Introduction to Business

Management

By
Amna Shafiq Minhas
PhD (scholar), M.phil.
 What Is Management?
• Management is the process of achieving
organizational objectives through people
and other resources. The manager’s job is
to combine human and technical
resources in the best way possible to
achieve the company’s goals.
• Management principles and concepts
apply to not-for-profit organizations as
well as profit-seeking firms.
• Management happens at many levels,
from that of a family-owned restaurant
manager to a national sales manager for a
major manufacturer
• Simply speaking, management is what managers do.
• Management involves coordinating and overseeing the work activities of
others so that their activities are completed efficiently and effectively.
• Manager:
A manager is someone who coordinated and oversees the work of other people
so that organization goals can be accomplished.
OR
An individual who achieves goals through or with help of other people.
Managers do their work in organization.
Levels/Layers of Management

Top (high-level)
management

Middle Management

Supervisory (first-line)
management
Top (high-level) Management:
• At the upper or high levels of organization are top managers. These
managers make decisions regarding the firm’s long-run objectives,
goals (such as three to five years ahead) that affect the entire
organizations.
• It includes positions such as president, chief executive officer (who
commonly also serves as president), chief financial officer, managing
director and vice-president.
Middle Management:
• It is often responsible for the firm’s short-term decisions, as these
managers are closer to the production process.
• Middle managers manage the work of first-line managers and can be
found between the lowest and top levels of organization. Middle
managers resolve problems and devise new methods to improve
performance.
• It includes positions such as regional manager, project leader and plant
manager.
Supervisory (first-line)/lowest level management:
• First-line managers is usually highly involved with the employees
(non managerial) who engage in the day-to-day production process
to produce products or servicing the organization’s customers.
• Supervisors deal with problems such as worker absenteeism and
customer complaints.
• Supervisory management includes positions such as account
manager, department manager, branch manager and office manager
 Skills Needed for Managerial Success

• Managers at every level in the management hierarchy must exercise three

basic types of skills: technical, human, and conceptual.
• All managers must acquire these skills in varying proportions, although the
importance of each skill changes at different management levels.
• Technical skills are the manager’s ability to understand and use the techniques,
knowledge, and tools and equipment of a specific discipline or department.
• Technical skills are especially important for first-line managers and become less
important at higher levels of the management hierarchy. But most top executives
started out as technical experts.
• Human skills are interpersonal skills that enable managers to work effectively with
and through people. Human skills include the ability to communicate with, motivate,
and lead employees to complete assigned activities. Managers need human skills to
interact with people both inside and outside the organization.
• Conceptual skills determine a manager’s ability to see the organization as a unified
whole and to understand how each part of the overall organization interacts with
other parts. These skills involve an ability to see the big picture by acquiring,
analyzing, and interpreting information. Conceptual skills are especially important
for top-level managers, who must develop long-range plans for the future direction
of their organization.
 Management Functions

• Managers perform certain activities or functions as they efficiently

or effectively coordinate the work of others.
• Henri Fayol, French industrialist, wrote that all managers perform
five management functions: planning, organizing, commanding,
coordinating, and controlling. Today we have condensed these to
four: Planning, organizing, leading and controlling (POLC).
 The planning function encompasses defining an
organization’s goals, establishing an overall
strategy for achieving those goals, and
developing a comprehensive set of plans to
integrate and coordinate activities.

