Principles of Management
CHAPTER-1
Managers & You in the Workplace
Learning Objectives
0 Who managers are and where they work
0 Why managers are important
0 What managers do
0 Factors reshaping and redefining the managers job
0 Why it is important to study managment
IMPORTANT TERMS TO KNOW
1. Business
0 The term “Business” signifies individual &
group activities directed towards wealth
generation through goods & services
(recognized by the law).
5
2. Organization
A group of people working together in a
structured and coordinated fashion to achieve a
set of goals is called organization.
Structure
Goals B
6
4. Goals
Goals are the end results towards which all the activities
are directed. Different organizations may have different
goals. e.g. Profitability, Growth, Market Penetration,
Productivity, Leadership, Client Satisfaction etc.
5. Objectives
Objectives are sub goals.
7
What is
Management?
8
Management...
Coordination and oversight of the work
activities of others so that their activities are
completed efficiently and effectively.
9
Effectiveness vs Efficiency
Doing right things, or completing activities so that
organization goals are attained, called
Effectiveness.
Doing things right, or getting the most
output from the least amount of inputs,
called Efficiency.
10
Why Efficiency & Effectiveness are
important to Management
What are the functions
of Management?
12
1-8
Four Functions of Management
Planning
Choose Goals
Controlling Organizing
Monitor & measure Working together
Leading
Coordinate
13
1-Planning
A Management function that Planning Process consists
involves defining goals, of five steps
establishing strategies for Objective-setting
achieving those goals, and Forecasting
developing plans to integrate Strategy formation
and coordinate activities. Setting specific
standards
Continual review and
revision
14
2-Organizing
Organizing is the establishment of
relationship between:
0 Activities Function of Organizing
0 Persons
0 Physical factors involves:
or 1. Division of Labor
2. Departmentalization
Structuring working relationships in a way
that allows organizational members to 3. Staff positioning
achieve organizational goals. 4. Assigning authority or
Delegation of power
5. Equalizing authority
and responsibility
15
3-Leading
Management function that
involves working with and
through people to accomplish
organizational task.
Components involve in
leading function are:
In leading functions
subordinates are guided, 1. Supervision
supervised and motivated by 2. Motivation
managers 3. Communication
4. Bringing about change
5. Managing conflict
16
4-Controlling
Management function that involves
monitoring actual performance
,comparing standards, and taking Process consist of:
corrective actions if necessary.
1.Measuring
2.Comparing
3.Correcting
17
Controlling Process
SET MEASURE
DETERMINE
PERFORMANCE PERFORMANCE COMPARE
STANDARDS DEVIATION
WITHIN
STANDARDS
LIMITS
TAKE
CORRECTIVE
NO YES
ACTION
CONTINUE
WORK
PROGRESS
18
Management Functions
Managers
Managers are those people who work with
and through other people for getting activities
completed in order to accomplish organizational goals.
20
Difference between Managers and Operatives
0 Operatives are people who work directly
on a job or task & have no responsibility for
overseeing the work of others.
In contrast
0 Managers direct the activities of other
people in the organization.
21
What are their Objectives?
To achieve the organizational goal, managers pursue the
following objectives.
0 Efficient use of resources
0 Customer satisfaction
0 Adequate return on capital
0 Satisfied workforce
0 Improved work conditions
0 Building supplier relationship
0 Contribution to national goal
22
Kinds of Managers
Basically there are three
levels of managers
i. Top Managers
ii. Middle Managers
iii. First-line Managers
23
Top Managers
Managers at or near the top of the organization who
are responsible for making organizational-wide
decisions and establishing the goals and overall
strategy are called Top Managers.
Titles found in this group include President, Vice
President, CEO, Chairman of the Board etc.
24
Middle Managers
Middle Level Managers are primarily responsible for
implementing policies and the plans developed by the top
managers and for supervising and coordinating the
activities of lower level mangers.
Titles found in this group are Plant Manager, Operational
manager, Branch Manager or Departmental Head etc.
25
First-line Manager
First-line Managers supervise and coordinate the
activities of operating employees.
Titles found in this group are supervisors,
Coordinator, Shift and Office Managers.
26
Basic Managerial
Roles & Skills
27
Managerial Role
The managerial roles are divided into three
basic categories identified by Henry
Mintzberg.
1. Interpersonal Role
2. Informational Role
3. Decisional Role
28
29
Managerial Skills
There are number of skills that a Manager needs but
three of them are pre-requisite to their success
0 Technical Skills
0 Interpersonal Skills
0 Conceptual Skills
30
Technical Skills
Job specific Knowledge and techniques in a specialized
field is termed as Technical Skills.
Technical skills are specially input for first line managers.
These manager spend much of their time in training
subordinates and answering questions about work related
problems. They must know how to perform the task
assigned to those they supervise if they are to be effective
managers.
31
Interpersonal Skills
The ability to communicate, with understand and motivate
both individual and groups is called Interpersonal
Skills or human skills.
Manager spend considerable time in interacting with people
both inside and outside the organization. e.g. Workers,
customers, suppliers, investor. Manager with good
communication skills are able to get the best out of their
people. They know how to communicate, motivate, lead and
inspire. These skills are equally important at level of
managers.
32
Conceptual Skills
The manager’s ability to think and to conceptualize
about abstract and complex situations are called
Conceptual Skills.
Using these skills manager must be able to see the
organization as a whole, understand the relationship
among various subunits, and visualize how the
organization fits into its broader environment, these
skills are most important at top level management.
33
Skills Needed at Different
Management Levels
HOW THE MANAGER’S JOB IS
CHANGING
35
The Universality of
Management
The reality that management is needed in all
types and sizes of organization, at all
organizational levels, in all organizational
areas, and in organization no matter where
located.
37
Universal Need for Management
The Reality of Work
39
Effectiveness
Equalizing authority &
Review & Revision Responsibility
Efficiency
Standard Setting Delegation of Power
Strategy Formation Staff Positioning
Forecasting Departmentalization Components of
Management
Goal setting Division of labor
PLANNING All sizes of Organizations
ORGANIZING
All Types of Organizations
Functions
Universality of
Management All Organizational Levels
MANAGEMENT
LEADING CONTROLLING
Motivation Measuring
Communication Comparing Changes and
Bringing Change Management
Correcting
Managing Conflicts
Manager
Supervision
Digitization
Levels
Interpersonal Roles
Skills Changing security threats
Top Level
Informational
Figure Head
Technical Skills Organizational & Managerial Ethics
Decisional Middle Level
Leader Monitor
Entrepreneur Interpersonal skills First level Increased Competitiveness
Liaison Disseminator
Resource Allocator Conceptual Skills
Spokes person
Negotiator
Diagnostic Skills
Disturbance Handler
