MANaGEMENT

AN
INTRODUCTION
 MANAGEMENT - DEFINITION
 It is defined as an organ that aids in managing business,
managers, work and workers.
 The vital tasks of management are
management = marketing + innovation
 Management is also defined as the art of getting activities
done via people in groups. It includes many operations like
planning, organising, staffing etc.
 Harold Koontz defined management as “the art of getting
things done through and with people in formally organized
groups.
Management is a universal phenomenon.

Every individual or entity requires setting objectives, making

plans, handling people, coordinating and controlling
activities, achieving goals and evaluating performance
directed towards organizational goals.

These activities relate to the utilization of variables or

resources from the environment − human, monetary,
physical, and informational
 MANAGERIAL SKILLS

 Henri Fayol, a famous management theorist also called as the Father of

Modern Management, identified three basic managerial skills - technical
skill, human skill and conceptual skill.

Technical Skill
 Knowledge and skills used to perform specific tasks. Accountants, engineers,
surgeons all have their specialized technical skills necessary for their
respective professions.
 Managers, especially at the lower and middle levels, need technical skills for
effective task performance.
 Technical skills are important especially for first line managers, who spend
much of their time training subordinates and supervising their work-related
problems.
Human Skill -Ability to work with, understand, and motivate other people as
individuals or in groups.

According to Management theorist Mintzberg, the top (and middle) managers

spend their time: 59 percent in meetings, 6 percent on the phone, and 3 percent on
tours.

Ability to work with others and get co-operation from people in the work group.
For example, knowing what to do and being able to communicate ideas and beliefs
to others and understanding what thoughts others are trying to convey to the
manager.
Conceptual Skill .- Ability to visualize the enterprise as a whole,
to envision all the functions involved in a given situation or circumstance, to
understand how its parts depend on one another, and anticipate how a
change in any of its parts will affect the whole.

Creativity, broad knowledge and ability to conceive abstract ideas.

For example, the managing director of a telecom company visualizes the

importance of better service for its clients which ultimately helps attract a
vast number of clients and an unexpected increase in its subscriber base and
profits.
Diagnostic Skill- Diagnose a problem in the organization by
studying its symptoms.

For example, a particular division may be suffering from high turnover.

With the help of diagnostic skill, the manager may find out that the
division’s supervisor has poor human skill in dealing with employees.

This problem might then be solved by transferring or training the

supervisor.
Analytical Skill- Ability to identify the vital or basic elements in a
given situation, evaluate their interdependence, and decide which ones
should receive the most attention.

This skill enables the manager to determine possible strategies and to

select the most appropriate one for the situation.

For example, when adding a new product to the existing product line.

A manager may analyze the advantages and risks in doing so and make
a recommendation to the board of directors, who make the final
decision.
 Levels of Management

Top managers

Middle managers

First-line managers

Areas of Management
9
 Creating a context for change

Developing commitment
and ownership in employees

Creating a positive organizational

culture through language and action

Monitoring their business environments

10
Plan and allocate resources to meet objectives

Coordinate and link groups,

departments, and divisions

Monitor and manage the performance

of subunits and managers who report to them

Implement changes or strategies

generated by top managers
11
 Manage the performance of
entry-level employees

Encourage, monitor, and reward

the performance of workers

Teach entry-level employees how to do

their jobs
Make detailed schedules and operating
plans 12
HENRI FAYOL’S 14
PRINCIPLES OF
MANAGEMENT
What Is Management? (According
To Fayol)
Fayol's definition of management roles and actions distinguishes
between Five Elements:

 Prevoyance. (Forecast & Plan). Examining the future and drawing up

a plan of action. The elements of strategy.

 To organize. Build up the structure, both material and human, of the

undertaking.

 To command. Maintain the activity among the personnel.

 To coordinate. Binding together, unifying and harmonizing all activity

and effort.

 To control. Seeing that everything occurs in conformity with

established rule and expressed command.
 1. DIVISION OF WORK
Specialization allows the individual to build up experience,
and to continuously improve his skills. Thereby he can be
more productive.
 2. AUTHORITY
The right to issue commands, along with which must go the
balanced responsibility for its function.
 3. DISCIPLINE
Employees must obey, but this is two-sided: employees will
only obey orders if management play their part by providing
good leadership.
 4. UNITY OF COMMAND
Each worker should have only one boss with no other
conflicting lines of command.
 5. UNITY OF DIRECTION
People engaged in the same kind of activities must have the
same objectives in a single plan. This is essential to ensure
unity and coordination in the enterprise. Unity of command
does not exist without unity of direction but does not
necessarily flows from it.
6. SUBORDINATION OF INDIVIDUAL
INTEREST
Management must see that the goals of the firms are always
paramount.
 7. REMUNERATION
Payment is an important motivator although by analyzing a
number of possibilities, Fayol points out that there is no
such thing as a perfect system
 8. CENTRALIZATION OR
DECENTRALIZATION
This is a matter of degree depending on the condition of the
business and the quality of its personnel.
 9. SCALAR CHAIN (LINE OF
AUTHORITY)
A hierarchy is necessary for unity of direction. But lateral
communication is also fundamental, as long as superiors know that such
communication is taking place. Scalar chain refers to the number of
levels in the hierarchy from the ultimate authority to the lowest level in
the organization. It should not be over-stretched and consist of too-many
levels
 10. ORDER
Both material order and social order are necessary. The
former minimizes lost time and useless handling of
materials. The latter is achieved through organization and
selection.
 11. EQUITY
 In running a business a ‘combination of kindliness and
justice’ is needed. Treating employees well is
important to achieve equity.
 The management principle of equity often occurs in
the core values of an organization.
 According to Henri Fayol, employees must be treated
kindly and equally. Employees must be in the right
place in the organization to do things right.
 Managers should supervise and monitor this process
and they should treat employees fairly and impartially
 12. STABILITY OF TENURE OF
PERSONNEL
Employees work better if job security and career progress are
assured to them. An insecure tenure and a high rate of
employee turnover will affect the organization adversely.
 13. INITIATIVE
Allowing all personnel to show their initiative in some
way is a source of strength for the organization. Even
though it may well involve a sacrifice of ‘personal
vanity’ on the part of many managers.
 14. ESPRIT DE CORPS
Management must foster the morale of its employees. He further
suggests that: “real talent is needed to coordinate effort, encourage
keenness, use each person’s abilities, and reward each one’s merit
without arousing possible jealousies and disturbing harmonious
relations.”