DEFINITION OF MANAGEMENT

Management is the process of designing and

maintaining an environment in which individuals,

working together in groups, efficiently accomplish

selected aims.
 The Important features of
Management

1. Management is intangible
2. Management is goal-oriented
3. Management is universal
4. Management is a social process
5. Management is a group activity
6. Management is a system of authority
7. Management is an activity
8. Management is dynamic
9. Management is a science as well as an art
10. Management is multidisciplinary
 DISCIPLINARY BASES FOR MANAGEMENT

Discipline Special Emphasis

Industrial Engineering Measurement and
analysis of physical
factors in achieving
efficiency.
Economics Allocation of scarce
resources with orientation
to future.
Financial Accounting Recording, reporting
analyzing, and auditing of
past transactions.
Public Administration Formation of a rational
hierarchy for the
accomplishment of
activities.
Legal Profession Development of a
consistent course of
action based on
precedents to achieve
stability, order, and
justice.
 Discipline Special Emphasis
Statistical Methods Employment of
probability theory to inter
facts from samples and to
handle uncertainty.
Mathematics Construction of models
which state explicitly
one’s assumptions,
objectives, and
constraints.
Psychology Scientific Investigations
concerning human needs,
perceptions, and
emotional factors.
Sociology Study of
interrelationships within
and among human groups
in society.
Anthropology Cultural variations and
discoverable patterns of
behavior from history and
environment.
 DISTINCTION BETWEEN ADMINISTRATION AND
MANAGEMENT

Point of Administration Management

Distinction
 Nature Thinking function (what Doing function (who
is to be done and should do it and how).
 Scope when). Implements plans and
Determines broad achieves goals through
objectives and policies. people.

 Level Middle and lower level

Top level function. function.

 Skills Needed Technical and human

Conceptual and human skills.
skills. Paid individuals who
 Represents
Owners who invest work for remuneration.
capital and receive
 Usage profits. Mostly in business
Mostly in government, organizations.
military, educational,
social and cultural
organizations.
Eight Characteristics of Excellent Enterprises:
These Firms

 Were oriented toward action

 Learned about the needs of their customers
 Promoted managerial autonomy and entrepreneurship
 Achieved productivity by paying close attention to the
needs of their people
 Were driven by a company philosophy often based on
the values of their leaders
 Focused on the business they knew best
 Had a simple organization structure with a lean staff
 Were centralized as well as decentralized, depending
on appropriateness
MANAGEMENT – A PROFESSION?

We have seen that management is partly an art and partly a science. Is it a profession?
McFarland gives the following characteristics of a profession:
1. Existence of an organized and systematic knowledge.
2. Formalized methods of acquiring training and experience.
3. Existence of an association with professionalisation as its goal.
4. Existence of an ethical code to regulate the behaviour of the members of the profession.
5. Charging of fees based on service, but with due regard for the priority of service over the
desire for monetary reward.

Management, as we all know, does not possess all the above characteristics of a profession. Unlike
medicine or law, management does not have any fixed norms of managerial behaviour. There is no
uniform code of conduct or licensing of managers. Further, the entry to managerial jobs is not
restricted to individuals with a special academic degree only. In the light of this analysis we can
conclude that management cannot be called a profession. There are, however, certain unmistakable
trends toward the professionalisation of management. For example, it is becoming increasingly
essential nowadays to acquire some professional knowledge or training. Managing a business is no
longer just a matter of intuition or a family ability. It has now come to be studied and taught as a
subject by itself. In India, we have at present four national institutes of management at Ahmedabad,
Bangalore, Calcutta and Lucknow, besides there are a number of university departments which offer
M.B.A. programmes to young graduates to enable them to take up the profession of management.
Peter Drucker is, however, of the view that holding of an academic degree should not be a condition
to get an entry into the management profession. He says that “no greater damage could be done to
our economy or to our society than to attempt to professionalise management by licensing
managers, for instance, or by limiting access to management to people with a special academic
degree. Following are his arguments in support of this view:
1. A degree in management does not by itself make an individual a professional manager any more
than does a degree in philosophy make an individual a philosopher. The essence of professional
management is achievement, not knowledge; results not logic. By insisting on holding a degree,
 we are overemphasizing knowledge and completely overlooking skill. This will eliminate those
individuals who, though highly skilled, do not have the required degree.
2. People once certified as professionals on the basis of their academic degrees would always
remain professionals, despite their knowledge becoming obsolete in later years.
TERRY DEFINES

“Planning is the selection and relating of

facts and making and using of assumptions
regarding the future in the visualization
and formalization of proposed activities
believed necessary to achieve desired
results”.

