Unit -1

Concepts of management

Management- [End Sem- 2019]

It is a process or art of getting things done through others. It involves planning,

organising, coordinating and directing a group of people to achieve a specific goal with
best use of resources.

Features of management:
1. Pervasive: Management is essential for the functioning of all types of
organisations, be they social, economic, or political.
2. Multidimensional: Management has three main dimensions:
● Work Management: Focused on achieving organisational goals through
problem-solving, decision-making, planning, budgeting, assigning
responsibilities, and delegating authority.
● Management of People: Involves getting work done through people,
recognizing individual strengths, addressing weaknesses, and dealing with
people both as individuals and as part of a larger group.
● Management of Operations: Concerned with overseeing the production
process that transforms inputs into outputs, linking the management of
work and people.
3. Dynamic Function: Management is dynamic and must adapt to changing social,
economic, and political conditions for an organisation to succeed. Flexibility and
adaptability are crucial for effective management.
4. Group Activity: Organisations are composed of diverse individuals with different
motivations, but management ensures that these individuals work together
towards common organisational goals. Effective management channels individual
efforts in the right direction.
5. Intangible Force: Although management itself cannot be touched, its
effectiveness is evident in the order within an organisation, employee satisfaction,
and the achievement of organisational goals. Good management creates a
tangible impact on the organisation.
6. Continuous Process: Management is an ongoing, continuous process that is
essential for the smooth functioning of every aspect of an organisation, including
production systems, human resources, finance, and marketing. It is not a
one-time activity but a continuous effort.

Importance of Management:
1. Goal Achievement: Essential for aligning resources and guiding strategies to
achieve organisational goals.
2. Individual Growth: Responsible for assisting individuals in reaching personal
goals, creating a link between individual and organisational success.
 3. Dynamic Adaptation: Ensures organisations stay dynamic, adapting to industry
trends and avoiding stagnation.
4. Societal Development: Contributes to societal development by fulfilling social
responsibilities alongside achieving organisational goals.
5. Efficiency Improvement: Through planning, controlling, directing, and
organising, management enhances organisational efficiency, reducing costs and
boosting productivity.

Management as an Art: [End Sem 2028 2M]

● Creativity and Skill: Requires creativity and skill developed through experience.
● Visionary Approach: Involves creating and achieving a vision of order from chaos.
● Organizing Human Talent: Described as the "art of arts," emphasising human
talent organisation.

Management as a Science:
● Systematic Pattern: Follows a systematic pattern similar to scientific inquiry.
● Data Gathering and Analysis: Involves gathering and analysing data for
decision-making.
● Inexact Nature: Considered a soft science due to the inherent unpredictability of
human factors.

Difference between management and administration. [End Sem 2019,2022

7m]

Basis of function Management Administration

Art of getting things done Concerned with formulating broad

Meaning
through others towards goals. objectives, plans, policies.

Nature Executing function. Decision-making function.

Decides who and how should Decides what and when the work
Process
do the work. should be done.

Doing function, involving Thinking function, determining

Function
supervision. plans and policies.

Skills Technical and Human skills. Conceptual and Human skills.

Level Middle & lower-level function. Top-level function.

(Basis of usage) Applicable to profit-making Applicable to non-business

Applicability organisations (businesses). organisations (clubs, schools).

Influenced by managers' Influenced by public opinion,

Influence
values, opinions, beliefs. government policies, customs.
 Represents owners, earning
Status Constitutes paid employees.
returns on capital invested.

Functions of Management: [End Sem 2019, MST 1 2023]

1. Planning:
a. Definition: Involves deciding future actions, specifying objectives, and
determining steps to achieve them.
b. Importance: Essential function that bridges the gap from initiation to goal
attainment.
c. Elements: Decision-making, problem-solving, and avoidance of confusion
and risks.
d. Example: Ram plans the production and sale of shoes, deciding quantities,
varieties, and resource allocation.
2. Organising: Aligning physical, financial, and human resources to establish
productive relationships.
a. Function: Allotting duties, grouping activities, establishing authority, and
allocating resources. Determines who, where, and when tasks are
performed, affecting the organisation's structure.
b. Example: Ram allocates duties within his shoe enterprise, forming groups
and establishing an organisational hierarchy.
3. Staffing: Involves hiring and developing personnel for various organisational
positions.
a. Function: Addresses recruitment, selection, placement, development, and
retention of human resources. Ensures the right people, with the right
qualifications, are in the right positions.
b. Example: Ram hires personnel with the right qualifications for specific
tasks in his shoe enterprise.
4. Directing: Ensures efficient and effective work by leading, influencing,
instructing, guiding, and inspiring employees.
a. Elements: Communication, issuing orders, overseeing work, creating a
positive work environment.
b. Role: Brings out the best in employees through praise, constructive
criticism, and effective leadership.
5. Controlling: Monitors organisational performance towards goal fulfilment,
detects errors, and takes corrective actions.
a. Purpose: Identifies deficiencies, rectifies mistakes, and ensures work
aligns with predetermined standards.
b. Process: Measurement of goals against standards and correction of
deviations.
c. Example: Ram controls his enterprise's performance against the standard
of selling 1,000 pairs of shoes per week, taking corrective actions as
needed.
Levels of Management- [End Sem 2018]

● Top Level/Administrative:
● Composition: Board, CEO, Managing Director.
● Role:
■ Sets objectives and policies.
■ Appoints middle-level executives.
■ Coordinates activities and maintains external contacts.
● Middle Level/Executory:
● Composition: Branch and departmental managers.
● Role:
■ Executes plans and policies.
■ Coordinates within departments.
■ Evaluates junior managers' performance.
● Low Level/Supervisory:
● Composition: Supervisors, foremen, section officers.
● Activities:
■ Assigns tasks to workers.
■ Guides daily activities and ensures production quality.
■ Communicates worker issues to higher levels.
■ Maintains discipline and provides training.

