ADVANCED

MANAGEMENT

INTRODUCTION
REVIEW OF MANAGEMENT
 CONCEPT OF ORGANISATION

■ Organization is the assemblage of

role-related people with a common
goal.-Edger Schein.
■ Organization is a group of people
working together in a structured
and coordinated fashion to achieve
a set of goals -Ricky W. Griffin .
■ Organization is a system of
consciously coordinated activities
or forces of two or more
persons.-Chester I Barnard.
CHARACTERISTICS OF ORGANISATION

■ A Group of people.
■ A Role-relationship among people.
■ A Common Goal i.e. mutually agreed
purpose.
■ A Continuing System
■ A Consciously Rational activity.
■ A Pattern of Behaviour/ action.
■ A Highly Differentiated System of Operation.
■ A Coordinated Activity.
■ A Conversion System.
■ An interactional operation.
 CONCEPT OF MANAGEMENT

■ Management is getting things done

by and through others. –Mary Parker
Follett.
■ “Management is set of activities
(including planning and decision
making, organizing, leading and
controlling) directed at an
organization’s resources ( human,
financial, physical and information)
with the aim of achieving
organizational goals in an efficient
and effective manner”. - Ricky W.
Griffin
 CONCEPT OF MANAGEMENT

■ “Management is the process of

designing and maintaining an
environment in which
individuals, working in a group,
efficiently accomplish selected
aims”. --- Heinz Weihrich and
Harold Koontz
 FEATURES OF MANAGEMENT

■ Management is a functional process consisting

of Planning, Organizing, Leading and
Controlling.
■ Management is a universal knowledge. It
applies to any kind of organization and
activity.
■ It applies to managers at all levels of
organization.
■ The aim of management is to create a surplus.
■ It is concerned with productivity, which implies
effectiveness and efficiency.
■ Management is a guiding or supervisory task.
■ Management is a dynamic process.
 PRINCIPLES OF MANAGEMENT

■ What is Principle?
■ Principle is the fundamental truth.
■ Principle is the tested guideline for
a course of action.
■ Henri Fayol in 1916 has given 14
principles of management. Others
too have given principles of
management. But Fayol is the
pioneer in modern time.
 Principles of Management

■ Division of work
■ Authority and responsibility.
■ Discipline.
■ Unity of command.
■ Unity of direction.
■ Subordination of individual
interest to the general interest.
■ Remuneration –Fair, reasonable ,
rewarding to effort.
 Principles of Management

■ Centralization.
■ Scalar chain- line of authority i.e. chain of
command into the organisation.
■ Order- A place of everything and everything
in its place.
■ Equity – Fair and equitable behaviour to all.
It is combination of kindliness and
justice.
■ Stability of tenure.
■ Initiative. Subordinates should have freedom
to take initiative. Managers should sacrifice
personal vanity.
■ Esprit de corps.
 Functions of Management

■ Planning (and Decision –making)

■ Planning is the process of making a blueprint
of future courses of action.
■ Organizing
■ Organising is the process of grouping tasks,
assigning tasks and authority, coordinating
tasks and staffing positions with right
persons. It involves with
• Departmentation / Departmentalization.
• Organization Structure and Chart.
• Span of Supervision
• Centralization and Decentralization of authority.
• Delegation of Authority.
• Staffing
 Functions of Management
■ Leading
■ Leading is the process of influencing
people so that they will contribute to
organizational and group goals
enthusiastically. Involves with -
• Communication
• Motivation
• Leadership
 Functions of Management
■ Controlling
■ Controlling is the process of ensuring
conformity of actual performance with
planned performance
■ Controlling involves following activities:
■ 1. Plan /Set standard performance
■ 2. Measure actual performance.
■ 3. Compare actual performance with set
standard performance.
■ 4. Take corrective action.
Skills of Management

