UNIT -1
NET MANAGEMENT
MANAGEMENT CONCEPTS :
FOR NET MANAGEMENT
SHASHI AGGARWAL ECONOMICS AND LAW CLASSES
MANAGEMENT CONCEPTS
UNIT 1
FOR NET MANAGEMENT
1.
MEANING AND DEFINITION
2.
ASPECTS OF MANAGEMENT
3. FEATURES OF MANAGEMENT
4.
MANAGEMENT ROLES
5.
MANAGEMENT SKILLS
SYLLABUS UNIT 1
1.
MANAGEMENT CONCEPTS,PROCESS,THEORIES AND APPROACHES AND MANAGERIAL ROLE AND
SKILL
2.
FUNCTIONS : PLANNING,ORGANIZING,STAFFING AND COORDINATING AND
ORGANIZATION
STRUCTURE AND DESIGN: TYPES AUTHORITY, RESPONSIBILITY, CENTRALIZATION, DECENTRALIZATION AND SPAN OF CONTROL.
3.
MANAGERIAL ECONOMICS—CONCEPT AND IMPORTANCE
4.
DEMAND ANALYSIS,UTILITY ANALYSIS,INDIFFERENCE CURVE AND
5.
MARKET STRUCTURE,MARKET CLASSIFICATION AND PRICE
6.
NATIONAL INCOME –CONCEPT AND
7.
BUSINESS ETHICS AND CSR
8.
ETHICAL ISSUES AND DILEMMAS
9.
CORPORATE GOVERNANCE
10.
VALUE BASED ORGANIZATION
MANAGEMENT CONCEPTS
1. AN ORGANIZATION IS A SET OF PEOPLE WORKING TOGETHER TO ACHIEVE SOME COMMON GOALS AND MANAGEMENT IS ESSENTIAL PART OF ANY GROUP ACTIVITY. IT IS PRIMARY FORCE WITH IN THE GROUP OR ORGANIZATION WHICH TENDS TO LEAD IT TOWARDS THE GROUP GOALS
2.
MANAGEMENT IS REQUIRED TO PLAN,ORGANIZE,COORDINATE AND CONTROL THE AFFAIRS
OF THE BUSINESS
3.
IT BRINGS THE HUMAN AND MATERIAL RESOURCES TOGETHER AND MOTIVATES THE PEOPLE
TO ACHIEVE THE GOALS
4.
MANAGEMENT IS UNIVERSAL PROCESS IN ALL ORGANIZED,SOCIAL AND ECONOMIC
ACTIVITIES
5.
WHENEVER THERE IS HUMAN ACTIVITY,THERE IS MANAGEMENT
6.
THE TERM MANAGEMENT HAS BEEN USED IN DIFFERENT SENSE
7.
SOME TIMES IT IS CALLED THE PROCESS OF PLANNING,ORGANIZING,STAFFING
,DIRECTING AND COORDINATING
8.
SOME DESCRIBE IT AS FUNCTION OF MANAGING PEOPLE
9.
TECHNIQUE OF LEADERSHIP AND DECISION MAKING
ART OF GETTING THINGS DONE
1.
MARY PARKER FOLLETT,” MANAGEMENT IS THE ART OF GETTING THINGS DONE THROUGH
OTHER
2.
ACCORDING TO FOLLET :ART OF DIRECTING THE ACTIVITIES OF OTHERS
3.
HAROLOD KOONTZ : MANAGEMENT IS THE ART OF GETTING THINGS DONE THROUGH AND
WITH PEOPLE IN FORMALLY ORGANIZED GROUP
4.
KOONTZS : FOCUS ON WORK IS DONE WITH THE COOPERATION OF THE PEOPLE WORKING
IN THE ORGANIZATION
5.
JD MOONEY AND AC RAILEY: MANAGEMENT IS THE ART OF DIRECTING AND INSPIRING PEOPLE
6.
