1. Introduction to Management (1).pptx

MBA

1. I nt r o d uc tio n t o Management Dr. Ravinarayana K.S.

2. W h a t i s m ana g e m en t ? In today’s tough and uncertain economy, a company needs strong managers to lead its staff toward accomplishing business goals. But managers are more than just leaders — they’re problem solvers, cheerleaders, and planners as well. many each r oles and h a v e ma n y di f f e r e n t l e v el o f mana g em e n t within an Managers fulfill r esp o nsi b ili t i es at organization. Through this presentation we will discover those roles and functions, but you also find out the truth about several common misconceptions about management.

3. Concept of management In simple the process of collecting the d i fferent types of resources, coordinating them and implementing them in the proper way to achieve the predetermined goals of the organization is known as management. It can be describe Manage+men+t which means managing the men tactfully to achieve the goals.

4. Concept of Management Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, staffing, directing and controlling organizational resources. Organizational resources include men(human beings), money, machines and materials.

5. Definition Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. — Harold Koontz and Cyrill O’Donnell

6. Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. — F . W . T aylor To manage is to forecast and to plan, to organize, to command, to coordinate and to control. — Henry Fayol

7. Concept of Management “ Management is the art of getting things done through and with the people in formally organized groups.” _ Koontz H. Management is the process of Planning, Organizing, Staffing, Directing and Controlling to accomplish organizational objectives through the coordinated use of human and material resources.

8. Management Management refers to the tasks and activities involved in directing an organization or one of its units: planning, organizing, leading, and controlling. The process of reaching organizational goals by working with and through people and other organizational resources.

9. Management Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals. Goals Purpose that an organization strives to achieve; organizations often have more than one goals, goals are fundamental elements of organization. The Role of Management To guide the organizations towards goal accomplishment

10. R e s o u r c e s {Ass e t s } 7 categories of resources: People Money Time Work Procedures Energy Materials Equipment

11. G o al s Profit Levels or Maximum cost levels Maintenance or growth of financial strength Quality standards Guest employee & management concerns Professional obligations Societal concerns (setting up a plant)

12. C O N CE P T S O F M A N A G EME N T The term management has been interpreted in several ways; Management as an Activity Management as a Process Management as an Economic Resource Management as a Team Management as an Academic Discipline Management as a Group

13. M a n a g e m e n t a s a n A ct i vi t y Management is defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group. The activities of management are: Interpersonal activities Decisional activities Informative activities

14. M a n a g e m en t a s a P r oce s s Management consists of getting the objectives of an organisation and taking steps to achieve objectives. The management process includes planning, organising, staffing, directing and controlling functions. Management as a process has the following implications: Social Process: Management involves interactions among people. Integrated Process: Management brings human, physical and financial resources together to put into effort so as to maintain harmony among them. Continuous Process: Management involves continuous identifying and solving of problems.

15. Management Process and Goal Attainment

16. Management and Organizational Resources

17. M a n a g e m en t a s a n E cono m i c Resource

18. Management as a Team /Group As a group of persons, management consists of all those who have the responsibility of guiding and coordinating the efforts of other persons in order to achieve their goals Management as an Academic Discipline Management has emerged as a specialised branch of knowledge . It comprises principles and practices for effective management of organisations. Management offers a very rewarding and challenging career.

19. N a tu r e a n d C h a r a c t e r i s t i c s o f Management Management is goal-oriented: It is a group goals or organisational goals. The basic goal of management is to ensure efficiency and economy in the utilisation of human, physical and financial resources. Management is universal: All types of o r g anis a tion s , e . g . , f ami l y , c l ub , un i v e r sit y , g o v e r nm e n t, army, cricket team or business. Management is an Integrative Force: It integrates and coordinates human and other resources to achieve the goals.

20. Management is a Social Process: Management is done by people, through people and for people. It is a social process because it is concerned with interpersonal relations. Management is multidisciplinary: Management depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology,etc. The vast body of knowledge in management draws heavily upon other fields of study. Management is a continuous Process: Management is a dynamic and an on-going process. The cycle of management continues to operate so long as the organization exists.

21. Management is dynamic: Management tries to visualise problems before they turn into emergencies. According to Drucker, Managers do not wait for the future,they make their future. Management is Intangible: Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible. Management is an Art as well as Science: It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge.

22. O b j e c t i v e s O f M ana g e m e n t Organizational objectives: Reasonable profits so as to give a fair return on the capital invested in business Survival and solvency of the business, i.e., continuity. Growth and expansion of the enterprise Improving the goodwill or reputation of the enterprise.

