Chapter One

Fundamentals of Management
1.1. Definition of Management
 Management refers to:
 a group of people who are responsible for
guiding and controlling an organization.
 It is the process of running an organization.
 According Marry Parker, “
 Management is the art of getting things done
through others”.
 Louis E Boone & David L Kurtz-
 The use of people and other resources to
accomplish objectives.
 It is the process of planning, organizing,

staffing, directing and controlling the use of

a firm’s resources to effectively and
economically attain its objectives.
 Definition…
Frederick Taylor defines Management
as the art of knowing what you want to
do in the best and cheapest way.
Management refers to a group of
people who are responsible for guiding
and controlling an organization.
1.2. Significance of Management
It helps in Achieving Group Goals:
Optimum Utilization of Resources
Reduces Costs
Establishes Sound Organization
Establishes Equilibrium
Essentials for Wealth of Society
 Characteristics of Management
 Goal Oriented
 Dynamic
 Decision Making
 Universal
 A Continuous Process
 Working with and through people
 Multi – Disciplinary
 Not Absolute Principles
 1.3. Managerial Functions an overview

Managerial Functions involves:

a. Planning
b. Organizing
c. Staffing
d. Directing/ leading
e. Controlling
Planning
Is the process of setting and identifying goals and alternatives.
Is the first function of management
It maps out the courses of action that will commit individuals,
departments and the entire organization for days, months and
years to come.
Organizing
Concerned with:
Assembling the resources necessary to achieve the organization
objectives.
Establish the activity authority relationships of the organization.
Staffing
 Concerned with locating prospective employee
 Involves the process of recruiting potential candidates for a job.

Directing
 Aimed at getting the employees to move in the right direction

that will enable to achieve its objectives.

 Communication and motivation should be on going and

personalized.
Controlling
Deals with:
 Establishingstandard for performance.
 Measuring performances against established standards

 Taking corrective action if any deviation exist.


 1.4. Levels of Management and Types of Manager

Levels, refer to hierarchical arrangement of

managerial function in an organization.
The number of levels of management depends on
the size of the organization.
Levels of Management involves
1. Top level management
2. Middle level management
3. Operational Level management
1) Top Level Management

In typical organization top level

management includes:
 BOD, CEO, Executive Committee,
President or General Managers etc.
Functions of top level management
Establishing broad objectives.
Designing major strategies.
Outlining principal policies.
Providing effective organizational structure that
ensures integration.
Providing overall leadership and direction.
Making overall control of the organization.
Dealing with external parties such as government,
community etc by representing the organization.
Analyzing the changes in the external environment
and responding to it
2) Middle Level Management

Middle level management includes:

Divisional Heads, Department Managers, Section Heads,
and Branch Managers etc.
Functions of middle level management
Acting as intermediary between top level and operating
level management
Translating long term plans top management into medium
term plans.
Developing specific targets in their areas of responsibilities
Developing specific schedules to guide actions and facilitate
control.
Coordinating inputs, productivity and output of operating
3. Lower (Operating, first line) Level
Management
Directs a small team of workers and keeps
a check on their performance, so that short
term production and work targets are
achieved.
It involves section chief, office manager,
foreman, supervisor … etc.
Functions of lower level management:-
Planning daily and weekly activities
Assigning operating employees to specific
task.
Issuing instruction at the work place,
 Following up, motivating and evaluating
workers and reporting to their superiors
Levels of Management
 Types of Managers

Managers are:
People formally appointed to positions of
authority in organizations or systems
who enable others to do their direct or
support work effectively.
Who have responsibility for resource
utilization.
 Who are accountable for work results.
 Types of Managers…
 According to the range of the activities of an
organization Managers can be classified in to :-
1. Functional Manager: They supervise with
specialized skills in a single area of operations such
as Accounting, Marketing, Finance, HR and
Production.
2. General Managers: are responsible for the
overall operations of the organization.
• The number of Functional and General Managers in
an organization may vary according to the size and
activities of the organization.
 According to their levels Managers can be classified
in to:-
1.Top Level Managers
2. Middle Level Managers
 Skills

According to Henry Mintzberg managers play

ten different roles:
I. Interpersonal Roles
Arise directly from a managers formed authority,
Involves interpersonal relationship.
Sub classified into:
1. Figure – head role: plays ceremonial and symbolic
functions.
2. Leadership role: directing & coordinating the
activities of subordinates
3. Liaison role: dealing with outside the organization
such as clients, government officials, customers and
suppliers.
II. Informational Roles: Effective
managers build networks of contacts for
sharing information.
1.Monitor role: seeking out, receiving,
screening information's, evaluate &
decide whether to use it or not.
2.Disseminator role: Shares
information with subordinates.
3.Spokes – person role: Transmit
information those outside the
organization.
 Decisional Roles: Use information to make
III.
decisions.
1.Entrepreneurial Role: New project, launch
a survey, new market or enter a new business.
2.Disturbance Handler Role: Dealing with
problems and changes (strikes, bankruptcy of
major supplier, breaking contracts by
customers).
3.Resource Allocator Role: Allocate resource
according to their general return.
4.Negotiator Role: To discuss their differences
with individuals or groups for agreement.
Managerial Skills

1.Technical Skills: The ability to apply

specific methods and techniques in a
specialized field.
 E.g. Lab. Technician, musicians, Computer
Programmers and Engineers etc.
2. Interpersonal Skills: The ability to lead,
motivate, manage conflicts and work with others.
3. Conceptual Skills: The ability to view internal
envt. & its relationship with external envt.
4. Communication Skills: The ability to send
and receive information, classify into writing, oral
and non – verbal (facial expressions) etc.
Top Level Mgt

Middle Level
Mgt

Lower Level
Mgt

Conceptu Technic Interperson Communicatio

al al Skills al Skills n Skills
Skills
1.6. Universality of Management
The functions performed by each manager are nearly the
same.
a) In all kinds of organizations, the basic managerial functions
are used.
b) Managers in all levels of organizational hierarchal perform
the same basic managerial function.
c) The principles of management are universal.
1.7. Is Management a Science, an Art or a Profession?
Management is an Art.
It is the application of knowledge and doing things in the
light of the realities of the situation.
Therefore, management is both a Science and an Art.
Management is Science
Since management has a structured body of knowledge with
its distinct concepts and principles that are developed with
general truth underlying the management practice.
Thus management is a Science.
Management is a profession
It is a function, a discipline, a task to be done and mangers
are the professionals who practice this discipline, carryout
the functions and discharge the task.