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Lec-1: Introduction to Management

1.1

Definition of Management

The function or a process that coordinates the efforts of people to accomplish goals and
objectives by using available resources efficiently and effectively.

The above definition can be well explained from the diagram given below:

Manag
er

The above diagram defines:

Mana
ge

Managem
ent

Manager as a person who has skills and abilities to put the best efforts.
Manage refers to an action or an activity performed by manager to successfully
achieve, attain or
accomplish goals and objectives by using available resources efficiently and
effectively.
Management process will be a result when mangers put their best efforts to
perform an action or an
activity to manage.

Broadly speaking, management is what managers do or practice.

1.2 Explain why efficiency and effectiveness are important to

management
Management involves ensuring that the work activities are completed efficiently and
effectively by the people responsible for doing them. The absence of efficiency and
effectiveness will result in a poor management which will lead manager to do whatever
they want anytime, anywhere or in any way. So, managerial efficiency & effectiveness
have important meaning in the process of management.
Efficiency refers to:

doing things right.

Not wasting resources.
Getting the most output from the least amount of inputs.

As managers deal with scarce inputs including resources such as people, money
and equipment. So,
Efficiency is concerned with the means of getting the things done.

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Effectiveness refers to:

doing the right things.

Doing those work activities that will help the organization reach its goals.

Effectiveness is concerned with how & in what manner the organizational goals
will be achieved.
The importance of managerial efficiency & effectiveness is well explained from the
diagrams below:

The outcome of low goal attainment and poor resource utilization will neither be
effective nor efficient.
The outcome of high goal attainment and poor resource utilization will be effective
but inefficient.
The outcome of low goal attainment and good resource utilization will be efficient
but ineffective.
The outcome of high goal attainment and good resource utilization will be effective
and efficient and that will lead to high productivity.

1.3 Who managers are and why are they important to an

organization?
Manager is someone who coordinates and oversees the work of other people so that
organizational goals can
be accomplished.

They can be young or old. They may be male or female.

A manager has skills and abilities to put the best efforts.
A managers job is not about personal achievement, its about helping
others to their work.
Managers are not the order-givers, they support others to do their job
well.
A managers job involves coordinating the work activities of a team with
people from different departments or even people outside the

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organization, (such as temporary employees or individuals who work for

the organizations suppliers.)
Managers may have work duties not related to coordinating and
overseeing others work.

Why managers are needed to run an organization?

Managerial skills and abilities are important in creating organizational value.

Organizations need their managerial skills and abilities in complex times.
Managers are critical to getting things done in organizations. The way employees
are managed can affect the organizations financial performance.
Managers contribute to employees productivity and loyalty.

1.4 Describe how to classify managers in organizations. Explain

how managers differ from
non-managerial employees.
An enterprise may have different levels of management. Levels of management refer to
a line of demarcation between various managerial positions in an enterprise. The levels
of management depend upon its:
Size
Technical facilities
Range of production
We generally come across two broad levels of management.
(i)
(ii)

Administrative Management (i.e., the upper level of management)

Operating Management (i.e., the lower level of management).
Administrative management is concerned with "thinking" functions such as:
Laying down policy.
Planning and setting up of standards.
Operative management is concerned with the "doing" function such as:
Implementation of policies.
Directing the operations to attain the objectives of the enterprise.

A. Classification of Managers/Management in traditionally

structured organization
In traditionally structured organizations, managers can be classified as:

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The managerial levels explain authority relationships in an organization.

Considering the hierarchy of authority and responsibility, one can identify three
levels of manager/management namely:

First-Line Managers/Lowest Level Management: At the lowest level of

management, the first-line managers manage the work of non-managerial
employees who typically are involved with producing the organizations
products or servicing the organizations customers. Their authority and
responsibility is limited. This level managers perform the following functions:
> They pass on the instructions of the middle management to workers.
> They interpret and divide the plans of the management into shortrange operating plans.
> They have to get the work done through the workers.
> They allot various jobs to the workers, evaluate their performance and
report to the middle level management.
> They devote more time in the supervision of the workers, so they are
more concerned with direction and control functions of management.
First-Line/Lowest Level Managers are called supervisors, superintendents,
foremen, shift managers, district managers, department head, or office
managers.

