UNIT-I

INTRODUCTION TO MANAGEMENT

“The art of getting things done through others”

-Mary Parker

Management is essential for all organisation big or small, profit or non-profit, service or
manufacturing. Management is necessary so that individuals make their best contribution
towards group objectives.

Definition:

Management is defined as “the process planning, organising, actuating & controlling an

organisations operation in order to ac coordination of the human & material resources
essential in the effective and efficient attainment of objectives”.

-Robert. Llewellyn & M. Gene Newport

Management Science is the application of a scientific approach to solving management

problem to whole managers makes better decision

Concept of Management:

Process: It is defined as sequence of steps; management is a process it performs series of

functions to get the things done. The functions are planning, organising, staffing, directing
and controlling.

Effectiveness: It is concerned with doing the right task completing activities 7 achieving
goals with in a particular time.

Efficiency: It refers to the task in the right way i.e with minimum cost & optimum utilisation
of resources.

💡The difference between Effectiveness & Efficiency

- Effectiveness: I will complete the job in 2 Hours

- Efficiency: I will complete the job in minimum resource available

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Nature and characteristics of Management

1) Goal oriented process: (with aim to achieve) it will always aim to achieve the
Organisational task or objective.
Example: Big, small, manufacturing or service oriented organisation.
2) Pervasive: Management activities are performed all types of organisation in all
department at all levels.
a) Concept of management is used in whole world.
b) Management is same but differences by person by place.
Example: Profit, non-profit manufacturing organisation.
3) Multi-Dimensional: It doesn’t mean one single activity but it includes three main
activities
a) Management of work. (Planning, organising, controlling)
b) Management of people. ( Staffing, Directing)
c) Management of operation. (production, sale, purchases of Raw material)
4) Continuous processes: It is never ending process. It performers continually planning,
organising, staffing, directing & controlling are performed all the time.
5) Group Activities: A group of people involved in managerial activities.
a) Each individual performs his/her role at her/his states and department.

Example: Purchasing department, Marketing department, sales department, advertising

department, includes group activity.

6) Dynamic Function: Changes according to the environment.

a) It has to make changes according to the environment, goals, objectives, activities.
b) Changes should be takes place to survive in the competitive world.

Example: Nokia

7) Intangibility: (It cannot be physically seen both its presence can be full) the presence of
management can be felt by seeing the orderliness & coordination in the working
environment.

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Functions of Management:

Planning: Determining in advance what it to be done? Who is to do it? This implies setting
goals in advance & developing a way of achieving them efficiently.

❖ It is necessary to ensure people utilization of human & non-human resources.

❖ It helps in avoiding uncertainties, risk, wastage etc.,

Organizing: (It is the process of bringing together) It is the function of assigning duties,
grouping, tasks, establishing authority 7 allocating resources required to carry out.

❖ Authority & Repority (For who to take order & who to report to)
❖ Proper organisational technique accomplishment of work & promote both effective 7
efficiency.

Staffing: Who will be the best person for the job?

❖ It is simply stated as “Finding the right person for the right job”
❖ A very important aspect of management is to make sure that the right people with the
right qualifications as available at the right place to accomplish the goals.
➢ Man power planning
➢ Requirement, selection 7 placement

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 ➢ Training & development
➢ Performance & appraisal
➢ Remuneration
➢ Promotion & transfer

Directing: It involves heading, influencing & motivating employees to perfom the tasks.

It involves in:

• Motivating
• Leadership
• Effective communication
• Influencing
• Communication

Controlling: Process of monitoring performance, comparing with organisational goals

ensuring that everything is carried out as per planning.

❖ It involves checking, verifying and comparing of actual performances with the plans,
identifying of problems or difference of the activities.
❖ Controlling is to make sure that the organisation is moving towards its mission &
objectives.

Management as a science

It should have three futures then it is called scientific management

i. Systematic body of knowledge: Science is a systematic body of knowledge. It’s

principles are based on a result & result relationship.
Example: Apple falling from the tree towards the ground is explained by the law of
gravity Here the cause is Gravity & Effect is Falling.
ii. Principles based on experiment: Scientific principle are first developed through
observation then tested through repeated experimentation under controlled
condition. Like law of gravity after repeatedly observing it is called as principle.
iii. Universal validity: Scientific principles have universal validity & application.

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Management as a science

1. Universally accepted principles: Scientific principles are applied in all situations, at

all time and places e.g., Low of gravitations. Management also contains some
fundamental principles which can be applied universally like the principle of unity of
command- i.e., one man, one boss.

2. Experimentation and observation: Principles are based on logic. E.g., the principles
that earth goes round the sun has been scientifically proved. Management principles
are also developed through practical experiences and experiments of large no. of
managers.

3. Cause and effect relationship: Principles of science lay down cause and effect
relationship between various variables. The same is true for management e.g., lack
of parity (balance) between authority and responsibility will lead to ineffectiveness.

