📘 What is Management?

Management is the process of planning, organizing, leading, and

controlling resources (people, time, money, etc.) to achieve organizational
goals effectively and efficiently.

✅ Characteristics of Management
1.​ Goal-Oriented – Focuses on achieving specific objectives​

2.​ Universal – Applied in all types of organizations​

3.​ Continuous Process – Happens at all times, not once​

4.​ Integrative – Coordinates people, processes, and resources​

5.​ Intangible – It’s a process, not a product​

6.​ Multidisciplinary – Uses principles from economics, psychology, sociology, etc.​

7.​ Group Activity – Involves working with and through others​

🔧 Functions of Management (POLC)

1.​ Planning​

○​ Setting goals and determining the best course of action​

○​ Involves forecasting, setting objectives, budgeting​

2.​ Organizing​

○​ Arranging resources to implement the plan​

○​ Includes division of labor, departmentalization, delegation​

3.​ Leading (Directing)​

 ○​ Motivating, guiding, and supervising staff​

○​ Involves leadership, communication, and team building​

4.​ Controlling​

○​ Monitoring performance and making corrections​

○​ Includes setting standards, evaluating, and corrective actions​

👨‍💼 Management Roles (Henry Mintzberg)

Divided into three categories:

1. Interpersonal Roles

●​ Figurehead – ceremonial duties​

●​ Leader – motivates and guides staff​

●​ Liaison – maintains relationships inside and outside​

2. Informational Roles

●​ Monitor – gathers internal/external information​

●​ Disseminator – shares info with staff​

●​ Spokesperson – communicates on behalf of the company​

3. Decisional Roles

●​ Entrepreneur – initiates change​

●​ Disturbance Handler – resolves conflicts​

●​ Resource Allocator – assigns resources​

●​ Negotiator – participates in negotiations​

📊 Levels of Management
1.​ Top-Level Management​

○​ Examples: CEO, Managing Director​

○​ Responsibilities: Strategic decisions, vision, policy-making​

2.​ Middle-Level Management​

○​ Examples: Department Heads, Regional Managers​

○​ Responsibilities: Implementing policies, coordinating activities​

3.​ Lower-Level (Supervisory) Management​

○​ Examples: Supervisors, Foremen​

○​ Responsibilities: Overseeing workers, daily operations​

🧠 Management Skills (by Robert Katz)

1.​ Technical Skills​

○​ Ability to use tools, techniques, and processes (important for lower-level

managers)​

2.​ Human (Interpersonal) Skills​

○​ Ability to interact with others, lead teams (important at all levels)​

3.​ Conceptual Skills​

○​ Ability to see the big picture, strategize, and solve complex problems
(critical for top-level managers)

🌍 Environment and Constraints in Management

🔹 What is the “Management Environment”?
 The management environment refers to all external and internal factors
that influence how an organization operates, makes decisions, and achieves
its goals.

These factors present opportunities or constraints (challenges/limitations) to

managers.

✅ Types of Management Environment

1. Internal Environment (Within the organization)

These are controllable factors.

Examples:

●​ Employees​

●​ Organizational culture​

●​ Company policies​

●​ Structure of the organization​

●​ Resources (human, financial, physical)​

2. External Environment (Outside the organization)

Divided into two:

a) Micro (Task) Environment

Immediate factors affecting the business directly.

Includes:

●​ Customers​

●​ Suppliers​

●​ Competitors​

●​ Intermediaries​
 ●​ Trade unions​

●​ Regulators​

b) Macro (General) Environment

Broad external forces beyond the organization’s control.

Includes:

●​ Political/Legal – Government policies, laws, taxes​

●​ Economic – Inflation, interest rates, exchange rates​

●​ Social-Cultural – Values, demographics, education levels​

●​ Technological – Innovations, automation, digitization​

●​ Environmental – Climate change, sustainability demands​

●​ Global – International competition, global pandemics​

(Use PESTEL as a mnemonic: Political, Economic, Social, Technological,

Environmental, Legal)

🚫 Constraints in Management
Constraints are limitations that restrict a manager’s ability to act freely. They can be
internal or external.

