Unit 1: Introduction to Management Unit 1: Introduction to Management Notes ‘CONTENTS Objectives Introduction 11 Definition of Management 12 Nature of Management 13. Scope of Management 14 Purpose of Management 15 Characteristics of Management 1.6 Management ~ An Emerging Profession 17 Whois a Manager? 18 Roles of a Manager 19 Skills ofan Effective Manager 1110. Funetions of a Manager 11 Summary 112 Keywords 113 Self Assessment LIK Review Questions 1S. Further Readings Objectives Alter studying this unit, you will be able to: ‘© Define management ‘© State the nature, purpose and scope of management © Identify oles and skills of a manager ‘© Explain the functions of a manager ‘© Discuss Henry Fayol's Principles of Management Introduction Management isa vital aspect of the economic life of man, which is an organised group activity A central directing and controlling agency is indispensable fora business concern. The resources - material, labout, capital ete. are entrusted to the organising skill, administrative ability and enterprising initiative of the management, Thus, management provides leadershi toabusiness enterprise. Without able managers and effective managerial leadership the resources of production remain merely resources and never become production, Under compet f managers determine both the survival as well as success of any business enterprise. Management eccupies such an economy and ever-changing environment the quality and performancePrinciples and Practices of Management Notes important place in the modern world that the welfare of the people and the destiny of the country are very much influenced by it 1_Definition of Management ‘Management may be defined in many different ways, Many eminent authors on the subject have defined the term “management”, some ofthese definitions are reproduced below: According to Lawrence A Appley, “Management is the development of people and not the direction of things”. According to Joseph Massie, “Management is defined as the process by which a co-operative {group directs action towards common goals In the words of George R Terry, “Management is distinct process consisting of planning, organising, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources’ According to James L Lundy, “Management is principally the task of planning, co-ordinating, motivating and controlling the efforts of others towards a specific objective” In the words of Henry Fayol, “To manage isto forecast and to plan, to organise, to command, to co-ordinate and to contro!” ‘According to Peter F Drucker, “Management is a multi-purpose organ that manages a business and manages managers and manages worker and work In the words of JIN, Schulze, “Management is the force which leads, guides and directs ‘organisation inthe accomplishment of a predetermined object” In the words of Koontz and O'Donnel, “Management is defined asthe creation and maintenance of an infernal environment in an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goal According to Ordway Tead, “Management i the process and agency which directs and guides the operations of an organisation in realising of established aims”. According to Stanley Vance, “Management i simply the process of decision-making and control ‘over the actions of human beings for the express purpose of attaining pre-determined goals According to Wheeler, “Business management is a human activity which directs and controls the organisation and operation of a business enterprise, Management is centred in the administrators of managers of the firm who integrate men, material and money into an effective ‘operating limit’. In the words of Wiliam Spriegel, “Managements that fonction ofan enterprise which concerns ‘tet with the direction and control ofthe various activites to attain the business objectives. Inthe words ofS. George, “Management consist of geting things done though others, Manager js one who accomplishes the objectives by directing the elforts of others” In the words of Keith and Gutullin, “Management is the free that integrates men and physical plant into an effective operating nit” According to Newman, Summer and Warren, “The job of management isto make cooperative tendeavour to function properly. A manager is one who gets things done by working with people and other resources” ‘According to John F M, "Management may be defined as the ar of securing, maximum results With a minimum of effort so as to secure maximum results with a minimum of effort so as toUnit 1: Introduction to Management secure maximum prosperity and happiness for both employer and employee and give the Notes public the best possible service” In the words of Kimball and Kimball, “Management embraces all duties and functions that pertain to the initiation of an enterprise, its financing, the establishment of all major policies, the provision of all necessary equipment, the outlining of the general form of organisation ‘under wiih the enterprise is to operate and the selection of the principal officers. The group of officials in primary control of an enterprise is referred to as management” In the words of EFL. Brech, “Management isa social process entailing responsibility for the cffetive and economical planning and regulation of the operations of an enterprise, in fulfilment cof a given purpose or task, such responsibilty involving 1. judgement and decision in determining plans and in using data to control performance, and progress against plans; and 2. the guidance, integration, motivation and supervision of the personnel composing the enterprise and cartying out its operations” According to E. Peterson and E.G Plowman, Management is “a technique by means of which the purpose and objectives ofa particular human group are determined, classified and effectuated” According to Mary Cushing Niles, “Good management or scientific management achieves a social objective with the best use of human and material energy and time and with satisfaction, forthe participants and the pubic” From the definitions quoted above, itis clear the “management” is a technique of extracting ‘work from others in an integrated and co-ordinated manner for realising the specific objectives through productive use of material resources, Mobilising the physical, human and financial resources and planning thei ullsation for business operations in such a manner as to reach the defined goals can be referred to as “management”, Ifthe views of the various authorities are combined, management could be defined as “a distinct ongoing process of allocating inputs of an organisation (human and economic resources) by typical managerial functions (planning, ‘organising, directing and contrlling) for the purpose of achieving stated objectives namely — ‘output of goods and services desired by its customers (environment). In the process, work is preformed with and through personnel of the organisation in an ever-changing business environment” Management is a universal process in all organised social and economic activities. It is not merely restricted to factory, shop or office. It is an operative force in all complex organisations trying to achieve some stated objectives, Management is necessary for a business firm, government enterprises, education and health services, military organisations, rade associations and son, 1.2_Nature of Management ‘An analysis of the various definitions of management indicates that management has certain characteristic. The following are the salient characteristics of management. 