Essentials of Management

Prof. Rohan Mehra

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Prof. Rohan Mehra
 BBA
• The Bachelor in Business Administration
program is designed to enable students to
become industry ready managers.
• Equips students with requisite professional
education and knowledge in business
management for adding value to the industry
and advancing learning.
• Provides students with skills-based learning to
give them a competitive edge in employability.
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 B.Com
• The Bachelor of Commerce is an undergraduate degree
in commerce and related courses in finance.
• The program focuses on the holistic development of a
learner who wishes to complete graduation by building
their knowledge and skills so as to be a successful
manager tomorrow.
• Provides comprehensive understanding and insights in
the area of Finance, Accounting, Law, Taxation and
Management.
• Lays the foundation for higher management education.

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 OUTCOMES DESIRED
• Demonstrate a clear grasp of the concepts of business
management across functional domains.
• Critically think and analyze business problems.
• Apply sensitivity to social, sustainable and ethical aspects,
challenges and actively incorporate nuances of conducting
business responsibly in today’s day and age.
• Develop and apply business models and frameworks to
solve real-world business problems.
• Effectively communicate verbally and non-verbally in the
digital world, in teams, and cross-culturally.
• Develop and display entrepreneurship acumen, innovation
in ideating business plans, and understanding of start-up
ecosystem in the country and globally.
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 OUTCOMES DESIRED
Creates

• Strong foundation to learn essentials of commerce

• Capabilities to attain adaptive advantage in business
• Understanding about how finance, business and management relates to each other

Inculcates

• Skills in relation to designing financial statements and managerial reports

• Ability to apply the quantitative skills for working in financial market including – analysing portfolios
and managing them

Develops

• Understanding about business, trade and commerce

• Understanding about emerging trends in Accountancy

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 SMART LEARNING
S-STRATEGIZE

M-MAKE LEARNING FUN

A-ASK QUESTIONS

R- READ RECOLLECT REMEMBER

T- COMPLETE TASKS

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 STUDENT TASKS
T THINK ANALYZE VISUALISE

A ATTEND ALL SESSIONS

S SHOW INTEREST

K GATHER AS MUCH KNOWLEDGE AS YOU CAN

S SHARE YOUR INPUTS

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 Course Introduction

• Management is a universal phenomenon and is concerned with all the aspects of

an organisation’s functioning.

• The success of an organisation depends a great deal on the effectiveness of

management. The main objective of management is to draw maximum output out
of minimum efforts and resources. Therefore, every organisation must ensure
effective management.

• Efficiency and effectiveness are the two important aspects of successful

management. This is because management is a problem-solving process of
effectively achieving the objectives by efficient use of resources.

• In an organisation, management is operated through a number of functions called

management functions. These functions are planning, organising, staffing,
directing and controlling.

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INTRODUCTION TO
MANAGEMENT
CHAPTER 1

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 Management
https://www.youtube.com/watch?v=_OBqwhYLEJo

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 MANAGEMENT

Noun

Discipline Management Process

Activity

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 Definitions
• F.W. Taylor: Management is the art of knowing
what you want to do and then seeing that
they do it in the best and cheapest way
• Peter Drucker: Management is a multipurpose
organ that manages a business and manages
managers and manages workers and work
• Harold Koontz: Management is the art of
getting things done with others and with
formally organized groups

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Characteristics of Management
GROUP ACTIVITY

CONTINUOUS PROCESS

GOAL –ORIENTED PROCESS

PERVASIVE

INTANGIBLE

HEIRARCHIAL NATURE

SYSTEM

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MANAGEMENT AS A SYSTEM: INPUTS

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 MANAGEMENT AS A
SYSTEM:TRANSFORMATION PROCESS

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https://www.youtube.com/watch?v=g
_bg4jecVnE

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 2. Functions of Management
• Planning: It is a forward-looking function that involves forecasting the requirements of
the future to achieve the desired results. The future forecasting is done on the basis of
past analysis.