🔸 Internal Constraints:
●​ Limited budgets/resources​

●​ Organizational resistance to change​

●​ Inadequate skills or training​

●​ Poor communication​

●​ Bureaucracy or rigid procedures​

🔸 External Constraints:
●​ Government regulations​

●​ Trade union activities​

●​ Technological disruption​

●​ Competitor strategies​

●​ Market trends​

●​ Cultural expectations​

📌 How Managers Respond to Environmental Challenges

●​ Forecasting and planning ahead​

●​ Adapting strategies quickly​

●​ Training and reskilling staff​

●​ Forming alliances or partnerships​

●​ Innovating and using technology​

Henry Fayol's fourteen principles

1.​ Division of Work​

○​ Specialization increases output by making employees more efficient.​

2.​ Authority and Responsibility​

○​ Managers must have the authority to give orders and the responsibility to
ensure they are carried out.​
3.​ Discipline​

○​ Employees must obey and respect the rules that govern the organization.​

4.​ Unity of Command​

○​ Each employee should receive orders from only one superior.​

5.​ Unity of Direction​

○​ Teams with the same objective should be working under the direction of
one manager, using one plan.​

6.​ Subordination of Individual Interest to General Interest​

○​ The interests of the organization should come before the interests of

individuals.​

7.​ Remuneration​

○​ Workers must be fairly paid for their services.​

8.​ Centralization​

○​ The degree to which decision-making is concentrated at the top. Fayol

advocated for a balance.​

9.​ Scalar Chain​

○​ A chain of authority exists from top to bottom in the organization.

Communication should flow along this chain.​

10.​Order​

●​ There should be a place for everything and everyone should be in their place.​

11.​Equity​

●​ Managers should be fair and kind to employees to ensure loyalty and devotion.​

12.​Stability of Tenure of Personnel​

●​ High employee turnover is inefficient. Stability promotes long-term growth.​

13.​Initiative​
 ●​ Employees should be given the freedom to express ideas and carry out plans.​

14.​Esprit de Corps​

●​ Promoting team spirit will build harmony and unity within the organization.

Marx Weber and Features/Characteristics of Bureaucracy.

1.​ Clear Division of Labor​

○​ Work is divided into specialized tasks and roles.​

○​ Each individual has a defined set of responsibilities.​

2.​ Hierarchy of Authority​

○​ A clear chain of command from top to bottom.​

○​ Each level controls the level below and is controlled by the level above.​

3.​ Formal Rules and Regulations​

○​ Operations are governed by established rules and procedures.​

○​ Promotes consistency and predictability.​

4.​ Impersonality​

○​ Decisions are based on rules, not personal feelings or relationships.​

○​ Promotes fairness and objectivity.​

5.​ Employment Based on Technical Qualifications​

○​ Hiring and promotion are based on merit, qualifications, and performance.​

○​ Reduces favoritism and nepotism.​

6.​ Formal Written Communications and Records​

○​ All decisions, procedures, and actions are documented.​

○​ Provides accountability and continuity.​

📌 Advantages of Bureaucracy
●​ Promotes efficiency and predictability​

●​ Ensures fairness and uniformity​

●​ Encourages discipline and control​

●​ Makes roles and responsibilities clear​

⚠️ Criticisms of Bureaucracy
●​ Too rigid and inflexible — slow to adapt to change​

●​ Leads to red tape — excessive paperwork and procedures​

●​ Can dehumanize workers — treats people like machines​

●​ Promotes over-dependence on hierarchy​

📚 Main Management Theories (With Key Points)

1. Classical Theories

Focus on improving efficiency, productivity, and structure in organizations.