4. Test of validity and predictability: Validity of scientific principles can be tested at

any time or any number of times i.e, they stand the test of time. Each time these
tests will give same result. Similarly, principles of management can also be tested for
valitidy.

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 Science Management
1 ✓
2 –
3 +

M≠S

Management is not a science

Management is intersect of science

Management as an Art:

Now, what do we mean by arts? Arts mean the practical application of knowledge and skills
to achieve the desired results. It is personal application of knowledge to achieve results. It is
attained through study, observation and experience.

The essentials features of arts are:

Theoretical knowledge: Art comprises the application of theoretical knowledge. A particular

art has its basic principles and theory. Some fundamental principles have been derived by
the experts who apply to their particular form of art. For example, painting has its principles
and theory to start with.

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Personal skills: Every artist has his way of working. The use of basic knowledge varies from
individual to individual. Even how they tackle their problems for reaching the result or the
goal which they are willing to achieve differs. Applying this basic knowledge with practise,
creativity, imagination, initiative, and innovation is a personal skill.

Creativity: Art consists of lots of creativity. The theoretical knowledge should be practised
and applied differently to become more creative and achieve the ultimate goal.

Perfection through Practice: As arts require nonstop practice to gain mastery. By

performing the task again and again, the artists gain perfection through practise. For
example, a dancer who practices for hours daily will get smooth and perfect with his steps
through practise.

Is management is an art:

❖ A successful manager practices the art of management in the day-to day job of
managing an enterprise based on study observations & experience.
❖ There is a lot of literature available in various and of management like marketing
finance & human Resources which the management has to specialise in their
theoretical knowledge.
❖ There are various theories of management.
❖ A good manager world through a combination of practice, creativity, imagination,
initiative and innovation.

Own unique manner

YES management is an Art

Mayo’s theory:

• A focus on people rather than upon machine of economics.

• Human Relation are important in motivating people.
• Ream work requires Co-ordination & co-operation of individuals involved.
• Fulfilling both individual and organisational objective simultaneously is very
important.

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Experiments we done:

• Illumination experiment
• Relay assembly test room
• Mass interviewing
• Bank wiring observation

Illumination experiment:

❖ This experiment involved the prolonged observation of two groups of employees.

❖ The intensity of light under which one group worked [Test Group] systematically
varied.
❖ The light was held constant for second group.
❖ In this experiment they conclude that environment factors will play a major role in
production.

Relay assembly test room:

Relay assembly test room experiments were designed to determine the effect of changes in
various job conditions on group productivity as the illumination experiments could not
establish a relationship between the intensity of light and production.

Refer text book page.no: 28

Organisational Design:

Organization Design is a process for shaping the way organizations are structured and run.

It involves many different aspects of life at work, including team formations, shift patterns,
lines of reporting, decision-making procedures, communication channels, and more.

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Organization Design – and redesign – can help any type of organization to achieve its goals.
Sometimes, a large-scale reorganization is necessary. At other points, more subtle shifts in

structures and systems can ensure that an organization continues to thrive.

It depends up on:

a. Sze of the organisation.

b. Nature of the product being manufactured.
c. The complexity of the problem being faced.

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Line organisation:

Line organisation is also known as the “Military”, “Traditional”, “Scalar” from of

organisation.

❖ It is the basic form work for the whole organisation.

❖ This is the simplest & oldest form of organisation which is also known as “chain of
command”.
❖ This authority flows from the top to the lower levels.

Example: Military

Advantages:

• It is simple & easy to understand

• Flexible 7 easy to expand
• Clear communication
• Unity of command

Disadvantages:

• Over loads
• Lack of co-ordination between various departments.
• Limited to small organisation

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Functional organisation:

In a functional organization structure, the entire organization is divided into smaller groups
or departments based on specialized functions.

So for example in such an arrangement there will be a finance department, an IT

department, marketing department etc. This allows for greater cohesiveness and efficiency
in the work of the employees.

Since the work is divided into smaller sectors, so is the management. The management is
also sub-divided according to the type of work being done.

So every department has their own head or executive. And the reporting structure can also
differ from department to department.

Advantages:

• The executive or the team leader has the knowledge and experience of that particular
field. For example, the person heading the IT department will have the education and
skill necessary to shoulder this responsibility and successfully run his team.

• Because the employee has expertise in that particular field, the work is more efficient
and precise. There are fewer mistakes. This also helps with the motivation of the
employees of the company.

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• Since all team members come from similar backgrounds it allows them to share ideas
and come up with solutions. There is a sharing of knowledge, which is always beneficial.

• The employees also having a clear idea of the hierarchy of the firm. They need not
report or answer to several managers.

• Also, the employees feel secure in their work. They see that their work and efforts is
not going unnoticed. This sense of security helps them perform better.