23. O b j e c t i v e s Co n t d . . Personal objectives: Employees Fair remuneration for work performed Reasonable working conditions Opportunities for training and development Participation in management and prosperity of the enterprise Reasonable security of service.

24. O b j e c t i v e s Co n t d . . Social objectives: Society Quality of goods and services at fair price to consumers. Honest and prompt payment of taxes to the Government. Conservation of environment and natural resources. Fair dealings with suppliers, dealers and competitors. Preservation of ethical values of the society.

25. R O L E AN D I M PO R T AN C E O F MANAGEMENT According to Peter Drucker,“ management is a dynamic life giving element in an organisation, without it the resources of production remain mere resources and never become production”.

26. R O L E AN D I M PO R T A N C E C O N T D … Achievement of goals: Management is goal oriented. In order to achieve the goals, management reconciles the objectives of the group with those of its members so that each one of them is motivated to make his best contribution Optimum utilisation of resources: Managers forecast the need for materials, machinery, money and manpower. Ensures adequate resources plus no idle resources. They create and maintain an environment conducive to highest productivity.

27. Minimisation of cost: In the modern era of cut-throat competition no business can succeed unless it is able to supply the required goods and services at the lowest possible cost per unit. Managers ensures no wastage. Reduces costs, improving efficiency, managers enable an enterprise to be competent to face competitors and earn profits. Survival and growth: An e n t erprise ha s t o a da p t and u p d a t e it s elf t o the changing demands of the market and society. Management takes steps in advance to meet the challenges of changing environment. SWOT analysis is conducted. Managers enable the enterprise to minimise the risks and maximise the benefits of opportunities.

28. Generation of employment: By setting up and expanding business enterprises, managers create jobs for the people. Managers also create such an environment that people working in enterprise can get job satisfaction and happiness which satisfies the economic and social needs of the employees. Development of the nation: Efficient management and quality resources are the most crucial factors in economic and social development. By producing wealth, management increases the national income and the living standards of people. That is why management is regarded as a key to the economic growth of a country.

29. MA N A G EME N T A N D A D M I N I S TR A T I O N Oliver Sheldon in his “The Philosophy of Management” defines ‘Administration as a function is concerned with the determination of the corporate policy, the coordination of finance, production and distribution,the settlement of the structure of the organisation, under the ultimate control of the executive.’ Management is concerned with the execution of the policy, within the limits set up by administration and the employment of the organisation for the particular objects before it.

30. M A N A G E MEN T A N D A DMI NI S T R A T I O N

31. M A N A G E MEN T A N D A DMI NI S T R A T I O N -Difference

32. S C OP E O F MA N A G E ME N T Production Management: P lanning, organizing, directing and controlling the production function so as to produce the right goods, in right quantity, at the right time and at the right cost. It includes the following activities: designing the product location and layout of plant and building planning and control of factory operations operation of purchase and storage of materials repairs and maintenance inventory cost and quality control research and development etc.

33. P R ODUCTIO N M A N A G EME N T

34. Marketing Management: Refers to the identification of consumers needs and supplying them the goods and services which can satisfy these wants. It involves the following activities: mar k eting r es e a r ch t o d et e r m ine t h e ne e d s a nd expectation of consumers planning and developing suitable products setting appropriate prices selecting the right channel of distribution, and promotional activities like advertising and salesmanship to communicate with the customers

35. M A RK ETI N G M A N A G EME N T

36. Financial Management: Seeks to ensure the right amount and type of funds to business at the right time and at reasonable cost. It comprises the following activities: estimating the volume of funds required for both long-term and short-term needs of business selecting the appropriate source of funds raising the required funds at the right time ensuring proper utilisation and allocation of raised funds so as to maintain safety and liquidity of funds and the creditworthiness and profitability of business, and administration of earnings Thus , financia l ma n a g e m e n t i n v ol v es the plannin g , o r g anising a n d controlling of the financial resources.

37. F I N A N CI A L M A N A G EME N T

38. Personnel Management: I n v ol v es plann i n g , o r g a nisin g and c o n t r ollin g t h e p r ocu r em e n t, development, compensation, maintenance and integration of human resources of an organisation. It consists of the following activities: (a) manpower planning (b) recruitments, (c) selection, (d) training (e) appraisal, (f) promotions and transfers, (g) compensation, (h) employee welfare services, and (i) personnel records and research, etc.

39. Mana ge m e n t an d Organizations Organizations – Groups of individuals constantly join forces to accomplish common goals. Sometimes, the goals of these organizations are for profit, such as franchise restaurant chains or clothing retailers. Other times, the goals are more altruistic, such as nonprofit churches or public schools. But no matter what their aims, all these organizations share two things in common: They’re made up of people, and certain individuals are in charge of these people.

