1.

Meaning and Concept of Management

Meaning of Management
Management means getting work done through others in an
organized way to achieve goals.
In simple words:
Management is the art of planning what to do, organizing resources,
guiding people, and checking results to reach objectives.
Definitions
 Henri Fayol: “Management is to forecast and plan, to organize,
to command, to coordinate and to control.”
 Mary Parker Follett: “Management is the art of getting things
done through people.”
Concept of Management
Management is:
 Goal-oriented – aims to achieve objectives
 Continuous process – never ends
 Group activity – involves people
 Universal – applicable in business, school, hospital, government
 Dynamic – adapts to change

2. Principles of Management
(A) Fayol’s Principles of Management (14 Principles)
1. Division of Work – Work should be divided to increase
efficiency
 2. Authority and Responsibility – Authority must go with
responsibility
3. Discipline – Obedience and respect for rules
4. Unity of Command – One employee should get orders from
one boss
5. Unity of Direction – One plan for one objective
6. Subordination of Individual Interest – Organization’s interest
first
7. Remuneration – Fair wages for employees
8. Centralization – Balance between central and decentralized
authority
9. Scalar Chain – Clear line of authority
10. Order – Right person at right place
11. Equity – Fair treatment to employees
12. Stability of Tenure – Job security improves efficiency
13. Initiative – Encourage new ideas
14. Esprit de Corps – Team spirit

(B) Taylor’s Principles of Scientific Management

1. Science, not rule of thumb – Work based on scientific study
2. Harmony, not conflict – Cooperation between workers and
management
3. Mental revolution – Change in thinking of both workers and
managers
 4. Development of workers – Training workers for efficiency

3. Management Process (Brief)

Management process includes five basic functions:
1. Planning – Deciding in advance what to do
2. Organizing – Arranging resources and tasks
3. Staffing – Hiring and training employees
4. Directing – Guiding and motivating employees
5. Controlling – Checking performance and correcting errors

4. Managerial Levels
(A) Top-Level Management
 Examples: CEO, Director, Chairman
 Functions:
o Setting goals and policies
o Long-term planning
o Decision making
(B) Middle-Level Management
 Examples: Managers, Department Heads
 Functions:
o Implement plans
o Coordinate activities
o Communicate between top and lower level
(C) Lower-Level Management
 Examples: Supervisors, Foremen
 Functions:
o Supervise workers
o Daily operations
o Maintain discipline

5. Skills, Roles and Functions of a Manager

(A) Managerial Skills
1. Technical Skills – Knowledge of work or technology
2. Human Skills – Ability to work with people
3. Conceptual Skills – Ability to think and plan

(B) Managerial Roles (Henry Mintzberg)

1. Interpersonal Roles
o Figurehead
o Leader
o Liaison
2. Informational Roles
o Monitor
o Disseminator
o Spokesperson
3. Decisional Roles
 o Entrepreneur
o Disturbance handler
o Resource allocator
o Negotiator

(C) Functions of a Manager

 Planning
 Organizing
 Staffing
 Directing
 Controlling

6. Difference between Manager, Leader and Administrator

Basis Manager Leader Administrator

Focus Work & results People & vision Policies & rules

Authority Formal Informal Highest

Role Executes plans Motivates people Makes policies

Position Middle & lower level Any level Top level

Power Given by organization Earned by trust Official power

7. SWOT Analysis in Management

SWOT helps in strategic planning.
Meaning of SWOT
 S – Strengths (internal)
 W – Weaknesses (internal)
 O – Opportunities (external)
 T – Threats (external)
Example:
 Strength: Skilled employees
 Weakness: Lack of funds
 Opportunity: Growing market
 Threat: Competition
Uses:
 Business planning
 Decision making
 Competitive analysis

8. Decision Making: Concept and Process

Meaning of Decision Making
Decision making means choosing the best option from available
alternatives.
Characteristics:
 Continuous process
 Goal-oriented
 Rational thinking
  Important managerial function

Steps in Decision Making Process

1. Identify the problem
2. Collect information
3. Identify alternatives
4. Evaluate alternatives
5. Select best alternative
6. Implement the decision
7. Review and feedback.

UNIT–II : Management Functions

Management is carried out through five basic and traditional
functions: Planning, Organizing, Staffing, Directing and
Controlling. These functions are closely related and together
ensure the smooth running of an organization.

