PAD 101

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CHAPTER1:
INTRODUCTION
TO
MANAGEMENT
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DEFINITION OF MANAGEMENT

 the process of dealing with or controlling things or people

 The Art of Getting Things Done Through Other People” –

Marry Parker Follet

 “ The process of planning, organizing, leading and controlling

the efforts of an organization members and of using all other
organizational resources to achieve stated organizational
goals.” – Stoner

 “ The process of planning, organizing, leading and controlling

that encompasses human, material, financial and information
resources in an organizational environment.” – Holt
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Effectiveness
versus Efficiency

BASIS FOR
EFFICIENCY EFFECTIVENESS
COMPARISON
Meaning The virtue of being efficient is The magnitude of nearness of the actual
known as efficiency. result with the intended result, is known as
effectiveness.
 While efficiency is the state
What is it? Work is to be done in a correct Doing accurate work.
manner. of attaining the maximum
Emphasis on Inputs and Outputs Means and Ends
productivity, with least
Time Horizon Short Run Long Run
Approach Introverted Extroverted
effort spent, effectiveness
Ascertainment Strategy Implementation Strategy Formulation is the extent to which
Orientation Operations Strategies
something is successful in
providing the desired
result.
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Effectiveness Key Differences Between Efficiency and Effectiveness

versus The points, given below describe the substantial differences between efficiency and
effectiveness:
Efficiency The ability to produce maximum output with limited resources is known as Efficiency.
The level of the nearness of the actual result with planned result is Effectiveness.

Efficiency is ‘to do the things perfect’ while Effectiveness is ‘to do perfect things’.

Efficiency has a short run perspective. Conversely, the long run is the point of view of
Effectiveness.

Efficiency is yield-oriented. Unlike Effectiveness, which is result oriented.

Efficiency is to be maintained at the time of strategy implementation, whereas

strategy formulation requires Effectiveness.

Efficiency is measured in operations of the organisation, but Effectiveness of

strategies is measured which are made by the organisation.

Efficiency is the outcome of actual output upon given the number of inputs. On the
other hand, Effectiveness has a relationship with means and ends.
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A group of
individuals who
An Organization work together
toward common
goals.

1.1.2 The
Organization They are
composed of
people whose
What do all
efforts must be
organizations have
coordinated if the
in common?
organization is to
accomplish its
goals
 It helps in Achieving Group Goals - It arranges the factors of production,
z assembles and organizes the resources, integrates the resources in
effective manner to achieve goals. It directs group efforts towards
achievement of pre-determined goals. By defining objective of organization
clearly there would be no wastage of time, money and effort. Management
converts disorganized resources of men, machines, money etc. into useful
enterprise. These resources are coordinated, directed and controlled in
such a manner that enterprise work towards attainment of goals.

Optimum Utilization of Resources - Management utilizes all the physical &

IMPORTANCES human resources productively. This leads to efficacy in management.

Management provides maximum utilization of scarce resources by selecting
its best possible alternate use in industry from out of various uses. It makes
OF use of experts, professional and these services leads to use of their skills,
knowledge, and proper utilization and avoids wastage. If employees and
machines are producing its maximum there is no under employment of any
MANAGEMENT resources.

Reduces Costs - It gets maximum results through

minimum input by proper planning and by using
minimum input & getting maximum output. Management
uses physical, human and financial resources in such a
manner which results in best combination. This helps in
cost reduction.
 Establishes Sound Organization - No overlapping of efforts (smooth and
coordinated functions). To establish sound organizational structure is one
z of the objective of management which is in tune with objective of
organization and for fulfillment of this, it establishes effective authority &
IMPORTAANCES responsibility relationship i.e. who is accountable to whom, who can give
instructions to whom, who are superiors & who are subordinates.
OF Management fills up various positions with right persons, having right
skills, training and qualification. All jobs should be cleared to everyone.
MANAGEMENT
Establishes Equilibrium - It enables the organization to survive in changing
environment. It keeps in touch with the changing environment. With the
change is external environment, the initial co-ordination of organization
must be changed. So it adapts organization to changing demand of market
/ changing needs of societies. It is responsible for growth and survival of
organization.

