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Organisation Structure and Behaviour - F.Y.

BCA (Sem 2), VNSGU, Surat

CHAPTER 2

INTRODUCTION TO MANAGEMENT
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DEFINITION & MEANING OF MANAGEMENT


According to Terry, “Management is a distinct process consisting of planning, organising, actuating and
controlling performance in order to determine and accomplish objectives by the use of people and
resources.
Hence, from the above definition, we can say that;
- Management is a process of planning, organising, actuating and controlling performance
- Management determines and accomplish objectives
- Resources are required to manage.

IMPORTANCE OF MANAGEMENT
Management is important in any organisation. In order to achieve the objectives, management is
required. Following points show the importance of management;

1. Management takes care of interests of different groups:


In any organisation, there are many groups. For example, shareholders, customers, creditors, society,
government etc. Every group has a special and distinct interest in the working of an organisation. For
example, shareholders are interested in returns (dividend); customers are interested in quality
products and fair price, government is interested in taxes etc. Management is needed to take care of
the interest of all these groups.
2. Optimum use of resources:
There are different types of resources in an organisation – Men, Material, Money, Machines etc. It is
the job of the management to make proper use of these resources. Management tries to use these
resources in the most efficient manner. This will help the organisation in achieving its goals easily.
3. Handling Business Environment:
Every organisation faces a challenge. The challenge is to tackle the problem of changing
environment. Environment keeps changing. For example, political environment, economic
environment, technological environment keeps changing. When the environment changes,
organisations will have to adjust it accordingly. Hence, management is important in handling the
change in business environment and helps the organisation in adjusting as per the change.
4. Growing size of business:
Good management can help the organisation to grow well. An organisation can only go ahead if it
has better management. An organisation require good marketing management, financial management,
production management, human resource management etc. When all the functions of the
organisation are managed well, then it helps in the growth of the organisation.
5. Provides innovation:
Better management will always provide new ideas, imaginations and visions to an organisation.
Innovation helps the organisation to grow.
6. Tackles business problems:
Good management helps in solving the problems of an organisation. Organisation may face
problems internally or from the external environment. It is the job of a management to solve these
problems and move ahead in achieving the goal.

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 1
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat
7. Management directs the organisation:
An organisation can only grow if is directed in proper way. Good management will always helps the
organisation by providing proper direction according to the need.
8. Management provides co-ordination:
Management co-ordinates the activities of the different departments in an organisation. Good co-
ordination brings better team spirit. Good co-ordination will help the organisation in achieving its
goal well in time.
9. Reduces turnover and absenteeism:
Efficient management reduces labour turnover and absenteeism and ensures continuity in the
business activities and operations.
10. Creates sound organisation:
A dynamic and progressive management guarantees development of sound Organisation, which can
face any situation - favorable or unfavorable with ease and confidence

FEATURES OF MANAGEMENT
The nature or characteristics or features of management are:-

1. Continuous and never ending process: Management is a Process. It includes four main functions,
viz., Planning, Organizing, Directing and Controlling. The manager has to Plan and organize all the
activities. He has to give proper directions to his subordinates. He also has to control all the activities.
The manager has to perform these functions continuously. Therefore, management is a continuous and
never ending process.

2. Getting things done through people: The managers do not do the work themselves. They get the
work done through the workers. The workers should not be treated like slaves. They should not be
tricked, threatened or forced to do the work. A favourable work environment should be created and
maintained.

3. Result oriented science and art: Management is result oriented because it gives a lot of
importance to "Results". Examples of Results like, increase in market share, increase in profits, etc.
Management always wants to get the best results at all times.

4. Multidisciplinary in nature: Management has to get the work done through people. It has to
manage people. This is a very difficult job because different people have different emotions, feelings,
aspirations, etc. Similarly, the same person may have different emotions at different times. So,
management is a very complex job. Therefore, management uses knowledge from many different
subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is
multidisciplinary in nature.

5. A group and not an individual activity: Management is not an individual activity. It is a group
activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the
needs and wants of a group (consumers). Nowadays, importance is given to the team (group) and not
to individuals.

6. Follows established principles or rules: Management follows established principles, such as


division of work, discipline, unity of command, etc. These principles help to prevent and solve the
problems in the organization.

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 2
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat
7. Computerised management: Now a days, all managers use computers. Computers help the
managers to take accurate decisions. However, computers can only help management. Computers
cannot replace management. This is because management takes the final responsibility. Thus
Management is aided (helped) but not replaced by computers.