As Terry indicates “Todays efforts are

tomorrows work that the manager thought
about yesterday”.
TYPES OF PLANS
 Purpose of mission
 Objectives
 Strategies
 Polices
 Rules & Procedures
 Programmes
 Budgets
 OBJECTIVES

STRATEGIES

For Non-Repetitive Activities For Repetitive Activities

Single-use Plans Standing Plan

(Programmes and Budgets) (Policies, Procedures,
Methods and Rules)
STEPS IN PLANNING

 Perception of Opportunities
 Establishing objectives
 Planning Premises
 Identification of Alternatives
 Evaluation of Alternatives
 Formulation of Supporting Plans
 Establishing Sequence of Activities
FEATURES OF PLANNING

1. Planning is a process
2. Planning is a primary function
3. Planning pervades throughout the
organization
4. Planning is based on forecasting
5. Planning is a dynamic function
6. Planning is an intellectual process
7. Planning is flexible
UTILITY OF PLANNING

1.Increases the organization’s ability to adopt to

future eventualities
2.Makes personnel conscious of organization’s
objectives
3.Makes control easier
4.Influences the efficiency of other managerial
functions
5.Substitutes order for Chaos
6.Ensures optimum use of other productive resources
7.Introduces rationality into decision making process
and
8.Increases the image and face value of the
organization
LIMITATIONS OF PLANNING

1.Planning premises may not be fully reliable

2.Rapid changes and uncertainty of future
3.Internal inflexibilities
a. Psychological – resistance to change
b.Procedural and
c. Capital Investment
4.External inflexibilities
a. Social
b.Economical
c. Technological
d.Political and
e. Trade Unions
5.Time and Cost factors and
6.Inefficiency of planners
 MANAGERIAL ROLES

Manager’s Formal
Authority

Figurehead
Interpersonal Roles Liaison
Leader

Monitor
Informational Roles Disseminator
Spokesman

Entrepreneur
Disturbance Handler
Decisional Roles Resource Allocator
Negotiator
ELEMENTS OF DIRECTION FUNCTIONS
1) MOTIVATION
2) LEADERSHIP
3) COMMUNICATION

CHARACTERISTICS OF DIRECTION

1) An important managerial function

2) Performed at every level
3) A continuous process
4) Flows downwards
5) Process of guiding subordinates

IMPORTANCE OF DIRECTION

1) Initiates action
2) Integrates employees efforts
3) Attempts to get maximum out of individuals
4) Facilitates changes in the organization
5) Provides stability to the organization
6) Facilitates effective control

FACTORS MAKING DIRECTION

FUNCTION EFFECTIVE
1) Principle of unity of command
2) Appropriate technique
3) Effective communication
4) Principle of comprehension
5) Use of informal organization
6) Followup action
 MOTIVATION

Motivation is the general term concerned to drives, desires, needs, wishes etc. Managers motivate the
subordinates means they do those things which they hope will satisfy these drives and desires and induce the
subordinates to act in a desired manner.

Motivation refers to the drive and effort to satisfy a want or goal. Satisfaction refers to the contentment
experienced when a want is satisfied.

CHARACTERISTICS OF MOTIVATION

1. Motivation is an inner feeling

2. Total person is motivated

3. Motivation = Valence X Expectancy

4. Individuals differ in motivation

5. Motivation is complex

IMPORTANCE OF MOTIVATION

1. High performance level

2. Low employee turnover

3. Minimum absenteeism

4. Acceptance of organisation Changes

 5. Optimization of resources

Tension Tension Satisfaction Release of Tension

Needs Wants Actions

Incentives Dissatisfaction First Tension

FLIGHT : EMPLOYEE QUIT THE JOB

APATHY : REMAIN DAY DREAMING

AGGRESSION : REACTION TO FRUSTRATION

MASLOW’S HIERARCHY OF NEEDS

Self
Actualization

Esteem needs

Affiliation / Social needs

Security / Safety needs

Physiological needs
List of Assumptions about Human Nature that Underline McGregor’s Theory X and Theory Y

THEORY X THEORY Y
1. Work is inherently distasteful to most people 1. Work is as natural as play, if the conditions are
favourable.
2. Most people are not ambitious, have little desire 2. Self-control is often indispensable in achieving
for responsibility, and prefer to be directed organizational goals.
3. Most people have little capacity for creativity in 3. The capacity for creativity in solving organizational
solving organizational problems problems is widely distributed in the population.
4. Motivation occurs at the social, esteem, and self-
4. Motivation occurs only at the physiological and actualization levels, as well as at the physiological and
safety levels. security levels.
5. People can be self-directed and creative at work if
5. Most people must be closely controlled and often properly motivated.
coerced to achieve organizational objectives.

WORKERS RANKING OF JOB FACTORS

1. ADEQUATE SALARY

2. JOB SECURITY

3. ADEQUATE PERSONAL BENEFITS

4. OPPORTUNITY FOR ADVANCEMENT

5. SUITABLE WORK

6. GOOD SUPERVISOR

7. OPPORTUNITY FOR TRAINING & LEARNING

 8. COMFORTABLE WORKING CONDITIONS

MANAGERS RANKING OF FACTORS CONSTITUTING JOB PERFORMANCE

1. FEELING OF WORTHWHILE ACCOMPLISHMENT

2. RECOGNITION FOR GOOD WORK DONE

3. DECISION MAKING AUTHORITY

4. OPPORTUNITY FOR PERSONAL GROWTH

5. PRESTIGE OF THE ORGANIZATION

6. PAY AND OTHER ALLOWANCES

7. JOB SECURITY
 INCENTIVES

Financial Incentives Non-Financial Incentives

Individual Collective Individual Collective Institutions

Various incentive 1. Equal wage rates 1. Status 1. Social importance of work 1. Human Relations in
plans 2. Wage increase based on ability 2. Promotion 2. Team spirit industry
3. Pension plan 3. Responsibility 3. Competition 2. Participation
4. Production bonus 4. Transfer to interesting job 4. Informal groups 3. Communication
5. Profit-sharing 5. Recognition of work 4. Building morale
6. Co-partnership 6. Job security 5. Discipline

