3AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO: Define Business and describe the characteristics of Organization.Differentiate between managerial and non-managerial employees.Describe Management.Explain the functions, roles, and skills of managers and how the manager's job is changing.Recognize the value of studying Management
4SOME IMPORTANT TERMS TO KNOW Business :The term “Business” signifies individual & group activities directed towards wealth generation through goods & services (recognized by the law).Organization:A group of people working together in a structured and coordinated fashion to achieve a set of goals is called organization.Goals & Objectives:Goals are the end results towards which all the activities are directed. Different organizations may have different goals. e.g. Profitability, Growth, Market Penetration, Productivity, Leadership, Client Satisfaction etc.Objectives are sub goals.44
5What is Management...Coordination and oversight of the work activities of others so that their activities are completed efficiently and effectively.
6Effectiveness VS Efficiency Doing the right things , or completing activities so that organization goals are attained, called Effectiveness.Doing the things right, or getting the most output from the least amount of inputs, called Efficiency.
7Why Efficiency & Effectiveness are important to Management
8What are the functions of Management? OR What is Management Process?
9Four Functions of Management 1-8Four Functions of ManagementPlanningChoose GoalsControllingOrganizingMonitor & measureWorking togetherLeadingCoordinate
101-PlanningA Management function that involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.Planning Process consists of five stepsObjective-settingForecastingStrategy formationSetting specific standardsContinual review and revision
112-Organizing or Function of Organizing involves: Organizing is the establishment of relationship between:ActivitiesPersonsPhysical factorsorStructuring working relationships in a way that allows organizational members to achieve organizational goals.Function of Organizing involves:Division of LaborDepartmentalizationStaff positioningAssigning authority or Delegation of powerEqualizing authority and responsibility
123-Leading Components involve in leading function are: Management function that involves working with and through people to accomplish organizational task.In leading functions subordinates are guided, supervised and motivated by managersComponents involve in leading function are:SupervisionMotivationCommunicationBringing about changeManaging conflict
134-Controlling Process consist of: Measuring Comparing Correcting Management function that involves monitoring actual performance ,comparing standards, and taking corrective actions if necessary.Process consist of:MeasuringComparingCorrecting
14Controlling Process WITHIN LIMITS CONTINUE WORK PROGRESS TAKE SETPERFORMANCESTANDARDSWITHINLIMITSCONTINUEWORKPROGRESSTAKECORRECTIVEACTIONCOMPAREMEASUREDETERMINEDEVIATIONNOYES
16Management as Systematic Approach InputsHuman ResourcesFinancial ResourcesPhysical ResourcesInformation ResourcesEffectively Completion of Goals+GoalsORGANIZINGMANAGEMENTPROCESSPLANNINGLeadingCONTROLLING
17The Universality of Management The reality that management is needed in all types and sizes of organization, at all organizational levels, in all organizational areas, and in organization no matter where located.
19ManagerManagers are those people who work with and through other people for getting activities completed in order to accomplish organizational goals.1919
20Difference between Managers and Operatives Operatives are people who work directly on a job or task & have no responsibility for overseeing the work of others.In contrastManagers direct the activities of other people in the organization.2020
21What are their Objectives? To achieve the organizational goal, managers pursue the following objectives.Efficient use of resourcesCustomer satisfactionAdequate return on capitalSatisfied workforceImproved work conditionsBuilding supplier relationshipContribution to national goal2121
22Kinds of Managers Basically there are three levels of managers Top ManagersMiddle ManagersFirst-line ManagersTOPLEVELMIDDLE LEVELFIRST-LINE MANAGER2222