1. Management aims at reaping rick results in economic terms: Manager's primary task sto secure the productive performance through planning, direction and control It is expected, ‘of the management to bring into being the desired results, Rational utilisation of available resources to maximise the profit is the economic function of a manager. Professional manager can prove his administrative talent only by economising the resources and enhancing profit. According to Kimball, “management is the at of applying the economic principles that underlie the control of men and materials in the enterprise under consideration’,Principles and Practices of Management Notes 10. " 2, 2. ‘Management also implies skill and experience in getting things done through people: ‘Management involves doing the job through people, The economic function of earning, profitable return cannot be performed without enlisting co-operation and securing postive response from “people”, Getting the suitable type of people to execute the operations is the significant aspect of management. In the words of Koontz and 0’ Donel, "Management is the at of getting things done through people in formally organised groups’. Management is a process: Management is a process, function or activity. This process continues till the objectives set by administration are actualy achieved. “Management is «a social process involving co-ordination of human and material resources through the functions of planning, organising, staffing, leading and controlling in order to accomplish stated objectives’ Management is a universal actvity:Managementis nt applicable to business undertakings only. Its applicable to political, social religious and educational institutions also, Management is necessary when group effort is required Management isa science as well as an art: Management isan art because there are definite principles of management. Its also a science because by the application of these principles predetermined objectives can be achieved. Management is « profession: Management is gradually becoming 2 profession because there are established principles of management which are being applied in practice, and it involves specialised training and is governed by ethieal code arising out ofits social obligations Management is an endeavour to achieve pre-determined objectives: Management is concemed with directing and controlling of the various activites ofthe organisation to attain the pre-determined objectives. Every managerial activity has certain objectives. In fact, management deals particularly with the actual directing of human efforts. Management is group activity: Management comes into existence only when there is an ‘group activity towards a common objective. Management is always concerned with group efforts and not individual efforts. To achieve the goals of an organisation management plans, organises, co-ordinates, direts and controls the group effort Management is a system of authority: Authority means power to make others act in & predetermined manner. Management formalisesa standard set of rules and procedure to be followed by the subordinates and ensures theit compliance with the rales and regulations. Since management isa process of directing men to perform a task, authority, to extract the work from others is implied in the very concept af management, [Management involves decision-making: Management implies making decisions regarding the organisation and operation of business in its different dimensions, The success oF failure ofan organisation ean be judged by the quality of decisions taken by the managers, Therefore, decisions are the key to the performance of a manager Management implies good leadership: A manager must have the ability to lead and get the desired course of action from the subordinates, According to R, C, Davis, “management is the function of executive leadership everywhere”. Management ofthe high order implies the capacity of managers to influence the behaviour of their subordinates. Management is dynamic and not static: The principles of management are dynamic and rot static, It has to adopt itself according to social changes Management draws ideas and concepts from various disciplines: Management is an interdisciplinary study. t draws ideas and concepts from various disciplines ike economics, statistics, mathematics, psychology, sociology, anthropology ete.Unit 1: Introduction to Management 14, Management is goal oriented: Management is a purposeful activity. It is concerned with the achievement of pre-determined objectives of an organisation, 15, Different levels of management: Management is needed at different levels ofan organisation namely top level, middle level and lower level 16, Need of organisation: There is the need of an organisation forthe success of management, ‘Management uses the organisation for achieving pre-determined objectives 17. Management need not be ozers: It is not necessary that managers are owners of the enterprise. In int stock companies, management and owners (capital) are different entities. 18. Management is intangible: 1 cannot be seen with the eyes. It is evidenced only by the {uality ofthe organisation and the results, i, profit, increased productivity ete, Is Management a Science or an Art? A question often arises whether management isa science or art. It is said that “management is the oldest ofarts and the youngest of sciences”. This explains the changing nature of management Dut does not exactly answer what management is? To have an exact answer to the question itis necessary to know the meanings of the terms “Science” and “Art”. What is “Science”? Science may be described, “asa systematic Body of knowledge pertaining to an area of study and contains some general tats explaining past events or phenomena” ‘The above definition contains three important characteristics of scence. They are: 1. This a systematized body of knowledge and uses scientific methods for observation, 2. Its principles are evolved on the basis of continued observation and experiment, and 3. Its principles are exact and have universal applicability without any limitation. Judging