Middle Managers/Middle Level Management: At middle level of

management, the middle managers manage the work of first-line managers
and serves as an essential link between the top managers and first-line
managers. The following are the main functions of middle management :
> To interpret the policies set by top management.
> To prepare the organizational set up in their own departments for
fulfilling the objectives implied in various business policies.
> To recruit and select suitable operative and supervisory staff.
> To assign activities, duties and responsibilities for timely
implementation of the plans.
> To compile all the instructions and issue them to supervisor under their
control.

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> To motivate personnel to attain higher productivity and to reward them

properly.
> To cooperate with the other departments for ensuring a smooth
functioning of the entire organization. To collect reports and
information on performance in their departments.
> To report to top management.
> To make suitable recommendations to the top management for the
better execution of plans and policies.
Middle Level Managers have titles such as regional manager, project
manager, brand manager, purchase manager, production manager,
marketing manager, financial controller.

Top Managers/Top Management: At top management, the top managers

are responsible for making the plans and goals that affect the entire
organization. The important functions of top management include :
> To establish the objectives or goals of the enterprise.
> To make policies and frame plans to attain the objectives laid.
> To set up an organizational frame work to conduct the operations as
per plans.
> To assemble the resources of money, men, materials, machines and
methods and to put the plans into action.
> To exercise effective control of the operations.
> To provide overall leadership to the enterprise.
Top Managers have titles such as executive vice president, president,
managing director, chief operating officer, chief executive officer.

Managers vs Non-Managerial Employees:

Coordinating and overseeing the work of others is what distinguishes a managerial
position from a
non-managerial ones. Managers coordinate and oversee the work of other people so that
organizational goals can be accomplished. Non-managerial employees work directly on a
job or task and have no one reporting to them.

B. Managers in Loosely Configured Organization

In loosely configured organization, work being done by teams of employees.
Teams of employees move from one project to another as work demands

1.5

arise.
In such organizations, managers may not be easily identifiable, although
someone who fulfill manager role.
In such organizations, managers change as work tasks or projects change.

Types of Managers

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1. Line Managers directly contribute to producing the organizations goods or

services. (E.g: Retailer, Superviors.)
2. Staff Managers use special technical expertise to advice and support the
efforts of line workers. (E.g: Assistant Manager)
3. Functional Managers are responsible for one area such as finance, marketing,
production, human resources, accounting or sales.
4. General Managers are responsible for activities covering many functional
areas. (An example is a plant manager who oversees everything from
purchasing to manufacturing to human resources to finance and accounting
functions.)

1.6

What do Managers do?

Three Approaches to Defining What Managers Do

Functions they perform

Roles they play

Skills they need

Q. Describe the four functions of manager/management.

OR Describe the process of
Management.
Management Process is planning, organizing, leading and controlling the
use of resources to

accomplish performance goals.

Functions of Management

All managers, regardless of title, level, type and organizational setting are
responsible for the four management functions. These functions are
continually engaged as a manager moves from task to task and opportunity
to opportunity in his or her work.

Planning is the process of setting performance objectives and determining what

actions should be taken to accomplish them. Planning identifies desired results and
ways to achieve them. Planning is concerned with what, how and when of
performance. Its deciding in the present about the future objectives and courses
of action for their achievement. It involves:
Determination of long and short-range objectives.
Development of strategies and courses of actions to be followed for the
achievement of these objectives.
Formulation of policies, procedures, and rules, etc., for the implementation of
strategies, and plans.

Organizing Once plans are set up, they must be implemented. This begins with
organizing the process of assigning tasks, allocating resources and coordinating
the activities of individuals and groups to accomplish plans. Organizing is how

managers turn plans into actions by defining jobs, assigning personnel, and
supporting them with technology and other resources. Organizing thus involves the
following sub-functions :
Identification of activities required for the achievement of objectives and
implementation of plans.
Grouping the activities so as to create self-contained jobs.
Assignment of jobs to employees.
Delegation of authority so as to enable them to perform their jobs and to
command the resources needed for their performance.
Establishment of a network of coordinating relationships.