Essentials for Prosperity of Society - Efficient management leads to better

economical production which helps in turn to increase the welfare of
people. Good management makes a difficult task easier by avoiding
wastage of scarce resource. It improves standard of living. It increases the
profit which is beneficial to business and society will get maximum output
at minimum cost by creating employment opportunities which generate
income in hands. Organization comes with new products and researches
beneficial for societ
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MANAGEMENT PROCESS
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1. Planning and Decision Making – Determining Courses of Action
MANAGEMENT
PROCESS Looking ahead into the future and predict possible trends or occurrences which are
likely to influence the working situation is the most vital quality as well as the job of a
PLANNING manager.

Planning means setting an organization’s goal and deciding how best to achieve
them. Planning is decision making, regarding goals and setting the future course of
action from a set of alternatives to reach them.

The plan helps to maintain managerial effectiveness as it works as a guide for the
personnel for future activities. Selecting goals as well as the paths to achieve them is
what planning involves.

Planning involves selecting missions and objectives and the actions to achieve them,
it requires decision-making or choosing future courses of action from among
alternatives.

In short, planning means determining what the organization’s position and the
situation should be at some time in the future and decide how best to bring about
that situation.

Planning helps maintain managerial effectiveness by guiding future activities.

For a manager, planning and decision-making require an ability to foresee, to

visualize, and to look ahead purposefully.
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Organizing – Organizing can be defined as the process by which the established plans are moved closer to

Coordinating realization.

Once a manager set goals and develops plans, his next managerial function is organizing human

Activities and resource and other resources that are identified as necessary by the plan to reach the goal.

Organizing involves determining how activities and resources are to be assembled and coordinated.

Resources The organization can also be defined as an intentionally formalized structure of positions or roles for
people to fill in an organization.

Organizing produces a structure of relationships in an organization and it is through these structured

relationships that future plans are pursued.

Organizing, then, is that part of managing which involves: establishing an intentional structure of roles
for people to fill in the organization.

It is intentional in the sense of making sure that all the tasks necessary to accomplish goals are
assigned to people who can do the best.

The purpose of an organization structure is to create an environment for the best human performance.

The structure must define the task to be done. The rules so established must also be designed in light
of the abilities and motivations of the people available.

Basically organizing is deciding where decisions will be made, who will do what jobs and tasks, who
will work for whom, and how resources will assembl
  The third basic managerial function is leading it is the skills of influencing people for a
particular purpose or reason. Leading is considered to be the most important and
z challenging of all managerial activities.

 Leading is influencing or prompting the member of the organization to work together with
the interest of the organization.

 Creating a positive attitude towards the work and goals in among the members of the
organization is called leading. It is required as it helps to serve the objective of effectiveness
and efficiency by changing the behavior of the employees.

Leading –  Leading involves a number of deferment processes and activates.

The functions of direction, motivation, communication, and coordination are considered a

Managing,

part of the leading processor system.

Motivating and
 Coordinating is also essential in leading.

 Most authors do not consider it a separate function of management.

Directing People  Rather they regard coordinating as the essence of managership for achieving harmony
among individual efforts towards accomplishing group targets.

 Motivating is an essential quality for leading. Motivating is the function of the

management process of influencing people’s behavior based on the knowledge of what
cause and channel sustain human behavior in a particular committed direction.

 Efficient managers need to be effective leaders.

 Since leadership implies fellowship and people tend to follow those who offer a means of
satisfying their own needs, hopes and aspirations it is understandable that leading involves
motivation leadership styles and approaches and communication
  Monitoring the organizational progress toward goal fulfillment is called
controlling. Monitoring the progress is essential to ensure the achievement
of organizational goal.

z  Controlling is measuring, comparing, finding deviation and correcting the

organizational activities which are performed for achieving the goals or
objectives. Controlling consist of activities, like; measuring the
performance, comparing with the existing standard and finding the
deviations, and correcting the deviations.