from the above characteristic of science, it may be observed tha 1. Management is systematized body of knowledge and its principles have evolved on the basis of observation 2. Thekind of experimentation (as in natural sciences) cannot be accompanied in the arca of ‘management since management deals with the human element, 3. In management, it isnot possible to define, analyse and measure phenomena by repeating, the same conditions over and over again to abiain a proof The above observation puls a limitation on management as a science, Management like other social sciences can be called as “inexact science What is “Art”? “Aat refers to “the way of doing specific things; Management like any other operational activity has to be an art. Most of the managerial acts have to be cultivated as arts of attaining mastery to secure action and results, indicates how an objective isto be achieved.” The above definition contains three important characteristics of art They are 1. Artis the appli eation of science It is puting principle into practice, NotesPrinciples and Practices of Management Notes 2 After knowing a particular art, practice is needed to reach the level of perfection. 3. It is undertaken for accomplishing an end through deliberate efforts, Judging from the above characteristics of ar, it may be observed that 1, Management while performing the activities of getting things done by others is requited toapply the knowledge of certain underlying principles which are necessary for every ar 2 Management gets perfection inthe art of managing only through continuous practice 3. Management implies capacity to apply accurately the knowledge to solve the problems, to face the situation and to realise the objectives fully and timely. “The above observation makes management an art and tha toa fine art. Management is botha Science as well as an Art “Management is both a scence as well a8 an art. The science of management provides certain general principles which can guide the managers in their professional effort, The art of management consists in tackling every situation in an effective manner. As a matter of fact, neither science should be aver-emphasised nor should be the art discounted; the science and the art of management go together and are both mutually interdependent and complimentary. Managements thus ascience as wellas an ar. Itcanbesaidthat.“the art of managementisas old as human history, but the sence of management isan event ofthe recent ast” 1.3. Scope of Management “The scope of management isto wide to becovered ina few pages. Herbison and Myres have yet tried to restrict it under three broad groupe, viz 1. Beonomic Resource 2. System of Authority 3. Class or Let us understand each of them one by one. 1. Economic Resource: Business Economics classifies the factors of production into four basie inputs, viz. land, labour, capital and entrepreneur. By the use of all these four, basic production can be done. But to turn that into a profitable venture, an effective utilization ‘ofman, money, material, machinery and methods of production has to be ensured. This is {guaranteed by application of management fundamentals and practices. The better is the ‘management of an enterprise, the higher is its growth rate in terms of profit, sales, production and distribution, Thus management itself serves as an economic resource 2. System of Authority: As already discussed, management is a system of authority. Tt formalises a standard set of rules and procedure to be followed by the subordinates and ensures their compliance with the rules andl regulations Since management is a process of directing men to perform a task, authority to extract the werk from others is implied in the very concept of management. 3. Class or Elite: Management is considered to be a distinet class that has its own value system. Managerial class, often referred to as a collective group of those individuals that perform managerial activities is essential component of each organisation. The importance the class has become so huge thatthe entire group of mangers is nown as "management" in every organisation,Unit 1: Introduction to Management 1.4 Purpose of Management Notes the purpose of management can be understood as following! 1. Reducing, ambiguity in methods of working, 2. Keeping costs down, and motivating others to do the same 3, Taking calculated risks 4. Managing prospective risk 5, Exercise good judgement 2 Task Iustrate an example of managerial activities you ever involved in and ‘enlist the purposes of each of them. 1.5 Characteristics of Management Management is a distinct activity having the following salient features or characteristics: 1. Economie Resource: Management is an important economic resource together with land, labour and capital. As industrialization grows, the need for managers increases. Eificient ‘management is the most critical input inthe suceess of any organised group activity as it is the force which assembles and integrates other factors of production, namely, labour, capital and materials, 2. Goal Oriented: Management is a purposeful activity. It coordinates the efforts of workers to achieve the goals ofthe organisation. The success of management is measured by the ‘extent to which the organisational goals are achieved. 3. Distinct Process: Managements distinct process consisting of such functions as planning, organising, staffing, directing, and controlling, These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative igificance, 4. Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives, Managers seck to harmonize the individuals goals with the organisational goals for the smooth working of the organisation. 5. Intangible Force: Management has been called an unseen force. Its presence is evidenced by the result ofits efforts - orderliness, informed employees, buoyant spirit and adequate ‘work output. Thus, feeling of management is result-oriented, 6, Results through Others: The managers cannot do everything themselves. They must have ‘the necessary ability and skills to get work accomplished through the efforts of others, ‘They muist motivate the subordinates for the accomplishment of the tasks assigned to them. 2. A Science and an Art: Management has an organised body of knowledge consisting of ‘well defined concepts, principles and techniques which have wide applications. So i is ‘reated asa science. The application ofthese concepts, principles and techniques requires specialized knowledge and skills on the par ofthe manager. Since the skills acquired by a manager are his personal possession, management is viewed as an ar.Principles and Practices of Management Notes 6 Management - An Emerging Profession {he professionals enjoy high status in every society. Individuals desire to join a profession like ‘medicine, chartered accountant, engineering and law. There has been a growing trend towards professionalisation of management, primarily, because of the desire of business leaders for social status and recognition. A profession may be defined as an occupation backed by specialized knowledge and training, whose code of conduct is regulated by a professional body and which is duly recognized by the society. The basic requirements of a profession areas fellows 1. Knowledge: & substantial and expanding body of knowledge and information in the concemed field. 