40. R e q u i r e m en t o f m ana g e r s Managers appear in every organization — at least in organizations that want to succeed. These individuals have the sometimes unenviable task of making decisions, solving difficult problems, setting goals, planning strategies, and rallying individuals. Managers administer and coordinate resources effectively and efficiently to achieve the goals of an organization. In essence, managers get the job done through other people.

41. T h e I n tr i c a c i e s of management No matter what type of organization they work in, managers are generally responsible for a group of individuals’ performance. As leaders, managers must encourage this group to reach common business goals, such as bringing a new product to market in a timely fashion. To accomplish these goals, managers not only use their human resources, but they also take advantage of various material resources as well, such as technology. Think of a team, for example. A manager may be in charge of a certain department whose task it is to develop a new product. The manager needs to coordinate the efforts of his department’s team members, as well as give them the material tools they need to accomplish the job well. If the team fails, ultimately it is the manager who shoulders the responsibility.

42. Greater the authority and higher the responsibility. Levels of management differ from one organization to another, depending on the size of business activity, philosophy of management, span of control and other related factors. Management Level and Skills

43. L e v el s o f mana ge m e n t Two leaders may serve as managers within the same company but have very different titles and purposes. Typical management levels fall into the following categories: Managers at this level ensure that major performance objectives are established and accomplished. Middle managers report to top managers and are in charge of relatively large departments or divisions consisting of several smaller units. The initial management job that most people attain is typically a first-line management position, such as a team leader or supervisor T o p Le v el Middle Level Low Level

44. F u n c t i o n s o f M a n a g e r s P l an n ing O r g anizing S t a f fing Leading Controlling This step involves mapping out exactly how to achieve a particular goal. After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of organizing. After a manager discerns his area’s needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. Leading involves motivating, communicating, guiding, and encouraging. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area’s plans remain on track.

45. R o le s p e r f orm e d b y managers A manager is not only a team leader, but he is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one. These roles fall into three categories: Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making.

46. CATEGORY R O L E ACTIVITY Informational Mon i t or Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders. D i s s emin a t or Disseminator Forward information to organization members via memos, reports, and phone calls. Spokesperson Transmit information to outsiders via reports, memos, and speeches. Interpersonal Figu r e h ead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents. Lead er Direct and motivate subordinates; counsel and communicate with subordinates L i aison Maintain information links both inside and outside organization via mail, phone calls, and meetings. Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate idea responsibility to others. D i s turbance Handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments. R e s ou r c e Allocator Decide who gets resources; prepare budgets; set schedules and determine priorities. Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets. Mi n tz b e r g ’ s set of ten r o l es

47. S k i ll s n ee d e d b y mana ge r s Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories: Technical Human C o nc e p tual This skill requires the ability to use a special proficiency or expertise to perform particular tasks. Thi s ski l l demon s t r a t es the abi l i ty t o w o rk w ell in cooperation with others.. This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others.

48. Managerial skill The ability to make business decision and lead subordinate within a company. Three most common skill include: Conceptual-the ability to understand concept, develop idea and implement strategy. Competencies include communication ability, response behaviour, negotiation tactics. Human skills - the ability to interact and motivate; Technical - the knowledge and proficiency in the trade.

49. Managerial skills Human skills The ability to work well with other people T h e ability t o mot i v a te, f a c i lita t e, coor d i n a te, lea d , communicate and resolve conflicts. Technical skills Knowledge and proficiency in a specific field Includes mastery of the methods, techniques and equipment involved in specific functions such as engineering, manufacturing or finance.

50. Robert L. Katyz’s three essential skills Skills Needed at Different Management Levels

51. Basic types of Management Skills Technical Skill – ability to use tools, procedures & techniques in a specialized area. Human Skill – ability to work with, understand & motivate people as individual or groups. Conceptual Skill – mental ability to coordinate & integrate all of an organization’s activities, especially in the long-term decisions affecting the organization. It is needed to see the organization as a whole & recognize how the various factors in a situation are interrelated so actions taken are in the best interests if the organization .

52. 26 What is a Role? A role is a set of responsibilities organised (or a pattern of behaviours used) to produce specific outputs related to a specific function/ position.

53. 27 The Managerial R - He o nr l y e M s intzberg

54. 28 A. Interpersonal Roles arise directly from the formal authority the manager has and involve interpersonal relationships. Figurehead role The manager performs ceremonial and symbolic duties by virtue of his position. They include: receiving dignitaries, attending parties, visiting the sick employees, etc. Leadership role This role is particularly performed by heads of units or departments. As heads managers are responsible for the work of people in that unit. As a leader he gives directions, appraises performance, correct mistakes, disciplines staff, motivates subordinates, determines rewards and punishments, etc. Liaison role The manager ensures contacts with other units and outside agencies on behalf of own unit. He works more as a public relations officer.

