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UNIT I

An organization is a collection of people


working together in a coordinated and
structured fashion to achieve one or more
goals.


An organization is a social entity that has a collective
goal and is linked to an external environment.
A group of people who work together.
An organizational structure consists of activities
such as task allocation, coordination and supervision,
which are directed towards the achievement of
organizational aims. It can also be considered as the
viewing glass or perspective through which
individuals see their organization and its environment.

The external environment is everything
outside an organization that might affect
it.
The internal environment consists of
conditions and forces within the
organization.


All Organizations have a management
structure that determines the relationships
b/w functions and positions and subdivides
and delegates roles, responsibilities and
authority to carry out defined tasks.

Increase the efficiency of management.
Helps in the growth of enterprise.
Ensures optimum utilization of human
resource.
Consolidate growth and expansion.
Adoption of new technology.
Provides facilitates for training.
Simulates creativity.

Divides work to be done in specific jobs &
dept.
Assigns tasks and responsibilities associated
with individual jobs.
Coordinates diverse organizational tasks.
Establishes relationship b/w individuals,
groups and departments.
Establishes formal lines of authority.
Allocates organizational resources.
There are a variety of legal types of organizations,
including corporations, governments, non-
governmental organizations, international
organizations, charities, partnerships, cooperatives, and
universities.

A hybrid organization is a body that operates in both
the public sector and the private sector simultaneously,
fulfilling public duties and developing commercial
market activities.
Management : On expanding

Manage men tactfully
Manage Men technology
Manage men as team
Manage competencies
Manage objectives (MBO)
Manage men and things

According to Harold Koontz,
Management is an art of getting things done through and with the
people in formally organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate towards
attainment of group goals.

Simple Traditional definition, defines it as the "art of
getting things done by others".
"Management is an art of knowing what is to be done
and seeing that it is done in the best possible manner."
(planning and controlling)
F.W. Taylor (father of scientific management)
"Management is to forecast, to plan, to organize, to
command, to co-ordinate and control activities of
others."
Henri Fayol (father of modern management)
"Management is the process by which co-operative
group directs actions towards common goals."
The three levels of management are as
follows
Top Level
Middle Level
Lower Level
Top Level of Management
Middle Level of Management
Lower level



It consists of board of directors, chief executive or
managing director. The top management is the
ultimate source of authority and it manages goals
and policies for an enterprise. It devotes more time
on planning and coordinating functions.
The role of the top management can be
summarized as follows -

Top management lays down the objectives and broad
policies of the enterprise. It issues necessary
instructions for preparation of department budgets,
procedures, schedules etc.
It prepares strategic plans & policies for the enterprise.
It appoints the executive for middle level i.e.
departmental managers.
It controls & coordinates the activities of all the
departments. It is also responsible for maintaining a
contact with the outside world. It provides guidance
and direction. The top management is also responsible
towards the shareholders for the performance of the
entire organization.
The branch managers and departmental managers
constitute middle level.
They are responsible to the top management for
the functioning of their department.
They devote more time to organizational and
directional functions.
In small organization, there may be senior and
junior middle level management.

They execute the plans of the organization in
accordance with the policies and directives of the top
management.
They make plans for the sub-units of the organization.
They participate in employment & training of lower
level management.
They interpret and explain policies from top level
management to lower level. They are responsible for
coordinating the activities within the division or
department. They evaluate performance of junior
managers. They are also responsible for inspiring
lower level managers towards better performance.
Lower level is also known as supervisory /
operative level of management. It consists of
supervisors, foreman, section officers,
superintendent etc.
According to R.C. Davis, Supervisory
management refers to those executives whose
work has to be largely with personal oversight and
direction of operative employees.
In other words, they are concerned with direction
and controlling function of management. Their
activities include -