2 Competent Application: Skilled and judicious utilization of knowledge in the solution of complex and important problems. This requires education and training in the specified field. Professional Boily: Regulation of entry into the profession and conduct of members by the representative body. 4. Self Control: An established code of conduct enforced by the profession's membership, 5. Social Responsibility Primarily motivated by the desire to serve others and the community 6. Community Approval: Recognition of professional status by the society. ‘Does management satisfy the tests of a profession? The application of the above tests or criteria to-management is examined below: 1. Specialized Knowledge: There exists a rapid expanding body of knowledge underlying the field of management, Since the beginning ofthis centory, many thinkers on management have contributed tothe field of management, Now we have systematic body of knowledge that can be used for the development of managers. Management is widely taught in the “universities and other educational institutions as a discipline. 2 Competent Application-Fducation and Training: MBAS are generally preferred for ‘managerial jobs, though MBA degree is not necessary to enter this profession. Persons ‘with degree in psychology, engineering ec, can also take up managerial jobs. Thus there are no standard qualifications for managers 3. Managerial Skills can't be Learnt by Trial and Error Method: To be a successful manager, itis essential to acquire management skills through formal education and training. Many institutes of management have been functioning in India and other countries which offer [MBA and other courses in management. 4. Professional Body: For the regulation of any profession, the existence of a representative body is @ must, Example The Inte f Chartered Asoutant of nda ays down the standard of education and inn rw who want ene te acount peecon Some egiions Sich the ln agement Aula athe A ns Management Auscaton ave bexnst pin ini But ref the have ary egal utr topene nim qalicatons for aking up anager! pnts ort rogue Ue conduct tanage as th cae wih Media Gone in and Bar Cou of Indi Magee Assocation as pried Cove for manager ut thas no power ota en ale enager wh doe wt flow thecaUnit 1: Introduction to Management 5. Social Responsibility: Managers of today recognize their socal responsibilities towards Notes customers, workers and other groups. Their actions are influenced by social norms and values. That is why, managers enjoy a respectable position in the society a isthe case with doctors, chartered accountants, et. 6, Society's Approval: The managers of modem organisations enjoy respect in the society ‘There is typically a positive correlation between a manager's rank and his status in the organisation where he is working, This status tends to affect the manager's status outside the organisation. Thus, community approves management as a profession. It seems presumptuous to classify management as 2 profession. By all the bench marks, the professionalisation of management is stl far from complete. It meets the above criteria of a profession only partially as discussed below: 1, Though management has a well defined body of knowledge, iis difficult to say whether ‘management meets the criterion of competent application, It not obligatory to possess specific qualifications for being appointed as « manager. But to practice law one has to be 1 graduate in the Laws, Similar isthe position with the medical profession, Education and ‘raining in management are also getting importance day by day inthe industrial world. 2. ‘There is no professional body to regulate the educational and training standards of the ‘managers. For instance, there is Bar Council of india to regulate the legal profession. Its {encouraging to note that management associations are growing fast throughout the world, It is expected that they will be able to develop norms of behaviour for the practicing managers 3. Management does not satisfy the test of self-controls as there is no central body to lay dlown and enforce professional standards and code of condut for the managers. Thus, i may be concluded that management does not fulfill ll the requirements of a profession, Therefore, it can’t be fully recognized as a profession. However, it is moving in that direction because: (2) The field of management is supported by a well-defined body of knowledge that can be taught and learnt (©) Management of modern organisations requires competent application of ‘management principles, techniques and skills. Thus, there ia great need of formal ‘education and training in management, That is why, the demand for management degrees is increasing rapidly (9 Managers are aware of their social responsibilities towards various groups of the society. In ther actions, they are guided by their social obligations rather than their personal interes Case Susty Js Management Really a Profession?Principles and Practices of Management 10 Notes ‘That's the argument made by Rakesh Khurana, Harvard Business School professor, in his book, From Higher Aims to Hired Hands: The Social Transformation of American Business Schools and the Unfulfilled Promise of Management asa Profession. Khurana, who made a name for himself with his 2004 book, Searching for a Corporate Savior: The rational (Quest for Charismatic CEOs, is a star at HBS, and builds a fascinating argument for why business school education is in need of reform, Foran interesting discussion between him and Yale School of Management Dean Joel M. Podolny, click here. {Thad the opportunity to hear Khurana speak about his book on Monday at a huncheon at the Princeton Club. Khurana defines a profession as one in which its practitioners have to ‘master a certain body of knowledge, in which that knowledge is used to help others, and in which there's a governance system that’s both ethical and self policing in nature. None of those really describe management: Anyone can become a manager, whether or not they have an MBA; it’s not really done toad a client; and there is no selfplicing body making sure ethical standards are met. Khurana argues that while the founders of today’s elite business schools tied to legitimize business education by calling it a profession (no self- respecting elite institution at the time wanted to have anything to do with something s0 tied to making money), today, i's become anything but Khurana believes we're at an “inflection point of what the role of business should be,” and as pressures build to create corporations more attuned to benefiting society, we also need to educate future managers todo the same. He suggests that business schools could have some way of proving their students have mastered the curriculum (a board exam for MBAs?) and that there should be some “evergreen” aspect tothe MBA (continuing education requirements, for instance). He adds that in “Rakesh’s normative world,” there might leven be an equivalent of the Hippocratic Oath for business students. Ile even has a suggestion forthe frst sentence: “First, I will not lic.” Question ‘What do you think? Should management be more of a profession? Source: Business Week: 1.7_Who is a Manager? ‘A Manager is the person responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary. For many people, this i thetr first step into a management career. Managers may direct workers directly or they may direct several supervisors who direct the workers, They are the individuals charged with examining the workflow, coordinating efforts, meeting goals and providing leadership, Thus a manager must be familiar withthe work of all the groups he/she supervises, but need not be the best in any or all of the areas Its more important for a manager to know how to manage the workers than to know how to do their work well ‘A manager’ title reflects what he/she is responsible for. sane 1. An Aconing Manape servis the sunt non, 2 The Produion Manager decopda sing pan rhe fat. “The Manager of Design Engineering supervises engineers and support staff engaged in design of a product or service,Unit 1: Introduction to Management 1.8 Roles of a Manager Notes Toachieve results, they shift gears and restructure and reorganise things continually. The diverse roles played by managers in discharging their duties have been summarised by Henry Mintzberg, in the late 1960s, under three broad headings: interpersonal roles, informational roles and decisional roles, Let us understand them one by one. Figure 1a; Manager | Infomion Feedback Infomation | Infomation Source: wor, static Hlatworldknowledge.com 1. Interpersonal roles: Tee interpersonal roles help the manager keep the organisation running smoothly. 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 cerfcates to workers showing promise et. The leadership roe includes hiring, training, ‘motivating and disciplining employees. Managers play the liaison rote when they serve as a connecting link between their organisation and others or between their units and ther organisational unis. Mintzberg described this activity as contacting outsiders who provide the manager with information. Such activities like acknowledgements of ‘external beard work, ete, are included in this category. 2. Informational roles: Mintzberg mentioned that receiving and communicating information are pethaps the most important aspects of a manager's job. In order to make the right decisions, managers need information from various sources. Typically, this activity is done through reading magazines and talking with others to learn about changes in the customers’ tastes, competitors’ moves and the lke, Mintzberg called this the monitor role, In the disseminator role the manager distributes important information to subordinates that would otherwise be inaccessible to them, Managers also perform the spokesperson, role when they represent the organisation to outsiders 3. Decisional roles: There are four decision roles that the manager adopts, In the role of fentrepreneur, the manager tries to improve the unit. He initiates planned changes to adapt to environmental challenges. As disturbance handlers, managers respond to situations that are beyond their control such as strikes, shortages of material, complaints, uPrinciples and Practices of Management 2 Notes grievances, et. Inthe role ofa resource allocator, managers are responsible fo allocating, Jhuman, physical and monetary resources. As negotiators, managers not only mediate in internal conflicts but also cary out negotiations with other units to gain advantages for their own unit Task Analyse your performance in different roles of managers that you have to play in day to day activities, 1.9 Skills of an Effective Manager An effective manager must possess controlling and decision-making in order to process activities that are presented to him from. time to time. stain skills in the areas of planning, organising, leading, 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 its the ability to use the tools, procedures or techniques of a specialised field, Technical skill is considered to be very crucial to the effectiveness of lower level managers because they ate in direct contact with employees performing work activities within the firm, For instance, the suecess ofa drilling supervisor of an ol rig depends a tohigher levels, within the organisation, the importance of technical skill diminishes because the manager has less direct contact with day-to-day problems and activities. Thus, the president of an oil company does not need to know much of the technical details of great deal on his technical knowledge of driling. However, as one mov of manageme drilling for oil oF how to refine it 2 Human skill: Its the ability to work with, understand and motivate other people. This skills essential at every level of management within the organisation, but itis particularly {important at lower levels of management where the supervisor has frequent contact with ‘operating personnel 3. Conceptual skill: Its the mental ability to coordinate and integrate the organisation'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 organisation. The relationship between. ‘management levels and managerial skills is shown in Figure 1.2, Tigure 12: Katz-managerial Skills and Level of Management Top Conceptual Level 3 Midéle I jaman Technical Middle) sya Ih Lower Lowe Skills Skis Managerial SellsUnit 1: Introduction to Management ‘Technical skills the most important at the lower levels of management; it becomes less Notes important as we move up the chain of a command. sang A pod super in» manlatring lant for sample i kl to seed or ta sil tho be cnpany resent eas he oh il faved ih the dayteday manufctrng poles ate. (On the other hand, the importance of conceptual skill increases as we rise in the ranks of management. The higher the manager isin the hierarchy, the more he or she will be involved in the broad, long-term decisions that affect large parts of the organisation, For top management which is charged with the responsibility for overall performance, conceptual ski is probably the most important skill ofall, Human skill is very important at every level of the organisation, One reason this i so is because to get the work done ‘through others; hgh technical or conceptual skills are not very valuable if they eannot be ‘used to inspire and influence other organisation members. ‘Supporting Kal’s contention that specif skills are more important at some levels than at ‘others is a study of managerial roles and behaviour by Jerdee and Caroll. More than four Inundeed! managers from all levels of management and a variety of types and sizes of business are asked to estimate how much time they spent on eight management tasks: planning, investigating, coordinating, evaluating, supervising, staffing, negotiating and representing, Lower and middle-level managers replied that supervising was their dominant activity, while top managers claimed to spend proportionately more time on, planning. 