INTRODUCTION TO MANAGEMENT(BUS.
313)
Course instructor: [Link] Shaikh
Name: Liaqat Ali Memon (2K20/BBAE/82)
BBA(Hons)2nd Semester Evening Program
GDP
Gross Domestic Product (GDP) is the monetary value of all finished goods and services made
within a country during a specific period. GDP provides an economic snapshot of a country, used
to estimate the size of an economy and growth rate. GDP can be calculated in three ways, using
expenditures, production, or incomes
POVERTY
Poverty is a state or condition in which a person or community lacks the financial resources and
essentials for a minimum standard of living. Poverty means that the income level from
employment is so low that basic human needs can't be met.
However, you define it, poverty is complex; it does not mean the same thing for all people. For the
purposes of this book, we can identify six types of poverty: situational, generational, absolute,
relative, urban, and rural. Situational poverty is generally caused by a sudden crisis or loss and is
often temporary.
Unemployment
Unemployment is a term referring to individuals who are employable and seeking a job but are
unable to find a job. Furthermore, it is those people in the workforce or pool of people who are
available for work that does not have an appropriate job.
Unemployment has costs to a society that are more than just financial. Unemployed individuals
not only lose income but also face challenges to their physical and mental health. Societal costs of
high unemployment include higher crime and a reduced rate of volunteerism
INTRODUCTION TO MANAGEMENT
Management is both universal and ubiquitous in that we all use variations of its elements.
The management process by which we pursue goals includes planning, organizing, leading, and
controlling. These are “the how” a manager pursues organizational goals and are universally
known as the four functions of management.
Peter Ferdinand Drucker
Peter Ferdinand Drucker (1090-2005) was an Austrian-born, American management
thinker, professor, and author. He also spent part of his life in England and attended a
lecture by John Maynard Keynes
Grid Management
Managerial grid is used to evaluate the management style/leadership. The authors are Robert
Blake and Jane Mouton. The grid consists of two dimensions: Concern for Production (Results)
and Concern for People. Managerial grid is used to evaluate the management style/leadership
style
The Managerial or Leadership Grid is used to help managers analyze their own leadership styles
through a technique known as grid training. This is done by administering a questionnaire that
helps managers identify how they stand with respect to their concern for production and people.
Historical Background of Management
The recorded use of organised management dates back to 5000 B.C. when the agricultural
revolution had taken place. Written documents found in the Sumerian civilization which
flourished some 5000 years ago, contains evidence of management control practices.
The first and the most important function of management is Planning. Planning involves setting
objectives in advance, a goal which is to be achieved within a stipulated time. Various alternatives
are formulated in order to achieve the goals.
What are the 10 functions of management
Functions of a Manager
• Planning.
• Organizing.
• Staffing.
• Directing/leading.
• Coordinating.
• Reporting.
• Budgeting.
• Controlling.
Classical Approach
Classical management theory is based on the belief that workers only have physical and economic
needs. It does not take into account social needs or job satisfaction, but instead advocates a
specialization of labor, centralized leadership and decision-making, and profit maximization.
The three branches of the classical approach to management are scientific management,
administrative principles and bureaucratic organisation.
The main weakness of the classical management theory arose from its tough, rigid structure.
One of the main principles of the classical management theory is to increase productivity and
efficiency; however, achieving these goals often came at the expense of creativity and human
relations
Behavioral Approach
The behavioral management theory is often called the human relations movement because it
addresses the human dimension of work. Behavioral theorists believed that a better
understanding of human behavior at work, such as motivation, conflict, expectations, and group
dynamics, improved productivity.
❖ Contemporary Approach
Contemporary Approaches to Management provides a framework of management practices based
on more recent trends, such as globalization, theory Z concepts, McKinsey's 7-S approach,
excellence models, productivity and quality issues, etc
contemporary is existing at the same time or of the present time period.
An example of contemporary are the works of Fitzgerald and Hemingway.
An example of contemporary is furniture in the modern style. adjective.
❖ Mintzbergs Managerial Roles
The Canadian management expert Henry Mintzberg is an authority in the field
of organizational structures and organizational design.
He has written many business books on various organisational management
theories. Henry Mintzberg distinguishes ten key managerial roles that managers and
executives fulfil. These Mintzberg Managerial Roles are subsequently divided up into three
categories: the interpersonal category, the informational category and the decisional
category.
The six characteristics are described below:
1. Managers process open-ended workloads;they are capable of doing a lot of work
under demanding time constraints.
2. Managers start up their own activities and subsequent actions. These activities are
varied and fragmented and they are relatively short in duration.
3. Managers prefer to avoid information from reference materials such as notes and
documents.
4. Managers prefer verbal communication, such as one-on-one talks, telephone
conversations and meetings.
5. Managers maintain relationships primarily with subordinates and external parties
and secondary with their superiors.
6. Managers like being involved in preparatory decisions.
❖ Decision Making Process
Decision making is the process of making choices by identifying a decision, gathering
information, and assessing alternative resolutions. Using a step-by-step decision-making
process can help you make more deliberate, thoughtful decisions by organizing relevant
information and defining alternative
What are the 7 steps in decision making?
