Fundamentals of Management

21st sep 2022

Ch-1) Concept of Management

 Management is the art of getting things done with people in
formally organised groups. It is the art of creating an envt in
which people can perform as individuals and yet cooperate
towards attainment of group goals.
 It is the art of removing blocks to search performance a way of
optimising efficiency in reaching goals. -Harold Koontz
 Management is a social and technical process which utilises
resources influences human action and facilitates change in
order to accomplish organizational goals. -Theo Haimann & WG
Scott
 Management is defined as the process by which a group directs
action towards a common goal. This process involves technique
by which a distinguishable group of people (manager)
coordinates activities of other people. Managers seldom
actually perform the activities themselves. This process consists
of certain basic functions. – JL Massie
 The 4 M’s of management are: -
i. Manpower
ii. Material
iii. Machinery
iv. Money
22nd Sep 2022
 Management as a class or elite
 Management as a system of authority
 Authority to break, make or implement the rules and
laws.
 Also have a final goal.
 Management has a separate discipline
 Eg:- Marketing field, Accounting field etc
 Should be taken as a separate field
 Difference in rules and regulation
 Management as a process
 Process in every department where there is a common
goal goal.
 Nature & Characteristics of Management
1. Management is a universal process
 All types of business big or small have management
 Necessary to run office, departments, school etc.
2. Management is purposeful
 Where there is management there is a purpose
 Always has purpose to serve people
3. Management is creative
 Everybody has their own idea as to how to manage a
particular department.
4. Management is an integrative force
 Many departments work together for a completion
of a particular goal.
5. Management is a group phenomenon
 Where there is group management exists
6. Management is a social process
 Management is for the people by the people
7. Management is multidisciplinary
 8. Management is a continuous process
 It cannot be stopped even after reaching the desired
goal.
9. Management is intangible
 Cannot be touched or felt
10. Management is both science & art
 There are rules in the department
 Take action according to the situation
 Management as a profession
1. Body of knowledge
 Any bus, have some specialized knowledge or area.
2. Formal education and training
 If mgmt is there then training process is continuous.
3. Min qualification
4. Professional association
 Means mgmt. is a organised sector.
5. Service above self
6. Code of conduct
 Rules that are to be followed by employees.
 Importance of Management
1) Growing size and complexity of business
2) Increase in specialization of work
 Make different departments and keep people who
are specialized in these courses.
3) Cut throat competition in the market
4) Growing unionization of labour
5) Sophisticated and capital-intensive
technology
6) Increasing complexities of business
decisions
7) Growing regulation of business by the
govt
 8) Need for research and development
9) Turbulent envt of business
 External factors like corona for business. How did it
affect.
10) Need for reconciling the interest of
various groups. Eg owners, public

11) Need for optimum utilisation of
scarce resources
 Functions of Management
1) Planning: Making a blueprint as how to start
a business.
2) Organising: Organising each work in
different departments
i. Identification of activities
ii. Classification of grouping of activities
iii. Assignment of duties
iv. Delegation of authority and creation
of responsibility
v. Coordinating authority and
responsibility relationships (Inter-
department)
3) Staffing:
i. Manpower planning: - Estimating
manpower in term of searching
choose the person and giving the right
place.
ii. Recruitment selection placement:
Eligibility criteria matters
iii. Training and development
iv. Remuneration: Salary
v. Performance appraisal
vi. Promotion and transfers
 4) Directing: -
i. Supervision: - Seniors supervise their
juniors.
ii. Motivation
iii. Leadership
iv. Communication
6th October 2022
5) Controlling
i. Establishment of standard
performance
ii. Measurement of actual performance
iii. Comparison of actual performance
with the standards and finding out
deviation if any
iv. Corrective measures
 Levels of management
1) Top level of management: owners,
Board of Directors and CEO
 To analyse, evaluate and be with the
external environmental forces
 To establish overall long-term goals and
strategies and policies of the company including the
master budget to allocate resources.
 To create an organisational framework consisting
of authority, responsibility and relationships
 To appoint departmental and other
key executives
 To provide overall leadership to the
company
 To represent the company to the
outside world
To exercise overall review and control
on the company’s operations.
 To coordinate the activities and efforts
of different departments
2) Intermediate management/Upper
middle management
Intermediate management Is largely
concerns with day-to-day
administration of respective
departments
Its job to implement and execute
policies in a coordinated manner so
that enterprise objective may be
achieved
They plan operation, issue
instructions, assemble the required
resources, design operating policies
and operating routines, evaluate result
of their respective departments
They are responsible for the efficient
utilisation of resources placed at their
disposal
They are more concerned with the
internal management rather than the
external environment of the
enterprise
3) Middle management
To interpret and explain the policies
framed by top management
To compile and issue detailed
instructions regarding operations
To maintain close contact with
operating results so as to evaluate
performance
To participate in operating decisions
 To cooperate among themselves so as
to integrate or coordinate various
parts of a division or a department
To motivate supervisory personnel
(employees) to work for organisational
goals.
To develop and train supervisory and
operating personnel. Middle
management is the link between top
and lower-level management
4) Supervisory or operating management
or lower level of management
 To plan day to day production within
the goals laid down by higher
authorities.
 To assign jobs to workers and to make
arrangements for their training and
development
 To supervise and control workers and
to maintain contact with charger
hands.
 To arrange materials and tools and to
maintain machines
 To maintain discipline, morale and
good human relations among workers
 To report feedback info and workers
problems which cannot be solved at
their supervising level.
 Refers to grades of executive
leadership whose work has to do
largely with personnel oversight and
direction of operating employees. –
Davis
19th oct 2022
Kautalya’s contribution to management
1) The king
2) The minister
3) The country
4) Fortified city/head offices
5) The army and your team
6) The friend or consultant