4. Design skill: Koontz and Weikrch added one mote skill tothe above lst, Design skills the ability to solve problems in ways tha will help the organisation. Athigher levels, managers should be able to do more than see a problem, to design a workable solution to a problem in the light of realities they face. If managers merely see @ problem and become problem watchers they will fail, 5. Institution building skills: According to Prof. Pareck (1981), top level exeeutives perform cight key roles while building institutions of lasting value, as indicated below: (0) entity creating role: Top level executives must create an identity for their organisations in the market place. Such an impact can be created by serving ‘employees through excellent welfare measures, developing enviable marketing, skils or fostering technological innovations. In short, they must ‘carve out a niche for themselves in the marketplace (©) Enabling rie: Top level executives must develop their resources (men, materials, ‘equipment and other facilites) in the service of an organisation. A good work atmosphere must be created where employees would feel like contributing their best to the organisation. (0) Synergising role: Synergy means that the whole is greater than the sum of the parts, Im organisational terms, synergy means that as separate departments within an ‘organisation cooperate and interact, they become more productive than if each had acted in isolation xan I i more eft for ech departnest in x ll sm ode with one financing depornent ran for each deere to have 2 spate Hing Sepertet ot own Topenecive rut yf combiner htane well sneha eure eh {way tego fe rgnaaton ve me ivan efecve an fice aoe. aPrinciples and Practices of Management u Notes (€) Balancing role: The top executive must beable to strikes harmonious balance between conformity and creativity within the organisation. Conformity to rules when carried ‘out ina rigid and scrupulous manner, may affect employee behaviour in a negative ‘way and destroy the creative potential of employees. (©) Linkage building role The chief executive must beable to develop appropriate linkages between the organisation and outside constituencies such as government, financial institutions, community and society at large (8) Futuristic rol The chief executive must prepare the organisation for future challenges. (8) Creating an impact: This means making an impact of one's organisation on others, by ‘way of superior technology, marketing skills, innovative abilities, ete. (h) Provide superordination: The chief executive must beable to create a sense of pride and importance inthe subordinates ~ making them feel that they ate working. in a very important field of work which is very useful for the society. 1.10 Functions of a Manager As we have seen above, there are many management functions in business and, therefore, many ‘manager titles. Regardless of ttle, the manager is responsible fr planning, directing, monitoring, and controlling the people and their work. 1. An Operations Manager is responsible fr the operations of the company. 2 ANight Manager According to Reitz, Managers generally work for long hours, their days are broken up into @ Jarge number of brief and varied activities, they interact with large numberof different people, they do little reflective planning and spend most of their time engaged in oral communication ‘They spend a lot of time getting, giving and processing information. responsible for the activities that take place at night According to Stoner, managerial work is characterised by the following things 1. Managers work with and through other people: Managers work with internal (subordinates, supervisors, peers) as well as external groups (customers, clients, suppliers, union representatives etc) in order to achieve corporate goals, They integrate individual efforts Into teamwork, They plan things, create a structure, motivate people and achieve goals 2 Managers are mediators: People working in an organisation do not always agree on certain things, say, the establishment of goals and the means to achieve them. At the corporate headquarters ofa largebank, managers may think about expanding into merchant banking, leasing, creditcard business, whereas atthe branch level, people may focus on ‘expanding deposits by venturing deep into rural areas. Unless such differences are resolved uickly, employees find it difficult to think and act like a well-knit group. Their morale, oo, may suffer. Managers often step in fo put things in order, clear the paths to goals, clarify things to people, put out fires and meet goals. 3. Managers are politicians: Managers must develop healthy relationships with various ‘groups in order to achieve the goals smoothly. They may have to nurture groups and join certain coalitions within a company. They often draw upon such relationships to win, support for their proposals and decisions 4. Managers are diplomats: Managers serve as official representatives oftheir work units at ‘organisational meetings. They may represent the entire organisation as well asa particular ‘unit in dealing with external groups (clients, customers, government officials, etc)Unit 1: Introduction to Management 5. Managers are symbols: Managers ate symbols of corporate success ot failure. They get Notes applause when they succeed and get depreciated and attacked when they fal. In short, they represent corporate as well as emplayee aspirations, They are shown the door when these aspirations do not materialise, Managers, obviously, are there to utilise corporate resources in the best possible way. More popular and widely accepted is the classification given by Henry Fayol. According te him, the managerial functions may be broadly classified into five categories: planning, orgenising, directing, staffing and controlling. Managers perform these functions within the limits established by the external