55. B. Informational Roles. Due to his status and contacts the manager gets to know a lot of information which may not be available to his subordinates. This information he uses in a variety of ways for the effective functioning of his unit. Monitor As a monitor of information, the manager scans his environment for information. As a monitor of information he is continuously keeping his ears open for all sources. Typically, this is done by reading papers and talking with others. Disseminator After having acquired information, the manager also passes this information relatively to his subordinates, superiors and colleagues. Spokesman role The manager represents his unit and its problems in different forums. As a spokesman, the manager presents the problem of his unit to others, and presents information to others who control his unit and so on. 29

56. 30 C. Decisional Roles. By virtue of the position and authority vested in him, a manager is continuously making decisions dealing with the unit's strategy, allocation of resources, solving problems, etc. Entrepreneurial role The manager seeks to respond to the changing conditions of environment. He is constantly looking for new ideas and initiating development projects. Disturbance handler He responds to pressures and crisis situations. Resource allocater This role involves the allocation of resources: human, physical, financial and other forms of resources to get things done. Allocation of his own time and powers are important dimension Negotiator The manager is carrying on negotiations with external as well as internal agents. The negotiator role is very important as the manager's capability to negotiate determines the unit's performance.

57. Category Ro l e A c ti v i t y E x a m p les In f o r m a t i on a l (managing by information) Monitor Seek and acquire work-related information Scan/read trade press, periodicals, reports; attend seminars and training; maintain personal contacts Disseminator Communicate/ disseminate information to others within the organization Send memos and reports; inform staffers and subordinates of decisions Spokesperson Communicate/tra nsmit information to outsiders Pass on memos, reports and informational materials; participate in conferences/meetings and report progress 31

58. Interpersonal Figurehead (managing through people) Perform social and legal duties, act as Greet visitors, sign legal documents, attend ribbon cutting symbolic leader ceremonies, host receptions, etc. Lea d er Direct and motivate subordinates, select and train employees Includes almost all interactions with subordinates Lia i so n Establish and maintain organization Business c o rres p o nd e n c e , contacts within participation in meetings and outside the with representatives of other divisions or organizations. 32

59. Decisional (managing through action) Entrepreneur Identify new Implement innovations; ideas and initiate Plan for the future improvement projects D i st ur b a n ce Handler Deals with disputes or problems and takes corrective action Settle conflicts between subordinates; Choose strategic alternatives; Overcome crisis situations Reso u rce Allocator Decide where to apply resources Draft and approve of plans, schedules, budgets; Set priorities Negotiator Defends bu s i n ess i n terests Participates in and directs negotiations within team, department, and organization 33

60. A manager does not perform each of these roles in isolation. In fact all these roles are linked and in reality it may become difficult to separate them. Some managers may be performing more of one set of roles than others. Most managers irrespective of their levels and nature perform, to a little degree at least, all these roles. In the real world, these roles overlap and a manager must learn to balance them in order to manage effectively. While a manager’s work can be analyzed by these individual roles, in practice they are intermixed and interdependent. 34

61. Managerial Skills Skill is the knowledge and ability that enables one to do a job very well. Managers need to develop different skills in order to perform their duties effectively. There are some basic skills, which all managers should possess. 36

62. Exercise: Managerial Skills What skills you require to perform the role of a manager? 37

63. 38 Managerial Skills Robert Katz identified three types of skills to make a manager effective: technical, human and conceptual. Technical skills involve an understanding of, and proficiency in a specific kind of activity particularly one involving methods, processes, procedures and techniques. Human skills reflect the ability of a manager to work effectively as a team member and build cooperative effort within the team he heads. Human skills deal with working with people. Conceptual skills involve the ability to see the enterprise as a whole. It includes recognising how the various functions of an organisation depend on one another and how changes in one part affect all the other parts and it extends to visualising the relationship of the individual business to the organisation, the community and the political, social and economic forces of the nation as a whole.

64. 39 Management Skills 40% 30% 10% 5 0% 45% 4 0% 10% 25% 50% - Robert Katz

65. Managerial Skills Communication Leadership Listening Delegation Critical Thinking Trustworthy Decision Making Time Management Managing Discipline Motivation Managing conflict Managing meeting Managing diversity Maintaining integrity 40

66. B oo k s f o r r e f e r en c e Principles of Management – Thomas N Duening and John.M.Wancevich. Management - V.S.P Rao and V.Hari Krishna.