UNIT-1

Introduction to Managers and Management

The manager is responsible for overseeing and leading the work of a group of people in
many instances. The manager is also responsible for planning and maintaining work systems,
procedures, and policies that enable and encourage the optimum performance of its people
and other resources within a business unit.

Introduction to Management
It is an art and science of getting work done through people. It is the process of giving
direction and controlling the various activities of the people to achieve the objectives of an
organization.
Management can be defined as a process of getting the work or the task done that is
required for achieving the goals of an organisation in an efficient and effective manner.
Process implies the functions of the management. That is, planning, organising, staffing,
directing and controlling.
Management is the process of coordinating and overseeing resources (human, financial,
physical, or informational) to achieve organizational goals effectively and efficiently. It
involves planning, organizing, leading, and controlling activities within an organization.

Role of Management
Management is how businesses organize and direct workflow, operations, and employees to
meet company goals. The primary goal of management is to create an environment that lets
employees work efficiently and productively.
The role of management is to set goals, allocate resources, make decisions, and guide the
organization towards achieving its objectives. Managers are responsible for ensuring that
tasks are completed efficiently and effectively.

Functions of Managers
At the most fundamental level, management is a discipline that consists of a set of five
general functions: planning, organizing, staffing, leading and controlling. These five functions
are part of a body of practices and theories on how to be a successful manager.
Managers perform several key functions, including planning, organizing, leading, and
controlling. Planning involves setting goals and determining the best course of action to
achieve them. Organizing involves arranging resources and tasks to accomplish objectives.
Leading involves motivating and guiding employees towards goal attainment. Controlling
involves monitoring performance and taking corrective action when necessary.
Levels of Management
The term “Levels of Management’ refers to a line of demarcation (the marking of the
limits or boundaries of something) between various managerial positions in an
organization. The number of levels in management increases when the size of the
business and workforce increases and vice versa. The level of management determines a
chain of command, the amount of authority & status enjoyed by any managerial
position.
The levels of management can be classified in three broad categories:
1) Top level / Administrative level

• Also known as senior management or executive management.

• Consists of the highest-ranking executives, such as the CEO (Chief Executive Officer),
CFO (Chief Financial Officer), COO (Chief Operating Officer), and other C-suite
executives.
• Responsible for setting the overall direction and long-term strategic goals of the
organization.
• Involved in major decision-making processes, such as mergers and acquisitions,
major investments, and corporate restructuring.
• Focuses on developing policies, strategies, and plans to achieve organizational
objectives.
 2) Middle level / Executory

• Sometimes referred to as tactical or operational management.

• Occupies positions such as department heads, division managers, and regional
managers.
• Acts as a liaison between top-level management and frontline employees.
• Translates the strategic goals set by top management into specific objectives and
plans for their respective departments or units.
• Responsible for implementing strategies, coordinating activities, and allocating
resources within their areas of responsibility.
• Monitors performance, resolves conflicts, and communicates upward and downward
within the organization.

3) Lower level / Supervisory / Operative / First-line managers

• Also known as first-line or operational management.

• Comprises supervisors, team leaders, forepersons, and other similar roles.
• Directly supervises non-managerial employees and oversees day-to-day operations.
• Assigns tasks, provides guidance, and ensures that work is completed according to
standards and deadlines.
• Responsible for training, coaching, and evaluating the performance of employees.
• Acts as a link between management and employees, conveying information,
concerns, and feedback in both directions.

Effective coordination and collaboration among these levels ensure that organizational goals
are achieved efficiently and effectively. Additionally, clear communication channels, defined
roles and responsibilities, and alignment with the organization's mission and values are
essential for effective management at all levels.

Management Skills
Managerial skills fall into four basic categories:
Technical skills involve understanding and performing specific tasks.

• Technical skills involve the ability to understand and perform specific tasks or
activities related to a particular field or industry.
• These skills are often specific to the functional area of the organization in which the
manager operates, such as finance, marketing, operations, information technology,
or engineering.
• Examples of technical skills include proficiency in using software programs,
understanding financial statements, operating machinery, programming, or
designing products.
Human relations skills involve effectively communicating and working with others.

• Human relations skills, also known as interpersonal skills or soft skills, involve
the ability to interact effectively and harmoniously with others.
• These skills are crucial for building and maintaining positive relationships with
employees, colleagues, customers, suppliers, and other stakeholders.
• Examples of human relations skills include communication, empathy, active
listening, conflict resolution, teamwork, leadership, and emotional
intelligence.

Conceptual skills involve understanding the organization as a whole and how its parts
interact.

• Conceptual skills refer to the ability to think strategically, see the "big picture," and
understand how various parts of the organization interrelate.
• Managers with strong conceptual skills can analyze complex situations, identify
patterns and trends, and formulate innovative solutions to organizational challenges.
• These skills are essential for strategic planning, decision-making, problem-solving,
and anticipating future trends and changes in the business environment.

Decision-making skills involve analysing situations and making informed choices.

• Decision-making skills involve the ability to evaluate options, assess risks, and
make sound judgments and choices.
• Effective decision-making requires gathering and analyzing relevant
information, considering alternative courses of action, weighing pros and
cons, and selecting the best course of action.
• Managers must make decisions on a wide range of issues, including resource
allocation, goal setting, problem resolution, organizational changes, and
strategic initiatives.
• Decision-making skills also involve the ability to adapt and make decisions
under uncertainty or ambiguity.
Developing and honing (refine or perfect (something) over a period of time) these skills is
essential for managers to perform effectively in their roles, lead teams, drive organizational
success, and navigate the complexities of the modern business environment. Continuous
learning, training, and practice can help managers enhance their skills and stay relevant in
dynamic and competitive markets.