They guide and instruct workers for day to day
activities. They are responsible for the quality as well
as quantity of production.
They are also entrusted with the responsibility of
maintaining good relation in the organization. They
communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and
higher level goals and objectives to the workers.
They help to solve the grievances of the workers.
They supervise & guide the sub-ordinates. They are
responsible for providing training to the workers.
They arrange necessary materials, machines, tools etc
for getting the things done.
Managers
Planning
Planning is
deciding in
advance what
to do, when
to do & how
to do.
Organizing
Bringing
together
resources and
activities to
achieve the
organizations
objectives
Staffing
The
organization
with qualified
people
(put right man
on right job)
Directing
Employees
activities
toward
achievement
of objectives
Controlling
Measurement
& correction
of performance
activities of
subordinates
PLANNING
Planning involves choosing tasks that must be
performed to attain organizational goals, outlining
how the tasks must be performed, and indicating
when they should be performed.
Managers outline exactly what organizations
should do to be successful. Planning is concerned
with the success of the organization in the short
term as well as in the long term.
Deciding what needs to happen in the future
(today, next week, next month, next year, over the
next five years, etc.) and generating plans for
action.
ORGANIZING
Organizing can be thought of as assigning the tasks
developed in the planning stages, to various
individuals or groups within the organization.
Tasks are organized so that the output of each
individual contributes to the success of
departments, which, in turn, contributes to the
success of divisions, which ultimately contributes
to the success of the organization.


CONTROLLING
Controlling is an ongoing process.
Gather information that measures performance.
Compare present performance to pre established
performance norms.
Determine the next action plan and modifications
for meeting the desired performance parameters.
Controlling is an Checking progress against plans.

LEADING OR DIRECTING
Influencing is also referred to as motivating,
leading or directing. leading can be defined as
guiding the activities of organization members in
he direction that helps the organization move
towards the fulfillment of the goals.
The purpose of directing is to increase
productivity. Human-oriented work situations
usually generate higher levels of production over
the long term than do task oriented work.

Staffing
Staffing has assumed greater importance in the recent
years due to advancement of technology, increase in
size of business. The main purpose of staffing is to put
right man on right job .
According to Kootz & ODonell, Managerial function
of staffing involves manning the organization structure
through proper and effective selection, appraisal &
development of personnel to fill the roles designed un
the structure.
Manpower Planning.
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer.

Is management an art or science
Management is a science because it is a systematic
body of knowledge with array of principles.
Management is also an art as it involves application of
managerial skills to get the desired result.
Science influence in management
Organized science and Systematic body of Knowledge
Concepts and Universal principles
Rational justification
Cause & Effect relationship
Test of validity and predictability
Dependent and Independent variables
Scientific enquiry and experiments
Conditions and Influences

Creativity
Practice through Experience
interpretation from huge Knowledge base
Cannot experiment accurately
Decisions differ from Organization to organization
Decision differ based on situations
Clear cut cause- Effect could not be established
because of inability to control so any external and
subjective issues
Irrationality & Subjectivity in most of the decisions
Deals with human beings , the most complex organism.
Result oriented approach
Improvement through people

S.No Features Organization Management
1 Nature
Determinative or Thinking
function Executive or Doing function
2 Type of work
Decision on Objectives &
Policies Implementation of policies
3 Levels of authority Top level Middle and Lower level
4 Influence
Public opinion & Outside
sources
Objectives & Policies of
concern
5
Direction of human
efforts Not directly concerned Actively concerned
6 Main functions Planning & Control Directing & Organizing
7 Skills required Conceptual and human skills Technical and Human skills
8 Usage Used in Govt. & Public sector Business organizations
9 Designations
Administrator, In charge,
Officer Manager, Supervisor
Commissioner
A person responsible for controlling or
administering an organization or group of staff.
A manager wears many hat. Not only is a
manager a team leader, but he or she is also a
planner, organizer, cheerleader, coach, problem
solver, and decision maker all rolled into one.
And these are just a few of a manager's roles.