a) Scientific Management – F.W. Taylor

●​ Focus: Work efficiency through scientific methods​

●​ Key Ideas:​

○​ Time and motion studies​

○​ Standardized tasks​

○​ Training workers for maximum efficiency​

 ○​ “A fair day’s work for a fair day’s pay”​

●​ Weakness: Ignores worker motivation and human needs​

b) Administrative Theory – Henri Fayol

●​ Focus: Management functions and principles​

●​ Key Contribution: 14 principles of management​

●​ Developed functions of management (Planning, Organizing, Leading,

Controlling)​

c) Bureaucratic Theory – Max Weber

●​ Focus: Structure and authority​

●​ Features: Clear hierarchy, formal rules, impersonality, merit-based

employment​

2. Behavioral Theories (Human Relations Movement)

Focus on the human aspect of workers – motivation, leadership, and group

behavior.

a) Elton Mayo – Hawthorne Studies

●​ Found that employee attention and social needs improved productivity​

●​ Introduced the idea of informal groups and morale​

b) Abraham Maslow – Hierarchy of Needs

●​ 5-level pyramid: Physiological, Safety, Social, Esteem, Self-actualization​

●​ People are motivated to fulfill basic needs before moving to higher levels​

c) Douglas McGregor – Theory X and Theory Y

●​ Theory X: Workers are lazy and need strict supervision​

 ●​ Theory Y: Workers are motivated and seek responsibility​

d) Frederick Herzberg – Two-Factor Theory

●​ Hygiene factors (e.g. salary, job security) prevent dissatisfaction​

●​ Motivators (e.g. achievement, recognition) promote satisfaction

e) management theory Z- william ouchi

●​ blend of American (Theory A) and Japanese (Theory J) management

practices.
●​ It emphasizes employee loyalty, collective responsibility, and long-term
employment, aiming to improve productivity and morale through trust and
strong company culture.

f) management excellence - Peters & Waterman

●​ Management Excellence Theory is a framework that outlines the traits

and practices of top-performing organizations, emphasizing values
like innovation, customer focus, leadership, and simplicity.

Eight Attributes of Excellent Companies (Peters & Waterman)

1.​ A Bias for Action​

○​ Excellent companies are doers, not talkers. They take quick

decisions and act fast.​

2.​ Close to the Customer​

○​ They understand and respond to customer needs better than

competitors.​

3.​ Autonomy and Entrepreneurship​

○​ They encourage innovation and risk-taking across

departments.​

4.​ Productivity through People​

○​ They value and empower employees as the key resource.​

5.​ Hands-on, Value-Driven​

 ○​ Leaders are deeply involved in day-to-day activities and instill
strong values.​

6.​ Stick to the Knitting​

○​ They focus on what they do best rather than diversifying too

much.​

7.​ Simple Form, Lean Staff​

○​ They avoid bureaucracy; keep structures flat and teams small.​

8.​ Simultaneous Loose-Tight Properties​

○​ While the company encourages individual initiative, it strongly

upholds core values and goals.​

3. Modern Theories

Adapt to complex, changing environments and organizational systems.

a) Systems Theory

●​ The organization is viewed as a system made up of interrelated parts​

●​ Emphasizes that departments/functions must work together to succeed​

b) Contingency Theory

●​ There is no one best way to manage​

●​ The best approach depends on the situation, environment, or task​

c) Total Quality Management (TQM) – Deming

●​ Focus: Continuous improvement, customer satisfaction, teamwork​

●​ Emphasizes quality at every stage of production

📘 Chapter 3: Planning Function of
Management

✅ 1. Definition of Planning
Planning is the process of setting objectives and deciding in advance
the appropriate actions to achieve those objectives.

It is the first and most fundamental function of management. All other functions
(organizing, leading, controlling) depend on planning.