• Organising: It involves determining and grouping activities and resources (such as

men, machines, and material) in the most appropriate manner in order to achieve the
results. In addition, organising defines various relationships in an organisation, such
as authority-responsibility and inter-departmental relationships.

• Staffing: It involves employing an efficient pool of people in the right quantities in

order to achieve the results. The staffing function also includes determining human
resource requirements and recruiting individuals with the required skills and
competencies.

• Directing: Under directing, managers instruct and guide employees so that they can
perform their jobs effectively. Moreover, the directing function also involves supervising
the performance of employees

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 3. Functions of Management
• Controlling( Certain Books also include this): It is one of the most important functions of an organisation wherein
the actual output is measured against the desired output. The main steps of the control function include
establishing performance standards, measuring the actual performance, determining gaps between set standards
and achieved standards, and taking corrective measures.

• Reporting: Without reporting, there is no evidence. A clear report keeps communication open throughout the
entire organization. Managers are the linking pin between the management team and their own employees, who
form the constituency. Reporting provides insight into the progress and agreements can also be recorded in this
way. Other essential information—such as problems with employees, new processes, performances interviews
and sales figures—is also made transparent through reporting. Involved parties can also quickly find archived
reports.

• Budgeting:Finance is the lifeblood of any organization. The manager is responsible for the management,
expenditure and control of the department’s budget and also has to keep an eye on tax details. In addition to
employee wages, it is the task of the manager to also properly monitor other expenditures such as materials and
investments. If wasteful spending, overruns, errors or even fraud are discovered, the manager is responsible for
taking action.

• Co-ordinating: With this concept, it is the task of the manager to connect different sections and to achieve
cooperation. A good manager has a so-called helicopter view, which gives him/her an overview of what is
happening and what still needs to be done. From this perspective, he/ she is able to coordinate tasks and manage
his/her employees. It is his/her task to synchronise different departments and to bring them together with the
right end goal in mind.
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IMPORTANCE OF MANAGEMENT
DEALING WITH CHANGE AND ACHIEVING GROUP GOALS

MAKING OPTIMUM UTILIZATION OF RESOURCES

CREATING A COMPREHENSIVE ORGANIZATIONAL STRUCTURE

DIRECTING AND CONTROLLING

COLLABORATING VARIED INTERESTS

CREATING A LEARNING ORGANIZATION

SERVING AS A CONTROL MECHANISM

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 VUCA

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https://www.youtube.com/watch?v=g
VPZDn2v_Kg

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 FUNCTIONAL AREAS OF MANAGEMENT( More
Functional Areas are being added every now and then)

PRODUCTION AND OPERATIONS

MARKETING

FINANCE

HUMAN RESOURCE

I.T.

LOGISTICS
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A FEW SAMPLE FUNCTIONAL AREAS

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 LEVELS OF MANAGEMENT

TOP LEVEL MANAGEMENT

MIDDLE LEVEL MANAGEMENT

LOWER LEVEL MANAGEMENT

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LEVELS OF MANAGEMENT

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 DUTIES OF MANAGERS

LEADING

DISSEMINATING INFORMATION AND ALLOCATING RESOURCES

MANAGING CONFLICTS AND CARRYING OUT NEGOTIATIONS

MOTIVATING PEOPLE TOWARDS CHANGE

EMBRACING ORGANIZATIONAL CULTURE AND PROMOTING INNOVATIVENESS

TAKING INITIATIVES AND MAKING ORGANIZATIONAL CHANGES

FULFILLING SOCIAL OBLIGATIONS AND ADHERING TO CORPORATE GOVERNANCE GUIDELINES

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MANAGERIAL ROLES

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MANAGERIAL SKILLS

CONCEPTUAL SKILLS

HUMAN RELATION
SKILLS

TECHNICAL SKILLS
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 QUALITIES OF A MANAGER
PROVIDES CLEAR DIRECTIONS

WORKS HONESTLY AND REMAINS ACCOUNTABLE

EXHIBITS EXCELLENT DECISION MAKING ABILITIES AND EMOTIONAL INTELLIGENCE

WORKS WITH A POSITIVE APPROACH

ENSURES THAT HE/SHE IS APPROACHABLE

DEMONSTRATES CARING ATTITUDE

HANDLES CONFLICTS PATIENTLY

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 QUALITIES OF A MANAGER
WORKS WITH FLEXIBILITY AND SHOWS EMPATHY TOWARDS OTHERS