Managerial Roles:
1. Interpersonal:
● Figurehead: Symbolic authority with legal or social duties.
● Leader: Builds and leads a motivated team.
 ● Liaison: Develops external networks for information.
2. Informational:
● Monitor: Seeks information on internal and external issues.
● Disseminator: Transmits important information.
● Spokesperson: Represents the team and provides information.

● 3. Decisional:
● Entrepreneur: Initiates and encourages innovation.
● Disturbance Handler: Corrects unexpected difficulties.
● Resource Allocator: Allocates resources optimally.
● Negotiator: Represents the organization in negotiations.

Managerial Skills: [End Sem 2018]

1. Interpersonal Skills: Collaboration, relationship building, teamwork. Essential
for effective leadership.
2. Conceptual Skills: Decision-making through working with ideas and concepts.
3. Technical Skills: Using tools and techniques, e.g., proficiency in software.
4. Communication Skills: Understanding business needs, clear communication for
leadership.
5. Leadership Skills: Guiding teams, fostering a positive work environment.
Sought-after for inspiring others.
6. Problem Solving and Decision-Making: Spotting and solving problems,
creative decision-making. Critical for maintaining productivity and making quick
decisions.

Decision Making Process: [End Sem 2018, 2022]

1. Identify the Decision: Clarify the goal and how success will be measured.
2. Gather Relevant Information/Frame the Problem: Analyse the problem from
various perspectives.
3. Identify Alternative Solutions: Consider diverse needs of stakeholders.
4. Choose Among the Alternatives: Evaluate the impact of each alternative on
stakeholders.Consider creative and blended solutions, rejecting false tradeoffs.
5. Take Action/Implementation: Develop an implementation plan. Execute the
chosen solution and monitor progress.
6. Review Decision and its Impact+Learn from Feedback:
● Monitor success metrics defined in step 1.
● Assess the impact on the team and stakeholders.
● Adapt and make iterative decisions if needed.

Types of Decisions in Management:

1. Programmed and Non-Programmed Decisions:

 ● Programmed Decisions: Routine and repetitive, dealing with common
organisational issues.
● Non-Programmed Decisions: Exceptional situations lacking established
guidelines.

2. Operational and Strategic Decisions:

● Operational Decisions: Normal functioning, delegated responsibilities,
shorter time.
● Strategic Decisions: Address present issues, aim for better conditions,
equipment, and efficiency. Typically made by top-level management.

3. Organisational and Personal Decisions:

● Organisational Decisions: Made collectively for organisational goals.
● Personal Decisions: Made by individuals, affecting personal life, with
potential impact on the organisation.

4. Major and Minor Decisions:

● Major Decisions: Significant, such as the purchase of new premises, made
by top management.
● Minor Decisions: Routine decisions, like purchasing stationery, can be
made by lower-level managers.

5. Individual and Group Decisions:

● Individual Decisions: Made by individuals within the organization's policy
framework.
● Group Decisions: Involving a committee, often for important decisions,
aiming for maximum involvement.

6. Tactical and Operational Decisions:

● Tactical Decisions: Policy matters with long-term impact, made by top
management (e.g., plant location).
● Operational Decisions: Day-to-day decisions for proper functioning, made
by middle or lower-level managers (e.g., bonus calculations).

Decision Making Scenarios:

● Under Certainty:
● Known cause and effect.
● Obvious and controllable outcomes.
● Process: Choose the option maximizing utility.
● Under Uncertainty:
● Multiple consequences, unknown probabilities.
● Lack of information and unpredictable variables.
● Under Risk:
● Multiple consequences, known probabilities.
● Requires application of experience and knowledge.
● Intermediate scenario between certainty and uncertainty.
Cross cultural Management: [End Sem 2019, End Sem 2022]

Cross-culture management involves understanding and navigating the differences among

people from various nations, backgrounds, and ethnicities.

Cross-Culture Issues and Resolutions:

1. Communication Styles:
● Recognize differences in communication styles (low-context vs.
high-context).
● Adapt communication to enhance effectiveness in cross-cultural teams.
2. Cultural Values:
● Acknowledge variations in cultural values using Geert Hofstede's
dimensions.
● Understand power distance, individualism vs. collectivism, masculinity vs.
femininity, uncertainty avoidance, and long-term vs. short-term
orientation.
3. Effective Communication Style:
● Develop communication styles aligned with cultural differences.
● Foster openness, flexibility, and emotional intelligence for better
cross-cultural communication.
4. Avoiding Frustration:
● Open up to cultural differences and seek understanding.
● Learn about values that dictate behaviors, fostering a cooperative
environment.
5. Appropriate Motivations:
● Tailor motivational techniques and incentives to accommodate cultural
preferences.
● Consider individual preferences within diverse teams to enhance
productivity.
Cross-Culture Challenges:
1. Different Communication Styles:
● Variations in language usage, non-verbal cues, and assertiveness.
● Awareness of cultural norms in communication to avoid
misunderstandings.
2. Attitudes Toward Conflict:
● Differing views on conflict resolution as positive or to be avoided.
● Recognition of cultural preferences in addressing conflicts.
3. Decision-Making Styles:
● Varying roles in decision-making, from delegation to individual
responsibility.
● Understanding the influence of cultural frames on decision-making
approaches.
4. Attitudes Toward Disclosure:
● Differences in openness about emotions, conflicts, and personal
information.
● Respect for cultural variations in disclosure preferences during
interactions.
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