INTRODUCTION TO BUSINESS

Chapter 3 Management and Organization

MANAGEMENT
3 M concept (men, money, and material)
Management is a single or group of individuals who challenge and oversee a person or
collective group of people to accomplish desired goals and objectives efficiently and
effectively. Management is the art and science of decision-making. It is the art of getting things
done by people in an organized way.
WHO IS MANAGER?
A manager is a professional who takes a leadership role in an organization and manages a team of
employees. They coordinate and oversee the activities of employees working under them.
Skills for a successful management career
 Interpersonal skills.
 Communication and motivation.
 Organization and delegation.
 Forward planning and strategic thinking.
 Problem-solving and decision-making.
 Commercial awareness.
 Mentoring.
TYPES OF MANAGERS

ON THE BASIS OF LEVELS

First-line manager’s lowest level of the organization works directly with non-management employees and
project team members. Their overarching role is to supervise employee productivity and hold employees
accountable for achieving company goals. Generally, first-line managers handle internal work only. In other
words, they are not responsible for larger-scale business decisions, like whether to take the company public,
rebrand, or partner with another business
Middle managers usually report to the top-level managers, yet they still have a lot of autonomy to make
decisions within their area or department of the company. These managers often have job titles that include the
word “director.” They may also be department heads. Middle managers tend to function as points of contact
between first-line managers and top-level management, ensuring that the two groups maintain productive two-
way communication. Middle managers may help develop or implement plans to help top-level managers
address obstacles or achieve certain business goals. Additional core duties can include mentoring lower-level
managers and helping them prepare for career advancement.
Top-level managers are those who represent the highest level of executive management. Top-level managers
often have the word “chief” in their job titles, such as chief executive officer, chief financial officer, and so on.
These managers help sustain the company’s growth and execute plans over the long term. They make major
business decisions — such as launching a new product or restructuring departments — with the goal of seeing
the company thrive, not just in the moment but into the future. Additional duties of top-level managers might
include facilitating strategic partnerships with other companies or deciding to take a company public.

ON BASIS OF NATURE OF WORK

Staff manager A staff manager provide an advisory role (advisory such as guidance to employees)
Functional manager A functional manager manages and owns the resources in a specific department, such as
IT, engineering, public relations, or marketing, and generally directs the technical work of individuals from that
functional area who are working on the project.
GENERALIST MANAGER A generalist is someone who has broad general knowledge and skills in several
areas. A project management generalist is a practitioner who is able to do all the general tasks in the area of
project management.
Nonmanagerial employees are people who work directly on a job or task and have no responsibility for
overseeing the work of others. The employees who ring up your sale at Home Depot, take your order at
the Starbucks drive-through, or process your class registration forms are all nonmanagerial employees.
Difference between managerial and nonmanagerial employees?
 Non-managerial employees are typically accountable for their own work and contributions to the
department or company. A manager conducts their performance reviews and might handle pay raises,
professional development or disciplinary actions.

WHAT IS EFFICIENCY AND EFFECTIVENESS

Effective means "producing a result that is wanted". Efficient means "capable
of producing desired results without wasting materials, time, or energy"
Efficiency is all about reducing costs and Effectiveness is about achieving strategic
resources required to execute on tactics. goals that align with the vision of the
EFFICIENCY IS DOING organization and drive more revenue.
-Getting the more output by giving less input By doing the right thing
By doing things right -Attaining the organization goal
-Efficiency is a measure of productivity, and -effectiveness is a measure of the quality of the
how tasks are performed. results.
-Effective management focuses on formulating
strategy, while efficient management focuses
on implementing strategy.
EXAMPLE Effectiveness is finding a way
EXAMPLE, you might find a better way to to improve outcomes, perhaps by doing
run a project status meeting so it takes 30 something very differently.
minutes on average rather than 45 minute.

MANGEMENT FUNCTIONS
Major five functions of management
PLANNING
Management function that involves, defining goals and establishing strategies for achieving
goals and develop plans to integrate and coordinate activates. Planning is the fundamental
management function, which involves deciding beforehand, what is to be done, when is it to be
done, how it is to be done and who is going to do it. It chalks out exactly, how to attain a
specific goal.

