Introduction

of
Management
BY
MADHU RIJAL
 Meaning of management

 Management is the art of getting things done through and with

people in formally organized group.
 Management is the task of planning, coordinating , motivating and
controlling the efforts of others towards the specific objective.
 Management is the set of activities ( including planning, organizing
,leading and controlling) directed at an organizations resources (
Human, finical , physical and information) with the aim of achieving
organizational goal in an effective and effective manner.
 Meaning of Management

 Management is to manage human and other resources tactfully

for achievement of organizational goals.
 It is universal in all organized activities.
 It is an exercise of harmonizing men, money, machines, materials
and methods towards fulfilling the defined objectives.
 Management is the process by which managers direct and control
other people to concentrate and balance their effort for effectively
for achieving the goals within the current environment
 Characteristics of

management
Goal Directed
 Universal activity
 Social process
 Group activity
 Both science and art
 A profession
 Multi- disciplinary in nature
 Dynamic activity
Efficiently Vs. Effectively

 Efficiently : getting the maximum output with

minimum resources. Time flexibility and focus on
process.

 Effectively : measures actual output meets the

desired output. Long-term strategy, focus to end.
Process of Management
 Function of Management
1. Planning :
 It is the primary function of management
 It involves selecting objectives, policies, procedures and
program to achieve a desired result.
 It is the process of thinking before doing anything.
 it is mental exercise and requires intelligence, skill and
vision.
 Planning gives solutions to various problem. Which may
arise In course of functioning.
 it minimizes future uncertainties and risk. It saves time,
effort and cost of the organization planning.
( setting organizational objectives, forecasting the
events, formulating policies and procedures, preparing
work schedules and budget.)
Deciding what needs to happen in the future (today, next
week, next month, next year, over the next five years, etc.)
and generating plans for action
 Function of Management
2. organizing :
 Organizing is the process of identifying the major
activities, grouping them into jobs according to
nature and assigning the jobs to different
department and individuals.
 It is concern with developing the structure and
frame work and arranging required resources to
perform required activities.(Resources include
human, financial physical and information)
 It defines the authority relationship among the
organizational members.
 it is the frame work where all mechanisms involved
in achieving common objective.
 The major activities( identify the major activities,
grouping them into managerial skills, Assigning jobs
to different departments and employess)
 Function of Management
3. Staffing:
 Staffing is concerned with recruitment , selection,
appointment and placement of right person to the
right job.
 Staffing is the life-blood of an enterprises which
mobilizes all the resources for the achievement of
common goals.
 It also involve determine the size human resource at
different levels.
 Staffing is the continuous process for the continuous
existence of an organization.
 It includes ( Determining the total manpower
requirement, Recruitment , selection and
appointment of right person to the right job,
organizing seminar, workshop and training to
develop employs skills, performance evaluation ,
promotion and transfer of employees. Etc.
 Function of Management
4. Directing :
 Direction is a complex function that includes all those activities
which are designed to encourage a subordinate to work effectively
and efficiently.
 It is concerned with instructing, guiding and inspiring subordinates to
achieve organizational objectives.
 Direction is the instrument to develop a better working environment
in the organization.
 it includes supervision, motivation, leadership, communication and
coordination.
 Function of management
5. Controlling
• controlling is the process of setting a standards , measuring
performance, comparing actual performance with that of planned
performance and taking corrective action.
• It is a main instrument with which uniformity in action is maintained.
• Taking corrective action is necessary if actual performance is not in
accordance with the planned performance.
• It includes ( setting standards, measuring actual performance,
identifying deviation, analyzing the cause of deviation, taking
