UNIT

I Intro to Management
Organization: is an entity comprising multiple people, such as an institution or an
association, that has a collective goal and is linked to an external environment;
Types: corporations, governments, non-governmental organizations, political
organizations, international organizations, armed forces, charities, not-for-profit
corporations, partnerships, cooperatives, and educational institution; A hybrid
organization is a body that operates in both the public sector and the private
sector simultaneously, fulfilling public duties and developing commercial market
activities; A voluntary association is an organization consisting of volunteers. Such
organizations may be able to operate without legal formalities, depending on
jurisdiction, including informal clubs; Perspectives: functional, institutional &
process-related; Theories: Activity theory is the major theoretical influence,
acknowledged by de Clodomir Santos de Morais in the development of
Organization Workshop method; Actornetwork theory, an approach to social
theory and research, originating in the field of science studies, which treats objects
as part of social networks; Complexity theory and organizations, the use of
complexity theory in the field of strategic management and organizational studies;
Contingency theory, a class of behavioral theory that claims that there is no best
way to organize a corporation, to lead a company, or to make decisions; Critical
management studies, a loose but extensive grouping of theoretically informed
critiques of management, business, and organization, grounded originally in a
critical theory perspective; Economic sociology, studies both the social effects and
the social causes of various economic phenomena; Enterprise architecture, the
conceptual model that defines the coalescence of organizational structure and
organizational behavior; Garbage Can Model, describes a model which
disconnects problems, solutions and decision makers from each other; Principal
agent problem, concerns the difficulties in motivating one party (the "agent"), to
act in the best interests of another (the "principal") rather than in his or her own
interests; Scientific management (mainly following Frederick W. Taylor), a theory
of management that analyzes and synthesizes workflows; Social
entrepreneurship, the process of pursuing innovative solutions to social problems;
Transaction cost theory, the idea that people begin to organize their production
in firms when the transaction cost of coordinating production through the market
exchange, given imperfect information, is greater than within the firm; Weber's
Ideal of Bureaucracy.
Management: in businesses and organizations is the function that coordinates the
efforts of people to accomplish goals and objectives by using available resources
efficiently and effectively. Henry Foyals 14 Principles of Management: Division of
work, Authority, Discipline, Unity of Command, Unity of Direction, Subordination
of Individual Interests to the General Interests, Remuneration, Centralization,
Scalar chain, Order, Equity, Stability of tenure of personnel, Initiative, Espirit de
corps.
Role of Managers: Managers play a number of roles in evolving organizations,
including leader, negotiator, figurehead, liaison, and communicator.
Evolution of Management Thought: The evolution of management can be
categorized in to different parts: Pre-Scientific Management Era (before 1880);
Classical management Era (1880-1930); Neo-classical Management Era (19301950); Modern Management era (1950-onwards).
Organization and the environmental factors: Internal environment: Employees,
Resources & Organization; External environment: Task Environment: Suppliers,
Complementors, Substitutes, Rivals, Buyers; General Environment: International,
Economic, Sociocultural, Demographic, Technological, Political & Legal.
Managing Globally: 10 Rules: Start small, Provide a stable organizational context,
Assign Oversight and Support Responsibility to a Senior Manager, Use Rigorous
Project Management and Seasoned Project Leaders, Appoint a Lead Site, Appoint
a Lead Site, Allocate Resources on the Basis of Capability, Not Availability, Build
Enough Knowledge Overlap for Collaboration, Limit the Number of Subcontractors
and Partners, Dont Rely Solely on Technology for Communication.
Strategies for international business: Multi-domestic strategy: sacrifice efficiency
in favor of emphasizing responsiveness to local requirements within each of its
markets; Global strategy: sacrifices responsiveness to local requirements within
each of its markets in favor of emphasizing efficiency; Transnational strategy: Its
a combination of multi-domestic strategy and a global strategy. It tries to balance
the desire for efficiency with the need to adjust to local preferences within various
countries.
UNIT II Planning
Nature and Purpose of Planning:
The important nature of planning is: It focuses on achieving objectives, It is a
primary function of management, planning is pervasive (meaning widely available
among people or organization), Planning is continuous, planning is futuristic
(speaks about how the future is going to be), It involves decision making, Its a
mental exercise.
The Purpose of planning are: It should link with the objective, It is done by
managers is aimed at achieving the organizational goals, It helps people in
concentrating their efforts, It is also to minimize the cost of performance, It helps
the management in adopting and adjusting according to the changes that take
place in the environment, It provides basis for teamwork, gives a sense of
direction, It also facilitates control.
