Chapter-1

Management: Science,
Theory & Practice
Md. Imran Hossain
Assistant Professor
Dept: of Finance
Jagannath University
 Definition of Management:

• Management is the process of designing and maintaining an

environment in which individuals, working together in groups,
efficiently accomplish selected aims
Management: Definition
• Acc to Harold Koontz: Management is the art of getting things
done through & with an formally organized group
• Acc to Henry Fayol: To manage is to forecast & plan, to
organize, to compound, to co-ordinate and to control
• PODSCORB:
- Planning, Organizing, Directing, Staffing, Controlling, Co-
ordinating, Reporting & Budgeting
Features of Management
• Art as well as Science*
• Management is an activity*
• Management is a continuous process*
• Management achieving pre-determined objectives*
• Organized activities*
• Management is a factor of production
• Management as a system
• Management is a discipline*
Features of Management
• Management is a distinct entity
• Management aims at maximising profit*
• Management is a purposeful activity*
• Management is a profession*
• Universal application*
• Management is getting things done
• Management is needed at all levels**
• Decission Making*
Importance of Management
• Management meet the challenge of change
• Accomplishment of group goals
• Effective utilization of resources
• Effective functioning of business
• Resource Development
• Sound organization Structure
• Management directs the organization
• Integrates various interests
• Stability
Importance of Management

• Innovation
• Co-ordination and team-spirit
• Tackling problems
• A tool for Personality Development
Henry Fayol (1841-1925)
• Was a french industrialist
• Given :
• Elements of Management- Planning, Organizing, Commanding,
Co-ordination & Control
• Qualities of Manager: Physical, Mental, Moral, General
Education, Special Knowledge & Experience
• Principles of Management
Principles of Management
• Division of work
• Authority & responsibilty
• Discipline
• Unity of command
• Unity of direction
• Subordinate of individual interest to group interest
• Remuneration of personnel
• Centralization
• Scalar Chain
Principles of Management
• Order
• Equity
• Stability of tenure of personnel
• Initiative
• Espirit De Corps
Who Are Managers?
• Manager
• Someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals
Types of Managers
• First-line Managers
• Are at the lowest level of management and manage the
work of nonmanagerial employees
• Middle Managers
• Manage the work of first-line managers
• Top Managers
• Are responsible for making organization-wide decisions
and establishing plans and goals that affect the entire
organization
Exhibit 1.1 Managerial Levels

Top
Top
Managers
Managers
MiddleManagers
Middle Managers
First-LineManagers
First-Line Managers
NonmanagerialEmployees
Nonmanagerial Employees
Top Managers
Responsible
Responsible for…
for…

Creating
Creating aa context
context for
for change
change

Developing
Developing attitudes
attitudes of
of commitment
commitment
and
and ownership
ownership in
in employees
employees
Creating
Creatingaa positive
positive organizational
organizational
culture
culture through
through language
language and
and action
action

Monitoring
Monitoring their
their business
business environments
environments
Middle Managers
Responsible
Responsiblefor…
for…

Setting
Settingobjectives
objectivesconsistent
consistentwith
withtop
top
management
managementgoals,
goals,planning
planningstrategies
strategies

Coordinating
Coordinatingand
andlinking
linkinggroups,
groups,
departments,
departments,and
anddivisions
divisions

Monitoring
Monitoringand
andmanaging
managingthe
theperformance
performance
of
ofsubunits
subunitsand
andmanagers
managerswho
whoreport
reportto
tothem
them

Implementing
Implementingthe
thechanges
changesor
orstrategies
strategies
generated
generatedby
bytop
topmanagers
managers
First-Line Managers
Responsible
Responsiblefor…
for…

Managing
Managingthe
theperformance
performanceof
of
entry-level
entry-levelemployees
employees

Teaching
Teachingentry-level
entry-levelemployees
employees
how
howtotodo
dotheir
theirjobs
jobs

