.
Management of an organization is the process of establishing
objectives and goals of the organization periodically, designing the
work system and the organization structure, and maintaining an
environment in which individuals, working together in groups,
accomplish their aims and objectives and goals of the organization
effectively and efficiently.
8. Efficiency refers to getting the most output from the least amount of inputs.
Effectiveness is often described as “doing the right things”
9. ORGANIZATION
• Organization has a distinct purpose.
• Organization is composed of
People
• Deliberate structure within which members do
their work.
11. Henri Fayol – French industrialist
‘Father of modern management theory’
Fundamental principles by Henri Fayol
1.Authority and responsibility
2.Unity of command
3.Scalar chain
4.Espirit de Corps
12. 14 Principles of Management (Fayol)
• Division of work – specific task vs multi task
• Authority – authority along with responsibility
• Discipline – mutual respect, rules, philosophy for all
• Unity of command – order from one manager only
• Unity of direction – work in harmony towards same objective
• Collective interest over individual interest
• Remuneration
• Centralization – balance b/w centralization and decentralization
• Scalar chain – employee organizational chart (heirarchy)
• Order – orderly placement of resources at right time and place
• Equity – kindness and justice
• Stability of tenure of personnel – minimize staff turnover
• Initiative – concerns of employees, employees have a say
• Esprit de Corps – Team spirit (unity, morale and co-operation)
13. Who are Managers and where do they work?
• No such conditions to be there for managers.
• Runs large corporations as well as entrepreneurial start-ups.
• Managers can also be found doing managerial work in every
country on the globe.
• Some managers are top-level managers while others are first-line
managers.
• Equally likely to be women as they are men.
• However all managers share one common element. They work in
an organization setting.
14.
15. Managerial Functions
• All managers carry out managerial functions
(manager,
executive, administrator, supervisor)
• Koontz and O’ Donnell have
adoptedthe following functions:
• (i) Planning
• (ii) Organizing
• (iii) Staffing
• (iv) Leading/Directing
• (v) Controlling.
• (vi) Co-ordination
23. Managerial Roles:
Managerial roles refer to managerial activities. This can be grouped in
to three.
A. Interpersonal Role
1. The figure head role : perform ceremonial and social duties
2. The Leader Role
3. The Liaison Role : with outsiders
B. Informational Role
4. The recipient Role : receiving information about the operation of an
enterprise
5. The disseminator Role : passing information to subordinates
6. The spokesperson Role: transmitting information to outside
24. C. Decision Role
7. The entrepreneurial Role
8. The disturbance – handler Role
9. The resource allocator Role
10. The negotiator Role
25. • Management as a Science:
• Science can be defined as a systematic and organised body
of knowledge based on logically observed findings, facts
and events.
• Science comprises of exact principles which can be
verified and it can establish cause and effect relations.
Management as Science or Art
26. 1.Systematic body of knowledge:
2.Scientific principles are derived on the basis of logical
and scientific observations:
• Observation of human being cannot be purely logical
and objective.
3.Principles are based on repeated experiments:
4.Universal Validity:
• Management principles are not exact like scientific
principles so their application and use is not universal.
5. Replication is possible:
• But in management managers have to conduct research or
experiments on human beings
Main characteristics/featuresof science are:
27. • 1. Systematic body of knowledge/Existence of
theoretical knowledge:
• 2. Personalized application:
• 3. Based on Practice and creativity:
• Management is both science as well as art.
• Like science it has systematic and well- organised body of
knowledge and like art it requires personal skill, creativity and
practice to apply such knowledge in the best possible way. Science
and art are not in contrast to each other but as complementary;
both exist together in every function of management.
• Managing as a practice is art, the organized knowledge
underlying the practice is a science.
Management as anArt:
28. EXTERNAL ENVIRONMENT
•Major forces outside the organization with potential to
influence a product or service’s success.
