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    TOPIC 1

    INTRODUCTION TO MANAGEMENT

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    What is an Organization?A group of people working togetherin a

    structured and coordinated fashion toachieve a set of goals.

    A social unit in which two or more peopleinteract to achieve common goalor a set ofgoals.

    Collection of people working togetherin adivision of labor to achieve a commonpurpose.

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    How Do Managers Achieve

    the Organizational Goals?! coordinating " co#bining various

    resources.

    $here are % various resources&'' hu#an

    ' (nancial

    ' ph!sical

    ' infor#ation

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    How Do Managers Co#bine andCoordinate the )arious *inds of

    +esources?$he following slide ,igure -.- illustrateshow #anagers co#bine and coordinatethe various /inds of resources&

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    *a person in an organization who is responsible for the

    work or performance of one or more persons

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    ,igure -.-& Manage#ent in

    Organizations

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    Measuring Managerial

    0erfor#anceManager1s perfor#ance can be #easured b!

    loo/ing at two criteria&

    0erfor#ance e2cienc!0erfor#ance e3ectiveness

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    43ectiveness vs.42cienc!43ectiveness

    43ectiveness is achieved when the organizationpursues appropriate goals. $his #eans 5doingthe right thing.6

    42cienc!

    42cienc! is achieved b! using the fewest inputs7e.g.8 people and #one!9 to generate a givenoutput. $his #eans 5doing things right.6

    $he end result of e3ective and e2cient#anage#ent is organizational success.

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    0erfor#ance43ectiveness4.g&'

    if the demand for market for cars is for

    small, compact and economical cars,but the manager chooses to produceand manufacture big, luxury and

    expensive cars, the manager isconsidered to be ineective

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    0erfor#ance 42cienc!4.g&'

    a company practicing multi tasking rather thansingle tasking a sta performing various jobs.

    a Customer Service sta also being areceptionist of a company.

    * functions can be performed at one time. !manager is using fe"est resources #only one sta$to do many job functions. %inancially save&&

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    What :s Manage#ent?$he Classic De(nition&'

    The art of getting things done through people.

    (Mary Parker Follet)

    A roader De(nition&'

    The process of administering and coordinatingresources effectively, efficiently, and in an effort toachieve the goals of the organization.

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    What :s Manage#ent?A set of activities

    7including planningand decision #a/ing8organizing8 leading8and controlling9directed at anorganization1sresources 7hu#an8(nancial8 ph!sical8

    and infor#ation98 withthe ai# of achievingorganizational goalsin an e2cient ande3ective #anner.

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    $he ,our

    ,unctions of Manage#ent

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    0lanning " DecisionMa/ing;

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    Organizing;$he process of deter#ining the tas/s to be

    done8 who will do the#8 and how those tas/swill be #anaged and coordinated.

    ; Deter#ining how best to group activities andresources.

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    =eading$he capacit! to lead the #e#bers of wor/

    groups toward the acco#plish#ent oforganizational goals.

    :n>uencing the behaviors of others.Motivating #e#bers of the organization+euires a nu#ber of s/ill sets including&@nderstanding individualgroup behavior

    d!na#ics$he abilit! to #otivate e#plo!eese e3ective co##unicatorsAble to envision future and share that vision

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    ControllingMonitoring the perfor#ance of the

    organization and the progress ini#ple#enting strategic and operationalplans.

    :dentif!ing deviations between plannedand actual results.

    $a/ing corrective action

    4nsuring that the organization is #ovingtoward the achieve#ent of its goals.

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    $he Manage#ent 0rocess:nvolves four basic activitiesfunctions.

    =ogicall!8 the process #ust be in

    seuence8 i.e. planning " decision #a/ing8followed b! organizing8 leading and (nall!controlling.

    However8 practicall! #ost #anagers

    involve in #ore than one activities at oneti#e.

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    $he Manage#ent 0rocess

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    O@$COM4 O, 4ACH

    MABAG4+:A= ,@BC$:OB0=ABB:BG ' organization1s strateg!.

    O+GAB::BG ' organization structure.

    =4AD:BG ' high level of #otivation andco##it#ent fro#

    organizational #e#bers.

    COB$+O==:BG' an organization in which it is

    possible to #easureperfor#ance accuratel! andregulate its e2cienc! ande3ectiveness.

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    ManagersManagers are the people who plan8

    organize8 lead8 and control the activities of

    the organization so that its goals can beachieved.

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    $!pes of Managers b!

    =evels$op Managers

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    $!pes of Managers b!

    =evels,irst'=ine Managers7=ower =evelManagers9; +esponsible for putting

    into operation theplans of higher and#iddle #anage#ent

    ;

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    $!pes of Managers b! Areas,unctional #anagers +esponsible for wor/ groups that are seg#ented

    according to function or a single area of activit!. Managers who are responsible for #anaging a wor/

    unit that is grouped based on the function served. i.e. (nance #anager8 #ar/eting #anager8 operations

    #anager

    General #anagers Managers who #anage several di3erent depart#ents

    that are responsible for di3erent tas/s

    +esponsible for #ore co#pleE units that include #an!functional areas of activit!

    i.e. the #anager of a super#ar/et is responsible for#anaging all depart#ents within the store

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    $!pes of Managers b!