1. Planning
Meaning
Planning is the first and most important function of management.
It means deciding in advance what is to be done, how it is to be
done, when it is to be done and by whom.
According to George R. Terry,
“Planning is deciding in advance what to do, how to do it, when to
do it and who is to do it.”
Purpose of Planning
The main purposes of planning are:
1. To give direction to activities
2. To reduce uncertainty and risk
3. To ensure optimum use of resources
4. To achieve organizational objectives
5. To facilitate coordination and control
Types of Planning
1. Strategic Planning – Long-term planning done by top
management
2. Operational Planning – Short-term planning done by middle
and lower management
3. Single-use Plans – Programs, projects, budgets
4. Standing Plans – Policies, procedures, rules
Planning Process
1. Setting objectives
2. Developing planning premises
3. Identifying alternatives
4. Evaluating alternatives
5. Selecting the best plan
6. Implementing the plan
7. Follow-up and review

2. Organizing
Meaning
Organizing means arranging and grouping activities, assigning
duties, and establishing authority relationships to achieve
organizational goals.
Process of Organizing
1. Identification of activities
2. Grouping of activities
3. Assignment of duties
4. Delegation of authority
5. Establishing reporting relationships

Departmentation
Departmentation means dividing the organization into different
departments for efficient functioning.
Types of Departmentation:
1. Functional – Based on functions like production, marketing,
finance
2. Product – Based on products
3. Geographical – Based on location
4. Customer – Based on customer groups
5. Process – Based on production processes
Decentralization
Decentralization means systematic delegation and dispersal of
authority to lower levels of management.
Importance of Decentralization:
1. Reduces burden on top management
2. Improves decision-making
3. Encourages initiative
4. Develops managerial talent
5. Ensures flexibility

3. Staffing
Concept of Staffing
Staffing means recruiting, selecting, training, developing and
compensating employees to fill organizational positions.
Nature of Staffing
1. A continuous process
2. Human-oriented function
3. Essential at all levels of management
4. Involves both managerial and non-managerial staff
Importance of Staffing
1. Ensures right person for the right job
2. Improves efficiency and productivity
3. Helps in employee development
4. Reduces absenteeism and turnover
5. Facilitates achievement of organizational goals

4. Directing
Meaning
Directing is the function through which managers guide, motivate,
supervise and lead employees to achieve objectives.
Elements of Directing:
1. Supervision
2. Motivation
3. Leadership
4. Communication
Directing is a continuous function and directly deals with people
at work.

5. Controlling
Nature of Controlling
Controlling means ensuring that actual performance is in
accordance with planned performance.
Importance of Controlling
1. Helps in achieving objectives
2. Improves efficiency
3. Reduces wastage
4. Ensures discipline
5. Facilitates coordination
Process of Control
1. Establishing standards
2. Measuring actual performance
3. Comparing performance with standards
4. Finding deviations
5. Taking corrective action

6. Relationship among Planning, Organizing, Staffing, Directing

and Controlling
All five functions are interrelated and interdependent:
1. Planning lays down objectives
2. Organizing arranges resources to achieve plans
3. Staffing provides suitable manpower
4. Directing activates plans through leadership and motivation
5. Controlling ensures plans are properly implemented
Without planning there is no direction, without organizing there is
confusion, without staffing there are no people, without directing
there is no action, and without controlling there is no assurance of
success.

UNIT–III : Organizational Behavior

Organizational Behavior (OB) is an important area of management
that focuses on understanding, predicting, and improving human
behavior in organizations. Since organizations are run by people,
studying their behavior helps management achieve better results.

1. Organizational Behavior
Concept of Organizational Behavior
Organizational Behavior is the systematic study of the behavior of
individuals and groups within an organization and how this
behavior affects organizational performance.
According to Stephen P. Robbins,
“Organizational Behavior is a field of study that investigates the
impact that individuals, groups and structure have on behavior
within organizations.”

Nature of Organizational Behavior

1. Interdisciplinary in nature – draws from psychology, sociology,
economics, and anthropology
2. Human-centered approach – focuses on people at work
3. Scientific and systematic – based on research and analysis
4. Goal-oriented – aims at improving efficiency and effectiveness
5. Dynamic in nature – behavior changes with time and situations
6. Applied discipline – practical application in organizations

2. Importance and Opportunities of Organizational Behavior

Importance of OB
1. Improves employee motivation and morale
2. Enhances job satisfaction
3. Reduces conflicts and misunderstandings
4. Helps in effective leadership
5. Improves organizational productivity
6. Encourages positive work culture

Opportunities of Organizational Behavior

1. Better management of human resources
2. Improved communication and coordination
3. Development of leadership skills
4. Creating a healthy work environment
5. Handling organizational change effectively

3. Challenges of Organizational Behavior in the 21st Century

Modern organizations face many challenges due to rapid changes:
1. Managing workforce diversity
2. Technological advancements and automation
3. Globalization and cross-cultural management
4. Ethical issues and social responsibility
5. Work–life balance problems
6. Managing stress and employee burnout
7. Changing employee expectations
8. Remote and flexible working systems

4. Organizational Culture
Meaning of Organizational Culture
Organizational culture refers to the shared values, beliefs, norms,
customs and practices that guide how employees behave within
an organization.
Simply put, it is “the way things are done in an organization.”

