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).

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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

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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.

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 What is
Management?

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 Management...
Coordination and oversight of the work
activities of others so that their activities are

completed efficiently and effectively.

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 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.
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Why Efficiency & Effectiveness are
important to Management
 What are the functions
of Management?

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 1-8

Four Functions of Management

Planning
Choose Goals

Controlling Organizing
Monitor & measure Working together

Leading
Coordinate

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 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

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 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

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 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

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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

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 Controlling Process

SET MEASURE
DETERMINE
PERFORMANCE PERFORMANCE COMPARE
STANDARDS DEVIATION

WITHIN
STANDARDS
LIMITS

TAKE
CORRECTIVE
NO YES
ACTION

CONTINUE
WORK
PROGRESS
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Management Functions
 Managers

Managers are those people who work with

and through other people for getting activities
completed in order to accomplish organizational goals.

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 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.

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 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

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Kinds of Managers
Basically there are three
levels of managers

i. Top Managers
ii. Middle Managers
iii. First-line Managers

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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.

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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.

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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.

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 Basic Managerial
Roles & Skills

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 Managerial Role
The managerial roles are divided into three
basic categories identified by Henry
Mintzberg.

1. Interpersonal Role
2. Informational Role
3. Decisional Role

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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

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 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.

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 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.

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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.

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Skills Needed at Different
Management Levels
 HOW THE MANAGER’S JOB IS
CHANGING

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 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.

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Universal Need for Management
The Reality of Work

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 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