3rd nov 2022

 Social system approach: - Given by Bernard
1. Concept of organization
2. Formal and informal organisation
3. Elements of organisation
4. Acceptance theory of authority
5. Functions of the executive
6. Motivation
7. Executive effectiveness
8. Organizational equilibrium

 Limitations of Weberian bureaucracy

1) Highly rigid and strict rules
2) Excluding informal groups
3) Huge waste of money, time and effort
4) Delay in decision making
5) This structure usually suits business
organizations
6) HMR has limited scope in this type of org
7) Focuses on only technical skills of workers
8) Can become difficult for emp and managers
to communicate and coordinate amongst
themselves.
  System approach
1) Open system
Importation of energy
Throughput
Output
System of cycles of event
Negative entropy
Feedback mechanism
Steady state: - Fulfilling of wastage
Differentiation: -
Integration and coordination
Equifinality

2) Closed system: - Has no interaction with

outside environment.

Power subsystem: - Every organization has a power

subsystem and people in the organization elaborate their
behaviour through the power relationship. Power is one's
ability to influence others to achieve desired results. Power
subsystem is important to transform a decision into action in
the organization. Power distribution in the organization is
both formal and informal and two persons occupying the
same level of organizational position may have different
degrees of power because of difference in their personal
characteristics as informal power distribution depends on
these characteristics.
4. Managerial Subsystem. Managerial subsystem is quite
important and refers to managing organizational activities
which are relevant for achieving organizational objectives.
Managerial subsystem has two processes: operation and
control. Operation refers to conversion of inputs into
outputs and control refers to identifying deviation between
planned performance and actual performance and taking
corrective actions if required. Managerial subsystem is
responsible for allocating inputs to organizational units
according to plan to perform operation process. However,
the distribution of these inputs is also affected by social
subsystem and power subsystem, more by the latter.
Michael Porter.

15th nov 2022

Forecasting is always a method where we used
mathematical or statistical tools.
Planning is done on a basis of forecasting.
1) Helps managers in the basis of planning

Steps in forecasting
1) Developing the basis
Estimating future operation
Regulating the forecast
Reviewing the method
18th nov 2022
Unit 3: - Organising

 What is organising?
Ans) Organisation is more than a chart. It is a mechanism
through which management directs coordinate and
controls the business. It is indeed the foundation of
mgmt. If the org plan is ill designed if It is merely a make
shift arrangement then mgmt is rendered difficult and
ineffective if on the other hand it is logical, clear cut and
streamlined to meet present day requirement then the
first requisite of sound mgmt has been achieved.
-Lounsbury Fish

Organisation Structure: -
As a structure org is a network of horizontal and vertical
authority relationship among the members of a group
designed to accomplish some common objective.
According to games de mooney organisation is the form of
every human association for the attainment of A common
purpose thus org structure is the “skeleton framework of
business”.
Organisation as a process.
In the words of Allen organising the process of identifying
and grouping the work to be performed defining and
delegating responsibility and establishing a pattern of
relationship for the purpose of enabling people to work
most effectively together in accomplishing objective.
Nature of organisation
 Group of persons
 Common objective
 Division of work
 Cooperative effort
 Communication
 Central authority
 Rules and regulations
 The dynamic element

