Management can be defined as followings:
Management as a Process
Management as an Activity
Management as a Discipline
Management as a Group
Management as a Science
Management as an Art
Management as a Profession
History of management
1. Classical Theorists
1. Focus on the job and management functions to
determine the best way to manage in all
2. Scientific Management
1. Best way to maximize job performance
2. Fredrick Winslow Taylor
1. Father of Scientific Management
3. Frank and Lillian Gilbreth
1. Work efficiency
4. Henry Gantt
1. Work scheduling
– Henri Fayol
• Father of Modern Management
• Principles and functions of management
– Max Weber
• Bureaucracy concept
– Chester Barnard
• Authority and power in organizations
– Mary Parker Follett
• Worker participation, conflict resolution, and
• Behavioral Theorists
– Focus on people to determine the best way to
manage in all organizations.
• Human Relations Movement (later, the Behavioral
1. Elton Mayo- Hawthorne studies
2. Abraham Maslow- Hierarchy of needs theory
3. Douglas McGregor- Theory X and Theory Y
5.Management Science theories
– Focus on the use of mathematics to aid in problem solving and
– Mathematical models are used in the areas of finance, management
information systems (MIS), and operations management.
• Systems Theory
– Focuses on viewing the organization as a whole and as the
interrelationship of its parts (subsystems).
1. Socio-technical Theory
1. Focuses on integrating people and technology.
2. Contingency Theory
– Focuses on determining the best management approach for a given
6. Integrative Theories
Attempts to develop the best way to manage in all
organizations by focusing on the jobs and structure of
Attempts to develop a single best way to manage in all
organizations by focusing on people and making them
Recommends using math (computers) to aid in problem
solving and decision making.
Manages by focusing on the organization as a whole
and the interrelationship of its departments, rather
than on individual parts.
Recommends focusing on the integration of people and
Recommends using the theory or the combination of
theories that best meets the given situation.
What is management?
• Management is an art of getting things done
through others by directing their efforts towards
achievement of pre-determined goals.
• Management is an executing function.
• Management decides who should & how should he
• Management is a doing function because managers
get work done under their supervision.
• Skills required are Technical and Human skills.
• Mgt is middle & lower level function.
Why ????? --Importance of management
1. It helps in Achieving Group Goals: arranges the factors of production, assembles
and organizes the resources, integrates the resources in effective manner to achieve
2. Optimum Utilization of Resources: This leads to efficacy in management.
Management provides maximum utilization of scarce resources by selecting its best
possible alternate use in industry from out of various uses. It makes use of experts,
professional and these services leads to use of their skills, knowledge, and proper
utilization and avoids wastage.
3. Reduces Costs: It gets maximum results through minimum input by proper
4.Establishes Sound Organization: No overlapping of efforts (smooth and
coordinated functions. it establishes effective authority & responsibility relationship
i.e. who is accountable to whom, who can give instructions to whom, who are
superiors & who are subordinates. Management fills up various positions with right
persons, having right skills, training and qualification.
5. Establishes Equilibrium: It enables the organization to survive in changing by
keeping in touch with the changing environment.
6. Essentials for Prosperity of Society: better economical
production which helps in turn to increase the welfare of people.
Objectives of management:
1. Getting Maximum Results with Minimum Efforts - The main objective of
management is to secure maximum outputs with minimum efforts &
resources. Management is basically concerned with thinking & utilizing
human, material & financial resources in such a manner that would result
in best combination. This combination results in reduction of various cost
2. Increasing the Efficiency of factors of Production - Through proper
utilization of various factors of production, their efficiency can be increased
to a great extent which can be obtained by reducing spoilage, wastages
and breakage of all kinds, this in turn leads to saving of time, effort and
money which is essential for the growth & prosperity of the enterprise
3. Maximum Prosperity for Employer & Employees - Management
ensures smooth and coordinated functioning of the enterprise. This in turn
helps in providing maximum benefits to the employee in the shape of good
working condition, suitable wage system, incentive plans on the one hand
and higher profits to the employer on the other hand.
4. Human betterment & Social Justice - Management serves as a tool for
the upliftment as well as betterment of the society. Through increased
productivity & employment, management ensures better standards of living
for the society. It provides justice through its uniform policies.
– A set of expectations of how one will behave in a
• Management Role Categories (Mintzberg)
1. Interpersonal roles
Figurehead, leader, and liaison
2. Informational roles
Monitor, disseminator, and spokesperson
3. Decisional roles
Entrepreneur, disturbance handler, resource allocator, and
Ten Roles Managers Play
Managers play various roles as necessary while performing their management
functions so as to achieve organizational objectives.
Functions of Management
• Different experts have classified functions of management.
According to George & Jerry, “There are four fundamental
functions of management i.e. planning, organizing,
actuating and controlling”.
• According to Henry Fayol, “To manage is to forecast and
plan, to organize, to command, & to control”.