corrective action to achieve predetermined goals.
 Managerial Hierarchy and
•
level
The term managerial hierarchy refers to the arrangement of
managerial positions in an organization.
• The concept of division of managerial hierarchy into different level
were brought into practice to divide the authority and responsibility
into various level.
• The common managerial hierarchies in different organizations are as
follows : Top level management, middle level management, lower
level management.
Level of Hierarchy
 Managerial Hierarchy and
1.
level
Top Level management:
• This s the highest level of managerial hierarchy and is also known as
the brain of the management
• The top level management drives its power directly from owners of
enterprise.
• It corporate enterprise , top level management is created with a
management committee elected directly from subordinates as
members of board of director.
• it is also includes a chief executive like a chairman, president,
managing director or general manager.
• They work long hour and spend much of their time in meeting and
decision making.
 Managerial Hierarchy and
level
Top Level management function:
• to define overall objective of the organization.
• To set up organizational structure to complete the work in efficient
and systematic way.
• To prepare strategic and policies of the organization
• To appoint department manager and guide them to do their work.
• To exercise over all control of member of the organization
• to represent the organization to the outside world.
 Managerial Hierarchy and
level
2. Middle level management:
• Middle level management is the largest group of managers in most of
the organizations.
• it is known as the backbone of an organization.
• This level of management consists of departmental heads like human
resource managers, product manager, marketing manager , finance
manager and similar other positions. In some big organization , this
level of management may have two layers senior and junior middle
level manager
 Managerial Hierarchy and
level
2. Function Middle level management:
• To play the role of mediator between top level and first line
management
• To implement plans and policies arranged down by top level
management.
• To prepare departmental plans and strategies on the basis of
guidance and information from top level.
• To divide work among subordinates and maintain coordination
among them.
• To delegate authority and responsibility to the first line management.
• To make provisions of training , workshop , seminar and other
activities.
 Managerial Hierarchy and
level
3. Lower level management:
• This level is known as first line or operating level management .
• It is directly involved in actual operation of production, marketing,
financing, accounts officers and other operational heads.
• They are responsible for the implementation of plans and strategic
developed by the middle level management.
 Managerial Hierarchy and
level
Function of lower level management:
• To make day- to –day plans and to implement plans formulated by
middle level management.
• To assign responsibilities and duties to the employee.
• To provide necessary instructions and guidance to subordinates.
• To manage resources.
• To maintain close and harmonious relation among all the employees.
• To Submit progress report to the middle level management.
• to operate and create better environment for work.
 Principles of management
 the practices of management is based on specific disciplines which
are known as principles of management.
 Management principles are the facts and truths gained through
observation and experiment.
 Many scholars have introduced many principles in different times
through their research and investigation .
 Henry fayol has recommended fourteen principles of management.
 Principles of management
1. Division of work:
This principle is similar to principle of division of labor of
Adam smith, the famous economist. According to this
principle, every employee in an organization must be
assigned only a specific type of work to increase efficiency.
The development of specialization ensures simplicity and
accuracy in performance.
2. Authority and responsibility:
Authority and responsibility are two interrelated terms in
management. While authority is the power and right
essential in a managerial position through which a manager
commands subordinates , responsibility is the obligation to
the fulfilled by the subordinates. This principles emphasizes
the balance between authority and responsibility. Without
responsibility can make a person irresponsible
 Principles of management
[Link]:

Discipline means obedience to superiors and

their their [Link] is also concerned with
succeeding rules, regulations and system of an
organization. This principle is applicable to mangers
and subordinates alike because all are within the
rules of the organization.
4. Unity of command: According to this principles
every workers/ subordinates must get orders and
instructions only from one superior at a [Link]
means a subordinates should be accountable to a
single superior at a time.
5. Unity of Direction:
 Principles of management
5. Unity of Direction
This management principle of the 14 principles of management is
all about focus and unity. All employees deliver the same
activities that can be linked to the same objectives. All activities
must be carried out by one group that forms a team. These
activities must be described in a plan of action. The manager is
ultimately responsible for this plan and he monitors the progress of
the defined and planned activities. Focus areas are the efforts
made by the employees and coordination
6. Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to
have an organization function well, Henri Fayol indicated that
personal interests are subordinate to the interests of the
organization (ethics). The primary focus is on the organizational
objectives and not on those of the individual. This applies to all
levels of the entire organization, including the managers.
 Principles of management
7. Remuneration
Motivation and productivity are close to one another as far as the smooth
running of an organization is concerned. This management principle of the
14 principles of management argues that the remuneration should be
sufficient to keep employees motivated and productive. There are two
types of remuneration namely non-monetary (a compliment, more
responsibilities, credits) and monetary (compensation, bonus or other
financial compensation). Ultimately, it is about rewarding the efforts that
have been made
8. The Degree of Centralization
 Management and authority for decision-making process must be
properly balanced in an organization. This depends on the volume and
size of an organization including its hierarchy.
 Centralization implies the concentration of decision making authority at
the top management (executive board). Sharing of authorities for the
decision-making process with lower levels (middle and lower
management), is referred to as decentralization by Henri Fayol. Henri
Fayol indicated that an organization should strive for a good balance in
 Principles of management
9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from senior
management (executive board) to the lowest levels in the
organization. Henri Fayol ’s “hierarchy” management principle states
that there should be a clear line in the area of authority (from top to
bottom and all managers at all levels). This can be seen as a type of
management structure. Each employee can contact a manager or a
superior in an emergency situation without challenging the hierarchy.
Especially, when it concerns reports about calamities to the immediate
managers/superiors.
10. Order
According to this principle of the 14 principles of management,
employees in an organization must have the right resources at their
disposal so that they can function properly in an organization. In
addition to social order (responsibility of the managers) the work
environment must be safe, clean and tidy.
 Principles of management
11. Equity
The management principle of equity often occurs in the core values of
an organization. According to Henri Fayol, employees must be treated
kindly and equally. Employees must be in the right place in the
organization to do things right. Managers should supervise and monitor
this process and they should treat employees fairly and impartially..
12. Stability of Tenure of Personnel
This management principle of the 14 principles of management
represents deployment and managing of personnel and this should be in
balance with the service that is provided from the organization.
Management strives to minimize employee turnover and to have the
right staff in the right place. Focus areas such as frequent change of
position and sufficient development must be managed well.
 Principles of management
13. Initiative
Henri Fayol argued that with this management principle employees
should be allowed to express new ideas. This encourages interest and
involvement and creates added value for the company. Employee
initiatives are a source of strength for the organization according
to Henri Fayol. This encourages the employees to be involved and
interested.
14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of
management stands for striving for the involvement and unity of the
employees. Managers are responsible for the development of morale in
the workplace; individually and in the area of communication. Esprit de
corps contributes to the development of the culture and creates an
atmosphere of mutual trust and understanding.
conclusion on the 14 Principles of management
 The 14 principles of management can be used to manage
organizations and are useful tools for forecasting, planning, process
management, organization management, decision-making,
coordination and control.
 Although they are obvious, many of these matters are still used based
on common sense in current management practices in organizations.
It remains a practical list with focus areas that are based on Henri
Fayol ’s research which still applies today due to a number of logical
principles.
 Types of Management
Skills
1. Technical Skills
Technical skills involve skills that give the managers the ability and
the knowledge to use a variety of techniques to achieve their
objectives. These skills not only involve operating machines and
software, production tools, and pieces of equipment but also the
skills needed to boost sales, design different types of products and
services, and market the services and the products.
2. Conceptual Skills
These involve the skills managers present in terms of the
knowledge and ability for abstract thinking and formulating ideas.
The manager is able to see an entire concept, analyze and
diagnose a problem, and find creative solutions. This helps the
manager to effectively predict hurdles their department or the
business as a whole may face.
 Types of Management
Skills
3. Human or Interpersonal Skills
The human or the interpersonal skills are the skills that present the
managers’ ability to interact, work or relate effectively with people.
These skills enable the managers to make use of human potential in the
company and motivate the employees for better results.
 Role of the Manager:
A role is concerned with the behaviour pattern of a manager within an
organization. Henry Mintzberg did a careful study of five chief executives
at work in the late 1960’s. He discovered that the role of a manager is
quite different from the notions held at that time. For instance, the
prominent view at that time was that managers were reflective thinkers
who carefully and systematically processed information before taking
decisions.
 Role of the Manager:
Mintzberg found that his managers were engaged in a large number of
varied, un-patterned, and short-duration activities. There was little time
for reflective thinking because managers encountered constant
interruptions. Mintzberg provided a categorization scheme for defining
what managers do based on actual managers on the job. He
concluded that managers perform ten different but highly interrelated
roles. The term management roles refers to specific categories of
managerial behaviour. Table gives the ten different roles of the
manager.
 Role of the Manager:
Interpersonal Roles:
A manager has to perform some duties as a
figurehead. He may receive the guests from outside or
preside over a social function of employees. He may
have to sign some legal documents as head of the
organization. These are the roles played as figurehead.
He has also to act as leader when he has to sort out the
activities of subordinates. He has not only to motivate
the employees but is also involved in hiring, firing and
discipline employees. The third role in interpersonal roles
is of liaisoning. He has to contract outside agencies for
collecting business related information. The outside
information providers may be individuals or groups
 Role of the Manager:
Informational Roles:

All managers are required to perform informational

roles. They have to collect information from
organizations and institutions outside their own.
Managers also play the role of disseminators when
they supply information to subordinates in the
organization. This information is factual as well as
with interpretations for the benefit of users. A
manager acts as a spokesperson when he
represents the organization to outsiders.
 Role of the Manager:
Decisional Roles:
According to Mintzberg, a manager performs four
decisional roles. He initiates and oversees new projects
for the improvement of organizational performance,
this is the entrepreneurial role played by him. As
disturbance handler, manager takes corrective actions
in response to previously unforeseen problems. He also
acts as resource allocation when he assigns and
monitors the allocation of human, physical, and
monetary resources. He acts as a negotiator when he
discusses and bargains with other groups to gain
advantage for his own unit.
 Becoming a Manager
The managers job is unpredictable and full of uncertainties . There
are several environmental factors that create complexities and
challenges in managerial job. Therefore becoming a manger in a
competitive environment is not so easy. So the leader needs to
develop different skills to prove himself as a successful manager.
He can acquired the required skills by education, experiences
and environments.
a. Role of Education: college and university degree is essential to
enhance managerial skills. Education is the fundamental for
developing management skills . It is required to all level of
mangers regardless for a particular level. Educated person follows
a well developed program of study and become familiar with
current research and thinking .
 Becoming a Manager
b. Role of Experiences: A person cannot become an
efficient manger only by having bookish knowledge.
Management skill can also be enhanced through
experiences. An individual developed insight by
experiencing day by day pressure and a variety of
managerial challenges that cannot learned from the book.
c. The role of situation: A manager also learns through a
variety of management situations. A particular method
suitable to solve a problem in one time may not necessarily
be suitable to another time.
d. Motivation
 Emerging Challenges for
manager
➢ Globalization
➢ Quality and productivity
➢ Ethics and Responsibility
➢ Workforce Diversity
➢ Innovation and Change
➢ Empowerment of Employees
➢ Knowledge Management
➢ Multi cultural Effects
 Business Environment

Business environment means all of

the internal and external factors
that affect how the company
functions including employees,
customers, management, supply
and demand and business
regulations.
 Types of Environmental

Factors
Internal: Employees, Shareholders, Organizational Structure,
Organizational Culture, Labour Unions.
 External: a. Task environment ( Customers, Suppliers, Distributors,
Government, Special Interest Groups, Financial Institutions, Media,
Competitors.)
b. Remote/General: Economic, Socio-Cultural, Political, Legal,
Technological, Global (international relationship, international organizations, etc)
 Importance of the Study

of B.E
Strategy Formulation (basic input for S.F)
 Competitive Analysis (Degree of competition)
 Adaptability (adjust with emerging environmental factors)
 Stability (Foresee the impact of the environmental factors)
 Dynamism (capacity to adjust with the changing situation)
 a. Economic Environment
Those Economic factors which have their
affect on the working of the business is
known as economic environment.
 Economic Conditions: (Stages of Business
cycle, national Income, per-capita
income, demand and supply trends,
Inflation rate, Industrial growth, Export
growth rate, Interest rate, efficiency of
public and private sectors, growth of
private sector business, size of the market.
 Economic Env. Cont..
 Economic System: a. Capitalism (free market economy), b. Socialism
(Centrally planned economy:-Democratic socialism, Totalitarian
socialism) c. Mixed Economy
 Economic Policies: a. Monetary Policy, Fiscal Policy, Foreign Trade
Policy, Foreign Investment Policy, Industrial Policy, Global Economic
Environment, Economic Legislation.
 b. Social Environment
Social Cultural Environment is defined as a set of beliefs, customs,
practices, and behavior that exists within a population or society.
(Business Dictionary)
 Attitude: Individual freedom, democracy, truth and justice, love and
marriage, opinion etc.
 Religion and Religious Groups
 Language
 Social Env. Contn….
 Education
 Social Institution (family system, marriage)
 Class structure (Affluent ,middle, lower-middle, poor)
 Business Culture (way of doing business)
Political & Legal
Environment
 Politics: the activities associated with the
governance of a country or area.
 The political –legal dimension of the general
environment refers to government regulation of
business and the relationship between business
and government.
Political Factors
 Constitution: A constitution is a set of fundamental
principles or established precedents according to
which a state or other organization is governed.
(Interim Constitution 2007)
 Political &legal Env.