Importance of Planning
 It helps managers to improve future performance
 It minimizes risk and uncertainty, by looking ahead into the future.
 It facilitates the coordination of activities. Thus, reduces overlapping among activities and
eliminates unproductive work.
 It states in advance, what should be done in future, so it provides direction for action.
 It uncovers and identifies future opportunities and threats.
 It sets out standards for controlling
 Characteristics of Planning

1. Base function: Planning is a first and foremost managerial function provides the base for other
functions of the management, i.e. organizing, staffing, directing and controlling, as they are
performed within the periphery of the plans made.
2. Goal oriented: It focuses on defining the goals of the organization, identifying alternative
courses of action and deciding the appropriate action plan, which is to be undertaken for
reaching the goals.
3. Pervasive: It is pervasive in the sense that it is present in all the segments and is required at all
the levels of the organisation. Although the scope of planning varies at different levels and
departments.
4. Continuous Process: Plans are made for a specific term, say for a month, quarter, year and so
on. Once that period is over, new plans are drawn, considering the organisation’s present and
future requirements and conditions. Therefore, it is an ongoing process, as the plans are framed,
executed and followed by another plan.
5. Intellectual Process: It is a mental exercise at it involves the application of mind, to think,
forecast, imagine intelligently and innovate etc.
6. Futuristic: In the process of planning we take a sneak peek of the future. It encompasses
looking into the future, to analyse and predict it so that the organisation can face future
challenges effectively.
7. Decision making: Decisions are made regarding the choice of alternative courses of action that
can be undertaken to reach the goal. The alternative chosen should be best among all, with the
least number of the negative and highest number of positive outcomes.

STEPS
ORGANIZING
Organizing is the second key management function, after planning, which coordinates human
efforts, arranges resources and incorporates the two in such a way which helps in the
achievement of objectives which were planned.

CHARACTERISTICS

1)Division of Labour: Work is assigned to the employee who is specialized in that work.

2)Coordination: Different members of the organization are given different tasks to perform
when all the tasks are put together logically and sequentially, it results in the objectives, so
coordination is required.

PROCESS
1. Departmentalization: After classifying the work into different activities, the activities having a similar nature are grouped
together. This process is called as departmentalization which facilitates specialization and forms the basis for creating
departments.
2. Establishment of organizational hierarchy: Deployment of work is not all, the employees must be aware of whom they have
to report and who can give them orders. Hence, work relationships need to be established clearly, which helps in the creation
of a hierarchical structure of the organization.
 Control is a primary goal-oriented function of management in an organisation. It is a
process of comparing the actual performance with the set standards of the company to ensure
that activities are performed according to the plans and if not then taking corrective action. It
involves the monitoring and comparing.
PROCESS

IMPORTANCE

 It helps in achieving organizational goals.

 Facilitates optimum utilization of resources.
 It evaluates the accuracy of the standard.
 It also sets discipline and order.
 Motivates the employees and boosts employee morale.
 Ensures future planning by revising standards.
 Improves overall performance of an organization.
 It also minimizes errors.

MANGEMENT ROLES
Interpersonal role
Managerial role that involves people and other duties that are ceremonial and
symbolic in nature.
Leader – includes all aspects of being a good leader. This involves building a team, coaching the members,
motivating them, and developing strong relationships. Liaison – includes developing and maintaining a
network outside the office for information and assistance. Figurehead. People look up to you as a person with
authority .This role requires performing social, ceremonial, and legal responsibilities EXAMPLE sales
manager coaching a salesperson who is having a hard time meeting their sales quotas.