 Control activities generally relate to the measurement of achievement or

results of actions which were taken to attain the goal.

Controlling –  Some means of controlling, like the budget for expenses, inspection
records, and the record of labor hours lost, are generally familiar. Each
measure also shows whether plans are working out.
Monitoring  If deviations persist, correction is indicated. Whenever results are found to
differ from the planned action, persons responsible are to be identified and
and necessary actions are to be taken to improve performance.

Evaluating  Thus outcomes are controlled by controlling what people do. Controlling is
the last but not the least important management function process.

Activities  It is rightly said, “planning without controlling is useless”. In short, we can

say the controlling enables the accomplishment of the plan.

 All the management functions of its process are inter-related and cannot be
skipped.

 The management process designs and maintains an environment in which

personnel’s, working together in groups, accomplish efficiently selected
aims.

 All managers carry out the main functions of management; planning,

organizing, staffing, leading and controlling. But depending on the skills and
position on an organizational level, the time and labor spent in each
function will differ
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TYPE OF MANAGEMENT
SKILLS
 1. Technical Skills-Technical skills involve skills that give the managers the ability
and the knowledge to use a variety of techniques to achieve their objectives. These
skills not only involve operating machines and software, production tools, and
pieces of equipment but also the skills needed to boost sales, design different
types of products and services, and market the services and the products.

 2. Conceptual Skills-These involve the skills managers present in terms of the

knowledge and ability for abstract thinking and formulating ideas. The manager is
able to see an entire concept, analyze and diagnose a problem, and find creative
solutions. This helps the manager to effectively predict hurdles their department or
the business as a whole may face.

 3. Human or Interpersonal Skills-The human or the interpersonal skills are the skills
that present the managers’ ability to interact, work or relate effectively with people.
These skills enable the managers to make use of human potential in the company
and motivate the employees for better results
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MANAGEMENT SKILLS
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TYPES OF MANAGERS
 TOP MANAGERS-As you would expect, top-level managers (or top managers) are the “bosses” of the organization. They
have titles such as chief executive officer (CEO), chief operations officer (COO), chief marketing officer (CMO), chief
technology officer (CTO), and chief financial officer (CFO). A new executive position known as the chief compliance
officer (CCO) is showing up on many organizational charts in response to the demands of the government to comply with
complex rules and regulations. Depending on the size and type of organization, executive vice presidents and division heads
would also be part of the top management team. The relative importance of these positions varies according to the type of
organization they head. For example, in a pharmaceutical firm, the CCO may report directly to the CEO or to the board of
directors.Top managers are ultimately responsible for the long-term success of the organization. They set long-term goals
and define strategies to achieve them. They pay careful attention to the external environment of the organization: the
economy, proposals for laws that would affect profits, stakeholder demands, and consumer and public relations. They will
make the decisions that affect the whole company such as financial investments, mergers and acquisitions, partnerships and
strategic alliances, and changes to the brand or product line of the organization.

 Middle Managers-Middle managers must be good communicators because they link line managers and top-level
management.Middle managers have titles like department head, director, and chief supervisor. They are links between the
top managers and the first-line managers and have one or two levels below them. Middle managers receive broad strategic
plans from top managers and turn them into operational blueprints with specific objectives and programs for first-line
managers. They also encourage, support, and foster talented employees within the organization. An important function of
middle managers is providing leadership, both in implementing top manager directives and in enabling first-line managers
to support teams and effectively report both positive performances and obstacles to meeting objectives.

 First-Line Managers-First-line managers are the entry level of management, the individuals “on the line” and in the closest
contact with the workers. They are directly responsible for making sure that organizational objectives and plans are
implemented effectively. They may be called assistant managers, shift managers, foremen, section chiefs, or office managers.
First-line managers are focused almost exclusively on the internal issues of the organization and are the first to see
problems with the operation of the business, such as untrained labor, poor quality materials, machinery breakdowns, or new
procedures that slow down production. It is essential that they communicate regularly with middle management
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LEVEL OF
MANAGERS