1. Planning

Effective planning helps a business focus its

vision, avoid costly mistakes, and seize
opportunities. Planning should be flexible and
responsive to changes in the business
environment, and should involve managers from
all levels of the organization.
 Managers are also responsible for designing an
organization’s structure. We call this function
organizing.
It includes determining what tasks are to be done, who
is to do, how the tasks are to be grouped, who reports to
2. Organizing
whom, where decisions are to be made.
Organizing involves classifying and dividing work into
manageable units with a logical structure. Managers
staff the organization with the best possible employees
for each job.
 Every organization contain people, it is
management’s job to direct and coordinate those
people. This is the leading function. When managers
3. Leading motivate employees, direct their activities, select the
most effective communication channels, or resolve
conflicts among members, they are engaging in
leading.
 To ensure things are going as they should, management
must monitor the organization performance and
4. Controlling compare it with previously set goals. Monitoring
activities to ensure they are accomplished as planned.
This monitoring, comparing and potential correcting is
the controlling function.
 Setting a Vision and Ethical Standards for the
Firm
• Vision Statement
• Vision perception of marketplace needs and the ways a firm can satisfy them.
Vision statement answers the question:
“What do we want to become?”
• A business begins with a vision, its founder’s perception of marketplace needs
and the ways a firm can satisfy them. Vision serves as the target for a firm’s
actions, helping direct the company toward opportunities and differentiating it
from its competitors.
• Google's vision statement is “to provide access to the world's information
in one click.”
 Mission statement
• A mission statement is a written explanation of an organization’s business
intentions and aims. It is an enduring statement of a firm’s purpose, possibly
highlighting the scope of operations, the market it seeks to serve, and the
ways it will attempt to set itself apart from competitors.
Mission statement answers the question:
“What is our business?”
• Disney: “We create happiness by providing the finest in entertainment for
people of all ages, everywhere.”
• Google's mission is to organize the world's information and make it
universally accessible and useful.
 Types of Planning

• Some plans are very broad and long range, while others are short range and
very narrow, affecting selected parts of the organization rather than the whole
thing.
• Planning can be divided into the following categories: strategic, tactical,
operational, and contingency.
 The most far-reaching level of planning is strategic planning
the process of determining the primary objectives of an
Strategic organization and then acting and allocating resources to
Planning achieve those objectives.
Generally, strategic planning is undertaken by top executives
in a company.
As part of its strategy of using company resources to raise
environmental awareness and develop or improve products.

Tactical
Tactical planning involves implementing the activities
Planning
specified by strategic plans. Tactical plans guide the current
and near-term activities required to implement overall
strategies.
A tactical plan describes the steps and actions that must be
taken to achieve the goals from the strategic plan.
 Operational planning creates the detailed standards that guide
implementation of tactical plans.
Operational
This activity involves choosing specific work targets and
Planning
assigning employees and teams to carry out plans.
Unlike strategic planning, which focuses on the organization
as a whole, operational planning deals with developing and
implementing tactics in specific functional areas.

Contingency Contingency planning is defined as a course of action

Planning designed to help an organization respond to an event that
may or may not happen. Contingency plans can also be
referred to as 'Plan B' because it can work as an alternative
action if things don't go as planned.
This planning activity involves two components: business
continuation and public communication.
 Management Roles
• In the late 1960s, Henry Mintzberg, a well known management researcher,
studied actual managers at work. He took a careful study of five executive
to determine what they did on their jobs.
• On the basis of his observations, he concluded that managers perform ten
different, highly interrelated roles-or set of behaviors.
• The term managerial roles refers to specific actions or behaviors expected
of and exhibited by a manager.
• These ten 10 roles are grouped around interpersonal relationship, the
transfer of information, and decision making.
 Interpersonal Roles

1. Figurehead: The managers are required to perform duties that are ceremonial
and symbolic in nature, as head of organizations. For instance, when the
president of a college hands out diplomas at commencement.
2. Leader: All managers also have a leadership role. They are responsible for
motivating, trainings and direction of employees.
3. Liaison: Develops and maintains a network of outside contacts who provide
favors and information to manager.
 Informational Roles

4. Monitor: All managers to some degree collect or gathers or receive a wide

variety of internal and external information relevant to the organization.

5. Disseminator: Transmit information received from outside or from other

employees to the members of organization.