Cont…
Political Institution: ( Legislature, Executive, Judiciary)
 Political System: Ideological forces, political parties, election
procedure, and power centers. Nepal has been practicing
republican democracy as a result of peoples’ movement of 2006.
 Political Philosophy: Democratic, Totalitarian or Mix .
 Political &Legal
Environment
Legal Factors:
Cont.
 Laws: Various law enacted by the parliament to protect the rights
and interest of consumers, labours, business and society. (income tax
act, excise duty act, consumer act etc)
 Courts of Law: Supreme Court, Court of Appeal, District Court, Labour
Court, Special Court.
 Law Administrators: Government Agencies, Police, Lawyers, Jail
System etc.
 Technological

Environment
Technology can be defined as the method or technique for
converting inputs to outputs in accomplishing a specific task.
Technological Factors
1. Level of Technology:
 Labour based Technology (small scale business)
 Capital based technology( oil refining industry,
telecommunications industry, airline industry)
(Both are production methods used in Production of goods and
Services)
 Technological Env. Cont.
2. Pace of Technological Changes: Technological changes influences
organization in the following ways.
 It can make existing industries obsolete.
 It can rejuvenate (revitalize) the existing industries through product
improvement or cost reduction.
 It can create entirely new industries.(on line marketing, online
payment etc)
 It can increase government regulation.
Technological Env. Cont.

3. Technological Transfer: Technology transfer implies

technology imported from technologically
advanced foreign countries. Technology transfer
can be through:
 Globalization (MNCs)
 Projects (Turnkey Projects:- ready for immediate
use or operation) Examples of turnkey projects
include houses, factories, storefronts, churches,
aviation hangars and chemical production and
other facilities. Turnkey projects denote
contracted construction endeavors that, when
completed, are ready for occupation, use or sale.
 Technological

Environment Contn..
Trade( sale of equipment by the manufacturer)
 Training assistance (Bilateral and multilateral donors provide technical
assistance)
Technological Env. Cont.