•Environment that indirectly influences business
•Includes factors which are uncontrollable by the business
29. Two types of external environment :
Micro environment and macro environment
Micro environment
Consists of
• Suppliers - essential supply of raw materials to company
• Marketing intermediaries -include middlemen such as
agents and merchant that help company to find customers
• Customer-a person who buys goods or services from a shop
or business. most important task of company is to create and
sustain customers
30. Macro environment
•Macro environment is commonly known as general
environment
•Macro factors are more uncontrollable than micro environment
factors
•The success of company depends upon its adaptability to the
macro environment
•Some of the macro environments in management are listed as
follows
31. Economic environment – economic system of the country,
inflation etc.
Social environment --- sociology factors such as customs and
conventions, values etc.
Political and legal environment --- influenced by political
parties , ideology of government, flexibility and adaptability of
law
Technical environment -----technology adapted by the
industries determines the type and quality of goods and
services to be produced
32. Ecological environment – Managers must take into account
the ecological factors while decision making
Ecological factors relate to the people, air soil water etc.
33. Global, innovative and entrepreneurial perspectives of
Management
1. Global perspective
Relates to global presence of organizations.
Eg. MNCs Multi National Corporations
they are headquartered in one country but operates in many
countries
Eg. HONDA – H.Q at Japan operates in literally all over the
world.
34. 2. Innovative Perspective
• CRM (customer relationship management ) -uses latest
technology to manage customers, goal is to improve business
relationships. Salesforce
• E-commerce, M-commerce. M-payment
• Increase employment and prosperity
• Eg. Barcode system inKTU
35. 3. Entrepreneurial perspective
•Involves creation and operation of an enterprise in an uncertain
business environment
• Related to innovation
• Continuous search for new ideas
• Level of return or compensation for taking on the risk of developing
idea into an actual business venture
• Willingness to assume risk , results may not be instantaneous and
positive
36. Characteristics of organizations of new era
• Clearly defined structure
• Sense of order and organized structure
• Structure and order of the organization does not limit
innovation and growth.
• New organizational structure like virtual organization
• Customer oriented
•Today, the business organisations are more customer
oriented than product oriented.
•Creates best solutions for customers rather than creating
best product
37. • Better employee participation
• Giving the opportunity to take initiative rather than
imposing decisions
• New managers guide/lead employees to make
decisions rather than imposing decisions on them.
• Better collaboration between departments
• Group harmony and team work
• Use of science and technology in business practices
• Higher growth rate and reducing manual works
owing to the use of scientific practices.
38. • Organizations align, people, systems and processes
• Process towards the achievement of overall
development
• Understand different cultures
• Global organizations take the area’s cultural practices
and regional values into account in their business
practices
• Adapts to opportunities and changes
• Knows how to adapts to technological or operational
changes. Organizations always look for chances to
grow.
• How to recognize and exploit good opportunities
39. Managing For Competitive Advantage
•Competitive advantage means superior performance
relative to other competitors in the same industry or
superior performance relative to the industry average.
•Competitive advantage is the favorable position an
organization seeks in order to be more profitable than
competitors.
•To survive and win in the age of globalization,
organizations must adapt some fundamental success drivers
to gain competitive advantage.
40. Managing For Competitive Advantage
• Diversity and multiculturalism in Organizations
• Age distribution, ethnicity and Gender- this workforce excels
• Managing this leads to competitive advantage
• Quality, Innovation, Speed(time period to serve), Costcompetitive
Characteristics
• Physical-age, gender,
race, ability, cognitive
style
• Cultural- ethnic/national
origin, lifestyle, marital
status, religion
• Socio-economic –
education, profession,
function, social class
42. Cost Competitiveness
• Cost competitiveness is all about by keeping the price low by
realizing the profit.
• Dell computers are one of the best companies of the world dealing
in computers they provide computers in affordable prices and deal
online in the Internet.
• Chinese products dominating the Asian market by keeping the
price low of products.
• Major company like Intel establish manufacturing plants to cheap
labor countries like china, Pakistan , India and Bangladesh by
managing labor, manufacturing and minimize taxes result in low
cost of the product.
43. Quality
“Quality is the excellence of a product, including such thing
as attractiveness, lack of defects, reliability, and long term
dependability.”
• Probably one of the most important success driver next to
cost.