6. Spokespersons: Transmit information to outsiders on organizations plans,

policies, and performance. They represent the organization to outsiders.
 Decisional Roles

7. Entrepreneur: Managers initiate and oversee new projects that will

improve their organizational performance.
8. Disturbance handler: Managers take corrective action in response to
unforeseen problems or unexpected disturbance.
9. Resource allocator: Managers are responsible for allocating human,
physical and monetary resources.
10. Negotiator: Managers perform a negotiator role, in which they
discuss issues and bargain with other units to gain advantage for their
own unit.
 Types of Management
Following are the types of management:
1. Strategic management:
• Strategic management is the management of an organization’s resources to achieve its goals
and objectives.
• Strategic management involves setting objectives, analyzing the competitive environment,
analyzing the internal organization, evaluating strategies, and ensuring that management
rolls out the strategies across the organization.
• Companies, universities, nonprofits, and other organizations can use strategic management
as a way to make goals and meet objectives.
• For example: Dell Organization: Aim to gain profit Strategy: implement strategy of
Effectively (Low cost, high quality, low price to sell products) Divide Strategy into
objectives and spread to all departments: Production dep objective is create product that
(low cost…..), Finance dep make sure funds should be available on time to production dep
and human resource dep make sure competent employees should hire.
2. Human Resource Management:
• Human Resource Management is a management concerned with hiring, motivating, and maintaining
workforce in an organization
• It deals with issues related to employees such as hiring, training, development, compensation,
motivation, communication, and administration. The management ensures satisfaction of employees
and maximum contribution of employees to the achievement of organizational objectives.
• Just a few of the related career titles for HR professionals include:
HR manager/director
Training and development manager
Recruiter manager
An example of human resource management is the way in which a company hires new employees and
trains those new workers. Like NTDC employ NTS system to recruiting employees.
3. Financial Management:
• Financial management is one of the most important aspects in business.
• Financial management refers to the strategic planning, organizing, directing, and
controlling of financial undertakings in an organization or an institute.
• Take a look at the objectives involved:
Maintaining enough supply of funds for the organization;
Ensuring shareholders of the organization to get good returns on their investment;
Optimum and efficient utilization of funds;
Creating real and safe investment opportunities to invest in.
Financial management example for business or company includes managing telephone
cost, hiring a new employee, purchasing of facilities, project budgets, etc
4. Information Management Technology (IMT):
• Information management technology (IMT) refers to the processes, systems, hardware, and software
a company uses to conduct its day-to-day operations.
• Information management technology is also considered a professional discipline where a student
learns to manage the selection, distribution, and organization of all the technology and related
process in a business environment.
• There are very few business processes that do not depend or cannot benefit from information
management technology. Implementing IMT not only allows employees to be more productive, but
it can also be tailored to suit a company's specific needs.
• For example: Use of MS teams software to manage online classes.
5. Supply Chain Management
• Supply chain management is the management of the flow of goods and services
and includes all processes that transform raw materials into final products.
• It includes all the activities, people, organizations, information, and resources
required
• to move a product from inception to the customer.
• For example: Olper’s brand, Raw material (Milk): Taken From Dairy farms
(Primary genetic industry) Factories ( Secondary industry) : Purify Milk and
transfer into packets Means of Transportation Retailers Customer.
 SWOT Analysis
 Strengths include internal capabilities, resources, and positive
situational factors that may help the company serve its customers
and achieve its objectives.
 Weaknesses include internal limitations and negative situational
factors that may interfere with the company’s performance.
 Opportunities are favorable factors or trends in the external
environment that the company may be able to exploit to its
advantage.
 And threats are unfavorable external factors or trends that may
present challenges to performance.
 Managers as Decision Makers

• Managers are constantly called upon to make decisions in order to solve

problems. Decision making and problem solving are ongoing processes of
evaluating situations or problems, considering alternatives, making choices,
and following them up with the necessary actions.
• Decision making is the process of recognizing a problem or opportunity,
evaluating alternative solutions, selecting and implementing an alternative,
and assessing the results.
• Managers make two basic kinds of decisions: programmed decisions and non
programmed decisions
 Programmed and Non programmed
Decisions
• Programmed decision-making involves those decisions that already have a plan or
rule in place and is used to reach a solution or conclusion. In other words,
managers have already made such decisions advance the firm sets rules, policies,
and procedures for managers and employees to follow on a routine basis.
• A non programmed decision involves a complex and unique problem or opportunity
with important consequences for the organization.
• Examples of non programmed decisions include entering a new market, deleting a
product from the line, or developing a new product.
• Apple’s decision to develop and launch its new product the iPad was a non
programmed decision that involved research and development, finances, technology,
production, and marketing.