THESE DEFINITION REPRESENT THE TRADITIONAL VIEW POINT OF MANAGEMENT BUT
SUFFER FROM THIS:
- WHAT TYPE OF FUNCTION
- IT IS SCIENCE ALSO
•
WORKERS ARE ONLY MEANS OF GETTING
MANAGEMENT AS A PROCESS
HENRY FAYOL” TO MANAGE,TO FORECAST AND PLAN AND
TO ORGANIZE COMMAND,TO COORDINATE AND TO CONTROL
FIVE FUNCTIONS” PLANNING,
ORGANIZING,COMMANDING,COORDINATING AND CONTROLLING
GEROGE
R TERRY: MANAGEMENT IS A DISTINCT PROCESS CONSISTING OF ACTIVITIES OF
PLANNING,ORGANIZING,ACTUATING AND CONTROLLING PERFORMED TO DETERMINE AND
ACCOMPLISH STATED OBJECTIVES WITH THE USE OF HUMAN BEINGS AND OTHER RESOURCES.
LOUIS ALLEN: MANAGEMENT IS WHAT MANGER DOES
ART AND SCIENCE OF DECISION MAKING AND
LEADERSHIP
DONALD J CLOUGH,” MANAGEMENT IS THE ART AND
SCIENCE OF DECISION MAKING AND LEADERSHIP
ROSE MOORE : MANAGEMENT MEANS DECISIONS MAKING
INTEGRATION OF EFFORTS
MAKES USE OF HUMAN AND PHYSICAL RESOURCES FOR
THE BENEFITS OF THE ENTERPRISE
KEITH AND GUBELLINI.” MANAGEMENT IS THE FORCE THAT INTEGRATES MEN
AND PHYSICAL PLANT INTO AN EFFECTIVE
OPERATION UNIT
MANAGEMENT AS GROUP OF MANAGERS
MANAGEMENT IS THE BODY OR GROUP OF PEOPLE
PERFORMING CERTAIN MANAGERIAL FUNCTIONS FOR THE ACCOMPLISHMENT OF PREDETERMINED
GOALS
IN PRACTICE THE MANAGEMENT IS TOP MANAGEMENT
ASPECTS OF MANAGEMENT
1.
THE PURPOSE OF THE MANAGEMENT IS TO FORMULATE EFFECTIVE ( RIGHT)
ORGANIZATIONAL STRATEGIES AND TO ACHIEVE THEM EFFICIENTLY BASED ON MISSION
,OBJECTIVES AND GOALS
2.
MANAGEMENT DEALS WITH BOTH INTERNAL AND EXTERNAL ENVIRONMENT
3.
CONCERNED WITH ALL KINDS OF RESOURCES :
HUMAN,FINANCIAL,MATERIALS,MACHINES,TECHNOLOGY AND TECHNICAL KNOW HOW
4.
MANAGEMENT FUNCTIONS INCLUDE : PLANNING,ORGANIZING,DIRECTING AND CONTROLLING
5.
MANAGERS SHOULD POSSESS VARIED SKILLS IN ORDER TO PLAY A VARIETY OF ROLES
6.
APPLIES TO MANAGEMENT AT ALL LEVELS
7.
APPLICABLE TO ALL KINDS OF ORGANIZATION
8.
MANAGEMENT VS
9.
MANAGEMENT IS BOTH SCIENCE AND ART
10.
NEED TO PROFESSION
PURPOSE OF
1.
FORMULATION OF MISSION,OBJECTIVES,STRATEGIES AND TACTICS ( MOST)
2.
ORGANIZATIONAL MISSION IS THE BASIC REASON FOR THE EXISTENCE
3.
FOR EXAMPLE MISSION STATEMENT: A
VIBRANT BANK COMMITTED TO EXCELLENCE IN PERFORMANCE THROUGH CUSTOMER
SATISFACTION
4.
PURPOSE OF
5.
OBJECTIVES ARE BASED ON THE MISSION.END TOWARDS WHICH ACTIVITY IS AIMED.
GOALS ARE SPECIFIC AND PRECISE
6.
FORMULATE STRATEGY IN ORDER TO ACHIEVE THE GOALS
7. STRATEGY IS UNIFIED, COMPREHENSIVE AND INTEGRATED PLAN THAT RELATE THE
STRATEGIC ADVANTAGE OF THE FIRM WITH THE OPPORTUNITIES OF THE ENVIRONMENT.
8.
