Chapter One RVU MT&P
Chapter One RVU MT&P
Chapter One RVU MT&P
Chapter One
Brainstorming Questions
• What is management?
• What do managers do?
• What skills are needed to be good
manager?
• What are the roles of managers?
• Is management a science? An Art? A
Profession?
1.1 Definition of Management
• Management is the process of designing and
maintaining an environment in which individuals
working together in groups efficiently accomplish
selected aims (Koontz and Weihrich).
• Management is a distinct process consisting of
activities of planning, organizing and controlling,
performed to determine and accomplish stated
objectives with the use of human beings and
other resources. (Terry and Franklin).
Definitions cont’d
• The work involved in combining and directing the
use of resources to achieve particular purposes is
called management. (David R. Hampton)
• Management is the process of planning,
organizing, leading and controlling the work of the
organization members and of using all available
organizational resources to reach stated
organizational goals. (Stoner, Freeman and
Gilbert)
Definitions cont’d
• Management is the art of getting things done
through people effectively and efficiently.
(Mary Parker Follett).
Paradigm of Definitions
• The various definitions of management can be conveniently
classified in to four categories
Functional school - management is an integrating process designed
to achieve organized, and purposeful results
Human relations school- management is a social process because
managerial actions are principally concerned with relations between
people
Decision making school- management as a decision making body,
as a rule making and rule enforcing body
Systems and contingency school
Systems school- organizations are organic and open system
consisting of different interacting and interdependent parts having
variety of goals
Contingency school- According to the contingency theory,
management is situational. There is no one best way to design
organizations and manage them
Organization
• Organization is a system which operates through
human activity.
• Organization is a deliberate arrangement of
people to accomplish some specific purpose. (That
individuals independently could not accomplish
alone).
• Common Characteristics of Organizations
– Have a distinct purpose (goal)
– Composed of people
– Have a deliberate structure
1.2 Characteristics of Management
1. Management is goal-oriented:
Management is not an end in itself, it is a means to
achieve certain goals.
The basic goal of management is to ensure
efficiency and economy in the utilization of human,
physical and financial resources.
2. Management is universal:
Management is an essential element of every
organized activity irrespective of the size or type of
activity.
Universality of Management
Characteristics Cont’d
3. Management is an integrative Force
As a unifying force, management creates a whole
that is more than the sum of individual parts
It integrates human and other resources
4. Social Process
Management is done by people, through people and
for people.
It is social process because it is concerned with
interpersonal relations.
Characteristics Cont’d
5. Multidisciplinary
Management has to deal with human behavior
under dynamic conditions.
Therefore, it depends upon wide knowledge
derived from several disciplines like engineering,
sociology, psychology, economics etc.
6. 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.
Characteristics Cont’d
7. Management is a continuous process
Management is a dynamic and an on-going
process.
The cycle of management continues to
operate so long as there is organized action
for the achievement of group goals.
1.3 Management Process/Functions
The functions of management provide a useful
framework for organizing management knowledge.
1. Planning – It is the most fundamental of all
management functions.
It is concerned with what? Who? How? When?
Where? And how much aspect of performance.
It is deciding in the present about the future
objectives and the course of actions for their
achievement.
Planning involves:
Determination of short range and long range
objectives
Development of strategies and courses of
action to be held for achievement of the
objective
Formulation of policies, procedures and rules
for the implementation of strategies and plan
2. Organizing
It involves identification of activities required to achieve
the enterprise objectives.
Sub-functions of organizing are:
– Identification of activities required
– Grouping of activities in to similar jobs
– Assigning jobs to employees
– Delegation of authority in order to enable employees
perform their jobs- command resources
– Establishing a net work or the structure of the
organization
3. Staffing
Staffing involves:
– Determination of number and kind of
employees needed
– Recruitment of employees (creating potential
employees from whom selection is to be
made)
– Selection of the most efficient employee
suitable for job
– Placement and induction
– Training and development
4. Directing
• Directing is the function of leading employees
to perform efficiently to the achievement of
the organizational goals.
• It involves communication, motivation and
leadership.
5. Coordinating
Coordinating is an activity of establishing a
relationship among various types of
organizations so that they all move together in
the direction of the organizational goal.
This function involves clear definition of
authority, responsibility, relationships, unity of
directions, effective communication and
effective leadership.
6. Controlling
It is the function of ensuring performances and
consistency of performance with the
predetermined objectives. The sub functions of
controlling are:
– Measurement of performance against goal
– Identification of deviation from goal
– Taking corrective action to ratify deviations
1.4 Levels of Management
Refers to a line of demarcation between
various managerial positions in an
organization
Determines:
a chain of command
the amount of authority and
status enjoyed by any managerial positions
Levels of Management Cont’d
The levels of management can be classified in
three broad categories:
1. Top level/administrative level/ strategic level
2. Middle Level/Tactical/Executive level
3. Lower level/supervisory/operative/first line
manager
Mangers at all these level perform different
functions
1. Top level management
Top management is the ultimate source of
authority and it manages goals and policies
for an organization
It devotes more time on planning and
coordinating functions
consider how the organization interacts with
its environment
Ultimately responsible for the success or
failure of an organization
2. Middle level management
They execute the plans of the organization in
accordance with the policies and directives of
top level management
They make plans for sub-units of the
organization
They interpret and explain policies from top
level management to lower levels
They are also responsible for inspiring lower
level managers towards better performance
3.Lower level management
Refers to those executives whose work has to
be largely with personal oversight and
direction of operative employees
They are concerned with direction and
controlling functions of management
They are directly responsible for the
production of goods and services
Levels of Management
Top
leve
l
Middle level
managers