The roles in this category
involve providing information and ideas.
Figurehead - A manager has social, formal and legal
responsibilities. He is expected to be a source of
inspiration. People look up to him as a person with
authority, and as a figurehead.
Leader - This is where manager provide leadership for
his team, his department or perhaps his entire
organization; and it's where he (manager) manage the
performance and responsibilities of everyone in the
group.
Liaison - Managers must communicate with internal
and external contacts. He needs to be able to network
effectively on behalf of his organization.
The roles in this category
involve processing information.
Monitor - In this role, manager regularly seek out
information related to his organization and industry,
looking for relevant changes in the environment. He
also monitors his team, in terms of both their
productivity, and their well-being.
Disseminator - This is where manager communicate
potentially useful information to his colleagues and his
team.
Spokesperson - Manager represents and speaks for his
organization. In this role he is responsible for
transmitting information about his organization and its
goals to the people outside it.

The roles in this category involve using information.
Entrepreneur - A manager creates 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. He also needs to help mediate
disputes within it.
Resource Allocator A manager also needs to
determine where organizational resources are best
applied. This involves allocating funding, as well as
assigning staff and other organizational resources.
Negotiator A manager may be needed to take part in,
and direct, important negotiations his team,
department, or organization.

In addition to fulfilling numerous roles the
manager also need a number of specific skills if he
wants to be succeed.
The most fundamental management skills are
technical. Interpersonal, conceptual,
communication decision making and time
management skills.

Technical Skills:
Technical skills are the skills necessary to
accomplish or understand the specific kind of work
being done in an organization.
Technical skills are especially important for first
line managers.
These managers spend most of their time training
subordinates and answering question about work
related problems.
They must know how to perform tasks assigned to
those they supervise if they are to be effective
managers.


Interpersonal Skills:
Managers spend considerable time interacting with
people both inside and outside the organization.
For obvious reasons then the manager also needs
interpersonal skills- the ability to communicate with,
understand and motivate both individuals and groups.
As a manager climbs the organizational ladder, he or
she must be able to get along with subordinates, peers
and those at higher level of the organization. Because
of the multitude of roles manager must fulfill, a
manager must able to work with suppliers, customers,
investors, and others outside of the organization.
Although some managers have succeeded with poor
interpersonal skills, a manager who has good
interpersonal skills is likely to be more successful.

Conceptual Skills:
Conceptual skills depend on the managers ability
to think in the abstract.
Managers need the mental capacity to understand
the overall working of the organization and its
environment, to grip how all the part of the
organization fit together, and view the organization
in a holistic manner.
This allows them to think strategically, to see the
big picture, and to make broad based decisions
that serve the overall organization.


Diagnostic Skills:
Diagnostic skill means ability to visualize the
possible future events. Successful managers also
possess diagnostic skills, or skills that enable a
manager to visualize the most appropriate response
to a situation.
A physician diagnoses a patient illness by
analyzing symptoms and determining their
probable cause. Similarly, a manager can diagnose
and analyze a problem in the organization by
studying its symptoms and then developing a
solution.

Communication Skills:
Communication skills refer to the managers ability
both to effectively convey ideas and information to
others and to effectively receive ideas and information
from others.
This skills enable a manager to transmit ideas to
subordinates so that they know what is expected, to
coordinate work with peers and colleagues so that they
work well together properly, and to keep higher level
managers informed about what is going on.
In addition, communication skills help the manager
listen to what others say and to understand real
meaning behind letters, reports, and other written
communication.


Decision-Making Skills:
Effective managers also have good decision
making skills.
Decision making skills refers to the managers
ability to correctly recognize and define problems
and opportunities and to then select an appropriate
course of action to solve the problems and
capitalize on opportunities.
manager makes the right decision all the time.
However, effective managers make good decision
most of the time.
And when they do make a bad decision, they
usually recognize their mistake quickly and then
make good decision to recover with as little cost or
damage to their organization as possible.
Following are some of the skills and personal
characteristics:
Leadership ability to influence others to perform tasks
Self-objectivity ability to evaluate yourself practically
Analytic thinking ability to interpret and explain
patterns in information
Behavioral flexibility ability to modify personal
behavior to react objectively rather than subjectively to
accomplish organizational goals
Oral communication ability to express ideas clearly in
words
Written communication ability to express ideas clearly
in writing
Personal impact ability to create a good impression and
instill confidence
Resistance to stress ability to perform under stressful
conditions
Tolerance for uncertainty ability to perform in
ambiguous situations

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