Management & Entrepreneurship Development

Module 01
Management
What is Management?
• According to Mary Parker Follett: “the art of getting things
done through people”.
• According to George R Terry “a process consisting of planning,
organizing, actuating and controlling performed to determine
and accomplish the objectives by the use of people and
resources”.
• Ross Moore states “Management means decision-making”.
Characteristics of Management
• Management is a continuous process
• Management is an art as well as science
• Management aims at achieving predetermined objectives
• Management is a factor of production
• Management is decision-making
• Management is needed at all levels
• Management aims at maximum profit
• Management is a dynamic function
• Management is a profession
• Management as a career
Importance of Management
• Management is a critical element in country’s growth
• Management enables a country’s economic development by bringing the 4
factors of production (men, materials, money and machines) together.
• Without management, the country’s resources will remain resources and
never become production
• Not only in business, it is applied in education, social, military and Govt.
• It follows the same pattern irrespective of the size of the organization.
• Management is dynamic and life giving element in every organisation.
• It co-ordinates current activities, plans future ones, arbitrates disputes and
provides leadership.
• Adapts to environment, determine success, also the very survival.
MANAGEMENT FUNCTIONS
OR THE PROCESS OF MANAGEMENT
Planning
• Planning is the primary function of management.
• It is looking ahead and preparing for the future.
• It determines in advance What, How, When should be done.
• It involves determination of specific objectives, programs, setting policies,
strategies, rules and procedures and preparing budgets.
• Planning is a function which is performed by managers at all levels – top,
middle and supervisory.
• Plans made by top management for the organization may cover periods as
long as five to ten years, whereas plans made by low level managers cover
much shorter periods.
 Organizing
• It is the process of bringing together physical, financial and human resources
and developing productive relationship amongst them for achievement of
organizational goals.
• Organizing involves dividing work into:
⮚ Identification of activities.
⮚ Classification of grouping of activities.
⮚ Assignment of duties.
⮚ Delegation of authority and creation of responsibility.
⮚ Coordinating authority and responsibility relationships
• According to Koonz O’Donnel, “Organization consists of conscious
coordination of people towards a desired goal”. E.g. an organization for
scientific research will have to be very different from one manufacturing
automobiles.
 Staffing
• Staffing involves managing various positions of the organizational structure.
• It involves selecting and placing the right person at the right position
• Staffing involves:
⮚ Manpower Planning (estimating man power in terms of searching, choose the person
and giving the right place).
⮚ Recruitment, selection & placement.
⮚ Training & development.
⮚ Remuneration.
⮚ Performance appraisal.
⮚ Promotions & transfer
 Directing
• The actual performance of the task starts with the function of direction.
• It is also called by various names namely “leading”, “motivating”,
“activating”.
• Directing involves these sub functions:
(a) Communicating: It is the process of passing information from one
person to another.
(b) Leading: It is a process by which a manager guides and influences the
work of his subordinates.
(c) Motivating: It is arousing desire in the minds of workers to give their
best to the enterprise.
 Controlling
• Control is the process of checking to determine whether or not proper
progress is being made towards the objectives and goals and acting if
necessary to correct any deviations.
• Control involves three elements:
(a) Establishing standards of performance.
(b) Measuring current performance and comparing it against the established
standards.
(c) Taking action to correct any performance that does not meet those
standards.
FUNCTIONAL AREAS OF MANAGEMENT
Production:
[Link]: It involves procuring right quantity of materials at the right
quality, at the right time and at the right price from the right supplier
[Link] management: This involves storing of materials, issue of
materials to various departments.
[Link] and Development: It deals with improving the existing products
and process and developing new products and process.
Contd….
• Marketing: This area involves the distribution of organizations’ products to
the buyers. The sub-activities are:
(1) Advertising: Involves giving information about products to buyers.
(2) Marketing research: It is related with the systematic collection, analysis of
data relating to the marketing of goods and services.
(3) Sales management: It involves management efforts directed towards
movement of products and services from producers to consumers.
Contd….
• Personnel: It deals with the management of human resources with the
following sub-activities:
(1) Recruitment and Selection: It deals with recruitment and selection of
employees.
(2) Training and Development: It deals with training of employees and making
them more efficient.
(3) Wage and Salary Administration: Deals with fixing of salaries, job
evaluation, promotion, incentives etc.
(4) Industrial Relations: Deals with maintenance of good employee relations.
Roles of Management - According to Henry Mintz Berg .
Management Roles
Interpersonal Role
There are three types of interpersonal roles:
(1) Figure head role: In this role, manager has to perform duties of traditional
nature such as attending social functions of employees, taking an important
customer to lunch and so on.
(2) Leader role: Manager’s leader role involves leading the subordinates