7 Elements of Planning: 1) Objective: are the ends toward which the activity of an
organization is aimed; 2) Policies: are general statements which guide or channel
thinking in decision making of subordinates; 3) Procedures: are plans and they

establish a method of handling activities. They specify a time sequence of required

actions; 4) Rules: It is the simplest type of plan. A rule requires that a specific and
definite action be taken or not taken with respect to a situation.; 5) Budget: It is a
plan. It is a statement of expected results expressed in numerical terms.; 6)
Programs: It is a complex of policies, procedures, rules, task assignments
assembled to carry out a given course of action. A program is supported by
necessary capital and operating budgets; 7) Strategies: a type of planning program
of a broad nature which gives over-all direction to the other and more detailed
programs of an enterprise;
Planning Process: is the steps a company takes to develop budgets to guide its
future activities; Steps: Choose goals, Identify actions, Allocate responsibility,
Review performance, Make adjustments
Levels of Planning: Corporate level strategic plan (CEO); Business-level strategic
plan (head of business); Operating plans (head of functions); Unit plans (heads of
departments, teams and individuals)
Types of Plans:Operating plans; Unit plans, Tactical (calculated) plans; Single-use
plans; Standing plans; Contingency plans; Crisis management plan.
Objectives: Objectives are basic tools that underlie all planning and strategic
activities. They serve as the basis for creating policy and evaluating performance.
Some examples of business objectives include minimizing expenses, expanding
internationally, or making a profit; S.M.A.R.T setting objectives: Specific,
Measurable, Agreed, Realistic, Time-bound.
MBO Strategies: is a process of defining objectives within an organization so that
management and employees agree to the objectives and understand what they
need to do in the organization in order to achieve them. It is introduced by Peter
Drucker. The essence of MBO is participative goal setting, choosing course of
actions and decision making. An important part of the MBO is the measurement
and the comparison of the employees actual performance with the standards set.
Ideally, when employees themselves have been involved with the goal setting and
choosing the course of action to be followed by them, they are more likely to fulfill
their responsibilities. Benefits of MBO: Motivation, Better communication and
coordination, Clarity of goals, Subordinates have higher commitment, Objective
linkage, Common goal for whole org. Demerits of MBO: It over-emphasizes the
setting of goals over the working of a plan as a driver of outcomes; It underemphasizes the importance of the environment or context in which the goals are
set.
Types of Strategies: 1) Growth strategy: It entails introducing new products or
adding new features to existing products; 2) Product differentiation strategy: This
strategy is used when companies have competitive advantage, such as superior
quality or service; 3) Price-skimming strategy: It involves charging high prices for
a product, particularly during the introductory phase; 4) Acquisition Strategy: A
company with extra capital may use an acquisition strategy to gain a competitive
advantage. It entails purchasing another company, or one or more product lines of
that company. Alternative Type of Strategies: Cost strategies; Differentiated
products and services strategies; Focus strategies; Kind of Strategies: Strategy in
general: refers to how a given objective will be achieved; Corporate strategy:
defines the markets and the businesses in which a company will operate;
Competitive strategy: According to Porter (5 force model), it is driven by five
factors: Threat of new entrants; Threat of substitute products or services;
Bargaining power of suppliers; Bargaining power of buyers; Rivalry among existing
firms.
Policies: A policy is a deliberate system of principles to guide decisions and achieve
rational outcomes. A policy is a statement of intent, and is implemented as a
procedure or protocol. Policies are generally adopted by the Board of or senior
governance body within an organization whereas procedures or protocols would
be developed and adopted by senior executive officers. Policies can assist in both
subjective and objective decision making. Policy Cycle: Issue identification; Policy
analysis; Consultation; Policy instrument development; Building co-ordinations
and coalitions; Program design: Decision making; Policy implementation and Policy
evaluation.
Decision Making: Decision making is the process of making choices by setting goals,
gathering information, and assessing alternative occupations.
Types of Decision: 1) Programmed and non-programmed decisions: Programmed
decisions are concerned with the problems of repetitive nature or routine type
matters; 2) Routine and strategic decisions: Routine decisions are related to the
general functioning of the organisation; 3) Tactical (Policy) and operational
decisions: Decisions pertaining to various policy matters of the organisation are
policy decisions; 4) Organisational and personal decisions: When an individual
takes decision as an executive in the official capacity; 5) Major and minor
decisions; 6) Individual and group decisions;
Decision making Process: Steps: Identify the decision to be made; Gather relevant
information; Identify alternatives; Choose among the alternatives; Take action;
Review decision and consequences.
Rational decision making process: is when individuals use analysis, facts and a stepby-step process to come to a decision. Rational decision making is a precise,
analytical process that companies use to come up with a fact-based decision;
Steps: Define the problem; Identify the decision criteria; Allocate weights to the
criteria; Develop the alternatives; Evaluate the alternatives; Select the best
alternative.