environment and must consider the interests of such diverse groups 1a government, employees, unions, customers, shareholders, competitors and the public. For theoretical purposes, it may be convenient to separate the management functions and study them independently but practically speaking, they defy such categorisations. They are highly. inseparable, Each fanetion blends into the other and each can be performed in any order or sequenee, not necessarily in the order shown above, but tend to be performed (normally) in the planning, organising, leading and controlling sequence. A brief discussion ofthe five basic functions is presented under: Figure 1: Henry Fayol~ Functions of a Manager noms (@)” @Qu= @encss 1. Planning: Planning is the process of making decisions about future It is the process of termining enterprise objectives and selecting future courses of actions necessary for ‘their accomplishment I isthe process of deciding in advance what is o be done, when and where itis to be done, how itis tobe done and by whom. Planning provides direction twenterprise activities, Ithelps managers cope with change. Itenables managers to measure progress toward the objectives so that corrective action ean be taken if progress is not satisfactory, Planning isa fundamental function of management and all other functions of ‘management are influenced by the planning process. 2 Organising: Organising is concerned with the arrangement of an organisation's resources - people, materials, technology and finance in order to achieve enterprise objectives. It involves decisions about the division of work, allocation of authority and. responsibility and the coordination of tasks, The funetion increases in importance as a fiem grows, A structure is created to cope with problems created by growth, Through this formal structure, the various work activities are defined, classified, arranged and coordinated, Thus, organising refers to certain dynamic aspects: What tasks are to be lone? Who is to do them? How the tasks are to be grouped? Whois to report to whom? Where the decisions have to be made? 3. Staffing: Staffing is the function of employing suitable persons for the enterprise. It may bbe defined as an activity where people arerecruited, selected, tained, developed, motivated 15Principles and Practices of Management 16 Notes and compensated for manning various positions. It includes not only the movement of individuals into an organisation, but also their movement through (promotion, job rotation, transfer) and out (termination, retiement) of the organisation, {Notes Staffing involves selection of the right man for the right job. It has four important clements: 1, Recruitment may be defined as the process of attracting the maximum number of applications for a particular jb. 2 Selection is the process of screening the candidates and choosing the best ones out of them, 3, Training involves imparting the necessary knowledge and skills required for the performance of a particular jo. 4 Compensation is the price paid to the workers for the services rendered to the organisation, Directing: The Function of guiding and supervising the activities of the subordinates Is Jknown as directing. Acquiring physical and human assets and suitably placing them on jobs does not suffice; what is more important is that people must be directed towards ‘organisational goals. This work involves four important elements: (8) Leadership: Leadership isthe process of influencing the actions of a person or a group to attain desired objectives. A manager has to get the work done with and through ‘people. The success ofan organisation depends upon the quality of leadership shown by its managers, (©) Motivation: Motivation is the work a manager performs to inspire, encourage and ‘impel people to take required action. Iti the process of stimulating people to take desired courses of action. In order to motivate employees, manager must provide a congenial working atmosphere coupled with attractive incentives, (6 Communication: Communication is the transfer of information and understanding, from one person to another. tis a way of reaching others with ideas facts, and ‘thoughts Significantly, communication always involves two people: a sender and a receiver, Effective communication is important in organisations because managers cean accomplish very lite without it. (€) Supervision: In getting the work done it is not enough for managers to tell the subordinates what they are required to de. They have alsa to watch and control the activities of the subordinates. Supervision is seeing that subordinates do their work and do it as directed. It involves overseeing employees at work. Controtting: The objective of controlling is to ensure that actions contribute to goal accomplishment. It helps in keeping the organisational activities on the right path and aligned with plans and goals, In controlling, performances are observed, measured and compared with what had been planned. If the measured performance is found wanting, the manager must find reasons and take corrective actions, Ifthe performance is not found wanting, some planning decisions must be made, altering the original plans. If the controlling function is to be effective, it must be preceded by proper planning. Thus, controlling includes four things: (@) Setting st dards of performance, (b) Measuring actual performance,Unit 1: Introduction to Management (© Comparing actual performance against the standard and (€) Taking corrective actions to ensure goal accomplishmer Successfall management involves active participation by managers inthe above basie managerial functions, These functions are interrelated and most managers use a combination of the all of them simultaneously to solve the problems facing # ‘ace’ Managing a Supermarket Chain ent gunng esters and ahng se ng gt dove en rsd Sours: Dr, Parag Diwan, Management Principles and Practices, Excel Books 1.11 Summary ‘© Ieis very important to understand the systems framework in which an organisation operates ‘© Its very useful concept for the understanding of business operations by identifying the critical sub-systems, their interlinkages and inter-dependence for the achievement of common objectives ‘© Management is the main aspect of working involved ina system & its involvement as art, science, profession leads an effective role, ‘¢ Management occupies such an important place in the modesn world that the welfare ofthe ppeople and the destiny ofthe country are very much influenced by it ‘+ Managers play a very significant role in the business world, ‘© They usually do not disectly perform any of the workflow activities, but coordinate, ions of employees while meeting the day-to-day challenges. motivate and control the oper ‘© Todeliver results, they work for painfully long hours sift