introduction to management

May 1, 2023Prepared by- Binu Samuel M com(Finance), Mcom(marketing), B.Ed 1

May 1, 2023 2

INTRODUCTION TO

MANAGEMENT

Prepared by- Binu Samuel M com(Finance), Mcom(marketing), B.Ed


Different Meaning Management is an art of getting things done

Management is a process of planning, organizing, staffing, directing and controlling

Management is a distinct activity of any organization

Management is a discipline which represents a body of knowledge.

Management denotes a group of people.


Definition ‘Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources’ - George .R. Terry


Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective- JAMES L. LUNDY

May 1, 2023 6Prepared by- Binu Samuel M com(Finance), Mcom(marketing), B.Ed

Features of management1.Management is getting

things done2.Management is an activity3.Management is purposeful4.Management is a process5.Management is a

profession6.management involves

decision making7.Management is a science

and Art


Levels of management

Levels of management refers to the arrangement of managerial positions in an organization1.Top management2.Middle management3.Lower/ supervisory management


BO

BOD CHAIRMANCEO

TOP MANAGEMENT


MIDDLE MANAGEME

NT

DEPARTMENT HEADS

DIVISIONAL HEADS

SECTIONAL HEADS


LOWER MANAGEME

NT

SENIOR SUPERVISOR

INTERMEDIATE SUPERVISOR

FRONT LINE SUPERVISOR


FUNCTIONS OF MANAGEMENT

“To manage is to forecast and plan, to organize o command, to co-ordinate and control” Henri Fayol


p PLANNING

O ORGANISING

D DIRECTING

S STAFFING

CO CO-ORDINATING

R REPORTING

B BUDGETING

PODSCORB


Organization structure A formal pattern of interactions and

coordination designed by management to link the tasks of individuals and group in achieving organisational goals

A formal framework by which jobs tasks are divided, grouped and coordinated.

When managers develop or change an organisation’s structure thy engage in Organisational Design


• How job tasks are formally divided, grouped and coordinated.(Robbins, 1996).

• The established pattern of relationships between the component parts of an organisation, outlining both communication, control and authority patterns.(Wilson and Rosenfeld, 1990).


Why Do Businesses Need to be Organised?

• Small businesses (particularly sole traders) have an informal organisational structure

• As a business gets bigger then it starts to form some kind of organisation

• An organisation structure is required as soon as there are several people working in the business

• The structure determines:– Who is responsible for what job and– Who is responsible to whom.


Definition of terms• Responsibility – Area of work for a person or

group is accountable for. E.g. discipline of staff or sales of product.

• Duties – Work or job requirements arising from responsibilities. E.g. Writing a warning letter for late coming or to meet clients or customers to persuade then to buy products or services.

• Authority – the right to make decisions and take action. E.g. secretary is given the authority to sign orders up to RM500.– Failure to coordinate between departments result in

duplication of work, stress, communication breakdown and therefore frustrated staff


• Responsibility is defined as “a particular burden of obligation upon a person who is responsible.” Responsible is defined as “answerable or accountable, as for something within one’s power or control.” Therefore, a leader is responsible and has responsibility for the operation for which she has been given authority.


• Authority is defined as “a power or right, delegated or given.” In this sense, the person or company that hires a leader vests him with the authority to manage or direct a particular operation. It is expected that this individual will exercise the full scope of his authority to properly, profitably, and professionally manage the operation.


ORGANIZATIONAL CHART


• A chart Shows;– The business divided into areas where

employees have responsibilities.– States relationships between staffs e.g.

Supervisor, subordinate, peer.– Shows the number of people working in the

organisation.– Historical record – organisation changes makes

the chart become out of date.– As information to new employees and special

group.– Main lines of communication.


Span of Control The number of subordinates a supervisor has reporting to him/her.

It is recommended that a supervisor has about 5/6 subordinates for effective management.

2 types of span of Control; ◦ Narrow◦ Wide

Narrow◦ Closer and more contact with subordinate◦ Tight control and tight supervision◦ More time for other duties – planning, decision making

◦ A lot of layers, more positions

• WHAT IS THE SPAN OF CONTROL?• THE NUMBER OF PEOPLE WHO REPORT TO ONE MANAGER IN A HIERARCHY

• THE MORE PEOPLE UNDER THE CONTROL OF ONE MANAGER - THE WIDER THE SPAN OF CONTROL

• LESS MEANS A NARROWER SPAN OF CONTROL• EXAMPLE BELOW SHOWS A SPAN OF CONTROL OF 4 FOR THE MARKETING MANAGERMarketing

Manager

Marketing Assistant

Market Researcher

Telesales Supervisor

Customer Care

Assistant

SPAN OF CONTROLNarrow Span of Control

Manager

Wide Span of Control

Manager

ProductionFinance R&D Accounting Sales & Marketing

Human Resource

Chief Executive Officer

Functional Structure

FUNCTIONAL ORGANIZATION STRUCTURES

PRODUCT STRUCTURE

W ashing M achineDivis ion

LightingDivision

TelevisionDivision

CorporateM anagers

CEOCorporation

GEOGRAPHIC STRUCTURE

NorthernRegion

W esternRegion

SouthernRegion

EasternRegion

CorporateM anagers

CEOCorporation

MATRIX ORGANIZATIONAL STRUCTURE

CHAIN OF COMMAND (COC)• UNBROKEN LINE OF AUTHORITY FORM THE

TOP TO THE BOTTOM OF THE ORGANISATION.• EVERYONE IS ACCOUNTABLE TO SOMEONE.• WHEN THE COC IS TOO LONG;