▪ Conceptual skill
▪ Diagnostic skill
▪ Interpersonal skill
▪ Technical skill
 Skills of Management
■ 1. Conceptual Skill
■ It is the ability to see the big picture
view, to recognise significant
elements in a situation, and to
understand the relationships among
the elements.
■ It is the ability of a manger to think
in the abstract.
■ It is the ability to see the reality as it
is.
 Skills of Management
■ 2. Diagnostic Skill
■ It is the ability of a manger to visualise
the most appropriate response to a
situation.
■ It is the ability to design a practical
solution of a problem.
■ 3. Interpersonal Skill
■ It is the ability to develop and maintain
relationship with others.
■ It is the ability to work with people.
■ It is cooperative effort.
■ It is a team work ability.
 Skills of Management
■ 4. Technical Skill
■ It is the ability to do right job in right
manner.
■ It is the knowledge and proficiency in
activities involving methods,
processes, and procedures.
■ Other skills
■ Communication skill.
■ Decision making skill.
■ Time management skill.
Management Process

Planning Organising

Controlling Leading
 Managerial Roles
Henry Mintzberg, 1973
■ A. Interpersonal Roles
■ 1. Figurehead Role
■ 2. Leader Role
■ 3. Liaison Role
■ B. Informational Roles
■ 4. Monitor Role
■ 5. Disseminator Role
■ 6. spokesperson Role
■ C. Decisional Roles
■ 7. Entrepreneur Role
■ 8. Disturbance handler Role
■ 9. Resource allocator Role
■ 10. Negotiator Role.
■ 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.
■ 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.
■ 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.
 10 Top Reasons for Managerial
Derailment
■ 1. Insensitive to others.
■ 2. Cold, aloof and arrogant.
■ 3. Betrayal of trust.
■ 4. Overly ambitious.
■ 5. Specific performance problems
with the business.
■ 6. Over managing. Unable to
delegate or build a team.
 10 Top Reasons for Managerial
Derailment
■ 7. Unable to staff effectively.
■ 8. Unable to think strategically.
■ 9. Unable to adapt to boss with
different styles.
■ 10. Over-dependent on advocate or
mentor.
■ Ref. Morgan W. McCall Jr. and
Michael M. Lombardo (1983) ,
What Makes a Top Executive.
 Characteristics of Excellence
■ 1. A bias for action.
■ 2. Staying close to the customers.
■ 3. Promoting autonomy and
entrepreneurship.
■ 4. Hands-on, value –driven managing.
■ 5. Sticking to the knitting.
■ 6. Simple form and a lean staff.
■ Ref. Thomas J. Peters and Robert H.
Waterman (1982).
■ A bias for action- A preference for doing something or
anything rather than sending a question through cycles and
cycles of analyses and committee reports. Company gets
things done; increases knowledge, interest, and commitments.
■ Staying close to the customer - Learning the customer’s
preferences and catering to them. Customer satisfaction is very
important throughout the roles that the business plays.
■ Autonomy and entrepreneurship - Allowed employees a high
degree of autonomy by breaking the corporation into small
companies there by encouraging them to think independently
and competitively. Fostered the Entrepreneurial Spirit in
Employees.
■ Productivity through people - Creating in all employees the
awareness that their best efforts are essential and that they will
share in the rewards of the company’s success. Everyone is
respectful and enthusiastic towards each other. This creates an
atmosphere that enables good work.
■ Hands-on, Value-Driven - Company philosophy and values are
discussed openly. Leaders in the organization are also positive
role models. Managers actively involved in solving problems
at all levels.
■ Stick to the knitting - Remaining with the business the
company knows best. Insisting that executives keep in touch
with the firm’s essential business.
■ Simple form, lean staff - few administrative layers. Few
people at the upper levels. Minimal number of people in Staff
Support activities.
■ Simultaneous Loose-Tight Properties : A ideal blend of, Tight
and Centralized controls for protecting the Company’s core
values. Loose control in other areas to encourage risk-taking
and innovation.
 Environment of Management
■ Internal Environment
/Micro/Controllable/Direct action
environment/Internal stakeholders.

■ External Environment/ Mega/

Indirect-action/General environment/
External Stakeholders.
 Internal Environment
■ Internal environment consist of those
actors and forces upon which
management has control.
■ It has direct influence on the
operation of the organization.
■ It includes workers, board of
directors, customers, own
technology, shareholders, financial
position, quality of management,
lenders etc.
 External Environment
■ External environment consists of those
actors and forces upon which
management has no control.
■ It has indirect influence on the operations
of the organization.
■ It is homogeneous for all the
organizations.
■ It includes- demographic, economic,
political –legal, socio-cultural,
technological, ecological, international