• Dell computer maintain quality as well as they are cheaper
than others.
• Intel Corporation deals in many computer products like
processors and motherboard and satisfies people by the
performance, reliability of their products that’s why they
capture computer hardware market.
44. Speed
“Fast and timely execution of the response”
• Know about market condition and customer requirements and
deliver the product as soon as possible .
• Timely response to the customer adds value to the company.
• Dell computer gets specification of the computer from the user
and deliver the same, within 36 hours, because of they have
good coordination with their supplier to get the parts in 10
hours.
• Pizza hut deliver each order in 15 minutes people don’t have to
wait too much, that is why they are dominating..
45. Innovation
“Creation of new devices, objects, ideas, or procedures useful in
accomplishing human objectives”
• Samsung leading cell phone company dominating because they
implement new ideas in their products and deliver continuously new
products in the market for every class of customer
46. THE CHALLENGES OFMANAGEMENT
Some of the challenges in management are
1. Globalisation Managing in a global environment may be
difficult as the cultures, political systems and economy change,
which seldom poses a difficulty to the managers.
2. Quality and productivity : Increased competition and the desire
for quality poses a major challenge to the managers as it is a
difficult task to maintain quality considering the competition and the
market demands.
3.Change in technology: Technology in the present scenario is
changing in a fast rate and it is challenging for the modern day
manager to keep up with the latest technology.
47. 4.Change in environmental forces : Effect of organizations on environments is
one of the serious issues today. Industries are facing pressures to reduce
environmental impacts in form of pollution while balancing their regular
operations.
5. Lack of skills : It is becoming harder to find talented and skilled taskforce for
an organization which is one of the challenges faced by managers.
6. Market changes : Coping with continuous and rapid changes in marketplace
and the need to find new ways in anticipating changes are challenging.
7. Ethical and social responsibility: Business ethics have been codified and it
is needed that the managers abide by these.
Every industry or organization as a whole has responsibility towards society
regarding the impacts of the business.
Hinweis der Redaktion
“Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected item”
“Management is the process of getting things done, through & with people in organization”
“In the past the man has been first; in the future the system must be first.” -Frederick Winslow Taylor
It is the process of designing and maintaining an environment in which individuals working together in groups
efficiently accomplish selected aims. The aim of any manager is the same, to create surplus. It is concerned with
productivity which implies effectiveness and efficiency.
Henri Fayol (29 July 1841 – 19 November 1925) was a French mining engineer, mining executive, author and director of mines who developed general theory of business administration that is often called Fayolism
The aim of all managers is to create surplus surplus means profit in business organization charitable organisations of satisfication of needs
Management is the effective accomplishment of tasks through others.
From 1750 industrial revolution started till then simple activities were taking place but after that complexity increased it was not able to manage without management functions.
F w taylor – the father of scientific management his concern was to increase productivity through greater efficiency in production and increased pay for workers. His principles enhanced group harmony cooperation achieving maximum output and developing workers
1 conventional inefficient methods were transformed
2 division if labour and joint work
3 gave importance to human resource development increasing their capability which in turn increases company's prosperity.
Because
managers deal with scarce inputs—including resources such as people, money, and
equipment—they’re concerned with the efficient use of those resources. It’s often referred to
as “doing things right”—that is, not wasting resources.
It’s not enough, however, just to be efficient. Management is also concerned with being
effective, completing activities so that organizational goals are attained.
French mining engineer
Authority and responsibility should be related
Authority as a combination of official factors deriving from managers position and personal factors compounded of intelligence experience moral worth past service
2 employees should receive orders from one supervisor only
Chain of superiors – clear line of authority – communication or information transferred through a specified route.
Emphasizing the need for team work and the importance of communication in obtaining it.
Fayol regarded as the elements of management as the functions ---planning organizing commanding coordinating and controlling.
Who are Managers and where do they work?
There’s no prototype or pattern as to who can be managers. Managers can be under the age of
18 to over age 80. They run large corporations as well as entrepreneurial start-ups. They’re
found in government departments, hospitals, small businesses, not-for-profit agencies,
museums, schools, and even such nontraditional organizations as political campaigns and
music tours.