TACTICS IS AN ACTION PROGRAMME THROUGH WHICH STRATEGIES ARE EXECUTED
MANAGEMENT DEALS WITH INTERNAL AND EXTERNAL
ENVIRONMENT
INTERNAL ENVIRONMENT CONSIST OF :
ORGANIZATIONAL STRUCTURE, FINANCES.MARKETING,PRODUCTION AND HUMAN RESOURCES
EXTERNAL ENVIRONMENT :STEPIN : SOCIAL AND
CULTURAL,TECHNICAL,ECONOMIC,POLITICAL,INTERNATIONAL AND NATURAL
FEATURES OF THE MANAGEMENT
FEATURES OF THE MANAGEMENT :
FEATURES OF THE MANAGEMENT
FEATURES OF THE MANAGEMENT
FUNCTION PERFORMED BY MANAGERS
PLANNING: : DETERMINATION OF THE COURSE OF ACTION TO BE
FOLLOWED FOR ACHIEVING ORGANIZATIONAL OBJECTIVES. THINKING IN ADVANCE, WHAT TO
DO,WHEN TO DO HOW TO DO. PROCESS OF THINKING BEFORE DOING
ORGANIZING: IS TO ARRANGE, GUIDE AND COORDINATE, DIRECT AND
CONTROL THE ACTIVITIES OF OTHER FACTORS OF PRODUCTION LIKE MEN, MATERIAL, MONEY,
MACHINES ETC
FUNCTION PERFORMED BY MANAGERS
STAFFING: THE FUNCTION INVOLVES THE MANNING THE
POSITIONS CREATED BY THE ORGANIZATION.CONCERNED WITH HUMAN RESOURCES OF THE
ORGANIZATION
DIRECTING: LEADERSHIP, COMMUNICATIONS AND MOTIVATION AND
SUPERVISION
COORDINATION: CREATES TEAM SPIRIT AND HELPS IN
ACHIEVING THE GOALS THROUGH COLLECTIVE EFFORTS
CONTROLLING:
COMPARING ACTUAL WITH STANDARDS AND TAKING REMEDIAL ACTION
MANAGERIAL SKILLS
ROBERT KATZ THREE TYPES OF MANAGERIAL SKILLS:
1.
TECHNICAL SKILLS
2.
HUMAN SKILLS
3.
CONCEPTUAL SKILL
TECHNICAL SKILLS
PROFICIENCY IN WORKING WITH MACHINES, TOOLS AND
TECHNIQUES IN HRM. MARKETING, FINANCE, PRODUCTION MANAGEMENT ETC
MANAGERS AT ALL LEVEL SHOULD POSSESS
LOWER LEVEL POSSESS MORE TECHNICAL SKILL
COMPARED TO THOSE AT MIDDLE LEVEL,T OP LEVEL
HUMAN SKILLS
INCLUDE THE ABILITY TO WORK WITH PEOPLE
TACTFULLY, INTERPERSONAL PROFICIENCY, ABILITY TO BUILD, MAINTAIN AND WORK IN
TEAMS IN OPEN ENVIRONMENT
ALL LEVELS SHOULD POSSESS
CONCEPTUAL SKILL
INCLUDE THE ABILITY TO DRAW THE TOTAL,I INTEGRATED AND MACRO VIEW OF THE COMPANY,SITUATIONS AND ABILITY TO DEVELOP SOLUTIONS FOR
THE PROBABLE PROBLEMS AND CHALLENGES
TOP LEVEL MANAGERS SHOULD POSSESS MORE OF CONCEPTUAL SKILL
MANAGERIAL ROLES
PRINCIPLES OF MGMT
MANAGERIAL ROLE
SPECIFIC BEHAVIOUR ASSOCIATED WITH THE TASK OF
MANAGEMENT
MANAGERS PERFORM DIFFERENT ROLES TO ACCOMPLISH
THE BASIC FUNCTION OF MANAGEMENT
MINTZBERG DEVELOPED A LIST OF ROLES THAT HE
GROUPED INTO THREE CATEGORIES
1.
INTERPERSONAL ROLE ARISES DIRECTLY FROM THE MANAGER’S POSITION
2.
INFORMATIONAL ROLE :DIRECT RESULT OF INTERPERSONAL ROLES
3.