 Principles of organization
1) Unity of objective
2) Functional specialization
3) Span of control
4) Scalar principle
5) Delegation of authority
6) Functional definition
7) Unity of command
8) Exception
9) Correspondence
10) Absoluteness of responsibility: Cant say no
to the responsibility
11) Balance
12) Unity of direction
13) Simplicity
14) Flexibility
15) Efficiency
16) Continuity
Measures for effective delegation
1) Making the potential delegator feel secure
2) Creating awareness for need of delegation
3) Determining decisions and tasks to be delegated
4) Establishing conducive organisational climate
5) Tying delegation with objective
6) Delegating authority for whole job
7) Developing appropriate control techniques

Communication
It is the process through which 2 or more-
person exchange ideas and understanding
among themselves. This definition involves 3
or more aspects.
1) There is something which is transmitted
such as information ideas, feelings etc which is
the subject matter of communication.
However, the subject matter itself is not
communication as is understood sometimes
but is only an element of communication
process
The sender of the subject matter of
communication and its receiver
3) There is an element of understanding in
communication sharing of understanding is
possible. Sharing of understanding is possible
only when the person to whom the message is
transmitted.
 Module 4: - Staffing

Importance of human resource planning

1) Defining future personal needs
2) Coping with changes
3) Providing ways for developing talent
4) Increasing investment in human resource
5) Forcing top management to involve in staffing
Job analysis
1) Job title, code number, department
2) Job responsibility towards effective performance of the job
3) Working conditions specifying specific hazards
4) Social envt prevailing at the workplace
5) Machines tools and equipment to be handled.
6) Extent of supervision given and received
7) Relationship with other jobs vertical, horizontal and diagonal

Internal source of recruitment

1) Promotion
Characteristics of promotion
 Recognition of the job performed by the employee
 It increases individual and organizational effectiveness
 It builds loyalty, morale and a sense of belongingness
 A tool for retaining and rewarding of an employee
Purpose of promotion
 Attracting and retaining competent personnel
 Bringing enthusiasm to employees
Boosting morale in the workplace
Filling up vacancies from within the organization
Increasing job satisfaction
Basis of promotion
Seniority based promotion
Merit based promotion
Merit cum seniority-based promotion

2) Transfer
Objectives of transfer
To meet or fulfil organizational needs
To satisfy employee needs
To adjust the workforce
 To reduce monotony and to make the employee versatile
For effective use of employees
To punish the employees
To give relief to the employees
To improve employee background by placing them in difficult jobs
of various departments and units

Recruitment is a +ve process while selection is a negative process

The basic objective of recruitment is to attract no of candidate
The basic objective of selection is to choose the best out of available
candidate
Recruitment techniques are not very intensive while selection
process highly specialize technique recruitment
The outcome of recruitment is application pool which becomes input
for the selection process
Selection process
Screening of applicant  Selection tests Interview Checking of
references physical examination  selection of candidates
Approval of authority employment contract
Types of selection test
1) Achievement test
2) Intelligence test
3) Personality test
3) Aptitude test
4) Interest test

Training and development

Development: Purpose is to enable overall growth of the employee
Managerial persons are developed
 Role of training and development
1) Increase In efficiency
2) Increase in moral of employees
3) Better human relations
4) Reduced supervision
5) Increased organizational flexibility and viability
 Identifying training needs
1) Organization analysis
2) Job analysis
 3) Person analysis

 Herzberg theory of motivation

1) Hygiene factor: -
2) Motivating factor:-
 McClelland’s theory
1) Need for power: position, authority, power
2) Need for affiliation: naming of a role to someone eg CR of the class
3) Need for achievement: Moderate risk taking, immediate feedback,
sense of accomplishment and pre occupation
 Alderfer’s erg theory: -
E for existence needs: They need existence and they need
work as well as power , R for relatedness needs: Interpersonal
relationship with other colleagues and G for growth needs:
 Vroom’s expectation theory (VIE theory):
It is bit around the concept of valance, instrumentally and
expectancy and therefore this model is referred to as VIE theory
 Equity theory:
Individuals make contribution (inputs) for which they expect
certain rewards
They analyse whether a particular exchange is satisfactory or
not by comparing their inputs and outcomes with those pf
others and try to rectify and inequality
 Reinforcement theory:
1) +ve reinforcement
2)-ve reinforcement: criticise the person for their performance
3) punishment
4) extinction
 Goal setting theory: goal decided by the company need to be
achieved.