• COMPLEXITY IN COMMUNICATION• MESSAGE GETS DISTORTED• DEPERSONALISED EMPLOYEE RELATIONS• TOO MUCH ‘RED TAPE’

• BORDERLESS ORGANISATION• TEAM WORK

CHAIN OF COMMAND • LINE ON WHICH ORDERS AND DECISIONS

ARE PASSED DOWN• FROM TOP OF HIERARCHY TO BOTTOMEXAMPLE Managing

Director

ProductionDirector

ProductionManager

FactorySupervisor

MachineOperators

CENTRALISATION• AMOUNT OF AUTHORITY DELEGATED TO DIFFERENT

POSITIONS IN THE ORGANISATION STRUCTURE.• DECISION MAKING IS FOCUSED AT THE TOP OF THE

ORGANISATION HIERARCHY AND LOWER LEVEL JUST CARRY OUT DECISIONS MADE.

• AUTHORITY AND WORK IS NOT / LITTLE DELEGATED.• ADVANTAGES

• TOP MANAGEMENT IS AWARE OF THE HAPPENINGS AND OVERALL NEEDS, BETTER CONTROL OVER ACTIVITIES

• BETTER STANDARDISED PROCEDURES AND POLICY• EASIER TO MAINTAIN SECRECY

DECENTRALISATION• DECISION ARE MADE AT ALL MANAGEMENT LEVELS.• LOWER LEVEL MANAGEMENT PROVIDE INPUT IN

DECISION MAKING.• AUTHORITY AND WORK IS DELEGATED• ADVANTAGES

• REDUCES WORK LOAD FOR TOP MANAGEMENT• FASTER DECISIONS• BETTER DECISIONS• EMPLOYEES LEARN TO MAKE DECISIONS• IMPROVES STAFF MORALE• ORGANISATION BECOMES FLEXIBLE

CENTRALISED ORGANISATIONS

• WHAT ARE THEY?• ORGANISATIONS WHERE IMPORTANT DECISIONS ARE TAKEN AT

THE CENTRE AND THEN PASSED OUT TO THE VARIOUS DEPARTMENTS / LOCATIONS

• ADVANTAGES• TIGHT CONTROL OF DECISIONS• DECISIONS MADE BY SENIOR MANAGEMENT• HELPS DECISIONS TO BE CONSISTENT ACROSS THE BUSINESS• AVOIDS REPETITION OF FUNCTIONS (E.G. ONLY ONE

PURCHASING DEPARTMENT)• DISADVANTAGES

• LACK OF MOTIVATION FOR MANAGERS• CENTRAL MANAGEMENT MAY BE “OUT OF TOUCH”• MAY BE SLOW TO MAKE DECISIONS THAT NEED TO TAKEN

QUICKLY

DE-CENTRALISED ORGANISATIONS• WHAT ARE THEY?

• ORGANISATIONS WHERE IMPORTANT DECISIONS ARE DELEGATED TO MANAGERS IN OTHER DEPARTMENTS / LOCATIONS

• ADVANTAGES• INCREASED MOTIVATION OF MANAGERS• ENCOURAGES LOCAL INITIATIVES• DECISIONS BASED ON MORE UP-TO-DATE

INFORMATION• DECISIONS MADE QUICKER

• DISADVANTAGES• MANAGERS MAY LACK EXPERIENCE• LOCAL DECISIONS MAY BE INCONSISTENT WITH THE

OVERALL BUSINESS AIMS AND OBJECTIVES• DUPLICATION OF FUNCTIONS AND COSTS

TALL & FLAT STRUCTURES (continued)

Flat Structure / Decentralised Wider span of control

Shorter linesOf authority

Tall Structure / Centralised Narrower span of control

Taller Lines ofauthority


Authority it is the right to give orders. It is institutional and originates because of structural relationships. It exists in the context of organizational relationship.It is a downward flowing concept.


Responsibility

Responsibility means obligation to perform a task. It refers to the mental and physical activities which should be performed to carry out a task It develops from the superior sub ordinate relationship and can not delegated or transferredResponsibility is the obligation of a subordinate to perform the assigned and implied duties- Koontz and O’ Donnel


Accountability Accountability is the obligation to perform responsibility and exercise authority in terms of performance standards established by the superior.When a subordinate is assigned some duties to be performed, he will be accountable to his superior for doing or not doing that work.