🎯 2. Importance of Planning
●​ Provides direction – guides employees toward objectives​

●​ Reduces uncertainty – anticipates future changes​

●​ Minimizes waste – improves efficient use of resources​

●​ Sets performance standards – used for evaluating results​

●​ Facilitates decision-making – offers structured alternatives​

🧱 3. Characteristics of Planning
1.​ Goal-Oriented – Focuses on outcomes​

2.​ Continuous Process – Not a one-time activity​

3.​ Futuristic – Deals with forecasting and future events​

4.​ Decision-Making Tool – Involves choosing best alternatives​

5.​ Pervasive – Applies to all levels of management​

📋 4. Steps in the Planning Process
1.​ Set Objectives – Define what to achieve​

2.​ Establish Planning Premises – Analyze environment (internal & external)​

3.​ Identify Alternatives – Explore possible actions​

4.​ Evaluate Alternatives – Assess pros and cons​

5.​ Select the Best Option – Choose the most feasible path​

6.​ Implement the Plan – Put into action​

7.​ Monitor and Review – Ensure the plan stays on course​

📊 5. Types of Plans
Type Description Example

Strategic Plans Long-term, organization-wide Expanding to a new

country

Tactical Plans Mid-term, departmental level Marketing plan for a

quarter

Operational Short-term, daily activities Daily staff schedule

Plans

Contingency Backup plans for unexpected Disaster recovery plan

Plans situations
🧠 6. Barriers to Effective Planning
●​ Lack of accurate information​

●​ Resistance to change​

●​ Inflexibility of plans​

●​ Unrealistic goals​

●​ Poor communication​

🛠️ 7. Tools and Techniques of Planning

●​ SWOT Analysis – Strengths, Weaknesses, Opportunities, Threats​

●​ PESTEL Analysis – Political, Economic, Social, Technological,

Environmental, Legal​

●​ Forecasting – Predicting future trends​

●​ Budgeting – Estimating revenues and expenses​

●​ Gantt Charts/PERT – Planning tasks and timelines

●​ Assumptions - based on previous findings and surveys
●​ Break even analysis - prior investigation of the potential of a proposed
investment ​

🧾 8. Relationship Between Planning and Other

Functions
●​ Organizing follows planning to arrange resources.​

●​ Leading ensures that people work toward the plan.​

●​ Controlling measures progress against the plan.

📘 Chapter 4: Organizing Function of
Management

✅ 1. Definition of Organizing
Organizing is the process of arranging resources (people, materials,
finances, activities) in a structured way to achieve the organization’s
goals efficiently.

It involves assigning tasks, grouping tasks into departments, and establishing

authority relationships.

🎯 2. Importance of Organizing
●​ Clarifies roles and responsibilities​

●​ Ensures efficient use of resources​

●​ Improves coordination and communication​

●​ Promotes specialization​

●​ Facilitates growth and expansion​

🧱 3. Key Elements of Organizing

1.​ Division of Work​

○​ Breaking down tasks into manageable units​

○​ Encourages specialization and efficiency​

2.​ Departmentalization​

○​ Grouping related tasks or activities into departments or units​

 ○​ Common types:​

■​ Functional (based on job functions like HR, Finance)​

■​ Product (based on products/services)​

■​ Geographic (based on location)​

■​ Customer (based on client type)​

3.​ Assignment of Duties​

○​ Giving specific tasks to individuals or teams based on their skills

and roles​

4.​ Delegation of Authority​

○​ Granting employees the power to make decisions and act​

○​ Involves:​

■​ Authority – the right to give orders​

■​ Responsibility – duty to perform tasks​

■​ Accountability – being answerable for outcomes​

5.​ Coordination​

○​ Aligning efforts across the organization to achieve common goals​

🔰 4. Principles of Organizing
●​ Unity of Command – Each person should report to only one supervisor​

●​ Span of Control – Number of subordinates a manager can effectively

supervise​

●​ Scalar Chain – Clear line of authority from top to bottom​

 ●​ Parity of Authority and Responsibility – Authority given must match the
responsibility assigned​

●​ Flexibility – Organization should adapt to change

🏢 5. Types of Organizational Structures

Structure Type Description Suitable For
Line Structure Simple, direct authority Small firms
Functional Structure Based on job functions Medium/large firms
Line and Staff Line managers + Larger organizations
specialist staff advisors
Matrix Structure Employees report to Project-based firms
multiple managers
Divisional Structure Based on products, Diversified firms
regions, or customers