Decision making under different conditions: 1) Certainty: A state of certainty exists
only when the managers knows the available alternatives as well as the conditions

and consequences of those actions. There is little ambiguity and relatively low
possibility of making a bad decision. It assumes that manager has all the necessary
information about the situation; 2) Risk: A state of risk exists when the manager is
aware of all the alternatives, but is unaware of their consequences. The decision
under risk usually involves clear and precise goals and good information, but future
outcomes of the alternatives are just not known to a degree of certainty. A risk
situation requires the use of probability estimates; 3) Uncertainty: In today's
complex environment most significant decisions are made under a state of
uncertainty where there is no awareness of all the alternatives and also the
outcomes,even for the known alternatives. To make effective decisions, managers
must require as much relevant information as possible. Such decisions require
creativity and the willingness to take a chance in the face of such uncertainties.
UNIT III Organising
Nature and Purpose of Organising: Nature: Specialization & divison of work;
Orientation towards goods; Composition of individuals & groups; Continuity.
Purpose: Help to achieve organizational goal; Optimum use of resources; To
perform managerial functions; Facilitates growth & diversification; Humane
treatment of employees
Organization structure (OS): It is a hierarchy of people and its functions. The
organizational structure of an organization tells you the character of an
organization and the values it believes in. Types of OS: 1) Bureaucratic structure:
maintain strict hierarchies when it comes to people management; 2) Functional
structure: The organization is divided into segments based on the functions when
managing; 3) Divisional Structure: These types of organizations divide the
functional areas of the organization to divisions. 4) Matrix Structure: When it
comes to matrix structure, the organization places the employees based on the
function and the product. Elements of OS: Location for decision making; Formal
division of org into subunits; Establishment of integrated mechanisms; Coordinate
subunits activities.
Formal and Informal groups/organizations: Formal has horizontal differentiation
and it has formal division of organization into subunits; Informal has vertical
differentiation with location of decision making responsibilities occur within the
structure and it has number of layers in a hierarchy.
Line and Staff Authority: Line: Managers have formal power to direct & control;
Functional: Managers have formal power on specific subset of activities; Staff:
Staff Specialists doesnt order but advise, recommend & counsel; Line & Staff: Its
a combination of line & staff.
Departmentation: Types: 1) Functional: By common skills and work tasks; 2)
Divisional: Common product, program or geological location; 3) Matrix:
Combination of Functional & Divisional; 4) Team: Meant to accomplish tasks; 5)
Network: Departments are independent providing functions for a central.
Span of control: refers to the number of subordinates a supervisor has. Factors
affecting span of control: Geographical dispersion; Capability of workers;
Capability of superior; Value-addition of the superior; Similarity of task; Volume of
other tasks; Required administrative tasks.
Centralization & Decentralization: Centralization is said to be a process where the
concentration of decision making is in a few hands. All the important decision and
actions at the lower level, all subjects and actions at the lower level are subject to
the approval of top management. Implication of centralization can be:
Reservation of decision making power at top level; Reservation of operating
authority with the middle level managers; Reservation of operation at lower level
at the directions of the top level. Decentralization is a systematic delegation of
authority at all levels of management and in all of the organization. In a
decentralization concern, authority in retained by the top management for taking
major decisions and framing policies concerning the whole concern. Implications
of Decentralization: There is less burden on the Chief Executive as in the case of
centralization; the subordinates get a chance to decide and act independently
which develops skills and capabilities. This way the organization is able to process
reserve of talents in it; diversification and horizontal can be easily implanted.
Delegation of authority: Transfer of authority & responsibility; Manager to lowerlevel; Improves flexibility & adaptation; Managers find difficulty in delegation.
Staffing: is the process of hiring, positioning and overseeing employees in an
organisation; Types: Geocentric; Ethnocentric; Polycentric. Strategy to staffing
requirement steps: Conduct Job Analysis; Estimate HR Demand; Document
Current HR Supply; Estimate Future Internal HR Supply; Estimate Future External
HR Supply.
Selection and Recruitment: Selection: It consists of the processes involved in
choosing from applicants a suitable candidate to fill a post. Ways: Reliability and
validity of Selection Methods; Application Forms, Resumes, Reference Checks;
Work Sample Tests; Employment Interviews; Ability & Personality Tests; Selection
& Diversity. Recruitment: is the process of identifying that the organisation needs
to employ someone up to the point at which application forms for the post have
arrived at the organisation Ways: Nurturing the employer Brand; Internal vs
External Recruitment; Choosing Recruiting Channels; Recruitment & Diversity.
Orientation: is the process of introducing new, inexperienced, and transferred
workers to the organization, their supervisors, co-workers, work areas, and jobs,
and especially to health and safety.