motivating and encouraging them.
(3) Liaison: In liaison role, manager serves as a connecting link between his
organization and outsiders. Managers must cultivate contacts outside his
vertical chain to collect information useful for his organization.
Information Role
There are three types of informational roles:
(1) Monitor: In his monitoring role, manager continuously collects information
about all the factors which affects his activities. Such factors may be within
or outside organization.
(2) Disseminator: In the disseminator role, manager possesses some of his
privileged information to his subordinates who otherwise not be in a position
to collect it.
(3) Spokesperson: As a spokesperson, manager represents his organization
while interacting with outsiders like customers, suppliers, financers,
government and other agencies of the society.
Decisional roles
Manager performs three roles
1. Entrepreneur: As an entrepreneur, a manager assumes certain risks in terms of outcome
of an action. A manager constantly looks out for new ideas and seeks to improve his unit by
adopting it to dynamic environment.
2. Disturbance handler: In this role, manager works like a fire-fighter manager contains
forces and events which disturb normal functioning of his organization. The forces and
events may be employee complaints and grievances, strikes, shortage of raw materials etc.
3. Resource Allocator: In this role, the manager divides work and delegates authority to sub-
ordinates
4. Negotiator: In his role of negotiator, manager negotiates with various groups in the
organization. Such groups are employees, shareholders and other outside agencies
LEVELS OF MANAGEMENT
Levels of Management
Top management : which consists of owners, BOD, managing Directors, Chief
Executive and General Mangers,
The main functions of it are:
1) Determining the objectives or goals of the enterprise
2) Framing policies and making plans to achieve the objectives laid
3) Setting up an organizational framework
4) Assembling the resources of money, men , materials, machines and
methods
5) Exercising effective control
6) Providing overall leadership
Levels of Management
Middle management: It acts as a necessary link between the top and the
lower level management or operating level.
It is concerned with the task of implementing the policies and plans laid down
by the top management.
It can be further classified as Senior middle management, Functional Heads
The important functions of it are:
a)Interpreting the policies framed by top management.
b)Preparing the organizational set up in their respective departments.
c)Selecting suitable operative and supervisory personnel.
d)Assigning duties and responsibilities for timely execution of the plans.
Levels of Management
Lower or operating management: It is the lowest level in the hierarchy of
management and actual operations are the responsibility of this level of
management.
It consist of supervisors, and foremen who are in direct touch with the
workers.
The function are:
a) To plan day to day working within the goal prescribed by the higher
management
b) To issue orders and instructions for executing the work
c) To arrange material and equipment for the work force.
d) Providing on the job training to workers.
e) To supervise and control the work of workers and maintain personal
contact with them.
Management Skills
MANAGEMENT: A SCIENCE OR ART?
Management as a science
⮚ Sciene is a systematized bocdy of knowledge.
⮚ It comprises of:
(1) Methods of inquiry are systematic and empirical.
✔‘Systematic’ means, being orderly and unbiased.
✔Enquiry must be empirical (experimental) and not merely an armchair speculation.
(2) Information can be ordered and analyzed
✔Scientific information collected in the raw form is finally ordered and analyzed with
statistical tools.
(3) Results are cumulative and communicable.
✔Science is also cumulative in that what is discovered is added to that which has been
found before.
✔It is communicable which permits repetition of study. When study is replicated then
the second try produces the results similar to the original.
✔Science denotes two types of systematic knowledge; natural or exact and behavioral or
inexact.
❖Systematic knowledge means studying of any one of the parameters like
velocity, humidity , pressure etc., (physics and chemistry).
❖In behavioral or in exact science means study of person and number of
factors affecting him.
❖E.g. We cannot study the effect of monetary incentives on workers
productivity.
Management is an art
• Art implies application of knowledge & skill to trying about desired results.
An art may be defined as personalized application of general theoretical
principles for achieving best possible results.
• A manager has to coordinate various resources against several constraints
to achieve predetermined objectives in the most efficient manner.
• Art has the following characters –
[Link] Knowledge.
[Link] Skill- personalized nature.
[Link]- requires innovation & Creativity.
[Link] through practice.
[Link]-Oriented.
Comparison between science and Art
Science Art
Advances by knowledge Advances by policies

Process Feels

Predicts Guesses

Defines Describes

Measures Lectures
MANAGEMENT: A PROFESSION
• It has become a profession & organizations are developing professional
managers who can contribute to their growth.
• The success of a manager is depending upon his professionalism.
• Main Features of a profession are as follows:
[Link] of organized & systematic body of knowledge.
[Link] method of acquiring knowledge & skill.
[Link] of an association with professionalism at its goal
[Link] of ethical code of conduct to regulate the behavior of members of
profession.
[Link] of fees based on service, but with a due regard for the priority of
service over the desire of the monetary reward.
MANAGEMENT AND ADMINISTRATION

• Administration means overall