⚠️ 6. Challenges/Barriers in Organizing
●​ Poor communication​

●​ Resistance to change​

●​ Lack of clear authority lines​

●​ Overlapping roles​

●​ Ineffective delegation​

🔄 7. Relationship with Other Functions

 ●​ Planning identifies what needs to be organized​

●​ Organizing creates the structure to execute the plan​

●​ Leading moves people within that structure​

●​ Controlling evaluates how well the structure is functioning

📘 Chapter 5: Staffing Function of

Management

✅ 1. Definition of Staffing
Staffing is the management function of recruiting, selecting, training,
developing, and retaining the right people in the right positions to help
the organization achieve its goals.

It is often referred to as the “people function” of management.

🎯 2. Importance of Staffing
●​ Ensures competent workforce​

●​ Builds employee morale and motivation​

●​ Increases productivity and efficiency​

●​ Reduces labor turnover​

●​ Supports organizational growth and succession planning​

🔄 3. Staffing Process (Steps)

1.​ Human Resource Planning (HRP)​
 ○​ Forecasting future manpower needs​

○​ Identifying surplus or shortage​

2.​ Recruitment​

○​ Attracting potential candidates​

○​ Sources:​

■​ Internal (promotions, transfers)​

■​ External (advertisements, job portals, agencies)​

3.​ Selection​

○​ Choosing the most suitable candidate​

○​ Involves screening, interviews, testing, reference checks​

4.​ Placement​

○​ Assigning selected candidate to the right job role​

5.​ Orientation/Induction​

○​ Familiarizing new employees with the organization’s culture,

policies, and team​

6.​ Training and Development​

○​ Improving employee skills and knowledge​

○​ Types: On-the-job, off-the-job, seminars, workshops​

7.​ Performance Appraisal​

○​ Evaluating employee performance regularly​

○​ Basis for promotions, rewards, or development​

8.​ Compensation and Benefits​

○​ Fair salaries, bonuses, health insurance, etc.​

 9.​ Promotion and Career Development​

○​ Advancing employees to higher positions​

○​ Encourages retention and motivation​

10.​Separation (Exit)​

●​ Employee leaves through resignation, retirement, dismissal, or layoff​

📋 4. Principles of Effective Staffing

●​ Right person for the right job​

●​ Merit-based selection and promotion​

●​ Equal opportunity​

●​ Continuous training​

●​ Employee involvement and motivation​

📈 5. Factors Affecting Staffing

●​ Organizational size and structure​

●​ Budget constraints​

●​ Labor market trends​

●​ Technology and automation​

●​ Government laws and employment policies​

🧠 6. Modern Trends in Staffing

 ●​ Outsourcing HR services​

●​ Use of HR software and AI tools​

●​ Remote and hybrid work hiring​

●​ Talent management and employer branding

📘 Chapter 6: Directing (Leading)

Function of Management

✅ 1. Definition of Directing/Leading
Directing is the process of guiding, supervising, motivating, and
influencing employees to perform tasks effectively and efficiently to
achieve organizational goals.

It is a continuous function that happens at all levels of management.

🎯 2. Importance of Directing
●​ Ensures employees understand what to do and how to do it​

●​ Helps align individual efforts with organizational goals​

●​ Builds team spirit and cooperation​

●​ Boosts morale and job satisfaction​

●​ Encourages innovation and creativity​

●​ Enhances communication between staff and management​

🧱 3. Elements of Directing
 1.​ Leadership​

○​ The ability to influence and guide individuals or teams​

○​ A good leader inspires, motivates, and earns trust​

2.​ Motivation​

○​ Encouraging employees to work willingly and enthusiastically​

○​ Involves both financial (e.g., salary, bonuses) and non-financial (e.g.,

recognition, promotion) incentives​

3.​ Communication​

○​ Clear and effective exchange of information​

○​ Can be formal or informal, verbal or non-verbal​

○​ Good communication reduces misunderstandings and builds trust​

4.​ Supervision​

○​ Overseeing employees’ work and giving guidance​

○​ Ensures standards are followed and problems are solved quickly​

🧠 4. Leadership Styles
Style Description Use When

Autocratic Leader makes decisions alone Quick decisions needed, inexperienced

workers

Democratic Leader involves team in Creative or skilled teams

decisions
Laissez-faire Leader gives freedom to Highly experienced and self-driven staff
employees