8. Situational in nature: Management makes plans, policies and decisions according to the situation.
It changes its style according to the situation. It uses different plans, policies, decisions and styles for
different situations. The manager first studies the full present situation. Then he draws conclusions
about the situation. Then he makes plans, decisions, etc., which are best for the present situation. This
is called Situational Management.

9. Need not be an ownership: In small organizations, management and ownership are one and the
same. However, in large organizations, management is separate from ownership. The managers are
highly qualified professionals who are hired from outside. The owners are the shareholders of the
company.

10. Both an art and science: Management is result-oriented. Therefore, it is an Art. Management
conducts continuous research. Thus, it is also a Science.

11. Management is all pervasive: Management is necessary for running a business. It is also
essential for running business, educational, charitable and religious institutions. Management is a must
for all activities, and therefore, it is all pervasive.

13. Use a professional approach in work: Managers use a professional approach for getting the work
done from their subordinates. They delegate (i.e. give) authority to their subordinates. They ask their
subordinates to give suggestions for improving their work. They also encourage subordinates to take
the initiative. Initiative means to do the right thing at the right time without being guided or helped by
the superior.

14. Management is dynamic in nature: Management is dynamic in nature. That is, management is
creative and innovative. An organization will survive and succeed only if it is dynamic. It must
continuously bring in new and creative ideas, new products, new product features, new ads, new
marketing techniques, etc.

SCOPE OF MANAGEMENT
According to many authors, it is very difficult to clearly describe the scope of management. However,
we can understand the scope of management through following ways;

1 Subject-matter of Management
 Management is considered as a continuing activity made up of basic management functions
like planning, organizing, staffing, directing and controlling.
 These components are considered as the subject-matter of management.

2 Functional Areas of Management


Management covers the following functional areas:-
 Financial Management: Financial management includes forecasting, cost control, management
accounting, budgetary control, statistical control, financial planning etc.
 Human Resource Management: Personnel / Human Resource Management covers the various
aspects relating to the employees of the organization such as recruitment, training, transfers,

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 3
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat
promotions, retirement, terminations, remuneration, labour welfare and social security,
industrial relations etc.
 Marketing Management: Marketing management deals with marketing of goods, sales
promotion, advertisement and publicity, channels of distribution, market research etc.
 Production Management: Production Management includes production planning, Quality
control and inspection, production techniques etc. Material management includes purchase of
materials, issue of materials, storage of materials, maintenance of records, materials control etc.
Purchasing management includes inviting tenders for raw materials, placing orders, entering
into contracts etc. Maintenance Management relates to the proper care and maintenance of the
buildings, plant and machinery etc.
 Office Management: Office management is concerned with office layout, office staffing and
equipment of the office.

3 Management is an Inter-Disciplinary Approach:


 The science of management develops ideas and concepts from a number of disciplines. Hence,
management is a multi-disciplinary subject.
 Many theories and principles of management are derived from study of commerce, economics,
statistics, sociology, psychology, and mathematics.

4 Principles of Management:
 The principles of management are of universal application. This means that the theories of
management can be applied anywhere.
 These principles are applicable to any group activity (like organisation) undertaken for the
achievement of some common goals.

5. Management is an art and the science profession.


 Management includes scientific method and quantitative techniques of managing people and
the effective utilization of other physical resources. It is based of principle and processes that is
why it is considered as science.
 It is an art of managing humans within an organization, understanding their behaviour and
getting things done skillfully with the efforts of available human resources.
 Nowadays management is considered as profession because of the need of a special knowledge
and expertise in order to manage the business.

MANAGERIAL SKILLS - CONCEPTUAL, HUMAN RELATIONS AND


TECHNICAL
 Management is a challenging job. It requires certain skills to accomplish such a challenge. Thus,
essential skills which every manager needs for doing a better management are called
as Managerial Skills.
 According to Professor Robert Katz, there are three managerial skills, viz.,
Conceptual Skills,
Human Relations Skills, and
Technical Skills.
 According to Prof. Robert Katz, all managers require above three managerial skills. However,
the degree (amount) of these skills required varies (changes) from levels of management and
from an organisation to organisation.

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 4
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat

The above picture or diagram shows the managerial skills which are required by managers working at
different levels of management. The top-level managers require more conceptual skills and less
technical skills. The lower-level managers require more technical skills and fewer conceptual skills.
Human relations skills are required equally by all three levels of management.

1. Conceptual Skills
Conceptual skill is the ability to visualise (see) the organisation as a whole. It includes Analytical,
Creative and Initiative skills. It helps the manager to identify the causes of the problems and not the
symptoms. It helps him to solve the problems for the benefit of the entire organisation. It helps the
manager to fix goals for the whole organisation and to plan for every situation. Conceptual skills are
mostly required by the top-level management because they spend more time in planning, organising and
problem solving.

2. Human Relations Skills


Human relations skills are also called Interpersonal skills. It is an ability to work with people. It helps
the managers to understand, communicate and work with others. It also helps the managers to lead,
motivate and develop team spirit. Human relations skills are required by all managers at all levels of
management. This is so, since all managers have to interact and work with people.

3. Technical Skills
A technical skill is the ability to perform the given job. Technical skills help the managers to use
different machines and tools. It also helps them to use various procedures and techniques. The low-level
managers require more technical skills. This is because they are incharge of the actual operations.

Apart from Prof. Robert Katz's three managerial skills, a manager also needs (requires) following
additional managerial skills.

4. Communication Skills
Communication skills are required equally at all three levels of management. A manager must be able to
communicate the plans and policies to the workers. Similarly, he must listen and solve the problems of
the workers. He must encourage a free-flow of communication in the organisation.

5. Administrative Skills
Administrative skills are required at the top-level management. The top-level managers should know
how to make plans and policies. They should also know how to get the work done. They should be able
to co-ordinate different activities of the organisation. They should also be able to control the full
organisation.
Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 5
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat

6. Leadership Skills
Leadership skill is the ability to influence human behaviour. A manager requires leadership skills to
motivate the workers. These skills help the Manager to get the work done through the workers.

7. Problem Solving Skills


Problem solving skills are also called as Design skills. A manager should know how to identify a
problem. He should also possess an ability to find a best solution for solving any specific problem. This
requires intelligence, experience and up-to-date knowledge of the latest developments.

8. Decision Making Skills


Decision-making skills are required at all levels of management. However, it is required more at the top-
level of management. A manager must be able to take quick and correct decisions. He must also be able
to implement his decision wisely. The success or failure of a manager depends upon the correctness of
his decisions

FUNCTIONS OF MANAGEMENT / MANAGER


 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 Budgeting.
 But the most widely accepted are functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

1. Planning
 It is the basic function of management. It deals with deciding the future actions & deciding in
advance the most appropriate actions for achievement of pre-determined goals.
 According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to
do. It fills the gap from where we are & where we want to be”.
 A plan is a future course of actions. It is an exercise in problem solving & decision making.
Planning is determination of courses of action to achieve desired goals.
 Thus, planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals.
 Planning is necessary to ensure proper use of human & non-human resources. It is present
everywhere, it is an intellectual activity and it also helps in avoiding confusion, uncertainties,
risks, wastages etc.

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 6
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat
2. Organizing
 It is the process of bringing together physical, financial and human resources and developing
productive relationship among them for achievement of organizational goals.
 According to Henry Fayol, “To organize a business is to provide it with everything useful or
its functioning i.e. raw material, tools, capital and personnel’s”.
 To organize a business involves determining & providing human and non-human resources to
the organizational structure.
 Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

3. Staffing
 It is the function of manning (deciding the staff) the organization structure and keeping it
manned.
 Staffing has assumed greater importance in the recent years due to advancement of technology,
increase in size of business, complexity of human behavior etc.
 The main purpose of staffing is to put right man on right job.
 According to Kootz & O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective recruitment, selection, training &
development of employees to fill the roles designed in the structure”.
 Staffing involves:
 Manpower Planning (estimating man power in terms of searching, choose the person and
giving the right place).
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.

4. Directing
 It is that part of managerial function which implements the organizational methods to work
efficiently for achievement of organizational purposes.
 It sets it in motion the action of people because planning, organizing and staffing are the mere
preparations for doing the work.
 Direction involves influencing, guiding, supervising, motivating sub-ordinate for the
achievement of organizational goals. Direction has following elements:
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching &
directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive,
negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one person to
another. It is a bridge of understanding.

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 7
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat
5. Controlling
 It involves comparing the actual performance with the planned performance. If there is any
variation, then necessary actions are to be taken. These actions are called controlling.
 The purpose of controlling is to make sure that everything occurs according to plan.
 According to Koontz & O’Donell “Controlling is the measurement & correction of performance
activities of subordinates in order to make sure that the enterprise objectives and plans desired to
obtain them as being accomplished”.
 Therefore controlling has following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.