Informational role
Managerial role that involve collecting, receiving and disseminating the
information.
Monitor You also monitor your team, in terms of both their productivity, and their well-being. Disseminator –
This is where you communicate potentially useful information to your colleagues and your team.
Spokesperson – Managers represent and speak for their organization.
Decisional role
Managerial role that involves making decisions, managerial roles where managers are
responsible for making calculated and timely decisions for the company's welfare. It
involves managers weighing the options and the choices at hand and settling for the
most strategic

MANGEMENT SKILLS
The skills we can consider as knowledge and skills of individual at managerial
position to fulfill managerial activities or tasks

IMPORTANT MANGEMENT SKILLS

Technical skills
The technical skills and knowledge needed to proficiently perform specific task
USED OF MS WORD FOR MAKING GRAPH
Human skills
The ability to work well in group of people or individually
Conceptual skills
The ability to think and conceptualize the abstract and complex situations and make
decision to make company stable
TOP MANGER must have good conceptual skills
 Middle manager must have good human skills
Low level manager must have good technical skills
IMPORTANCE OF MANAGERS
Managers are important for any organization to achieve its goals. They are the backbone of any organization,
and their role is to ensure that everything runs smoothly in the company. The success or failure of an
organization depends on how well its managers handle their responsibilities.
1) Planning team actions Managers can provide leadership to their teams, providing a purpose and direction
that employees can trust. They help employees reach their goals and handle the daily production and
processes of a business. They also plan the next steps for managing projects and potential hires. Creating a
plan helps a team stay organized and complete tasks efficiently, and having someone set the direction for the
team can create an environment of continual growth.
2. Setting goal Managers can set goals for teams and individual employees. By giving their employees
something to accomplish, a manager may help them grow in their positions and improve their productivity.
Managers are usually familiar with the industry and the tasks they assign to employees.
3) Using resources Managers can be partially responsible for their employees' performances, which includes
making sure they have the resources they need and allocating the resources.
4) Planning and organizing: Managers plan and organize the work of their team, ensuring that everyone is
working towards the same goals and that resources are used efficiently.
5. Providing accountability
Employees often rely on their managers to monitor their performances and the expectations set for them. This
accountability can be an essential aspect of facilitating growth for an employee
7. Prioritizing work
Many managers assign work to their employees based on deadlines and priority
8. Facilitating communication
A manager can be the point of communication for other departments or the owners and CEOs of a company.
9. Customer relationship
Managing good relationship with customers is compulsory for every company survival so manger help
company to develop good relationship by providing fast services.
10. Innovation
Doing things differently, exploring new territory, and taking risk

11 •delegating tasks: Managers delegate tasks to their team members, giving them the authority and
responsibility to get the work done.

12•Motivating and inspiring employees: Managers motivate and inspire their employees to perform at their
best. They create a positive work environment and provide feedback and coaching to help employees develop
their skills and knowledge.

13•solving problems: Managers solve problems that arise in the workplace. They identify the root cause of
the problem and develop solutions that will prevent it from happening again.

14. Building relationships: Managers build relationships with their team members, stakeholders, and other
managers. These relationships are essential for effective communication and collaboration.

ORGANIZATION
An organization or organisation, is an entity—such as a company, an institution, or an association—
comprising one or more people and having a particular purpose. The word is derived from the Greek
word “organon”, which means tool or instrument, musical instrument, and organ
Importance

Organisation helps in optimum utilization of financial and human resources. It not only aids in
the proper assignment of jobs to suitable employees but also keeps track that there is no waste of
resources and efforts due to duplication of work.

There are three main types of organization structure.

1) LINE ORGANIZATION : In this type of organization, authority flows from top to bottom and responsibility flows
from bottom to top. Each departmental head has complete control over his section and he is fully authorized to
select his labor, staff, purchases of raw materials, stores and to set the standards of output etc. The
responsibility of each departmental head is clearly defined. Each department works as a self-supporting unit.
Simple and strong is discipline.
2) FUNCTIONAL ORGANIZATION : The main feature of functional organization is the division of work and
specialization. In each department, there is one expert. An expert is not only a counselor but also an
administrator. He advices his subordinates. An Expert does not only bear responsibility of his department but
also bear responsibility of all departments.
3) LINE AND STAFF ORGANIZATION: Line and staff organization is that in which the line heads are assisted by
specialist staff. In each department, there is one expert and some line personnel’s / line officials. Line official will
do all managerial work and expert will give advice to line official or line personnel.
UNIVERSITY OF MANGEMENT
Management is needed in every organization

There are several pros and cons to being a manager; the pros include higher pay, company influence, and personal
development, while the cons include high stress, varying duties, and hiring and firing employees

Salaries According to Indeed Salaries, a retail sales associate earns an average of $12.80 per hour, while a retail manager
earns an average of $47,555 per year.