• Whereas Luther Gullick has given a keyword ’POSDCORB’
where P stands for Planning, O for Organizing, S for Staffing,
D for Directing, Co for Co-ordination, R for reporting & B for
• But the most widely accepted are functions of management
given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlli
Functions of management given by KOONTZ
For theoretical purposes, it may be convenient to separate the function of
management but practically these functions are overlapping in nature i.e. they
are highly inseparable. Each function blends into the other & each affects the
performance of others
Functions of Management
. 1. Planning
– Setting objectives and determining in advance
exactly (?) how the objectives will be met.
– Monitor for Change and Anticipate or React
– PDCA – Plan – Do – Check - Act
– Delegating and coordinating tasks
– and allocating resources to achieve objectives.
– Influencing employees to work toward achieving
– Establishing and implementing mechanisms to ensure
that objectives to be achieved
Levels of Management
• The term “Levels of Management’ refers to a line of
demarcation between various managerial positions in an
• The number of levels in management increases when the
size of the business and work force increases and vice
• The level of management determines a chain of command,
the amount of authority & status enjoyed by any managerial
• The levels of management can be classified in three broad
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line
Managers at all these levels perform different functions. The
role of managers at all the three levels is discussed below:
A measure of how well or productively
resources are used to achieve goal.
A measure of the appropriateness of the
goals an organization is pursuing and the
degree to which they are achieved.
What are the general management skills?
1. Management skills– planning, organizing, supervising,
2. Marketing/Sales skills– identifying customers, distribution
channels, supply chain
3. Financial skills– managing financial resources, accounting,
4. Legal skills– organization form, risk management, privacy and
5. Administrative skills – people relations, advisory board
6. Higher-order skills -learning, problem-solving
• A manager’s job is complex and multidimensional.
• It requires a range of skill to perform the duties and activities associated
• Regardless of the level of management, managers must possess and seek
to further develop many critical skills.
• A skill is an ability or proficiency in performing a particular task.
• Management skills are learned and developed.
• An effective manager must possess the following skills to perform his job
1. Technical skills
2. Human or Psychological Skill
3. Conceptual Skill
4. Diagnostic Skill:
5. Design Skill
6. Analytical Skill:
7. Decision Making Skill:
10.Planning and Administration Skill:
12. Strategic Action Skill:
13. Global Awareness Skill:
14. Self-Management Skill:
Managerial skills (contd…)
1. Technical Skill (practicability):
– Technical skill is the ability to use the procedures,
techniques and knowledge of a specialized field.
– Eg: Engineers, accountants, doctors, and musicians all
have technical skills in their respective fields.
– Technical skill also includes analytical ability and the
competent use of tools and work equipments to solve
problems in that specific discipline.
– Technical skills are especially important for first-line
managers. These skills become less important than
human and conceptual skills as managers move up the
2. Human or Psychological Skill:
Human skill is the ability to work with people by getting along with them.
It is the ability to motivate, lead and to communicate effectively with others.
It is also known as ‘people’, ‘interpersonal’ or ‘behavioural’ skill.
This skill is important as the managers spend considerable time interacting
with people both inside and outside the firm.
• Managers require such skill for the following specific reasons:
– To get the best out of their people or To get the job done.
– To communicate, motivate, lead and inspire enthusiasm and trust.
– To coordinate and resolve conflicts.
– To allow subordinates to express themselves.
– To take care of the human side of the organization.
– To face the challenges of globalization, workforce diversity and competition.
– To keep people busy.
– To retain good workers in the firm.
– To improve overall organizational performance.
• Human skills are equally important at all levels of management. A related
aspect of human skill is political skill which is a distinct type of social skill that
is important for managerial success..
3. Conceptual Skill:
Conceptual skills are most important at the top management levels.
More specifically, conceptual skills refer to the ability:
– To organize information and to judge relationships within a complex whole.
– To think and to conceptualize about complex situations.
– To see organization as a whole.
– To understand the relationships among various sub-units.
– To visualize how organization fits into its broader environment.
– To recognize significant elements in a situation and to understand the
relationships among the elements.
– To understand how a change in one unit will impact the other units.
– To coordinate and integrated the entire organization’s interests and activities.
– To think in the abstract.
• Conceptual skill is often called the ability to see the ‘big picture’. It means the ability
to ‘think strategically’- to take the broad, long-term view.
• The importance of conceptual skills increases as the manager is promoted higher in
Management Skills and Functions
• Differences among management levels in skill
needed and the functions performed:
Management Levels and Functional Areas
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What Is a Manager’s Responsibility?
– The individual responsible for achieving
organizational objectives through efficient and
effective utilization of resources.
• The Manager’s Resources
– Human, financial, physical, and informational
– Means of evaluating how effectively and efficiently
managers use resources to achieve objectives.
Types of Managers
1. General Managers
Supervise the activities of several departments.
2. Functional Managers
– Supervise the activities of related tasks.
– Common functional areas:
1. Marketing/Sales/Product Development
2. Operations/Production/Services Delivery
4. Human Resources/personnel management
5. Infrastructure (IT, Real Estate, Legal)
3. Project Managers
– Coordinate employees across several functional departments to
accomplish a specific task.