Disadvantages:

• The work can be quite one dimensional. After a while, the employees may start feeling
monotony or boredom. The lack of new challenges can make them unenthusiastic for
the job at hand.

• In this structure, the manager must take care of the appraisal system. If the correct
approach is not taken then conflicts may arise between the employees
regarding promotions or appraisals.

• Also, this form of organization requires a high degree of specialization which is difficult
to establish

• If there is a necessary change of personnel it can disrupt the whole system and its
balance. Also, it is quite a rigid structure, not leaving a lot of scope for adaptation.

• In Functional Organizational Structure, the employees never gain any knowledge or

skills outside their own department. This can cause difficulties in inter-
departmental communication.

Line and staff organisation:

In a line and staff organisation structure, line positions focus on core operations, while staff
positions provide specialised support and guidance. Staff roles, like human resources or
legal, offer expertise and advice to line managers.

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This structure balances operational responsibilities with specialised support, enabling better
decision-making and problem-solving. Specialists in such organisations have advisory nature
as they do not have the power of command over subordinates in other departments.
However, clarifying roles and coordination between line and staff functions is important to
avoid conflicts. This can also lead to confusion and can be quite expensive for small firms.

Advantages:

• Speedy operation.
• Well defined authority & responsibility.
• It possesses all the advantages of both line & functional organisation.
• Stability 7 discipline.

Disadvantages:

• Staffs become ineffective in the absence of authority.

• Misinterpretation of expert advice.
• They lose their efficiency they depend on staff marketing.
• Production cost is increased.

Matrix Organisation:

A matrix organization is a work structure where team members report to multiple leaders.
In a matrix organization, team members (whether remote or in-house) report to a project
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manager as well as their department head. This management structure can help your
company create new products and services without realigning teams.

How do matrix organizations work?

Matrix organizations have two or more management reporting structures. While this may
seem confusing at first, team members typically have a primary manager for their
department.

Reporting to a department manager functions similarly to a traditional work structure. For

example, team members working in IT report to the IT department head. The IT department
head reports to the vice president of their division. Eventually, all reporting relationships
lead to the CEO.

The difference in a matrix structure is that team members also report to project managers.
Projects often require work from members of various departments like IT, marketing, and
finance, which is why having a separate manager for individual projects makes sense.

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Advantages:

• Focus & attention

• Better planning & control
• More flexible
• Motivation

Disadvantages:

• Complex reporting style

• Slow response time
• Conflicting guidance
• Potential power struggles
• Juggling priorities

Project Organisation:

A project organisation is a temporary structure formed specifically for a particular project or

initiative. It is characterised by a project team that is assembled to achieve specific goals
within a defined timeframe. The project team is led by a project manager who has authority
over team members and resources. This structure allows for a dedicated and focused
approach to project management, with team members working together to accomplish
project objectives.

It facilitates effective coordination, communication, and collaboration within the project

team. Once the project is completed, the team is disbanded. Project organisation is
particularly useful when organisations need to manage complex, time-limited projects that
require cross-functional collaboration and a dedicated team focus. In a Project organisation,
unity of command is followed.

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Advantages:

• Good communication
• Single authority
• Fast decision
• Flexible team method
• Line of authority is clear

Disadvantages:

• Interdependent office
• Insecurity
• Deadlines, stress
• Equipment’s an hired from shooter period

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Committee form of organisation:

• A committee organisation is an association of individual set up to reach at resolution

to common challenges which an faced by the organisation.
• It gives the line individual opportunities to discuss their challenges in the committee

Social Responsibility of management:

Process of organisation:

Oversee efforts to improve the responsibilities

Address the social issues

Types of Social Responsibilities:

1. Economic Responsibility

• Every business is engaged in economic activities

• prime (S R) of every business should be economic responsibility
• Should sell product & service which can satisfy the need of society.

2. Legal Responsibility

• company Should comply with the political & legal environment of Country
• company should consider protecting the environment

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3. Ethical Responsibility

• Expects a certain type of behaviour or conduct from the company

• Behaviour may not be documented Law.

4. Discretionary Responsibility (deserved based on decision)

• Voluntary actions taken by the entities in case of n helping poor people.

• They help them by providing a charitable contributions, education activities etc.

Social Responsibilities for different interest Groups

1. Responsibility towards the share holders

• Shareholders are the owner of the company.

• Company should make all the efforts to maximise & protect Shane holder's wealth.

2. Responsibility towards the consumer

• consumers who buys the company's product & services

• Responsibility of the company to provide the right quality, quantity with right price
to consumers.

3. Responsibility towards worker

• Workers are the key. Persons behind company Success

• management of the enterprise must provide the proper working conditions to
workers
• Workers should get fair salaries & wages.

4. Responsibility to towards the Government & community.

• Enterprises must follow the laws & regulations of Country

• Organisation should interact with society to know what their requirement.
• Should maintain proper, Infrastructure, proper disposal System should not harm the
society.

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