4. Research and Development (RD): RD is the

essence of innovation.
 Customer except new products of superior quality
which are safe, comfortable and environment
friendly.
Corporate social Responsibility of
Business
➢ Social responsibility refers to the obligation of decision
makers to take action which protect and improve the
welfare of society as a whole along with their own interest.
➢ Corporate social responsibility (CSR) is how companies
manage their business processes to produce an overall
positive impact on society. It covers sustainability, social
impact and ethics, and done correctly should be about
core business - how companies make their money - not
just add-on extras such as philanthropy.
➢ Social responsibility is the set of obligation an organization
has to protect and enhance the society in which its
functions.
Arguments for and Against social
Responsibility of Business
1. Public Expectation
2. Long Run Profile
3. Ethical Obligation
4. Public Image
5. Better Environment
6. Balance of responsibility and power
7. lack of skills
8. Stockholder interests.
Approaches of Corporate social
Responsibility of Business
1. Social obstruction : this is a very traditional and classical view
of social responsibility. According to this approach the main
motive of business is to earn profit for the welfare of owners or
shareholders. The manager of this approach emphasis only on
economic welfare of the firm. They show the unethical
behavior and do as little as possible to solve social problems. If
possible they also try to ignore the legal provisions regarding
social responsibility.
2. Social Obligation : This approach is one step forward than
social obstruction but is most consistent with the arguments
used against social responsibility. The manger of this approach
also emphasis that their job is to earn profit. They only consider
legal requirement regarding social responsibility and nothing
more than that .
Approaches of Corporate social
Responsibility of Business
3. Social Response: this approach of social responsibility is
improved than social obli9gation. The manager following this
approach fulfill their legal and ethical requirement for social
responsibility and also will go beyond theses requirement in
selected case. They voluntarily agree to participate in social
programs.
4. Social contribution: This approach considers the highest
degree of social responsibility. The manager in this approach
believe that they are the good citizens of the society and
proactivity seek opportunities to contributes in social welfare
programs.
They willingly participate in social welfare activities , education ,
sports , health , sanitation and charity.
Area of Corporate social
Responsibility of Business
1. Towards Investors
2. Towards customers
3. Towards Employees
4. Towards Government
5. Towards community (PUBLIC)
 Ethics
• Ethics is the set of moral principles and rules guiding an individual
behaviour.
• Ethics commonly refers to a set of rule or principles that defines right
and wrong conducts.
• it is the basis of determining right or wrong in a given situation.
• It is an individual personal perception and belief taking while taking a
decision.
• Managerial ethics is the standards of social norms and values , truth
and justices that is accepted by the mangers in the decision making
process.
 Significance of ethical
1.
consideration
Promotes goodwill and image
2. helps maintain better relation with stakeholders
3. Less interference from government
4. Promote fair competition
5. Improve working environment
6. Helps to increase market share.
 Factors affecting Ethics
1. Action of Top mangers
2. Standards of HR mangers
3. Organizational cultures
4. Internal Environment
5. social factors
Managerial Ethics

❖ Ethics is the set of moral principles and rules guiding

an individual behavior.
❖ Managerial ethics is the standards of behavior that
guides individuals managers in their works.
❖ Ethics commonly refers to a set of rules or principles
defined right and wrong conduct.
❖ Ethics is defined as the discipline dealing with what
are good and bad with moral duty and obligation.
❖ Ethics is refers to principles of behavior that
distinguish between what a good , bad , right and
wrong
Significance of Managerial Ethics

❖ Promotes goodwill and image

❖ Helps maintain better relation with stakeholder

❖ less interference from government

❖ promotes fair competition

❖ promotes social responsibility

❖ Improve working Environment

❖ Helps to increase market share

 Corporate Governance
❖
and Ethical Standard
Corporate governance is a set of relationship between a
company management its shareholders and other
stakeholders.
❖ Corporate governance as the system of laws, rules and factors
that control operations of company.
❖ Corporate governance as the system used to govern a
corporation so that the interests of corporate owners are
protected.
❖ Corporate governance” is the term used to refer to the policies
and processes by which a corporation (or other large, complex
institution) is controlled and directed. It refers especially to the
way power and accountability flow between shareholders,
boards of directors, CEOs, and senior managers.
Linking strategy with
Ethics and Social
Responsibility
“We prosper by helping society prosper”
 Ethics: Social Norms under which individual shows
morally positive behavior. In other words ethics
can be defined as moral principles that govern a
person's or group's behavior.
 Social Responsibility: It is an obligation that an
organization, group or individual has to act to
benefit society at large.
Linking strategy with
Ethics and Social
Responsibility Cont.
 Corporate Social Responsibility (CSR) is defined as
the way companies integrate social,
environmental, and economic concerns into their
values and operations in a transparent and
accountable manner.
Activities under Ethics and Social Responsibility:
 providing goods at reasonable price
 providing job opportunities to the society and
providing healthy working environment to the
employees
Linking strategy with
Ethics and Social
Responsibility Cont.
 pollution control, disposal of solid and liquid
wastes, conservation of natural resources
 paying tax to the government
 following the laws of the society
(Pollution free equipments, local community &
materials give priority, appreciating and
addressing social values, charity for locals clubs
and others)
Linking strategy with
Ethics and Social
Responsibility Cont.
Arguments against social responsibility:
 Cost of social work.
 Organization is not expert on social work.
 Social responsibility is not social work.
 Ignore business aim.

(How to make society in favor of organization)