📊 5. Motivation Theories (Key for Exam)

a) Maslow’s Hierarchy of Needs

Five levels of needs employees try to satisfy:

1.​ Physiological​

2.​ Safety​

3.​ Social​

4.​ Esteem​

5.​ Self-actualization​

b) Herzberg’s Two-Factor Theory

●​ Hygiene factors (e.g., pay, work conditions) prevent dissatisfaction​

●​ Motivators (e.g., achievement, recognition) promote satisfaction​

c) McGregor’s Theory X and Theory Y

●​ Theory X – Employees are lazy, need control​

●​ Theory Y – Employees are self-motivated, seek responsibility​

🔄 6. Relationship with Other Functions

●​ Planning sets goals​
 ●​ Organizing arranges resources​

●​ Directing ensures people work toward those goals​

●​ Controlling measures how well goals are being met​

📘 Chapter 7: Controlling Function of

Management

✅ 1. Definition of Controlling
Controlling is the management function that involves monitoring,
evaluating, and correcting performance to ensure that organizational
goals are being met efficiently and effectively.

It ensures that actual performance matches planned performance.

🎯 2. Importance of Controlling
●​ Ensures activities go as planned​

●​ Identifies deviations and corrects them​

●​ Improves efficiency and performance​

●​ Helps in goal achievement​

●​ Facilitates coordination among departments​

●​ Builds discipline and accountability​

●​ Supports better decision-making​

🔄 3. The Controlling Process (Steps)

 1.​ Establish Standards​

○​ Set measurable performance targets​

○​ E.g., sales targets, production quotas, customer satisfaction levels​

2.​ Measure Actual Performance​

○​ Monitor and gather performance data (reports, observations, KPIs)​

3.​ Compare Performance Against Standards​

○​ Identify deviations (positive or negative)​

4.​ Analyze Deviations​

○​ Find the cause of underperformance or overachievement​

5.​ Take Corrective Action​

○​ Adjust processes, retrain staff, revise plans, or reward success​

6.​ (Optional) Feedback and Follow-Up​

○​ Ensure corrective actions are effective and standards are updated if

needed​

📋 4. Types of Control
Type When Applied Example

Feedforward Before activity Staff training, budget planning

(Preventive) starts

Concurrent During the Real-time monitoring, supervision

activity
Feedback After activity End-of-month reports, customer
ends feedback

📊 5. Tools & Techniques of Control

●​ Budgets – Financial plans for income and expenses​

●​ Audits – Financial or operational evaluations​

●​ Performance Appraisals – Employee evaluations​

●​ Management by Objectives (MBO) – Joint goal-setting between managers

and staff​

●​ Break-even Analysis – Identifies point of no loss or profit​

●​ Statistical Quality Control – Analyzing production quality using data​

🧱 6. Characteristics of Effective Control System

●​ Accuracy – Should be based on factual and reliable data​

●​ Timeliness – Reports should be available when needed​

●​ Flexibility – Should adapt to changing conditions​

●​ Acceptability – Employees must understand and accept it​

●​ Cost-effective – Benefits must outweigh implementation costs​

⚠️ 7. Limitations of Controlling
●​ May be costly to implement​
 ●​ Too much control can reduce innovation​

●​ Not all aspects (like employee attitude) can be measured​

●​ Time-consuming to gather and analyze data

🔁 Relationship with Other Functions

Function Connection with Controlling

Planning Control compares actual vs planned

Organizin Ensures structure supports goals

g

Leading Helps managers correct performance

gaps