International Academy of Management & Entrepreneurship

Introduction of management

MODULE 1

MODULE 1Management theory and practice – definition of management – nature, purpose and functions – management: science V/S art. . Factors responsible for increasing significance of management – Functions of Managers - Scientific Approach, System Approach and Contingency Approach. Managerial roles as different from Functions of Managers. Mintzberg’s 10 Managerial Roles, Katz’s Managerial Skills, Social responsibility of managers

Definition of Management

A Process of designing and maintaining an environment in which individuals, working together in groups to accomplish organizational goals and objectives.

Definition of Management

• By Griffin:

“A set of management functions directed at the efficient and effective utilization of resources in the pursuit of organization goals.”

• By Koontz and Weihrich:

“Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims.”

Nature and purpose

• As managers, people carry out managerial functions- planning, organizing, staffing, leading & controlling.

• Mgmt applies to any kind of organization.• It applies to managers at all organization levels.• The aim of all the managers is the same : to create

surplus.• Managing is concerned with productivity: which

implies effectiveness and efficiency

FUNCTIONS OF MANAGEMENT

Planning

• Look ahead and chart out future course of operation

• Formulation of Objectives, Policies, Procedure, Rules, Programmes and Budgets

Organizing

• Bringing people together and tying them together in the pursuit of common objectives.

• Enumeration of activities, classification of activities, fitting individuals into functions, assignment of authority for action.

Directing

• Act of guiding, overseeing and leading people.

• Motivation, leadership, decision making.

Controlling

• Laying standards, comparing actuals and correcting deviation-achieve objectives according to plans.

FUNCTIONS OF MANAGEMENT

Top Level

Managers

Middle LevelManagers

First LevelSupervisors

Pla

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Lea

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Con

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TIME SPENT IN CARRYING OUT MANAGERIAL FUNCTIONS

Top Level

TechnicalSkills

HumanSkills

Conceptualand DesignSkills

Supervisory Level

Skills and Management Levels

Management: Science V/S Art

Art• Practical know how• Technical skills• Concrete results• Creativity• Personalized nature

Science• Empirically Derived• Critically tested• General principles• Cause and effect

relationship• Universal applicability

Management as a science provides principles and as an art helps in tackling situations.

Productivity

Outputs

Productivity = --------------- (@ time & quality)

Inputs

Effectiveness: Achievement of objectives

Efficiency: achievement of objectives with least amount of resources and time.

Peter drucker:“Efficiency is doing things right and effectiveness is doing the right

thing…”

Importance or Significance of Management

• Creates better work environment• Promotes team work towards organization• Provides clear cut direction or goal• Facilitates optimum utilization of resources• Motivates personnel• Encourage initiative• Facilitates innovation• Facilitates expansion and diversification• Quality of worker’s life• Assist society

Approach to Management

• Scientific Approach

• Administrative Approach

Some other approach's are

Case Approach: This approach is the analytical approach. It is all about predicting the case. The disadvantage in this is that the situation is not the same all the time.

Managerial roles Approach: This involves the roles of the manager which needs intelligence While taking decisions.

Situational Approach: The approach should be situation based. It is a type of an open system. Here the data is driven.

Total Quality Management: This is a very important approach where every quality should be included.

Management science Approach: It is also said as maths approach. This is a scientific kind of an approach.

Decision theory: This is all about the skills that people have in them. Based on the decision the approach is taken.

Re-engineering Approach: This is a limited process.

Systems Approach: This includes all the outside factors.

Management process Approach: It is also known as operational process. It is one of the human, system and technical elements.

Socio-technical systems Approach: It is all about psychology.

Group Approach: It is all about team work. How the work is divided in the team members.

Mc-Kinsey 7-S Frame work: Strategy

Structure

Staff

Skill

System

Shared value

Style

Managerial roles

Interpersonal Roles: This role includes the way you be good to all, the lead role that an employee take, motivating people, act as a bridge between the top management and others, approach to all the problems.

Informational Roles: This role includes how you receive the information from inside and outside the organization. The information should be about the people from the top management to the employees. Spoke person role also is included who address the media.

Decision Roles: This role includes entrepreneurship role who takes an initiative and a decision. It also includes trying to solve problem. Negotiator role is also included in it who is tied up with some other organization.

Management and society

• Operating in a pluralistic society• The technological environment• The ecological environment• Social responsibility of managers• Social responsibility• Social responsiveness• Role of the government• Ethics in Managing• Ethical theories

– Utilitarian theory– Theory based on rights– Theory of justice

• Whistle Blowing