Leading is the process of arousing peoples enthusiasm and inspiring their efforts
to work hard to fulfill plans and accomplish objectives. Leading encourages
activities that support goals and influences others to do their best work on the
organizations behalf. Thus involves the following sub-functions :
Communication
Motivation
Leadership

Controlling is the process of measuring work performance, comparing results to

objectives and taking corrective action as needed. Controlling is all about
gathering and interpreting performance measurements, and using this information
to make constructive changes. Thus, controlling involves the following process :
Measurement of performance against predetermined goals.
Identification of deviations from these goals.
Corrective action to rectify deviations.

Q. What roles does a manager perform or play in an

organization? OR Explain

Mintzbergs managerial roles. OR What behaviors or

actions are expected from a manager working in an organization?

Managerial roles refer to specific actions or behaviors expected of and

exhibited by a manager. Henry Mintzberg, a well-known management
researcher, studied actual managers at work. Mintzberg identified a set of 10
roles commonly played by managers in an organization. The roles fall into
three categories.

1. Interpersonal roles involve interactions with people inside and outside the work
unit. A manager fulfilling these roles will be:

A figurehead As a manager, you have social, ceremonial and legal

responsibilities. You're expected to be a source of inspiration. People look up
to you as a person with authority, and as a figurehead.
A leader As a leader, every manager must motivate and encourage his
employees. He must also try to reconcile their individual needs with the
goals of the organization.

A liaison involves networking to link people with resources. Managers must

communicate with internal and external contacts. Liaison introduces
contacts to possibilities and smooths the way toward connecting them with
resource.

2. Informational roles involve giving, receiving and analyzing of information. It is

about how a manager exchanges and processes information. A manager fulfilling
these roles will be:

A monitor In this role, Manager regularly seeks out information related to

the organization and industry, looking for relevant changes in the
environment. Manager also monitors the team, in terms of both their
productivity, and their well-being.
A Disseminator This is where manager communicate potentially useful
information to the colleagues and team.
A Spokesperson Managers represent and speak for their organization. In
this role they are responsible for transmitting information about the
organization and its goals to the people outside it.

3. Decisional roles involve using information to make decisions to solve problems or

address opportunities. A manager fulfilling these roles will be:

A Disturbance Handler deals with problems and conflicts and tries to solve
them.
An Entrepreneur creates and controls change within the organization. This
means solving problems, generating new ideas, and implementing them.
A Resource Allocator deals with handling budgets and distributing
resources. He also needs to determine where organizational resources are
best applied. This involves allocating funding, as well as assigning staff and
other organizational resources.
A Negotiator In this role a manager makes deals and forges agreements.

Q. Describe Katzs three essential managerial skills and

how the importance of these skills changes depending on
managerial level.

A skill is the ability to translate knowledge into action that results in desired
performance. Harvard scholar Robert L. Katz described the essential skills of
managers in three categories:
Technical Skills
> the ability to use expertise to perform a task with proficiency.
> technical skills are very important at job entry and early career levels
> These skills are used by lower level managers.

Human Skills
> A human skill or interpersonal skill is the ability to work well in cooperation
with other people.
> A manager with good human skills will have a high degree of self-awareness,
as recognize, understand, and manage feelings while interacting and dealing
with others.
> These skills are used by middle managers.

Conceptual Skills
> A conceptual skill is the ability to think analytically to diagnose and solve
complex problems.
> These skills are used by top managers in making decisions.

Skills mix of different managerial level

1.7
1.

2.

3.

4.

5.

Characteristics of a Professional Manager

Managers are responsible and accountable managers are held responsible, or

accountable, not only for their own work, but also for the work of subordinates.

Managers balance competing goals and set priorities manager must strike a
balance between the various goals and needs. Managers are often caught between
conflicting human and organizational needs and so they must identify priorities.

Managers think analytically and conceptually to diagnose and solve complex

problems.

Managers are mediators Disputes within a unit or organization can lower morale
and productivity. Managers must at times take on the role of mediator and iron out
disputes before they get out of hand.

Managers make difficult decisions Managers are expected to come up with

solutions to difficult problems and to follow through on their decisions even when
doing so may be unpopular.

1.8

Why studying Management?

Its important to study management for three reasons:

(1) The universality of management which refers to the fact that
managers are needed in all types and sizes of organizations, at all
organizational levels and work areas, and in all global locations.


(2) The reality of work how the organizations function where
employees will either manage or be managed.

(3) The awareness of the significant reward and

challenges: