Unit-1

Introduction to Management & Leadership

CST- 201
Semester-3
 Course Objectives

• To learn the basics of management and study its principles and

functions.
• To study concept of operational aspects of management and
management ethics.
• To understand concept of Leadership and its theories.
Introduction to Management
“Management is defined as the process of planning,
organising, actuating and controlling an organisation’s
operations in order to achieve coordination of the human and
material resources essential in the effective and efficient
attainment of objectives.”
Robert L. Trewelly and M. Gene Newport
• According to Harold Koontz, “Management is an art of
getting things done through and with the people in
formally organized groups. It is an art of creating an
environment in which people can perform and
individuals and can co-operate towards attainment of
group goals”.
• According to F.W. Taylor, “Management is an art of
knowing what to do, when to do and see that it is
done in the best and cheapest way”.
Characteristics/Features of Management
Management is a goal-oriented process
Management is all pervasive
Management is multidimensional
a) Management of work
b) Management of people
c) Management of operations
Management is a continuous process
Management is a group activity
Management is a dynamic function
Management is an intangible force
Objectives of Management
 Organisational Objectives

a) Profit b) Growth c) Survival

 Social Objectives

 Personal Objectives
Importance of Management
 Management helps in achieving group goals
 Management increases efficiency
 Management creates a dynamic organisation
Management helps in achieving personal objectives
Management helps in the development of society
Management is intangible in nature
Management is situational
Management is the combination of art, science and profession
Nature of Management
• Management is an activity
• Management is a purposeful activity
• Management is concerned with the efforts of a group
• Management applies economic principles
• Management involves decision making
• Management is getting things done through others
• Management is an integrating process
• Management co-ordinates all activities and resources.
1. Management is a universal activity
2. Management is dynamic not rigid.
Levels of Management
Managerial Roles
Interpersonal roles:
• Figurehead Role
• Liaison Role
• Leadership Role
Informational Roles
• Monitor Role
• Disseminator Role
• Spokesperson Role
Decisional Roles
• Entrepreneurial Role
• Disturbance-handler Role
• Resource Allocator Role
• Negotiator Role
Functions of Management

Planning

Controlling Organizing

Directing Staffing
• Planning: Planning is the function of determining in advance what is
to be done and who is to do it. This implies setting goals in advance
and developing a way of achieving them efficiently and effectively.

• Organising: Organising is the management function of assigning

duties, grouping tasks, establishing authority and allocating resources
required to carry out a specific plan.

• Staffing: Staffing simply stated, is finding the right people for the right
job. A very important aspect of management is to make sure that the
right people with the right qualifications are available at the right
places and times to accomplish the goals of the organisation.
• Directing: Directing involves leading, influencing and motivating
employees to perform the tasks assigned to them. Directing involves
leading, influencing and motivating employees to perform the tasks
assigned to them. This requires establishing an atmosphere that
encourages employees to do their best. Motivation and leadership
are two key components of direction.

• Controlling: Controlling is the management function of monitoring

organisational performance towards the attainment of organisational
goals. The task of controlling involves establishing standards of
performance, measuring current performance, comparing this with
established standards and taking corrective action where any
deviation is found.
Management is an art, a science and a profession

• Management is an art because:

1] It is creative
2] It involves use of skill
3] It involves use of technical know how
4] It is directed towards getting results
5] It is personalized.
• Management is a profession because:
Profession is an occupation carried by professionals
like doctor, lawyer, architect, chartered accountant, cost accountant
etc. It involves knowledge and application of it. Management as a
profession is modern concept different from traditional one.
Characteristics of a profession :-
a) Systematic body of knowledge
b) Formal Education
c) Social Responsibility
d) Independent Office
e) Specialization
f) Fees
• Management as a Science:-
Management is a social science because it deals with human
being. Management is a social science due to the following
reasons:-
1. Systematic collection and processing of information
2. Output may change though the inputs are same
3. Principles of Management are universally accepted
Coordination
Coordination is the process whereby an executive develops an orderly
pattern of group efforts among his subordinates and secures unity of
action in the pursuit of common purpose.
McFarland
The process of coordinating the activities of an organisation begins at
the planning stage itself. Top management plans for the entire
organisation. According to these plans the organisational structure is
developed and staffed. In order to ensure that these plans are executed
according to plans directing is required.
Characteristics of Coordination

• Coordination integrates group efforts

• Coordination ensures unity of action
• Coordination is a continuous process
• Coordination is an all pervasive function
• Coordination is the responsibility of all managers
• Coordination is a deliberate function
Importance of Coordination
Coordination is important as it integrates the efforts of individuals,
departments and specialists. The primary reason for coordination is
that departments and individuals in the organisation are
interdependent, i.e. they depend on each other for information and
resources to perform their respective activities.
• Growth in size
• Functional differentiation
• Specialisation
Principles of Management
In the words of Kantooz and O’ Donnell, “Management
principles are fundamental truth of general validity.” These
truths are the guiding pillars in the managerial execution of
functions and solution to problems. Every social science has
developed its own principles. Management is also a social
science and thus it has developed a number of management
principles from time to time.
Process of Principles of Management
In order to derive principles following steps are taken as:
• Observation and study of the problem.
• Testing the principles.
• Choice of the problem or opportunity.
• Making hypothesis.
• Conclusion and forecasting.
1) Observing and study of the problem: Researchers in management
observe the problems carefully in different situations and from
different angles. They have to study deeply the problem, its causes,
magnitude, consequences and find their solutions.
2) Testing the Principles: The principles formed must be scientifically
tested and verified. Before generalization of the principles testing
under different situations is a must.
3) Choice of the problem or opportunity: The researchers in
management science identify the area where general principles of
business management are lacking or need modification.
4) Making hypothesis: On the basis of observation and the data
collection a hypothesis is formed, under assumed situation what is
expected to happen. For example, there will be more output, as wages
are paid according to piece-rate system.
5) Conclusion and forecasting: The next step will be to reach the logical
conclusion and predict the specific happenings under assumed
situations. Thus, the management principles are not as exact as
principles of physical sciences, because management is a social science
and thus a victim of the nearness of social sciences.
Nature or Characteristics of principles of
management
• Universal application
• Flexibility
• General Statement
• It influences human behaviour
• Cause and effect relationship
• Equal importance
• Careful and discreet application
• Decision-making:
Importance of Principles of Management

• It increases the efficiency of the management

• It helps in achieving social objective
• It generates sound understanding
• It directs the areas of training
• It guides to research work in management
Management Principles developed by Henri Fayol:
• DIVISION OF WORK: Work should be divided among individuals and groups to
ensure that effort and attention are focused on special portions of the task. Fayol
presented work specialization as the best way to use the human resources of the
organization.
• AUTHORITY: The concepts of Authority and responsibility are closely related.
Authority was defined by Fayol as the right to give orders and the power to exact
obedience. Responsibility involves being accountable, and is therefore naturally
associated with authority. Whoever assumes authority also assumes
responsibility.
• DISCIPLINE: A successful organization requires the common effort of workers.
Penalties should be applied judiciously to encourage this common
effort.
• UNITY OF COMMAND: Workers should receive orders from only one manager.

SUPERIOR SUPERIOR SUPERIOR SUPERIOR

1 2 3

SUBORDINATE SUBORDINATE

Unity of Command Multiplicity of Command

• UNITY OF DIRECTION: The entire organization should be moving towards

common objective in a common direction.

Presence of Unity of direction Absence of Unity of direction

• ORDER: For the sake of efficiency and coordination, all materials and people
related to a specific kind of work should be treated as equally as possible.
• SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL
INTERESTS: The interests of one person should not take priority over
the interests of the organization as a whole.
• REMUNERATION: Many variables, such as cost of living, supply of
qualified personnel, general business conditions, and success of the
business, should be considered in determining a worker’s rate of
pay.
• CENTRALIZATION: Fayol defined centralization as lowering the
importance of the subordinate role. Decentralization is increasing the
importance. The degree to which centralization or decentralization
should be adopted depends on the specific organization in which the
manager is working.
• SCALAR CHAIN: Managers in hierarchies are part of a chain like
authority scale. Each manager, from the first line supervisor to the
president, possess certain amounts of authority. The President
possesses the most authority; the first line supervisor the least. Lower
level managers should always keep upper level managers informed of
their work activities. The existence of a scalar chain and adherence to
it are necessary if the organization is to be successful.
• EQUITY: All employees should be treated as equally as
possible.

• STABILITY OF TENURE OF PERSONNEL: Retaining productive

employees should always be a high priority of management.
Recruitment and Selection Costs, as well as increased product-reject
rates are usually associated with hiring new
workers.
• INITIATIVE: Management should take steps to encourage worker
initiative, which is defined as new or additional work activity
undertaken through self direction.
• ESPIRIT DE CORPS: Management should encourage harmony and
general good feelings among employees.
Principles of Scientific Management: Propounded
by Taylor
1. Replace rule-of-thumb work methods with methods based on a
scientific study of the tasks.
2. Scientifically select, train, and develop each worker rather than
passively leaving them to train themselves.
3. Cooperate with the workers to ensure that the scientifically
developed methods are being followed.
4. Divide work nearly equally between managers and workers, so that
the managers apply scientific management principles to planning the
work and the workers actually perform the tasks.
Functions of Management
PLANNING

ORGANISING

STAFFING

DIRECTING

CONTROLLING
• PLANNING:

In other words of Koontz and O'Donnell, "Planning is deciding

in advance what to do, how to do, when to do it and who is to
do it. Planning bridges the gap from where we are, to where
we want to go. It makes it possible for things to occur which
would no otherwise happen”.
Nature and Characteristics of Planning
• Primacy of planning or primary function .
• Goal-oriented or focus on objectives
• Pervasiveness of planning
• Essentially a decision-making process
• Integrated process
• Flexible
• Formation of premises
• Directed towards efficiency
• Continuous Process
• Future Oriented
• Action oriented
• Inter-dependent process
Importance and Advantages of Planning
• Facilities unity of direction and co-ordination
• Reduces future uncertainties and charges
• Facilitates control
• Focusses attention on organizational goals and facilitates management by
objectives
• Improves adaptability
• Improves competitive strength
• Planning motivation
• Encourages innovation and creativity
• Ensures efficient use off resources
• Guides decision-making
• Facilitates management by exception
Steps in Planning Process
Recognizing
Need for
Action

Implementatio Gathering
n of Plans Necessary
Information:

Determining Laying Down

STEPS
Secondary Plans Objectives

Determining
Evaluation of Planning
Action Patterns Premises
Examining
Alternative
Course of
Action
• ORGANISING:

Louis A. Allen: "Organizing is the process of identifying

and grouping the work to be performed, defining and
delegating responsibility and authority, and establishing
relationship the purpose for enabling people to work
most efficiently together in accomplishing objectives".
Process of organising

Establishing
Identification and Assignments of reporting
departmentalization duties
division of work relationships
Importance of Organising
1) Benefits of specialization
2) Clarity in working relationships
3) Effective administration
4) Optimum utilization of resources
5) Adoption to change
6) Development of personnel
7) Expansion and growth
• STAFFING:

Staffing basically involves matching jobs and individuals. This

may require functions like manpower planning, recruitment,
selection, training, development, performance appraisal,
transfers, promotions etc.
Nature of Staffing:
• Staffing is a basic function of management.
• It is concerned with human resources management in the organization.
• Staffing function is performed continuously. Every manager has to guide
and train employees and also evaluate their performance on a continuous
basis.
• The main purpose of this function is to make optimum utilization of human
resources and also to provide proper satisfaction to employees.
• Staffing is performed by all managers. In big concerns there is a separate
personnel department to deal with this function, but even here this
department advises line managers regarding different aspect of human
resources.
• Since staffing deals with human beings who have their own needs,
emotions and aspirations this function is different from other managerial
functions.
Need and Importance of Staffing

Employing suitable persons

Keep pace With New Development
Manpower Development
Optimum Utilization of Manpower
Ensuring Job Satisfaction
Process of Staffing
Estimating Man power Need

Recruitment and Selection of Staff

Training and Development

Promotion and Transfer

Remuneration

Performances Appraisal
DIRECTING

• Meaning:
Direction is called management in action. In the words of Thco
Haimann, "In order to make any managerial decision really meaningful,
it is necessary to directing”.
• Definition:
In the words of Koontz and O'Donnel, "Directing is the interpersonal
aspect of managing by which subordinates are led to understand and
contribute effectively and efficiently to the attainment of enterprise's
objectives".
Nature or Characteristics of direction

• It is a Dynamic Function
• It Initiates Action
• It Provides Necessary Link Between Various Managerial Function
• It is a Universal Function
• It is Concerned With Human Relationships:
Importance of Direction
Directing various employees in an organization is an important
managerial task. It is indispensable for achieving enterprise
objectives. Effective direction provides the following advantages:
• Initiates Action
• Improves Efficiency
• Ensures Co-ordination
• Helpful in Implementing Changes
• Provides Stability
• Motivation
• Supervision
• Co-ordination
 CONTROLLING

Knootz and O'Donnel: -

“The measurement and correction of the performance of activities of
subordinates in order to make sure that enterprise objectives and plan
devised to attain them are being accomplished." The accomplishment of
organizational goals is the main aim of every management. The
performance of subordinates should be constantly watched to ensure
proper implementation of plans. Co-ordination is the channel through
which goals can be achieved and necessary.
Characteristics of Controlling
• Managerial Function
• Forward Looking
• Continuous Activity
• Control is related to planning
• Essence of Control is Action
Steps in Controlling Process

Measurement of Comparing Actual Taking Corrective

Setting of Control
Performance and Standard Action
Standards
Performance
 Frequently Asked Question
• Elucidate the functions and importance of management
• Explain the Fayol's principles of management.
• Coordination is the essence of management. Do you agree? Give
reasons.
• Management is considered to be both an art and science.
 Course Outcomes
• Student will be able to appreciate & implement the concept of
management in their personal & professional life.
• Student will learn about operational aspects of management and
management ethics.
• Students will study the concept of leadership and its theories and
apply the concepts in their professions.
 References
• Koontz – Principles of Management (Tata McGrew Hill, 1st Edition 2008)
• Robbins & Caulter – Management (Prentice Hall of India, 8th Edition)
• David, J. (2002). M.S Management, University of Birmingham. Retrieved from
https://www.quora.com/Whats-the-meaning-of-principles-of-management
• R, Kalpan. (2009). Principles of Scientific Management: Propounded by Taylor.
Retrieved from http://www.businessmanagementideas.com/