Career Development: is the lifelong process of managing learning, work, leisure,
and transitions in order to move toward a personally determined and evolving
preferred future. Factors: Personal Characteristics; Socio-Economic Factors;
Physical and Mental Abilities; Chance Factors

Career Stages: Exploration; Establishment; Mid-Career; Late Career; Decline

Training: it is teaching, or developing in oneself or others, any skills and knowledge
that relate to specific useful competencies. Methods: Lectures, readings,
discussions; Audiovisual materials; Computer based training; Coaching/mentoring;
Job rotation; On the job training; Simulations and role-playing; Action learning.
Performance Appraisal: is a method by which the job performance of an employee
is documented and evaluated. Characteristics: More objective measures of
performance: Units delivered; Anchored performance appraisal instruments: Goal
Setting; Multiple sources of performance info: 360-degree feedback; Performance
appraisal training: Manager receive training before appraising someone Rater
error training to reduce perceptual bias.
UNIT IV Directing
Managing People
Lead by example & Trustworthiness; Commitment & Integrity; Teamwork &
Communication; Listening & Passionate; Consensus & Wisdom; Responsibility &
Knowledge; Visionary.
Communication: Def: The process by which information is exchanged and
understood between people; Noise: The psychological, social, and structural
barriers that distort and obscure a senders intended message; Nonverbal
communication: Messages sent through human actions and behaviour rather than
words.
Hurdles to effective communication: The use of Jargon; Emotional barriers &
Taboos; Lack of attention, interest, distractions, or irrelevance to the receiver;
Differences in perception and viewpoint; Physical disabilities; Physical barriers to
non-verbal communication; Language & Cultural differences; Expectations &
Prejudices.
Organization culture: is a system of shared assumptions, values, and beliefs, which
governs how people behave in organizations. These shared values have a strong
influence on the people in the organization and dictate how they dress, act, and
perform their jobs.
Elements and types of culture: Elements: Social Organization & Economic Systems;
Customs & Traditions; Religion& Language; Arts & Literature; Forms of
Government. Types: 1) High Culture: Linked with elite & upper class society &
Exclusive; 2) Sub Culture: Enjoyed by a small group within society; 3) Popular
Culture: Borrow idea from high and make it available for masses; 4) Multiculuralism: Different ethic groups living alongside, Cultural diversity; 5) Global
Culture: Events in one part of the world affects other parts; Globalization
Interconnection of social, economical & political conditions.
Managing cultural diversity: How-to: Take culture inventory; Craft statement of
intent w.r.to diversity & cultural positivity; Provide mentors cross culturally; Hold
leadership accountable for harnessing diversity; Circulate info about other
international offices; Encourage leaders to present cultural profile of people; Use
icebreakers on +ve view of diversity; Facilitate dialogue around values &
aspirations; Refrain from culturally biased competentices; Choose talent, not
quota.
Unit V Controlling
Process of Controlling: 1) Establishing standards: Time, Cost, Income, Market
share, Productivity, Profitability; 2) Measuring Performance: Strategic Control
Points: Income, Expenses, Inventory, Quality of Product, Absenteeism,
Mechanized Measuring Devices, Ratio Analysis, Comparative Statistical Analysis,
Personal Observation; 3) Comparing Actual Performance with Expected
Performance: Raw Data -> Information -> Evaluation -> Reporting; 4) Correcting
Deviations: Probe failure spots -> Fix responsibility -> Recommend Corrections.
Types of Control: 1) Feedforward control: Organizational culture, market demand
or economic forecast; 2) Concurrent control: hands-on management supervision
during a project, the real-time speed of a product line; 3) Feedback control:
qualitative measures of customer satisfaction, financial measures such as
profitability, sales growth.
Budgetary Control: Meaning: The process of determining various actual results
with budgeted figures for the enterprise; Objective: Ensure planning for future,
Operate cost centers & departments, Eliminate wastes, Anticipate capital
expenditure, Centralize control system, Correct deviations, Fixate responsibilities;
Essentials: Organisation for budgetary control; Budget Centers, Manual, Officers,
Committee & Period; Determination of key factors.
Non-budgetary Control: Statistical data; Special Reports & Analysis; Break-even
Analysis; Internal Audit; Time-event, Network Analysis; Standard Costs; Ratio
Analysis
Managing Productivity: Factors: Utilization; Performance & Quality.
Control: Cost Control: series of steps that a business uses to maintain proper
control over its costs; Steps of cost control: Create baseline, Calculate a variance,
Investigate variances, Take action; Purchase Control: Refers to the purchase of
materials of right quality in a right quantity at a reasonable price and at a right
time; Depends on Cost, Quality, Volume, Time & Delivery of Materials;
Maintenance Control: To control and improve the overall reliability of the
organisation and to ensure uninterrupted operations & business; Quality Control:
A procedure or set of procedures intended to ensure that a manufactured product
or performed service adheres to a defined set of quality criteria or meets the
requirements of the client or customer.
Planning Operations: Key ingredients: Consultation; Budgetary information;
Calendar of events; Maintenance schedules; Training plans; Facility use schedules.