Making
Makingschedules
schedulesand
andoperating
operatingplans
plansbased
basedon
on
middle
middlemanagement’s
management’sintermediate-range
intermediate-rangeplans
plans
Management Levels and Functional Areas
Where Managers Work

Organization
A consciously coordinated social unit, composed of
two or more people, that functions on a relatively
continuous basis to achieve a common goal or set of
goals.
What Is An Organization?
• An Organization Defined
• A deliberate arrangement of people to
accomplish some specific purpose
• Common Characteristics of Organizations
• Have a distinct purpose (goal)
• Are composed of people
• Have a deliberate structure
Exhibit 1.6 The Changing Organization

Traditional
 Stable New Organization
 Inflexible  Dynamic
 Job-focused
 Work is defined by job positions  Flexible
 Individual-oriented
 Permanent jobs  Skills-focused
 Command-oriented
 Managers always make decisions  Work is defined in terms of tasks to be done
 Rule-oriented
 Relatively homogeneous workforce
 Team-oriented
 Workdays defined as 9 to 5  Temporary jobs
 Hierarchial relationships
 Work at organizational facility during specific hours  Involvement-oriented
 Employees participate in decision making
 Customer-oriented
 Diverse workforce
 Workdays have no time boundaries
 Lateral and networked relationships
 Work anywhere, anytime
Definitions of Effectiveness and Efficiency

• Productivity implies effectiveness and efficiency in individual

and organizational performance
• Effectiveness is the achievement of objectives
• Efficiency is the achievement of the ends with the least
amount of resources (time, money, etc.)
 Managerial Concerns
• Efficiency
• “Doing things right”
• Getting the most output for the least input

• Effectiveness
• “Doing the right things”
• Attaining organizational goals
What Managers Do

Managers (or administrators)

Individuals who achieve goals through other people.

Managerial
ManagerialActivities
Activities
••Make
Makedecisions
decisions
••Allocate
Allocateresources
resources
••Direct
Directactivities
activitiesof
ofothers
othersto
to
attain
attaingoals
goals
What Do Managers Do?

• Functional Approach
• Planning
• Organizing
• Leading
• Controlling
 Management Functions
(cont’d)
Planning
A process that includes defining goals,
establishing strategy, and developing
plans to coordinate activities.
Management Functions (cont’d)

Organizing
Determining what tasks are to be done,
who is to do them, how the tasks are to
be grouped, who reports to whom, and
where decisions are to be made.
Management Functions (cont’d)

Leading
A function that includes motivating
employees, directing others, selecting
the most effective communication
channels, and resolving conflicts.
Management Functions (cont’d)

Controlling
Monitoring activities to ensure they are being
accomplished as planned and correcting any
significant deviations.
Management Functions
Planning Organizing Leading Controlling
Lead to
Defining goals, Determining Directing and Monitoring
establishing what needs motivating all activities Achieving the
strategy, and to be done, involved parties to ensure organization ’s
developing how it will and resolving that they are stated
subplans to be done, and conflicts accomplished purpose
coordinate who is to do it as planned
activities
 What Do Managers Do? (cont’d

• Mintzberg’s Management Roles Approach

• Interpersonal roles
• Figurehead, leader, liaison
• Informational roles
• Monitor, disseminator, spokesperson
• Decisional roles
• Entrepreneur, disturbance handler, resource allocator,
negotiator
Mintzberg’s Managerial Roles
Mintzberg’s Managerial Roles
(cont’d)
Mintzberg’s Managerial Roles
(cont’d)
What Do Managers Do? (cont’d)
• Skills Approach
• Technical skills
• Human skills
• Conceptual skills
Management Skills

Technical skills
The ability to apply specialized
knowledge or expertise.

Human skills
The ability to work with, understand,
and motivate other people, both
individually and in groups.

Conceptual Skills
The mental ability to analyze and
diagnose complex situations.
Exhibit 1.4 Skills Needed at Different
Management Levels
Top
Conceptual
Managers Skills
Middle Human
Managers Skills
Technical
Lower-level
Skills
Managers

Importance