Management has existed in all parts of the world . Stronger men organizes the masses based on the requirements. Principles of management was found in ancient organizations for their smooth working earlier business was not that complex so this cannot be seen in business world
Planning is the process of thinking and deciding in advance for the future course of action without proper planning the activities of organization can become ineffective
Organising is defined as the process of identifying and grouping of activities required to attain the objectives
Staffing ---- right man for right job.
Leading – process of guiding and supervising the subordinates to attain goals-----directing fn can be effectively done through----effective communication,proper motivation good leadership.
Controling----check whether things are going as planned can be done by establishing standards, measuring the actual comparing , taking corrective action , analyzing the deviation.
Co-ordination----the process of uniting and synchronizing all activitie of an organisation
TOP board of directors ,president, vice president,ceo.etc Responsible for controlling and overseeing the organization make decisions on the direction of business ,develop strategic plans,company policies
MIDDLE LEVEL general managers , branch managers, department managers . Accountable to top level for department fns. Gives advices to lower level according to top level for better performance
Firstlevel : consist of supervisors , section leads, foreman. Focus on controlling and directing . Responsibility assigning employees, tasks, guiding and supervising employees on day to day activities ,
Making recommendations ,suggestions,channeling employee problem
a) Interpersonal Roles
The ones that, like the name suggests, involve people and other ceremonial duties. It can be
further classified as follows
• Leader – Responsible for staffing, training, and associated duties.---- motivate and encourage his employees----should reconcile their individual needs along with company goals
• Figurehead – The symbolic head of the organization.----- greeting , taking important customer to lunch.
• Liaison – Maintains the communication between all contacts and informers that compose
the organizational network.
b) Informational Roles
Related to collecting, receiving, and disseminating information.
• Monitor – Personally seek and receive information, to be able to understand the
organization.
• Disseminator – Transmits all important information received from outsiders to the members of
the organization.to subordinates who have no access to it.
• Spokesperson – On the contrary to the above role, here the manager transmits the
organization’s plans, policies and actions to outsiders. Like financial performance, assures consumer group that company fulfills social responsibilities
c) Decisional Roles– as the manager performs interpersonal and informational role certain decisional roles emerge as part of the managers day today activities
Roles that revolve around making choices.
• Entrepreneur – Seeks opportunities. Basically they search for change, respond to it, and
exploit it.
• Negotiator – Represents the organization at major negotiations. Eg negotiation at the time of strike
• Resource Allocator – Makes or approves all significant decisions related to the allocation of
resources.------ divide work to authority
• Disturbance Handler – Responsible for corrective action when the organization faces
disturbances. Eg strikes bankruptcy
Works better by using organized knowledge about management. Organised knowledge constitutes a science.
There are classical issues in supply chain like routing of truck to optimize the cost this needs scientific answer.
Metal sheet cutting pattern improve can reduce wastage these are scientific aspects.
Micro environment—known as task environment or operating environment because it directly affect the operations of the firm
Macro environment – known as general environment these are more uncontrollable than micro
Micro environment is also called task environment and operating environment --- micro environmental forces directly affect the operations of the firm
Suppliers --- essential supply of raw materials to company
Customers --- most important task of company is to create and sustain customers
Marketing intermediaries – include middlemen such as agents and merchant that help company to find customers
microeconomic environment- affects business decision making - such as individual actions of firms and consumers Eg. Demand, Supply , Competitors, Distribution chain,
macroeconomic environment- affects an entire economy and all of its participants Eg.Interest rate, tax rate, inflation…etc
Crm – customer relationship management goal is to improve business relationships.
Salesforce – division of business responsible for selling products or services.
Fresh thinking to redefine the solutions for problems---- novel principles and new approaches, creative thinking.
Competitive advantage – better quality products or service , lowering prices, and increasing marketing efforts
Quality products service Oneplus, Toyota.
Same people with like ideas perform well more group harmony. More comfortable to go along
Creativity argument– swift models design variants
Competitive advantage means superior performance relative to other competitors in same industry or superior performance to the relative to the industry average
