ME Module 1
ME Module 1
ME Module 1
Anupama V
Assistant Professor
Dept CSE, CEC
Outline
Meaning of Management
Nature & Characteristics of Management
Scope of Management
Functional Areas of Management
Goals of Management
Levels of Management
Development of Management Thoughts
Early, Modern Management Approaches
Outline
Nature of Planning
Importance of Planning
Types of Plans
Steps in Planning
Nature & purpose of Organization
Types of Organization,
Meaning of Staffing
Process of Recruitment & Selection
Importance of Management
Management is a critical element in the
economic growth of a country.
1) Multidisciplinary
2) Dynamic nature of principles
3) Continuous Process
4) Management – science or art
5) Universality of management
CHARACTERISTICS OF
MANAGEMENT
Management is a continuous process
Management is an art as well as science
Management aims at achieving predetermined
objectives
Management is a factor of production
Management is decision-making
Universal application
CHARACTERISTICS OF
MANAGEMENT
Management is needed at all levels
Management aims at maximum profit
Dynamic
Management as a career
Management is a discipline
FUNCTIONAL AREAS OF
MANAGEMENT
Production/Operation: responsible for all
production related activities like Purchasing,
Materials management, Research & Development
etc..
Marketing:
-involves the distribution of organizations’ products
to the buyers.
-Sub activities like Advertising, Marketing research,
Sales management.
Finance and accounting: deals with intelligent
investment of financial resources and record-keeping
of various transactions
-sub functions are Financial Accounting, Management
Accounting, Costing, Investment Management,
Taxation
Personnel: management of human resources
sub-activities are Recruitment and Selection, Training and
Development, Wage and Salary Administration, Industrial
Relations
Management Information System
Strategy
SCOPE OF MANAGEMENT
ROLES OF MANAGEMENT
Interpersonal role: interacting with people both
organizational members and outsiders.
Figure head role: duties of ceremonial nature such as
attending social functions of employees, taking an
important customer to lunch & so on.
Leader role: leading the subordinates motivating and
encouraging them.
Liaison: connecting link between his organization &
outsiders , cultivate contacts outside his vertical chain
to collect information useful for his organization.
Information roles: involves communication.
Monitor: monitoring role, collects information about all
the factors which affects his activities
Disseminator: possesses privileged information to his
subordinates who otherwise not be in a position to collect
it.
Spokesperson: represents his organization while
interacting with outsiders like customers, suppliers,
financers, government & other agencies of the society.
Decisional roles: involves choosing most appropriate
alternative among all so that organizational objectives are
achieved in an efficient manner1
Entrepreneur: constantly looks out for new ideas &
seeks to improve his unit by adopting it to dynamic
environment.
Disturbance handler: works like a fire-fighter manager
contains forces and events which disturb normal
functioning of his organization.
Negotiator: negotiates with various groups in the
organization. Such groups are employees, shareholders
and other outside agencies.
Management Levels
Top-level management
(president, executive vice president)
Middle managers
(chief engineer, division head etc.)
First-line managers
(foreman, supervisor, section chief)
Management Levels
Top level management:
-determines goals and objectives
-performs overall planning, organizing, staffing,
directing and controlling
-integrates organization with environment,
balances the interest groups & is responsible for
overall results.
Middle management:
-establishes programs for department & carries
out functions for achieving specific goals.
-training and development of employees,
integrating various parts of the department.
Supervisory management:
-concerned with efficiency in using resources of
the organization.
-supervisor is an executor of policies &
procedures making a series of decisions with
well-defined & specified premises.
Managerial Level
General Approach
Developed standard method for performing each
job.
Selected workers with appropriate abilities for each
job.
Trained workers in standard method.
Supported workers by planning work and eliminating
interruptions.
Provided wage incentives to workers for increased
output.
Taylor’s Scientific Management
Contributions
Demonstrated the importance of compensation for
performance.
Initiated the careful study of tasks and jobs.
Demonstrated the importance of personnel and their
training.
Criticisms
Did not appreciate social context of work and higher
needs of workers.
Did not acknowledge variance among individuals.
Tended to regard workers as uninformed and ignored
their ideas
Administrative Management
Focus:
Organization rather than the individual
Delineated the management functions of planning,
organizing, commanding, coordinating, and
controlling
Henri Fayol:
Developed a set of 14 general principles of
management.
His managerial functions of planning, leading,
organizing, and controlling are routinely used in
modern organizations.
Administrative Management
14 General Principles of Management
Criticisms
Leads to formation of small groups
Results in dissatisfaction of workers
Theses principles result onto formation of mechanistic
organizational structure.
Bureaucratic Management
Focuses on the overall organizational system and
is based upon firm rules, policies, and
procedures; a fixed hierarchy; and a clear division
of labor
Max
Weber (1864-1920), a German sociologist and
historian, is most closely associated with bureaucratic
management.
Bureaucratic Management
Envisioned a system of management that would be
based upon impersonal and rational behavior.
Conceptualized the approach to management
referred to as bureaucracy.
Division of labor
Hierarchy of authority
Rules and procedures
Impersonality
Committee organization
Differences between Formal & Informal Organization
Item FormalOrganization InformalOrganization
Origin Officialandstartedwith Unofficial&developed
definitepurpose naturally,basedon
individual&groupgoals