Financial and non-financial incentives

 LEADERSHIP

“Interpersonal influence exercised in a situation and directed toward the attainment of a specialized
goals” – R. Tannen Baum

“Leadership is the activity of influencing people to strive willingly for group objectives”
- Geroge R. Terry

Leadership has different meanings. Leadership is defined as the process of influencing people so that
they will strive willingly and enthusiastically toward the achievement of group goals. Leaders envision
the future. They inspire organization members and chart the course of the organization.

According to Harold Koontz this skill seems to be compound of atleast four major ingredients.
1) Power
2) Fundamental understanding of people.
3) Ability to inspire the followers
4) Style of the leader and the climate he creates.

LEADERSHIP APPROACHES

TRADITIONAL
SITUATIONAL AND
BEHAVIOURAL
1) The group approach
2) The situational approach
3) The functional approach
4) The trait approach
- FILELLA
- A leader’s success is determined by the group
- Depends on particular situations
- Leadership is what the leader does and not what he is
- Explains leadership in terms of the personality and
 psychological traits which are mostly inherited
- BARRY MANDE

CONTINUUM OF LEADERSHIP BEHAVIOUR

< ------------------------------------------- Subordinate centered leadership

Boss-centered leadership ------------------------------------------------>

Use of authority by the manager

Area of freedom for subordinates

Manager Manager Manager Manager Manager Manager Manager

makes “sells” presents presents presents defines permits
decision and decision ideas and tentative problem, limits; asks subordinates
announces it invites decision gets group to to function
questions subject to suggestions, make within limits
change makes decision defined by
decision superior
 LEADERS ARE DIFFERENT FROM MANAGERS

MANAGER LEADER
DRIVES HIS MEN INSPIRES THEM
DEPENDS ON AUTHORITY DEPENDS ON GOODWILL
EVOKES FEAR RADIATES LOVE
SAYS ‘I’ SAYS ‘WE’
SHOWS WHO IS WRONG SHOWS WHAT IS WRONG
DEMANDS RESPECT COMMANDS RESPECT

COMMUNICATION

“Communication is an exchange of facts, ideas, opinions or emotions by two or more persons”

- Newman and Summer

Communication is a means by which people are linked together in an organization to achieve a common goal
communication is needed to (17.2)
 PURPOSES OF COMMUNICATION
Communication is needed

1) In the recruitment process

2) In the orientation of employees
3) To enable employees to perform their functions effectively
4) To evaluate the performance of subordinates
5) To teach employees about personal safety on the job
6) To project the image of the enterprise
7) In the decision making process
8) To effectively co-ordinate
9) To promote industrial peace
10) To promote managerial efficiency
 1. Downward Communication

Oral Written
1. Personal instructions 1. Orders and instructions
2. Lectures, conferences and meetings 2. Letters, memos, circulars
3. Interviews counseling 3. Bulletin and notice boards
4. Social and cultural affairs 4. Posters
5. Grapevine; rumours 5. Hand books and manuals
6. Telephone / public address system 6. Annual reports
7. House organization
8. Union publications
 2. Upward Communication
Oral Written
1. Face-to-face conversation 1. Reports
2. Interviews 2. Personal letters
3. Meetings and conferences 3. Grievance / Appeals
4. Social and cultural affairs 4. Complaints system
5. Grapevine, rumours 5. Attitude and moral surveys
6. Union channels 6. Union publications
7. Telephone and other devices

3. Horizontal Communication

Oral Written
1. Lectures, conferences, meetings 1. Letters, memos, reports
2. Telephone and other devices 2. House organisation
3. Social and cultural affairs 3. Handbooks and manuals
4. Grapevine, rumours 4. Annual reports
5. Union publications
 BARRIERS TO COMMUNICATION
EXTERNAL FACTORS

1. Poor expression of message

2. Faculty translation
3. Distrust of communicator
4. Means of communication
5. Language

EMOTIONAL BARRIERS
1. Premature evaluation
2. Poor listening
3. Failure / laziness / on the part of communicator
4. Personal attachment / Bias of the communicator

ORGANISATIONAL BARRIERS

1. Organisation philosophy / policy

2. Orginisational rules and regulations
3. Organisation structure
4. Communication facilities
5. Lack of planning
6. Unclarified assumptions
7. Loss by poor retention
 PERSONAL

1. Attitude and Ego

2. Lack of confidence in others
3. Ignoring communications
4. Lack of proper incentive