1. Step 1: Identify the decision. You realize that you need to make a decision. ...
2. Step 2: Gather relevant information. ...
3. Step 3: Identify the alternatives. ...
4. Step 4: Weigh the evidence. ...
5. Step 5: Choose among alternatives. ...
6. Step 6: Take action. ...
7. Step 7: Review your decision & its consequences.
✓ Motivation and Motivational Theories
Motivation is a state-of-mind, filled with energy and enthusiasm, which drives a person to
work in a certain way to achieve desired goals. Motivation is a force which pushes a person
to work with high level of commitment and focus even if things are against him. Motivation
translates into a certain kind of human behaviour.
It is important to ensure that every team member in an organization is motivated. Various
psychologists have studied human behaviour and have formalized their findings in the form
various motivation theories. These motivation theories provide great understanding on
how people behave and what motivates them.
The three motivators are:
• Achievement: a need to accomplish and demonstrate own competence
People with a high need for achievement prefer tasks that provide for
personal responsibility and results based on their own efforts. They also
prefer quick acknowledgement of their progress.
• Affiliation: a need for love, belonging and social acceptance People with a
high need for affiliation are motivated by being liked and accepted by
others. They tend to participate in social gatherings and may be
uncomfortable with conflict.
• Power: a need for control own work or the work of other People with a
high need for power desire situations in which they exercise power and
influence over others. They aspire for positions with status and authority
and tend to be more concerned about their level of influence than about
effective work performance.
✓ Moslows Hierarchy
Maslow's hierarchy of needs is a theory by Abraham Maslow, which puts forward that people are
motivated by five basic categories of needs: physiological, safety, love, esteem, and self-
actualization
Maslow's hierarchy of needs is a theory of motivation which states that five categories of
human needs dictate an individual's behaviour. Those needs are physiological needs, safety needs,
love and belonging needs, esteem needs, and self-actualization need
✓ Mac Gregor’s Theory
Theory X and Theory Y were first explained by McGregor in his book, "The Human Side of
Enterprise," and they refer to two styles of management – authoritarian (Theory X) and
participative (Theory Y). ... Managers who use this approach trust their people to take ownership
of their work and do it effectively by themselves
McGregor also believed that self-actualization was the highest level of reward for employees. He
theorized that the motivation employees use to reach self-actualization allows them to reach their
full potential.
✓ Conteporaroy Theories at motivational
Contemporary theory is a group of modern literary criticism approaches, such as feminist
criticism and psychoanalytic criticism.
contemporary is existing at the same time or of the present time period. An example of
contemporary are the works of Fitzgerald and Hemingway. An example of contemporary is
furniture in the modern style.
✓ Three Needs Theory
Need theory, also popular as Three Needs Theory. This motivational theory states that
the needs for achievement, power, and affiliation significantly influence the behaviour of an
individual, which is useful to understand from a managerial context.
Human Motivation Theory is also known as Three Needs Theory, Acquired Needs Theory,
Motivational Needs Theory, and Learned Needs Theory.
✓ Goal Setting Theory
Goal-setting theory refers to the effects of setting goals on subsequent performance. Researcher
Edwin Locke found that individuals who set specific, difficult goals performed better than those
who set general, easy goals.
The 5 Principles of Goal Setting Theory
• Clarity. Your goal should be clear and well-defined. ...
• A Sense of Challenge. Your goal should be achievable but it should also stretch you.
...
• Commitment. It seems obvious, but to successfully achieve your goals you need to
be fully committed to them. ...
• Getting Feedback. ...
• Managing Complexity.
✓ Rein Forcement Theory
Reinforcement theory is a psychological principle maintaining that behaviors are shaped by their
consequences and that, accordingly, individual behaviors can be changed through rewards and
punishments.
There are four types of reinforcement: positive, negative, punishment, and extinction. We'll
discuss each of these and give examples.
Reinforcement can include anything that strengthens or increases a behavior, including specific
tangible rewards, events, and situations. In a classroom setting, for example, types
of reinforcement might include praise, getting out of unwanted work, token rewards, candy, extra
playtime, and fun activities.
✓ Equity Theory
The Equity Theory of Motivation deals with the way people compare the value of themselves to
others in similar work situations based on their inputs and outputs. ... When inputs are less like
amount of work or time spent working, but the output of pay is higher there is a perceived
inequity in the situation
Equity Theory is based on the idea that individuals are motivated by fairness. ... As an example of
equity theory, if an employee learns that a peer doing exactly the same job as them is earning
more money, then they may choose to do less work, thus creating fairness in their eyes.
✓ Expectancy theory
Expectancy theory has three components: expectancy, instrumentality, and valence. Expectancy is
the individual's belief that effort will lead to the intended performance goals. ... Valence is the
unique value an individual places on a particular outcome.
People recycle paper because they believe it's important to conserve resources and take a stand
on environmental issues (valence), they believe that the more effort they put into recycling the
more paper people, in general, will recycle (expectancy)