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Lecture 01

Introduction to Concepts of
Management
Course Leader
R Arun

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Lecture Objectives
At the end of this lecture, the students would be able to
Describe the nature and characteristics of management

Explain the basic functions of management

Discuss the levels of Management in the organizational


structure

Differentiate Management and Leadership

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Management
Process of planning, organizing, resourcing, leading or
directing and controlling an organization or effort for
accomplishing a goal

Resourcing encompasses the deployment and


manipulation of human resources, financial resources,
technological resources, and natural resources

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Management Contd
Management is knowing exactly what you want men to
do and then seeing that they do it the best and cheapest ways
- F W Taylor

Management is defined as the creation and


maintenance of an internal environment in an enterprise where
individuals working together in groups, can perform efficiently
and effectively towards the attainment of group goals
- Koontz and ODonell

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Nature of Management
Multidisciplinary
Although it is a separate discipline, it draws knowledge and concept
from various disciplines
It draws ideas and concepts from disciplines such as psychology,
sociology, anthropology, economics, statistics, etc.
It integrates ideas and concepts taken from other disciplines and
presents newer concepts which can be put into practice for managing
the organization

Dynamic nature of principles


Principles of management are flexible in nature and change with the
changes in the environment in which an organization exists

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Nature of Management Contd
Relative, not absolute principles
Principles of management are relative, not absolute, and should be
applied according to the need of the organization
Every organization is different from the other

Science or art?
There has been a long lasting debate on whether management is a
science or an art

Management as Profession?
Management has been regarded as profession by many, while there are
some who are of the opinion that it is just a part of the profession
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Characteristics of Management
Setting goals for organizations
Organizational goals differ between two or more organizations
For a manufacturing organization, the most important goal is
maximizing profit
Similarly, for a service organization, providing better service will be of
utmost importance

Awareness of opportunities and resources


Resources like men, material, money etc. and the opportunities which
they provide are assembled and integrated by management

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Characteristics of Management Contd
Management is a transformation process
Management is a process that facilitates smooth transformation of
inputs to output

Management is Universal
Principles and techniques of management are universally applicable to
all group activities performed at any level of organization

System of authority
Management has hierarchy of command and control
Managers at different levels possess varying degrees of authority

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Characteristics of Management Contd
Co-ordination
An organization comprises of various human personnel organized in
formal groups to achieve common organizational objectives
Hence various departments in the organization should work in
harmony with each other

Management is decision making


Managers are basically decision-makers
They basically decide on What to do, Why it is to be done, When to do,
Where to do, Who will do, and How it is to be done (5W1H approach)

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Basic Functions of Management

PLANNING

ORGANIZATION GOALS
CONTROL ORGANIZING
CHANGE

LEADERSHIP

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Basic Functions of Management Contd
Planning: Deciding what needs to happen in the future
and generating plans for action

Organizing: Making optimum use of resources required


to enable successful carrying out of plans

Leading/Motivating: Exhibiting skills for getting others


to play an effective part in achieving plans

Controlling: Monitoring progress against plans, which


may need modification based on feedback
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Benefits of Management
Effective utilization of resources
Management makes effective utilization of various resources
Management not only decides on which particular alternative does a
resource have to be used, but also takes actions to utilize the resource
in the best possible way

Development of resources
Management develops various human and non-human resources
Most of the researches for resource development are carried on in an
organization way and management is involved in those activities

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Benefits of Management Contd
Incorporates Innovations
Changes in the market are occurring at a rapid pace
Technological and social processes are to be structured for
incorporating the changes so that the organization remains competitive
and efficient
This requires high degree of specialization, high level of competence,
and complex technology
These characteristics require effective and efficient management

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Benefits of Management Contd
Integrating various interest groups
There are various interest groups in an organization who put pressure
over other groups for maximum share in combined output
Management integrates these interest groups such that all the groups
get an optimized share of the obtained output

Stability in the Society


Management provides stability in society by changing and modifying
resources in accordance with changing environment of the society
More emphasis is on new inventions for betterment of human beings
Management integrates old traditions and new inventions and
safeguards the society from unfavourable impact of the inventions
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Levels of Management

Top Management
White-Collared Board of Directors, Managing Director,
Owners, CEOs, Shareholders etc.
Personnel
Upper Middle Management
General Managers, Executive posts, Heads of Departments etc.

Middle Management Blue-Collared


Senior Managers, Managers, Asst. Managers, etc.
Personnel

Lower Management
Foremen, Supervisors, Office Superintendents, Inspectors etc.

Operating Force
Workers, Operators, working personnel etc.

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Functions of Levels of Management
Top Management
Setting basic goals and objectives
Expanding or contracting activities
Establishing Policies
Monitoring Performance
Designing/Redesigning organization systems

Upper Middle Management


Establishment of the organization
Selection of staff for lower levels of management
Designing operating policies and routines
Assigning job responsibilities to personnel
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Functions of Levels of Management Contd
Middle Management
Cooperation with upper middle management for smooth execution of
operations
Analyse interlocking of departments in major policies
Achieve coordination between different departments of the
organization
Conduct training for employee development
Build an efficient team spirit

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Functions of Levels of Management Contd
Lower Management
Direct supervision of workers and their work
Develop and improve work methods and operations
Inspection Functions
Imparting Instructions to workers
Provide a finishing touch to organizational plans and policies
Communicate the views of the workers to the top management

Operating Force
Work on machines, machine tools etc.
Follow instructions of the supervisors and lower management

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Management v/s Leadership

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Management v/s Leadership Contd

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Faculty of Engineering & Technology Ramaiah University of Applied Sciences
Summary
Management is a process of planning, organizing,
resourcing, directing and controlling an organization or
effort for accomplishing a goal

The different levels of management in the organizational


structure includes top management, upper middle
management, middle management, lower management,
and the operating force

A manager should know the clear distinction between


management and leadership and act accordingly as per the
circumstances
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Faculty of Engineering & Technology Ramaiah University of Applied Sciences