ESSENTIALS OF MANAGEMENT UNIT -1

BASICS OF MANAGEMENT

BY S.Chandramouli Assistant professor Saveetha Management School Saveetha Engineering College

What Is Management?
Management
The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently.

Managers
The people responsible for supervising the use of an organizations resources to meet its goals.

Resources are organizational assets

People Skills Knowledge Information Raw materials Machinery Financial capital

Types of Managers
Levels of Management
First-line managers Responsible for day-to-day operations. Supervise people performing activities required to make the good or service. Middle managers Supervise first-line managers. Are responsible to find the best way to use departmental resources to achieve goals. Top managers Responsible for the performance of all departments and have cross-departmental responsibility. Establish organizational goals and monitor middle managers. Form top management team along with the CEO and COO.

Levels of Management

DEFINITION OF Management

Management art of Getting things

done by a group of people with the effective utilization of resources.

Management Definitions
Management is an organ; organs can be described and defined only through their functions - Peter F.Druckers To Manage is what is to forecast and plan, to organize, to Compound, to co-ordinate, and to control Henry Fayols

art of knowing what do you want to do and then seeing that it is done in the best and cheapest way - F.W. Taylor

process of designing and maintaining of an environment in which individuals working together in groups, efficiently accomplish selected aims - Koontz and Weihrich

CHARACTERSTICS OF MANAGEMENT
Economic Resources Goal oriented Distinct process Integrative force System of authority Dynamic function Social process Management make things happen Intangible forces

MANAGEMENT SCIENCE OR ART?

Science Organized or systematized body of knowledge pertaining to a specific field of enquiry

Art Application of knowledge and personal skills to achieve results

SCIENCE OR ART
Develops by knowledge Develops practice acquired through observation and experimentation Descriptive Explanation is based on person's own understanding and interpretation Laws and principles are not of universal nature and their validity will differ from situation to situation.

Definitive Explains the cause effect relationships between variables Lays downs universal laws and principles, which remain valid in all situations

Nature of Management
This chapter introduces the concept & the elements of Management. It identifies major schools of management thought and describes how they evolved. Modern approaches are emphasized & the role of the manager is closely examined.

Administration & Management

Administration that part of the management process concerned with the institution and carrying out of procedures by which the program is laid down & communicated, and the progress of activities is regulated & checked against targets & plans.

Management a social process entailing responsibility for

the effective & economical planning & regulation of the operations of an enterprise, in fulfillment of a given purpose or task.

Concept of Management
Management may be defined as a process whereby scarce resources (human, material, & financial) are combined to achieve organizational goals. Without management, people would pursue their own objectives independently and this would lead to waste & inefficiency.

Four Functions of Management

Functions of Management

Organising Planning Staffing

Directing

Reporting

Coordinating

Budgeting

Considering Planning Premises

Formulating Supportive Plans

DIFFERENT PHASES OF PLANNING

A
C

TIME

Control by Punishment instead of harassment

DIRECTING
building an effective work climate and creating opportunity for motivation , supervising, scheduling and discipline

Being a Manager
High Variety Fragmentation

Managerial Problems

Brevity

Compensation to be a manager
Copyright 2004 McGrawHill. All rights reserved . 127

Managerial Skills
What should be the right thing?

Conceptual Skills
The ability to analyze and diagnose a situation and distinguish between cause and effect.

Human Skills
The ability to understand, alter, lead, and control Howindividuals can we do better? the behavior of other and groups.

Technical Skills
The specific knowledge and techniques required to perform an organizational role.
Copyright 2004 McGrawHill. All rights reserved . 128

Decision making is defined as selection of a course of action from among alternatives to achieve a desired goal

 Decision making is a selection process. The best alternative is selected out of many available alternatives.

Decision making is a goal oriented process. Decision are made to achieve some goal or objective.

 Decision may be positive or negative. A decision may direct others to do or not to do.

Based on occurrence Programmed decisions Non Programmed decisions Based on location Organizational decisions Personal decisions Based on person Individual decisions Group decisions Based on Information Routine Decisions Strategic Decisions Based on Implementation Policy decisions Operative Decisions

ORGANISATIONAL DECISIONS

PERSONAL DECISIONS

DECISIONMAKER

Who will be my ????

PLANNING
Where the org. wants to be in future Defining goals for future organizational performance Deciding on the tasks and use of resources Deciding in advance which will be done in the near future Lack of planning or poor planning hurts an organisations performance

ORGANISING
Typically follows planning Reflects how the org. tries to accomplish plans Involves assignment of tasks Grouping of tasks into departments Assignment of authority Allocation of resources across the org. Provides all facilities necessary to perform the work.

LEADING
Motivate employees to achieve organisational goals Creating a shared culture and values Communicating goals to employees and creating desire to perform at higher level Involves motivating entire dept.s, divisions and individuals to work immediately with the manager

CONTROLLING
Monitoring employees activities Determining whether the org. is on target to attain its goals Make corrections if necessary Ensure that the achieved objectives conform to preplanned objectives

HENRY FAYOL

1841 - 1925

BASICALLY FROM BRITISH COUNTRY 14 PRICIPLES OF ADMINISTRATION

THOUGHTS
MANAGERS WERE BORN NOT MADE

HENRY FAYOL 14 PRINCIPLES

DIVISION OF LABOUR AUTHORITY

DISICIPLINE
UNITY OF COMMAND UNITY OF DIRECTION REMENURATION

SUBBORDINATION OF INDIVIDUAL INTEREST TO THE COMMON GOOD

CENTRALIZATION HIERARCHY ORDER

EQUITY
STABILITY OF STAFF INITATIVE ESPIRIT DE CORPS

OLIVER SHELTON
DEVELOPED A SOUND PERSONAL POLICY

FRANK B. GILBRETH & LILLIAN BILBRETH

THE BEST WAY TO WORK

EDWARD TREGASKISS ELBOURNE

BASICALLY ENGINEER, INDUSTRIAL ADMINISTRATION

B.S ROWNTREE
ESTABLISHMENT OF PENSION FUND

ELTON MAYO
TO IMPROVE HUMAN RELATION IN INDUSTRY

HENRY GANTT
IMPORTANCE OF HUMAN FACTORS IN THE MANAGEMENT LIKE BONUS

For any organization to be successful, the following principles should be adhered:

All the above said principles shall be carried out only if the organization possesses a sound management.

THANK YOU!!!