Importance of Organizational Culture

1. Provides identity to employees
2. Guides employee behavior
3. Promotes discipline and unity
4. Improves commitment and loyalty
5. Helps in achieving organizational goals
6. Creates a stable work environment

Characteristics of Organizational Culture

1. Shared values and beliefs
2. Learned behavior
3. Socially accepted norms
4. Stability over time
5. Written and unwritten rules
6. Distinct identity for the organization

5. Motivation
Concept of Motivation
Motivation refers to the internal and external forces that
stimulate a person to act in a certain way to achieve goals.
Motivation answers the question: Why do people work?

6. Theories of Motivation
1. Maslow’s Need Hierarchy Theory
Maslow proposed that human needs are arranged in a hierarchical
order:
1. Physiological Needs – food, water, salary
2. Safety Needs – job security, safety, insurance
3. Social Needs – love, belongingness, friendship
4. Esteem Needs – recognition, respect, status
5. Self-Actualization Needs – personal growth, creativity
Key Points:
 Lower-level needs must be satisfied before higher-level needs
 Once a need is satisfied, it no longer motivates

2. Herzberg’s Two-Factor Theory

Herzberg divided factors affecting motivation into two categories:
a) Hygiene Factors
 Salary
 Company policies
 Working conditions
 Job security
 Interpersonal relations
Absence causes dissatisfaction, but presence does not create
motivation.
b) Motivational Factors
 Achievement
 Recognition
 Responsibility
 Growth
 Work itself
Presence leads to job satisfaction and motivation.

3. McGregor’s Theory X and Theory Y

Theory X
 Employees dislike work
 Avoid responsibility
 Need close supervision
 Prefer direction
Theory Y
 Employees enjoy work
 Accept responsibility
 Self-directed and creative
 Can exercise self-control
Conclusion: Modern organizations prefer Theory Y approach.

4. Alderfer’s ERG Theory

Alderfer condensed Maslow’s theory into three needs:
1. Existence Needs – material and physiological needs
2. Relatedness Needs – social relationships
3. Growth Needs – personal development
Key Feature:
 Multiple needs can be active at the same time
 Introduced frustration–regression principle
UNIT–IV : Managing People
Managing people is one of the oldest and most essential duties of
management. Since organizations are made up of individuals with
different needs, attitudes and abilities, understanding human
behaviour is necessary for maintaining discipline, harmony and
efficiency at the workplace.

1. Managing People
Meaning
Managing people means guiding, directing, motivating and
leading employees so that organizational objectives are achieved
efficiently and smoothly.

Need of Understanding Human Behaviour in Organizations

Understanding human behaviour helps managers to:
1. Predict employee behaviour
2. Improve motivation and morale
3. Reduce conflicts and misunderstandings
4. Maintain discipline and harmony
5. Improve communication
6. Increase productivity
7. Develop effective leadership
Human behaviour is complex and dynamic, therefore managers
must deal with employees patiently and wisely.

2. Models of Organizational Behaviour

Models of OB explain how managers think and act while dealing
with employees.
1. Autocratic Model
 Based on authority and power
 Employees are directed and controlled strictly
 Suitable for traditional and disciplined organizations
2. Custodial Model
 Based on economic security
 Employees depend on organization for wages and benefits
 Creates satisfaction but not strong motivation
3. Supportive Model
 Based on leadership and support
 Encourages employee participation
 Improves motivation and performance
4. Collegial Model
 Based on partnership and teamwork
 Employees are treated as colleagues
 Encourages responsibility and self-discipline

3. Major Concepts in Organizational Behaviour (Elementary)

1. Personality
Personality refers to the totality of an individual’s characteristics,
including behavior, attitudes and emotional patterns.
Factors Affecting Personality:
 Heredity
 Environment
 Situation
Personality influences job performance and interpersonal
relations.
2. Learning
Learning is a relatively permanent change in behavior due to
experience or training.
Types of Learning:
 Classical conditioning
 Operant conditioning
 Social learning
Learning helps in improving skills, efficiency and adaptability.

3. Perception
Perception is the process by which individuals select, organize
and interpret information to give meaning to their environment.
Factors Affecting Perception:
 Personal factors
 Situational factors
 Target characteristics
Incorrect perception may lead to misunderstandings and conflict.

4. Attitude
Attitude refers to a person’s feelings, beliefs and behavioral
tendencies toward a person, object or situation.
Components of Attitude:
1. Cognitive (beliefs)
2. Affective (feelings)
3. Behavioral (actions)
Positive attitudes lead to better performance and satisfaction.

5. Leadership
Leadership is the ability to influence and guide individuals or
groups toward achieving organizational goals.
Leadership is not merely authority, but the art of guiding people
willingly.

4. Leadership Styles
1. Autocratic Leadership
 Leader takes all decisions
 Strict control and supervision
 Useful in emergencies
2. Democratic Leadership
 Employees participate in decision-making
 Encourages creativity and morale
 Best for long-term success
3. Laissez-faire Leadership
 Minimum interference by leader
 Employees work independently
 Suitable for skilled and experienced workers
4. Paternalistic Leadership
 Leader acts like a father figure
 Combines authority with concern
 Common in traditional organizations