Chapter 1: Introduction to Management Concepts and Managerial Skills

1.1 Definitions of Management

 Management is the art of getting work done through people with satisfaction for
employers, employees, and the public.
 Key Definitions:
o Mary Parker Follet: "Management is the art of getting things done through
people."
o George R. Terry: "Management is a process consisting of planning, organizing,
actuating, and controlling performed to determine and accomplish objectives."
o Peter Drucker: "Management is a multipurpose organ that manages a business,
managers, and workers."
Mnemonics:
 P.O.D.C. = Planning, Organizing, Directing, Controlling (Functions of Management).
 F.G.P. = Follet, George Terry, Peter Drucker (Key Management Thinkers).

1.2 Importance of Management

1. Optimum utilization of resources: Ensures men, money, machines, materials, and
methods are used efficiently.
2. Reduction of employee absenteeism and turnover: Motivates employees through
incentives.
3. Encouraging initiative and innovation: Employees are encouraged to suggest new
ideas.
4. Teamwork: Builds team spirit for organizational success.
5. Corporate image: Maintains goodwill through quality products and social
responsibility.
Mnemonics:
 O.R.I.E.N.T. = Optimum resources, Reduction of
turnover, Initiative, Efficiency, National development, Teamwork.

1.3 Management Characteristics

 1. Universal: Applicable to all types of organizations.
2. Goal-oriented: Focuses on achieving organizational goals.
3. Continuous process: Involves ongoing planning, organizing, directing, and controlling.
4. Dynamic function: Adapts to changes in the environment.
5. Group activity: Involves teamwork and coordination.
Mnemonics:
 U.G.C.D.G. = Universal, Goal-oriented, Continuous, Dynamic, Group activity.

1.4 Functions of Management

1. Planning: Deciding in advance what to do, how to do it, and who will do it.
2. Organizing: Structuring resources and tasks to achieve goals.
3. Staffing: Recruiting, selecting, and training employees.
4. Directing: Guiding and motivating employees.
5. Controlling: Monitoring performance and taking corrective actions.
Mnemonics:
 P.O.S.D.C. = Planning, Organizing, Staffing, Directing, Controlling.

1.5 Types of Planning

1. Corporate Planning: Long-term planning for the entire organization.
2. Functional Planning: Planning for specific functions like production, marketing, etc.
3. Strategic Planning: Long-term planning to achieve organizational goals.
4. Tactical Planning: Short-term planning to achieve strategic goals.
5. Operational Planning: Day-to-day planning for routine tasks.
Mnemonics:
 C.F.S.T.O. = Corporate, Functional, Strategic, Tactical, Operational.

1.6 Levels of Management

 1. Top-level management: Board of Directors, CEOs. Focus on planning and policy-
making.
2. Middle-level management: Departmental heads. Focus on organizing and directing.
3. Lower-level management: Supervisors and foremen. Focus on controlling and
operational tasks.
Mnemonics:
 T.M.L. = Top, Middle, Lower.

Chapter 2: Planning and Organizing at Supervisory Level

(Complete Coverage with MCQs and Summaries)

2.1 Planning by Supervisor

Definition:
Planning at the supervisory level involves creating short-term, actionable plans to execute
tasks assigned by top/middle management.
Key Activities:
1. Short-Term Plans: Daily/weekly schedules (e.g., production targets, shift rotations).
2. Operational Plans: Derived from strategic plans (e.g., adjusting machine usage based on
demand).
3. Flexibility: Plans must adapt to sudden changes (e.g., machine breakdowns).
Example:
A supervisor in a manufacturing unit plans daily production targets, allocates workers to
machines, and ensures raw material availability.
Summary:
Supervisors focus on execution by breaking down higher-level goals into daily tasks.

2.2 Planning Activities: Detailing Steps

Step-by-Step Process:
1. Define Objectives: E.g., "Produce 500 units/day."
 2. Identify Resources: Materials, machines, manpower.
3. Allocate Tasks: Assign workers to specific machines/shifts.
4. Set Timelines: E.g., "Complete Batch A by 2 PM."
5. Monitor Progress: Track output vs. targets.
6. Adjust Plans: Revise schedules for delays (e.g., material shortage).
Example:
 Step 1: Objective = Assemble 200 cars this week.
 Step 4: Timeline = 40 cars/day (5 days).
Summary:
A systematic approach ensures tasks are completed efficiently with minimal disruptions.