DECISIONAL ROLE :-TWO CATEGORIES LEADS TO DECISIONAL ROLES
INTERPERSONAL ROLE
A CONSIDERABLE AMOUNT IS SPENT IN INTERACTING
WITH IN THE ORGANIZATION AS WELL AS OUTSIDE THE ORGANIZATION
THESE INTERACTION REQUIRES AN UNDERSTANDING OF
INTERPERSONAL RELATIONS.
THESE INTERACTIONS INVOLVE THE FOLLOWING THREE
MAJOR INTERPERSONAL ROLES:
FIGURE HEAD
LEADER
LIAISON
FIGURE HEAD ROLE
MANAGERS PERFORM THE DUTIES OF A CEREMONIAL AS
HEAD OF THE ORGANIZATION PERFORMING SOCIAL OR LEGAL OBLIGATION
THESE DUTIES INCLUDE ROUTINE,INVOLVING LITTLE
SERIOUS COMMUNICATION AND LESS IMPORTANT DECISION BUT THEY ARE IMPORTANT FOR
THE SMOOTH FUNCTIONING OF AN ORGANIZATION OR DEPARTMENT
ACTS AS LEGAL AND SYMBOLIC HEAD : PERFORMS
OBLIGATORY SOCIAL,CEREMONIAL OR LEGAL DUTIES FOR EXAMPLE HOSTING RETIREMENT
DINNERS,LUNCHES FOR EMPLOYEES,PLANT DEDICATIONS,ATTENDS CIVIC AFFAIRS,SIGNS
CONTRACTS ON BEHALF OF FIRM
LEADER ROLE
1.
THE MANAGER IS IN-CHARGE OF THE ORGANIZATION/DEPARTMENT,COORDINATES THE WORK OF OTHER AND LEADS HIS SUBORDINATES.
FORMAL AUTHORITY PROVIDES GREATER
POTENTIAL POWER TO EXERCISE AND GET THE THINGS DONE.
2.
MOTIVATES,DEVELOPS AND GUIDE SUBORDINATES,OVERSEES STAFFING,TRAINING AND
ASSOCIATED ACTIVITIES,DEVELOPS A CHALLENGE WORK CLIMATE,PROVIDES A SENSE OF
DIRECTION AND ACTS AS ROLE MODEL
LIAISON
1.
IN ADDITION TO THEIR CONSTANT CONTACT WITH THEIR OWN SUBORDINATES,COLLEAGUES
AND SUPERIORS, THE MANAGERS MUST MAINTAIN A NETWORK OF OUTSIDE CONTACTS IN
ORDER TO ASSESS THE EXTERNAL ENVIRONMENT.
2.
TH MANAGERS HAS TO PERFORM THE FUNCTION OF
MOTIVATION,COMMUNICATION,ENCOURAGING TEAM SPIRIT AND THE LIKE. FURTHER,HE HAS
TO COORDINATE THE ACTIVITIES OF ALL HIS SUBORDINATES WHICH INVOLVE THE ACTIVITY
OF LIAISON.
3.
MAINTAIN NETWORK OF CONTACTS AND
INFORMATION OUTSIDE THE ORGANIZATION AND ASSISTANCE
INFORMATIONAL ROLES
MANAGERS EMERGES AS THE NERVE CENTER OF HIS
ORGANIZATION/DEPARTMENT IN VIEW OF HIS INTERPERSONAL ROLE LINKS WITH HIS
SUB ORDINATES,PEERS ,SUPERIORS AND OUTSIDER
MANAGERS HAS TO PLAY THE INFORMATIONAL ROLE EFFECTIVELY TO LET THE INFORMATION FLOW CONTINUOUSLY FROM ONE CORNER OF THE
ORGANIZATION TO OTHER CORNER
THE INFORMATION ROLE OF A MANAGER :
1.
MONITOR ‘S ROLE
2. DISCRIMINATOR'S ROLE
3.