through bundles of data, handle endless meetings, tak to people at various levels, plan proactively, meet the problems head-on and get ahead of others using their knowledge, skills and experience to good fect, ‘* The various roles played by them inthis regard are broadly grouped into three categories: inter-personal roles, informational roles and decisional roles Notes wvPrinciples and Practices of Management 18 Notes ‘© According to Fayol, managers perform five basic functions in order to achieve results viz planning, staffing, organising, directing and controlling, 12 Keywords [Art Its the bringing about 2 desired result through the application of skills Administration 1s a higher-level function concerned withthe determination of policies, Code of conduct: It prescribed the norms of professional ethies for its members, Economic Resource: Management, land, labour and capital Goal-oriented: Purposeful activity towards achieving the goals of the organisation. ‘Management: The art of geting things done Process: series of functions that ead tothe achievement of certain objectives Professionaisation: I means defining the duties and responsibilities ofthe managers to improve the quality of management education and training, Science: A systematically organised body of knowledge including concepts, principles and theories Top management: Managers who are higher up in the hierarchy devoting more time on administrative functions, 1.13 Self Assessment Fil in the blanks: 1. A profession may be defined as an occupation backed by and 2 Weean classify management into ‘management, and management 3. Thereis professional body to regulate the educational and training standards of| the managers. 4. Tobea successful manager, it is essential to acquire management skills through education and training 5. Administrative management is primarily concerned with and 5. Operativemanagementisconcemed withthe. ‘ofthe policies for the achievement of goals 7 Controlling includes four things, viz. 7 _ measuring actual performance and 8 Js concemed with the arrangement of an organisation's resources. 9 pay with rewards can act as the best incentive or motivator for good performance: 10, The function of and the activities of the subordinates is known as directing u. provides direction to enterprise activities,Unit 1: Introduction to Management 1.14 Review Questions Notes 1, "Management is getting things done through other people”. Is this definition adequate forthe present day concept of management? Discuss flly 2 “Management is the force which leads, guides and directs an organisation in the accomplishment of pre-determined objectives", Discuss and give suitable definition of ‘management, 3. Explain the features that determine the nature of management, 4. ‘There are may definitions of management which emphasise one or the other important aspect of management. Discuss and give various characteristics of management. 5. “Management isthe effective utilization of human and material resources to achieve the enterprise's objectives". Comment. 6, Is management a profession? Give arguments for your answer 7. Clearly explain the concept and significance of management. Distinguish between ‘management and administration. 8. If managerial work is characterised by variety, fragmentation, and brevity, how do ‘managers perform basic management functions, such as planning which would seem to require reflection and analysis? 9. MrKunal Gandhi is Manager Operations at ABX Corporations that deals in online training courses, Once a trainer comes to Mr Gandhi complaining that his computer is neither connected with LAN, nor is having its key board functioning well. As an action, Mr Gandhi calls a hardware specialist to fx the problem, The specialist being busy, asks for a 24 hr duration to come to the office. Mr Gandhi then ells the person to sce ifthe cables are filled correctly. The trainer replies in affirmation. Mr Gandhi then helplessly asked him to wait tll the specialist came. The next afternoon, when the specialist came to rectify the things, the project that the trainer was working on, had already got 10 hours late. Fuming at the trainer, he came back to the manger shouting ta the data cables were fitted in wrong, sockets so as to result the problem, 10, What do you think were the key functions where the Operations Manger failed to perform? UL Inthe case given in Qs9, do you think thatthe Operations Manager was doing justice tohis role? Explain your answer with reasons. 12, What do you analyse were the main skills where the following lacked in managing the situation well in the case discussed in Qs 9 (0) Operations Manager (©) Trainer (0) Hardware Specialist 13, What type offob-related rewards -both monetary and otherwise - hold the most meaning for you? Which do not motivate you at all? Why? 14, What qualities do you think should a supervisor have to get the best work out of his subordinates? Why was this person able to motivate you better than any other? 415, Discuss about a situation when you had to be very careful in communicating delicate information. What was the possible risk involved and how did you go about i?” wPrinciples and Practices of Management 20 Notes 16, What tactics will you adopt to put your point across in a meeting to which most of the people are reluctant to hear? Answers: Self Assessment 1. specialized knowledge, training 2 administrative, operative 3. no 4. formal 5. laying downs policies, determination of goals 6. implementation 7. setting performance standards, measuring actual performance, taking corrective ations 8 Organising 9 Fair, non-financial 10. guiding, supervising 21. Planning 1.15 Further Readings cg Books Brech, EF.L,, Management ts Nature and Sinificnce. Sir Isaac Pitman & Sons, Le Farmer, RIN and Richman, BM, Comparatie Mangement and Economic Progress, Richard D. Irwin Inc, Homewood, Mlinois, ‘Harold Keonts and Cyril Donnell, Management, McGraw-Hill Kegakusha Ltd. Henri Fayol, General and Industrial Administration, Si Isaac Pitman & Sons Marshal E.Dimock, A Philosophy of Administration, Harper and Row. McFarland, Dalton E, Management Foundations and Practices, The Macmillan Co. Paul E, Torgersen and Irwin T, Weinstock, Managemen - Ar Inegrated Approach, Peter F. Drucker, Management Tasks, Responses and Practices, Heinemann, Sheldon Oliver, The Philosophy of Management, Sir Isaae Pitman and Sons Ltd Spriogel, William R., Principles of Business Organisation and Operation, Prentice-Hall, ‘Terry, George R., Principles of Management, Richard, D. lewin, Inc, Homewood, linois oa Yo OnlineTinks managementhelp.org/tmng. they /mng. they ht ‘wvew.managementheaven.com/../introduction-to-management http://www businessihub com /nature-of-management/ -ntp:// www differencebetween.nel/ business /difference-between-management- and-administration/