2.3 Prescribing Standard Forms

Common Forms Used by Supervisors:
1. Material Requisition Form:
o Purpose: Request raw materials from stores.
o Fields: Material code, quantity, rate, authorized signatories.
2. Job Description Form:
o Purpose: Define tasks, skills, and responsibilities for a role.
o Fields: Job title, duties, required skills.
3. Machine Planning Form:
o Purpose: Schedule machine usage.
o Fields: Machine ID, work order, time slots.
4. Tool Issue Form:
o Purpose: Track tool allocation.
o Fields: Tool name, issued date, worker signature.
Example:
A Material Requisition Form ensures the supervisor gets the right materials in time to avoid
production delays.
Summary:
Standard forms bring consistency, reduce errors, and ensure accountability.

2.4 Budgeting for Materials and Manpower

Material Budget:
 Formula:
 Example:
o Required = 1,000 units
o Ending Inventory = 200 units
o Beginning Inventory = 150 units
o Materials Purchased = 1,000 + 200 - 150 = 1,050 units.
Manpower Budget:
 Formula:
 Example:
o 2,000 units needed in 10 days → 200 units/day.
o 1 worker produces 20 units/day → 10 workers needed.
MCQ:
Q: If materials required = 500 units, beginning inventory = 50 units, and ending inventory = 100
units, materials purchased = ?
a) 450
b) 550
c) 600
d) 650
Answer: b) 550
Summary:
Budgets ensure resources (materials/manpower) align with production goals.

2.5 Organizing Physical Resources

Steps to Organize:
1. Layout Planning: Arrange machines for smooth workflow.
 2. Inventory Management: Store materials for easy access.
3. Safety Measures: Ensure fire exits, first-aid kits, PPE.
Block Diagram Example:
Raw Material Store → Production Line → Quality Check → Finished Goods Store
MCQ:
Q: What is the first step in organizing physical resources?
a) Safety checks
b) Layout planning
c) Hiring workers
d) Budgeting
Answer: b) Layout planning
Summary:
Efficient organization minimizes waste and enhances productivity.

2.6 Matching Human Needs with Job Needs

Maslow’s Hierarchy Applied to Work:
1. Physiological: Fair wages, breaks.
2. Safety: Safe workspace, job security.
3. Social: Team collaboration.
4. Esteem: Recognition (e.g., "Employee of the Month").
5. Self-Actualization: Skill development, career growth.
Example:
A worker in a monotonous job (low skill) may need job rotation (esteem/self-actualization).
MCQ:
Q: Which need is fulfilled by "Employee of the Month" awards?
a) Physiological
b) Safety
c) Esteem
d) Social
Answer: c) Esteem
Summary:
Aligning job roles with employee needs boosts motivation and reduces turnover.
2.7 Allotment of Tasks & Group Relationships
Task Allotment:
1. Skill-Based Allocation: Assign tasks based on expertise (e.g., welder to welding).
2. Delegation: Transfer authority (e.g., shift-in-charge).
Building Group Relationships:
1. Team-Building Activities: Group training, workshops.
2. Clear Communication: Daily huddles, feedback sessions.
Example:
A supervisor assigns Worker A (experienced) to train Worker B (new) to build teamwork.
MCQ:
Q: What is the key to effective delegation?
a) Micromanagement
b) Trust
c) Punishment
d) Isolation
Answer: b) Trust
Summary:
Clear roles and teamwork ensure tasks are completed efficiently.

MCQs for Chapter 2

1. Which form is used to request raw materials?
a) Job Description Form
b) Material Requisition Form
c) Machine Planning Form
d) Tool Issue Form
Answer: b) Material Requisition Form
2. Calculating materials purchased involves:
a) Adding beginning and ending inventory
b) Subtracting beginning inventory from materials required
c) Materials Required + Ending Inventory – Beginning Inventory
d) Materials Required – Ending Inventory
Answer: c)
 3. What does a block diagram of production flow show?
a) Employee salaries
b) Machine repair history
c) Workflow from raw material to finished goods
d) Budget allocations
Answer: c)
4. Job rotation fulfills which human need?
a) Physiological
b) Self-Actualization
c) Safety
d) Social
Answer: b)
5. Task allotment should be based on:
a) Seniority
b) Skills
c) Favoritism
d) Random selection
Answer: b)

Final Summary
 Planning: Short-term, actionable plans with standard forms (e.g., material requisition).
 Budgeting: Calculate materials/manpower using formulas.
 Organizing: Optimize layout, inventory, and safety.
 Human Needs: Align jobs with Maslow’s hierarchy (esteem, self-actualization).
 Group Dynamics: Delegate tasks based on skills and build teamwork.