Opportunity to make personnel decisions Most managers are responsible for making personnel decisions. Although
some may see this as a challenge, others view this opportunity as a way to build a strong, cohesive and collaborative
team. As an employee, you don't have much control over your co-workers and what they contribute to the team.
However, as a manager, you can decide who to hire and determine what attributes are most important to building a
better, stronger team.

Personal growth and development Managers have to interact with their subordinates differently than co-workers
interact with one another, so you can develop different communication skills, including the ability to listen and respond
to employee needs. As a member of the leadership team, you'll also need to demonstrate leadership skills to inspire and
motivate your team to achieve their goals. Strong managers continue to develop and grow throughout their careers.
Look for classes to take or conferences to attend to build your skills and continue on your path toward improvement.
Create a better work environment As a manager, you have the opportunity to create a strong work environment to
empower and motivate employees. In order to build an environment where team members can thrive, it's important to
establish guidelines and allow for open communication. Set expectations at the beginning, so that you can clearly outline
the environment and expectations.

Career advancement The opportunity to advance in your professional career is an appealing benefit of taking on a
management role, providing more responsibility, control and often, a better salary.

Create team autonomy A strong manager can create a culture that allows employees to initiate and maintain autonomy
or independent responsibility for their work.Building an autonomous work environment encourages respect, trust,
accountability and integrity which also promotes overall team productivity. This benefit can help you create a stronger
and more collaborative environment while encouraging and empowering members of the team.

CHALLENGES
1. Leading former peers. First-time managers often find it difficult to transition from being a friend or colleague to being
a superior, all while maintaining positive personal relationships and gaining respect. New skills needed include
influencing others, managing, and coordinating employees who aren’t in their direct line of authority.

2. balancing the new workload. First-time managers must learn to be leaders while still being productive employees
themselves. New skills needed include time management, stress management, relationship management, and industry-
specific expertise.

3. Navigating the organization. First-time managers now must learn to assert their opinions to upper-level
management, including speaking for their subordinates or department. New skills needed include gaining visibility with
upper management; gaining an understanding of the company’s corporate structure, its culture, and politics; and
navigating organizational change for themselves and their team. Those without strong political skill may find themselves
struggling as a manager.

4. Holding people accountable. First-time managers have to overcome discomfort with giving different types of
feedback, especially negative feedback, and this can feel even trickier when it involves managing remote or hybrid
teams. New skills needed include holding subordinates accountable for their actions and effectively dealing with
employees who lack ability, knowledge, or experience.

5. Coaching and developing others. First-time managers are now in the position to develop subordinates’ knowledge,
skills, and abilities. New skills needed include mentoring team members in their career development and holding
coaching conversations with their people. For most new managers, a focus on developing employees is new.

6. Communicating more effectively. First-time managers must be able to span boundaries and communicate with
people across all levels in the organization, including team members, superiors, and peers in other departments. New
skills needed include keeping lines of communication open, learning how to communicate to achieve the best outcome
— even (and especially) when that message must be delivered as a virtual communication — and effectively setting
goals and expectations with subordinates and superiors. Communication is one of the most important skills for leaders.

7. Resolving interpersonal conflict First-time managers must proactively and reactively resolve conflicts between group
members. New skills needed include identifying and addressing smaller issues before they turn into larger conflicts,
mitigating conflict once it occurs, and dealing with resistance from team members. Confronting problem employees is
often especially challenging for new managers.

8. Connecting across differences. First-time managers must be able to work effectively with and lead employees who
have different opinions, personalities, backgrounds, and abilities. And leading with a focus on equity, diversity, and
inclusion requires that they be able to understand others’ perspectives, as well as how aspects of their own identity
affect the way they lead. New skills needed include the ability to adapt their behavior based on the ways in which
different people work, and showing sensitivity and compassion when leading multicultural teams.

9. Prioritizing competing demands. First-time managers have to learn to hold competing interests in mind and discern
how they align with organizational goals. New skills needed include the ability to manage paradox and understand how
to balance competing tensions, moving from a mindset of “either/or” to one of “both/and.”