MAINTAINS INTEGRITY AND GAINS TRUST OF OTHERS

POSSESSES GOOD COMMUNICATION SKILLS AND HAS PASSION FOR WORK AND SUCCESS

DEMONSTRATES GREAT LISTENING SKILLS

ORGANISES PEOPLE,PROCESSES AND RESOURCES AND MAINTAINS CONTROL

DELEGATES TASKS

ENGAGES IN PLANNING AND FORECASTING

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 Nature and Purpose of Management

Management as a Science
• Management is called science as it has its own principles that can be applied
everywhere. According to the principle, if the same work is given to a person
repeatedly, he/she gains expertise in that work whether it is the personal or
professional life of the person.

• It should be noted that management is not like natural or exact science but it is
more like behavioural science. This is because in case of natural science, it is
possible to study the effects of any of the factors affecting a phenomenon by
keeping other factors constant.

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 Nature and Purpose of Management

Management as an Art
• According to management experts , management is a skill that comes from an
individual’s personality and ability. Thus, it is said that managers are born, not
made.
• In addition, experts believing in management as an art propounded that
managers need to rely on the social and political environment and use their own
body of knowledge to determine a course of action.

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 Science Vs Art
• Some renowned management experts have given their viewpoints on
management as art. Let us discuss about the viewpoints of these experts
as follows:
• Henry Mintzberg: He is the most noticeable advocate of the thought that
management is an art. He stated that management is an art as managers
do not necessarily have routine behaviour instead they use their own
social and political skills to solve problems and determine an appropriate
course of action.
• David E. Lilienthal: He presented his view on management as an art in his
series of lectures tilted Management: A Humanist Art published in 1967.
According to him, managers are artists as they need to respond differently
to different employees and motivate them in order to get the work done
by the employees.
• Peter Drucker: He termed management as liberal art as it involves the
practice and application of knowledge, wisdom, and leadership. He rejects
the view that management involves established facts. This is because
management practices change with changes in the business environment.

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 Management as a Profession

Prof. Dalton E. McFarland has given five characteristics of a profession:

1. The existence of a body of specialised knowledge and techniques

2. A formalised method acquiring training and experience

3. Establishment of a representative organisation with professionalism as its goal

4. Ethical codes of conduct

5. Due regards for the priority of a service over the desire for monetary reward

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 Management as a Profession

The comparison of features of a profession with that of management are as follows:

• Existence of body of specialised knowledge and techniques: A profession has a

well-defined area of organised knowledge. Even management deals with the
different areas of knowledge such as economics, management, and mathematics.
Thus, it can be said that management is a profession as it makes use of
techniques formulated through profession.

• Formalized methods of acquiring training and experience: A profession has

formal methods of training and experience. Managers are selected on the basis of
their managerial experience either theoretical or practical. However, it is true
that some managers work without experience but their managerial ability always
count for their selection.

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 Management as a Profession

• Ethical codes of conduct: Individuals practising a profession are bound to follow a

particular code of conduct. This code of conduct involves rules and regulations for
guiding the behaviour of individuals. In case of management, there is a code of
conduct that has been laid down to ensure the confidentiality of organisations’
information and prevent the misuse of such information.

• Due regards for the priority of service over the desire for monetary reward:
Professionals are respected in the society as they get remuneration for providing
their valuable services to the society. Management as a profession also has
certain responsibilities towards the society. Thus, management can also be called
profession.

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