LEVELS OF MANAGEMENT IN ORGANISATION STRUCTURE


Levels of management in an organisation structure can be divided into three parts – top level, middle
level and lower level management;

Function of Top Management:


 One of the important functions of top level management is to set objective for organization and
formulating policies for accomplishing such objectives.
 They are the founder of organization having vision to see the growth for their business.
 Top management can see the threat in advance so that they can overcome such threats and
concentrate to convert such treat to an opportunity.
 They are the policy makers who identify right kind of people at right place on right time in
right numbers for successful implementation of policies, and to facilitate efforts for the
accomplishment of organizational objective.
 Here are some of the functions of top level management.
Establishing Objective.
Formulating policies for achieving stated goal.
Planning to carry out objectives and policies.
Generation and Mobilization of resources.
Delegation of Leadership and Motivation.
Increase Co-ordination and Communication.
Effective Controlling to ensure realization of stated objective.
 Top Management provides inspiration and directs their subordinates.
 It is the main responsibility of top management to know the strength and weakness of
employees and organization. They also need to identify environmental threats and
opportunities for successful achievement of organizational objectives.

Functions of Middle Level Management:


 Middle level of management is concerned with the task of implementing the policies and plans
framed by top level management.
 This level is also known as implementation level. It includes departmental heads, other
executive officers.
 Main responsibility of managers at this level is to realize objectives that is visualized by top
management.
 Following are some of the functions of middle level management.
They keep top executives as free as possible for the fulfillment of their other organizational
responsibility.

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 8
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat
To Co-ordinate and Cooperate in smooth functioning of business
To understand interdependence of different departments with in organization
To provide training to the employees for increasing performance
To build up team spirit among the different work groups
Generating belongingness and increase job satisfaction among the member of organization
Motivating employees for better performance
Establishing punishment and reward system

Top Management
Board of Directors,
Managing Directors, or
General Manager.

Middle Level Management


Departmental Heads, or
Functional Managers

Lower Level Management


Accountants, Clerks, Foremen,
Supervisors etc.

Workers, Peons.

Functions of Lower Level Management:


 Lower level of management is also known as supervisory level of management which includes
supervisor, foreman, accountants and clerks and other workers to facilitate operation of the
organization.
 These are the people who put the plans of top management into effective action, delegating
work as per schedule to the individuals and get the work done with in a stipulated time frame.
 Following are the functions of lower level management.
To plan routine work and assigning the job to the workers.
To issue instructions and orders to workers and to supervise functions assigned to them.
Managing other resources like material, tools, and equipment available wherever required
by workers at work place.
To provide on the job training to newcomers in the organization.
To redress grievances of workers.
Proper maintenance of tools, machinery, equipment, and other work related materials.
To increase communication.
To promote healthy relationship between labour and management.
Sending Reports and statements to advice and provide regular feedback on work related
issues to middle level management.
To maintain good human relation with workers and acting as liaison man between middle
management and the workers.

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 9
Organisation Structure and Behaviour - F.Y. BCA (Sem 2), VNSGU, Surat

ROLE OF MANAGERS / MANAGEMENT


It is important for the managers to make use of the resources (men, machines, money, materials etc) well.
This will help in achieving the objectives of the organisation. Henry Mintzberg has divided the role of
managers into three categories;

1. INTERPERSONAL ROLE:
- Interpersonal role means how managers deal with his contacts and other people. This includes
the following;
o A manager is considered as an ‘ambassador’ to all outsiders
o A manager is considered as ‘figure head’. He has formal authority. He also has a special
status in the organisation.
o A manager performs the role of a leader. He has to communicate with his subordinates,
motivate them and activate them to work in order to achieve the objectives.

2. INFORMATIONAL ROLE:
- A manager’s contact with the outside world and his leadership position make him a focal point of
information. He has to receive and collect information so that he can develop a thorough
understanding of his organisation. This role includes the following;
o He gathers information from the environment and transmits it into his organisation.
o He functions as a monitor. He keeps a watch on the information that is spreading
throughout the organisation.
o He functions as a spokesman by passing the organisation’s information into the
environment. For example, when a company launches a new product, the manager
provides this information to the public through press conferences etc.

3. DECISIONAL ROLE:
- A manager occupies an important role in an organisation because of his special and unique
position and authority. This means that he must be performing important organizational duty of
decision making. There are four decisional role that he has to perform:
o He has to perform the entrepreneur’s role by initiating change and taking the risk in
introducing the change in the organisation.
o He has to solve the problem whenever his organisation is under a problem or threat.
o He performs the role of an allocator of resources when he decides how and where his
organisation will expand its efforts and resources.
o He performs the role of a negotiator. As negotiator, he deals with those situations where
he has to enter into negotiations on behalf of the organisation.

===================================THE END===============================

Zakir Patel, Asst. Prof, Naran Lala College of Commerce & Management, Navsari 10