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Introduction to Management
Module-III

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 Management Name of Institution

• Management is a process of achieving

success despite difficulties.
• Management is the process of
designing ,maintaining an environment in
which individuals ,working together in
groups.
• Management is the art of getting things
done through and with people in formally
organized groups.- Koontz.
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Definition of Management

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 Features and role of Management
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• Organized activities
• Existence to Objective
• Relationship among resources
• Working with and through people
• Decision Making

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 Management Functions Name of Institution

• Planning: Defining goals, establishing strategy and developing plans

to coordinate activities.

• Organizing: Determining what needs to be done, how it will be done

and who is to do it.

• Staffing

• Controlling: Monitoring activities to ensure that they are

accomplished as planned.

• Directing: Motivating, leading, and any other action required in

dealing with people.

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Characteristics of Management
• Continuous Process
• Integrated Process
• Human Activity
• Formal Groups
• Getting Things Done Through Others
• Purposeful Activity
• Environment-Oriented Activity
• Creative Activity
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Scope/Functional Areas of
Management
• Production Management
• Marketing Management
• Human Resource Management

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Marketing Management
Market:- refers to the group of consumers or
organizations, interested in the product,
has the resources to purchase the
product, and is permitted by law and other
regulations to acquire the product
Marketing:- It is a total system of business
activities design to plan promote and
distribute want satisfying goods and
services to target market.
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Marketing management:-
• “Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stakeholders.”

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Marketing Concepts:
 Focusing on customer needs before
developing the product
 Aligning all functions of the company to
focus on those needs
 Realizing a profit by successfully satisfying
customer needs over the long term.

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 Marketing Mix Name of Institution

• Product— what are you selling? (It might be a

product or a service.) (Customer solution)
• Price— what is your pricing strategy?
(Customer Cost)
• Place or distribution—how are you distributing
your product to get it into the marketplace?
(Convenience)
• Promotion— how are you telling consumers in
your target group about your product?
(Communication)
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 Marketing Mix Name of Institution

• Positioning— what place do you want your

product to hold in the consumer’s mind?
• Personal relationships— how are you building
relationships with your target consumers?
• People: public who can have impact on
organization or can be affected by organization.
• Profits: the basic objective of organization that
to have something valuable in return of product
or service mostly it is in form of money.

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Human Resource Management

• HRM is concerned with managing

manpower to improve individual, group
and organizational effectiveness.

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HRM consists of various elements such

as; human resources planning, recruitment
and selection, training, motivation,
performance appraisal, career
development, promotion and transfer of
human resources.

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 Production and operations
management Name of Institution

• (POM) is the management of an

organization’s production system.
 A production system takes inputs and
converts them into outputs.
 The conversion process is the predominant
activity of a production system.
 The primary concern of an operations
manager is the activities of the conversion
process.
 Organizational Model Name of Institution

Finance
Sales HRM

POM
QA
Marketing

MIS
Engineering Accounting
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Different Ways to Study POM

• Production as a System
• Production as an Organization
Function
• Decision Making in POM

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Production System

Conversion
Inputs Outputs
Subsystem

Control
Subsystem

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Inputs of a Production System

• External
– Legal, Economic, Social, Technological
• Market
– Competition, Customer Desires
• Primary Resources
– Materials, Personnel, Capital

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Outputs of a Production System

• Direct
– Products
– Services
• Indirect
– Waste
– Pollution
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Decision Making in POM

• Strategic Decisions
• Operating Decisions
• Control Decisions
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Strategic Decisions
• These decisions are of strategic
importance and have long-term
significance for the organization.
• Examples include deciding:
– the design for a new product’s production
process
– where to locate a new factory
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Operating Decisions
• These decisions are necessary if the
ongoing production of goods and services
is to satisfy market demands and provide
profits.
• Examples include deciding:
– how much finished-goods inventory to carry
– the amount of overtime to use next week
– the details for purchasing raw material next
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Control Decisions
• These decisions concern the day-to-day
activities of workers, quality of products
and services, production and overhead
costs, and machine maintenance.
• Examples include deciding:
– labor cost standards for a new product
– frequency of preventive maintenance
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Production and Operations

 Classification of Management Theory
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• Classical Approach
• Neo Classical Approach
• Modern Approach

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Administrative Approach-By Fayol

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Fayol’s 14 Principles of Management
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 Scientific Management theory-Taylor
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• Elements and Tools • Principles

1. Separation of planning and 1. Replacing rule of thumb

doing 2. Cooperation
2. Functional Foremanship 3. Maximum output
3. Job analysis 4. Development of workers
4. Standardization 5. Time and cost
5. Scientific selection and
traning
6. Financial incentives
7. Economy
8. Mental Revolution

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 System Approach Name of Institution

• Management as a
whole system
• Open system
• Adaptive
• Dynamic
• Probability

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DECISION MAKING

‘A DELIBERATE THOUGHT PROCESS BASED

ON DETAILS AND DATA, ENABLING CHOICE
AMONG ALTERNATIVES TO SETTLE THE
ISSUES ON HAND.’
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DECISION SITUATIONS

DECISION MAKING UNDER CERTAINITY

DECISION MAKING UNDER RISK

DECISION MAKING UNDER UNCERTAINITY

 DM INTER-RELATIONSHIPS
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GREAT UN -CERTAIN COMPLEX LONG CREATIVE

TERM
T
O
P

DECISION
MIDDLE NATURE TIME TYPE
IMPACT ENVIRONS

JUNIOR

PROGRAMMED
SHORT
CERTAIN SIMPLE
SMALL TERM
 THE DECISION MAKING PROCESS

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GENERATING
SETTING
ALTERNATIVES
OBJECTIVES

GATHERING EVALUATING
INFORMATION ALTERNATIVES

SELECTING
ALTERNATIVE

DECISION
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Company Profile
( SWOT )

Mission Objectives Strategies Tactics

Industry & Environmental

Analysis ( SWOT )
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Mission
• Fundamental purpose, how firm differs from its rivals.
• the purpose or reason for the organization’s existence

Objectives –
• Measurable performance targets, financial and/or strategic.
• the end results of planned activity
• Purpose of setting Objectives is to:
– convert mission into performance targets
– create yardsticks to track performance
– establish goals that require stretch
– push firm to be inventive, focused
• Objectives are of two types- Financial and strategic objectives

Strategies – means, plans or commitments to achieve a firm’s mission and objectives

Types of strategies Name of Institution