SPOKESMAN’S ROLE
MONITOR’S ROLE
THE MANAGERS ARE CONSTANTLY MONITORING AND
SCANNING THEIR ENVIRONMENT BOTH INTERNAL AND EXTERNAL
COLLECT AND STUDY INFORMATION FROM READING REPORTS AND PERIODICALS,BY
ASKING THEIR LIAISON CONTACTS AND THROUGH GOSSIP, HEARSAY AND SPECULATION
SEEKS AND OBTAINS INFORMATION IN ORDER TO UNDERSTAND
THE CORPORATION AND ITS ENVIRONMENT
ACT AS NERVE CENTER FOR THE CORPORATION (
REVIEW STATUS REPORTS,REVIEW KEY INDICATORS AND SCANS TRADE JOURNAL
DISSEMINATOR’S ROLE
THE MANAGERS DISSEMINATES THE INFORMATION WHICH
HE COLLECTS FROM DIFFERENT SOURCES AND THROUGH VARIOUS MEANS
PASSES SOME OF THE PRIVILEGED INFORMATION TO HIS SUBORDINATES
EXAMPLE : TRANSMIT INFORMATION TO THE REST OF THE TOP MANAGEMENT AND KEY
PEOPLE
SPOKESMAN
THE MANAGER HAS TO KEEP INFORMED INSIDERS AND OUTSIDERS ABOUT THE DEVELOPMENT IN HIS UNIT
HE HAS TO KEEP HIS SUPERIOR INFORMED ABOUT THE
DEVELOPMENT OF THE UNIT
DIRECTORS AND SHAREHOLDERS MUST BE INFORMED
ABOUT THE FINANCIAL PERFORMANCE
CUSTOMERS HAS TO BE INFORMED ABOUT NEW
PRODUCT,QUALITY MAINTENANCE,GOVT OFFICIALS
DECISIONAL ROLES
INFORMATION IS THE BASIC AND SIGNIFICANT INPUT
IN DECISION MAKING
THE MANAGERS PLAYS A CRUCIAL ROLE IN DECISION
MAKING
THE DECISION ROLES OF THE MANAGERS :-
1. ENTREPRENEURIAL ROLE
2.
DISTURBANCE HANDLER
3.
RESOURCE
4.
NEGOTIATOR ROLE
ENTREPRENEURIAL ROLE
AS AN ENTREPRENEUR,THE MANAGER IS A CREATOR AND
INNOVATOR
HE SEEKS TO IMPROVE HIS DEPARTMENT
ADAPT TO THE CHANGING ENVIRONMENTAL FACTORS
THE MANAGERS APPRECIATES NEW IDEAS AND
INITIATES NEW DEVELOPMENT PROJECT
DO THE SWOT ANALYSIS AND SEARCH FOR PROFITABLE
OPPORTUNITIES
DISTURBANCE HANDLER
ROLE PRESENTS THE MANAGER AS THE INVOLUNTARILY
RESPONDING TO PRESSURE
PRESSURE OF THE SITUATION AND HIGHLY
DEMAND THE ATTENTION OF THE MANAGER AND AS SUCH THE MANAGER CANNOT IGNORE THE
SITUATION
LIKE WORKER’S STRIKE,DECLINING SALES,BANKRUPTCY
OF A MAJOR CUSTOMER
TAKES CORRECTIVE ACTION AT THE TIME OF DISTURBANCES OR CRISIS
RESOURCE ALLOCATOR’S ROLE
THE MOST IMPORTANT RESOURCE THAT A MANGER
ALLOCATES TO HIS SUBORDINATES
HE SHOULD HAVE OPEN DOOR POLICY AND ALLOWS THE
SUBORDINATES TO EXPRESS THEIR OPINIONS AND SHARE THEIR EXPERIENCES
THIS PROCESS HELPS BOTH THE MANAGER AND HIS
SUBORDINATES IN MAKING EFFECTIVE DECISIONS
IN ADDITION,THE MANAGER SHOULD EMPOWER HIS SUBORDINATES BY DELEGATING HIS AUTHORITY AND POWER
NEGOTIATOR’S ROLE
SPEND CONSIDERABLE TIME IN THE TASK OF
NEGOTIATORS
HE NEGOTIATES WITH THE SUBORDINATES FOR IMPROVED
COMMITMENT AND LOYALTY
WITH PEERS FOR COOPERATION,COORDINATES AND
INTEGRATION WITH WORKERS AND UNION REGARDING EMPLOYMENT
,COMMITMENT,PRODUCTIVITY
ALSO WITH GOVERNMENT FOR GIVING FACILITIES FOR
RUNNING BUSINESS
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