Introduction

Unit 1
Ashtha Karki
Concept of Management
● Management is getting work done
through others
● Management is the coordination of
actions to achieve the goals of the
organisation
● It is a universal phenomenon.

● Concept of management can be

understood in 3 main ways
● As a group
● As a discipline
● As a process
Concept of Business
Management
Management, is the planning, organizing, leading, and controlling
of human and other resources to achieve organizational goals
efficiently and effectively.

An organization’s resources include assets such as people and their

skills, know-how, and experience; machinery; raw materials;
computers and information technology; and patents, financial
capital, and loyal customers and employees.
Expansion of
definition
• As managers, people carry out the management functions
of planning, organizing, staffing, leading, and controlling.
• Management applies to any kind of organizations
• It applies in to managers at all organizational levels
• The aim of all managers is the same to create a surplus
• Managing is concerned with productivity which implies
effectiveness and efficiency
Universal Need for
Management
 Process of Management

6
 Functions of Management
Planning Organizing

● organizing is the process of

● selecting missions and
identification and classification
objectives as well as the of required activities, grouping
actions to achieve them, of activities necessary to attain
which requires decision objectives, assigning each

making a course of action group to a manager with the

authority necessary to
from among alternatives.
supervise it, and coordinating
horizontally in the
organizational structure.
 Leading Controlling

 the process of influencing  the measurement and

people so that they will correction of performance in
contribute to order to make sure that
organizational goals. enterprise objectives and the
plans devised to attain them
are being accomplished.
Types of Managers
a. On the basis of LEVELS
 Top Level Middle Level Lower Level

• Chairman, the Chief • Division Heads like • Front Line Managers

Executive Officer Production Manager, and supervisory heads
(CEO), the Chief HR Manager etc and responsible for:
Operating Officer are responsible for • Providing on the job
(COO), President and • implementing and training to the workers.
Vice-president (VP) and controlling plans and • Ensuring the good
responsible for: strategies developed by performance of the
• Making strategies and top management. workers.
goals for the • all the activities of first • Giving feedback to the
organisation. line managers. workers.
• Taking decisions • Interpreting the plans • Influence others to work
regarding activities to and policies framed by more by setting an
be performed. top management. example.
• Framing policies for the • Responsible for group
organisation. unity.
• Responsible for welfare • Act as a link between
and survival of the the management and
organisation. the workers.
b. Functional level management
(based on functional areas of
management)
• Financial managers
• Marketing managers
• Human resource managers
• Production and Operations
managers
 Management practices and
functional areas

• Creation of factory building

• Purchase of materials
Production • Attainting production goals
• Quality control

• HR planning
• Job analysis
Personnel • Performance evaluation
• Employees Participation
 Management practices and
functional areas

• Product planning
• Pricing
Marketing • Physical distribution
• Promotion

• Long and short term finance needs

• Identify and choose right source of funds
Finance • Ensure shareholders ROI
• Proper utilization of funds
What Roles do
Manager Play?

Category Roles Sample Activities

Interpersonal Figure Head Attend inaugural Ceremony of New Plant
Leader Encourage Employee
Liaison Coordinate Activities
Informational Monitor Scanning Industry Reports
Disseminator Relay internal Information
Spokesperson Making Speeches
Decisional Entrepreneur Develop new Ideas for Growth
Disturbance Resolve Internal Conflict
Handler
Resource Allocator Review and Revise Resource Requests
Negotiator Reaching Agreement
Decisional Roles
Roles associated with methods managers use in planning strategy
and utilizing resources.

Entrepreneur—deciding which new projects or programs to initiate and

to invest resources in.
Disturbance handler—managing an unexpected event or crisis.
Resource allocator—assigning resources between functions and
divisions, setting the budgets of lower managers.
Negotiator—reaching agreements between other managers, unions,
customers, or shareholders.
Interpersonal Roles
Roles that managers assume to provide direction and supervision
to both employees and organization as a whole.

Figurehead—symbolizing the organization’s mission and what it is

seeking to achieve.
Leader—training, counseling, and mentoring high employee
performance.
Liaison—linking and coordinating the activities of people and groups
both inside and outside the organization.
Informational Role
Roles associated with the tasks needed to obtain and
transmit information in the process of managing the
organization.
Monitor—analyzing information from both the internal and
external environment.
Disseminator—transmitting information to influence the
attitudes and behavior of employees.
Spokesperson—using information to positively influence the way
people in and out of the organization respond to it.
 Manegerial Skills
Conceptual Diagnostic
Human
Technical Skills Skills Skills
RelationsSkill

Political Management
Skills
Changing jobs of
Managers

From Specialist
to General
Managers

Mastering the
job
 Roles of education, experience
and situation
Education Experiences Situation

• Proper education • Experience •managerial style

• College education manager take •Employee’s level of
• Majored in more risk understanding and
colleges • Have lesser skills
• Quality of colleges problems to plan
• Organize
• Lead and control
than the non-
experienced
managers
Emerging management issues
and challenges
• Globalization
• Environmental Dynamism
• Workforce Diversity
• Ethics and Social Responsibility
• Empowerment of Employees
• Technical Development
• Innovation and Change
• Quality and Productivity
• Changing Culture
• Changing consumer Expectation
• Knowledge Management
 Business environment
● V.P.Michael, “Business environment is the sum total of the
environmental factors which provides an atmosphere for
business”.
● The main features of environment are:
○ It works as a force influencing organizations
○ It may be simple or complex to understand and analyze
○ It limits organization’s operational capacity
○ The extent of influence of environment forces differs from
company to company even in an industry
○ It has direct impact on the competing capacity of a business
firm in the market.
Types of Business Environment
 2. External environment

General environment Specific or task environment

○ Political and legal ○ Competitors

environment ○ Customers
○ Economic environment ○ Suppliers
○ Socio-cultural ○ Financial Institutions
environment ○ Distributors
○ Technological ○ Media
environment ○ Government Agencies
○ Pressure groups
 Porter’s five forces model
• Porter’s Five Forces analysis is a framework that helps analyzing
the level of competition within a certain industry.
• It is especially useful when starting a new business or when
entering a new industry sector.
• According to this framework, competitiveness does not only
come from competitors. Rather, the state of competition in an
industry depends on five basic forces: threat of new entrants,
bargaining power of suppliers, bargaining power of buyers,
threat of substitute products or services, and existing industry
 A PICTURE
ALWAYS
REINFORCES
THE CONCEPT
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of data, so remember: use an
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