    =evel and Area

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    $!pe of Managers 7b! level "areas9

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    !anager

    "# their le$el"# responsibilities%

    acti$ities

    &irst line manager

    !i''le manager

    (op !anager

    &)nctional manager

    eneral manager

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    asic Managerial +oles and

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    A

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    $he $hree :nterpersonal

    +olesFigureheadDepart#ent headrepresentative

    perfor#ing cere#onial dutiesi.e. greeting visitors88 signinglegal docu#ents8 cutting'ribbon

    cere#on!

    Leader +esponsible for hiringsta2ng8

    training and #otivatingsubordinate

    Liaison, Coordinator A person who perfor# and

    interacts with other peopleoutside the organization

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    $he $hree :nfor#ational

    +olesMonitor

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    $he ,our Decisional +oles Entrepreneur

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    Managerial

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    $echnical

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    Conceptual

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    Hu#an

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    +elationship of Managerial

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    -. 4cono#ic in>uences relate with #anage#ent ofresourcesinputs during scarcit!

    . uences #anage#ent of diverse culturethat in>uence interpersonal relationship

    I. 0olitical in>uences govern#ent regulations8rules and laws in>uencing an organization

    %. $echnological in>uences advances inco##unication8 transportation8 infor#ation technolog!in>uencing the conduct of business

    J. Global in>uences pressures to i#prove ualit!8productivit! and cost in order to co#plete globall!

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    4volution of Manage#ent $hought&

    !pproaches

    -. Classical Approach

    . ehavioral ApproachI. Contingenc! Approach

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    $he Classical !pproach

    $he Classical !pproach%

    :deas of the earl! Kth centur! theorists and

    #anagers$his perspective actuall! includes two

    di3erent viewpoints& scienti(c #anage#ent and

    ad#inistrative #anage#ent.

    h l i l h

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    $he Classical !pproach%Scienti&c Management

    Concerned withi#proving theperfor#ance ofindividual wor/ers.

    -.,rederic/ $a!lor

    .=illian Gilbreth

    I.,ran/ Gilbreth

    $h Cl i l ! h

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    $he Classical !pproach%Scienti&c Management

    Frederick '( $a)lordeveloped this s!ste#8which he believedwould lead to a #oree2cient and productive

    wor/ force.$hree areas of focus

    $as/ 0erfor#ance

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    $as/ 0erfor#ance

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    Motivation$a!lor believed #one! was the wa! to

    #otivate wor/ers to their fullestcapabilities.

    He advocated a piecewor/ s!ste# inwhich wor/er1s pa! was tied to theiroutput.

    Wor/ers who #et a standard level ofproduction were paid a standard wage rate.

    Wor/ers whose production eEceeded thestandard were paid at a higher rate for all oftheir production output.

    $h Cl i l ! h

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    $he Classical !pproach%Scienti&c Management

    Frank *ilbreth'

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    $he Classical !pproach%Scienti&c Management

    Lillian *ilbreth'etter wor/ing conditionsas a wa! to i#provee2cienc! and productivit!.

    ',avored standard da!s of

    wor/ing8 scheduled lunchbrea/8 rest ti#e for wor/ers.

    '+e#oval of unsafe wor/ingconditions "child labor.

    $h Cl i l ! h

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    $he Classical !pproach%!dministrative Management

    Ad#inistrative#anage#ent focuseson #anaging thetotal organization.+ntroduced b) Henr)

    Fa)ol(

    ,a!ol1s #anagerial

    functions of planning8leading8 organizing andcontrolling are routinel!used in #odernorganizations.

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    4volution of Manage#ent $hought&

    $he ehavioral !pproach,ocuses on the i#portance of human behaviorin deter#iningshaping #anagerial st!le.

    -.Mar! 0ar/er ,ollet

    .4lton Ma!o

    I.Douglas McGregor

    %.Chester arnard

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    4volution of Manage#ent $hought&

    $he ehavioral !pproachMar) -arker Follet'A /e! to e3ective #anage#ent was coordination

    'Managers need to coordinate and har#onize group e3ort

    rather than force and coerce people.'Managers should give a chance to e#plo!ees to #a/edecisions because the! are the closest to the situation e#plo!ees happ!.

    Elton Ma)o'Made an eEperi#ent called 5Hawthorne 43ect6.

    ':ndividual1s perfor#ance will i#prove if attention was given tothe# 7because the! feel satis(ed and #otivated9.

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    4volution of Manage#ent $hought&

    $he ehavioral !pproachDouglas Mc*regor'for#ulated $heor) . and $heor) / 0it is the assu#ptionsabout e#plo!ees1 behavior9

    'heory (

    Assu#es that e#plo!ees disli/e wor/8 lac/ a#bition8 avoidresponsibilit!8 and #ust be directed and coerced to perfor#.

    Managers #ust use authoritarian st!le of #anage#ent.

    'heory )

    Assu#es that e#plo!ees li/e wor/8 see/ responsibilit!8 are

    capable of #a/ing decisions8 and eEercise self'direction andself'control when co##itted to a goal.

    Managers #ust use participative st!le of #anage#ent.

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    4volution of Manage#ent $hought&

    $he Contingenc) !pproachalso /nown as situational approachit sa!s that organizations are di3erent8 face

    di3erent situations 7contingencies9 andreuire di3erent wa!s of #anaging

    $here is no one best wa) to #anage

    organizations can var! b! size8 technolog!8

    environ#ent uncertaint! and individualdi3erences