Chapter - 1
Introduction to
MANAGEMENT
What is Management?
Process of reaching organizational goals by
working with and through people and other
resources.
Art of getting things done through and with
people in formally organized groups.
It is a process of continuous activities in the
organization.
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What is Organization?
A group of people working together for a common
purpose.
An entity where two or more persons work
together to achieve common goals.
Eg: College, Hospital, Company, Police
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In every organization there must be some people.
They work jointly to reach the goals which are
already set.
If there are no goals, there is no organization.
To achieve goals, we need some methods to work
effectively.
These methods are called Management.
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Importance of Management
Any activity with great hopes has to be Managed
carefully.
Helps every organization to reach its goals.
Management is needed everywhere. Eg:Society,
Industry, College…
We need future Managers.
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Who is MANAGER ?
An organization member who works with and through
other people to achieve results is a Manager.
Manager coordinates work of his workers and
superiors to achieve goals.
A Manager’s role cannot be clearly defined.
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Management is Science or Art?
Science: Organized body of knowledge. Perfectly
explains the cause and effect relationship of a
function. Same for all persons.
Art: Changes from person to person. In Arts a
person can show creativity, can get perfection
through practice.
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Management is Science or Art?
Management is seen as an art. It is the ability of a
manager who solves the organization’s
problems. Abilities change from manager to
manager. A manager can improve his
knowledge, skills etc.
Management is also seen as Science because -
few universally accepted principles, cause and
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effect relationship etc.
Management is Science or Art?
Management is both an art and a science.
Management combines features of both
science as well as art.
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Functions of MANAGEMENT
1. Planning
2. Organizing
3. Leading
4. Controlling.
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PLANNING
Planning refers to selecting what tasks must be performed
and when they must be performed to achieve goals.
Goals are set by managers according to what organization‘
wants to achieve.
Managers should have specific plans to achieve their goals.
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ORGANIZING
Organizing is the process of deciding who will perform
what tasks, where decisions will be made, who reports to
whom and how different parts of the organization will
coordinate their activities to pursue common goals.
Selected tasks are assigned (given) to various persons or
groups. (Delegation)
Organizing creates a structure to carry out the activities of
the organization. That means putting plans into action using
resources like materials and persons (human resources).
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LEADING
Leading includes Motivation, Communication and
Directing.
Leading is the process of motivating, influencing and
directing employees in the organizations to work
productively to reach organizational goals.
An important aspect of leading is developing employees
through training, mentoring and rewarding them.
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CONTROLLING
Controlling is the process of monitoring
performance against goals, intervening when goals
are not achieved and taking corrective action.
In controlling, managers collect information, make
their comparison, and try to find new methods to
improve performance in the organization.
Controlling is an ongoing process.
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These four basic management functions are interrelated.
The implementation of one function will affect the
functioning of the other functions.
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Organizational Resources
Human Resources: The people who work in the organization.
Raw Materials: Ingredients used directly in the manufacturing of products.
Machines: machines or equipments used during the manufacturing process.
Money (Capital): the amounts of money that managers bring in to the business.
The role of manager is to best use the organizational resources to
develop the organization.
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Effectiveness and Efficiency
As managers use their resources, they strive to be both effective and
efficient.
Managerial effectiveness refers to management’s ability of meeting
organizational goals through using organizational resources. If
organizations are using their resources to attain their goals, the
managers are said to be effective.
Managerial efficiency is the achievement of the organizational
goals with the least amount of resources. Efficiency is the relation of
input used to achieve some level of output.
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Managerial Levels
The management of a large organization can be divided in to
1. Top-level management,
2. Middle level management and
3. Lower level management.
Top Level
Middle level Management
Lower Level Management
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Managerial Levels
1. Top Management:
Top level Managers are responsible for the overall performance of the organization.
They require an extensive knowledge of management roles and skills.
They have to be very aware of external factors in the market.
Also, their decisions are generally of a long-term nature and they are responsible
for strategic decisions.
2. Middle Management:
These are functional Managers lead a particular function or subunit.
They are responsible for a task, activity, or operation such as accounting,
marketing, sales, production etc.
They are responsible for carrying out the decisions made by Top-level
management through lower level Management.
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Managerial Levels
3. Lower level Management or Front line Management
They are found in the lower level of the management hierarchy..
Frontline managers manage employees working under them.
They are responsible implementing plans made by the Top and Middle
management.
These managers' decisions are generally short-term ones and supervising
day to day operations. Top Level
Middle level Management
Lower Level Management
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Managerial Skills
1. Conceptual Skills:
The ability to see the “big picture” . To look into future.
Understand how the various parts of the organization affect
each other, and conceptualize how those parts can be organized
to improve the performance of the overall organization.
Conceptual skills are the foundation for good management..
Managers at all levels require Conceptual skills, but for top
management, more required.
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Managerial Skills
2. Human Skills:
Ability to communicate, persuade, manage
conflict, motivate etc.
Human skills are equally important at all levels of
management.
If managers do not have human skills, they cannot
manage employees.
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Managerial Skills
3. Technical Skills:
Ability to identify the problem and solve it.
Knowledge and expertise in doing the work.
The general rule is that technical skills are more
important for frontline managers (Lower
Management) than for senior managers (Top
Management).
Lower managers work directly with technical staff.
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