Organizational Hierarchy
The term management hierarchy basically refers to a structure of superior and subordinate
rankings. Almost every small and large organization follows this structure. Under this
hierarchy, members of an organization follow a fixed chain of command.
Organization hierarchy is the order of members based on authority. It refers to the ranks
from entry-level employees to senior managers or executives.
Top-Level Management:

• At the top of the organizational hierarchy are senior executives or top-level

management.
• This level includes positions such as the Chief Executive Officer (CEO), President, Vice
Presidents, Chief Financial Officer (CFO), Chief Operating Officer (COO), and Chief
Information Officer (CIO), among others.
• Top-level managers are responsible for setting the overall strategic direction and
goals of the organization.
• They make high-level decisions, set policies, allocate resources, and represent the
organization to external stakeholders such as investors, regulators, and the public.

Middle-Level Management:

• Middle-level management operates between top-level management and frontline or

operational management.
• This level includes department heads, division managers, regional managers, and
branch managers.
• Middle managers translate the strategic objectives set by top management into
specific plans and actions for their respective departments or units.
• They coordinate activities, allocate resources, monitor performance, and
communicate both upward and downward within the organization.
• Middle managers often play a key role in implementing organizational policies and
strategies, as well as resolving conflicts and ensuring alignment with organizational
goals.
Frontline or Operational Management:

• Frontline management, also known as operational or first-line management, is

responsible for overseeing day-to-day operations and directly supervising non-
managerial employees.
• This level includes supervisors, team leaders, shift managers, and forepersons.
• Frontline managers assign tasks, provide guidance, monitor progress, and ensure
that work is completed according to standards and deadlines.
• They are responsible for training and developing employees, resolving issues or
conflicts, and communicating policies and procedures.
• Frontline managers serve as a crucial link between management and employees,
representing the interests of both parties and facilitating effective teamwork and
collaboration.

Social and Ethical Responsibilities of Management

Social responsibility is a moral obligation on a company or an individual to take decisions or
actions that is in favour and useful to society. Social responsibility in business is commonly
known as Corporate Social Responsibility or CSR.
The four main types of corporate social responsibility are:

1. Environmental social responsibility

• Environmental responsibility refers to the obligation of businesses to

minimize their negative impact on the environment and promote
sustainability.
• This includes reducing pollution, conserving natural resources, minimizing
waste and emissions, and adopting eco-friendly practices.
• Businesses can demonstrate environmental responsibility by implementing
green initiatives, investing in renewable energy, reducing carbon footprint,
and adhering to environmental regulations and standards.
• Examples include implementing energy-efficient practices, recycling
programs, sustainable sourcing, and minimizing the use of harmful chemicals.

2. Ethical/human rights social responsibility

• Ethical responsibility involves conducting business in a manner that is honest, fair,

transparent, and respectful of the rights and dignity of individuals.
• This includes adhering to moral principles and values, avoiding unethical practices
such as fraud, corruption, discrimination, and exploitation, and upholding integrity in
all interactions.
• Businesses can demonstrate ethical responsibility by establishing codes of conduct,
ethics training programs, whistleblower policies, and ethical decision-making
frameworks.
• Examples include treating employees fairly, being transparent with stakeholders,
honouring contractual agreements, and engaging in fair competition.
 3. Philanthropic corporate responsibility

• Philanthropic responsibility involves giving back to society and contributing to

the well-being of communities beyond legal or ethical obligations.
• This includes donating money, resources, or time to charitable causes,
supporting social initiatives, and addressing societal needs.
• Businesses can demonstrate philanthropic responsibility through corporate
philanthropy, employee volunteer programs, charitable partnerships, and
social impact investments.
• Examples include donating to charities, sponsoring community events,
supporting education and healthcare programs, and participating in disaster
relief efforts.

4. Economic corporate responsibility

• Economic responsibility refers to the primary obligation of businesses to

generate profits and create economic value for shareholders and
stakeholders.
• This involves maximizing revenues, minimizing costs, managing resources
efficiently, and ensuring long-term financial sustainability.
• Businesses can demonstrate economic responsibility by achieving
profitability, creating jobs, stimulating economic growth, and contributing to
the prosperity of communities.
• Examples include achieving financial targets, investing in research and
development, expanding market share, and generating returns for investors.

Arguments for and against Social Responsibilities of Business

There are various arguments for and against the social responsibilities of businesses.
Proponents argue that businesses have a duty to contribute to society beyond making
profits, citing benefits such as improved public image and long-term sustainability.
Opponents argue that businesses should focus solely on maximizing profits for shareholders
and that social responsibilities may conflict with this goal.

Social Stakeholders

Social stakeholders include individuals and groups who are affected by or can affect the
actions of an organization. They may include employees, customers, suppliers, communities,
governments, and non-governmental organizations (NGOs).

Primary social stakeholders are employees and managers, investors, customers, suppliers,
business partners and local communities. Secondary social stakeholders are the government
and civil society, social and third-world pressure groups and unions, media and
commentators, trade bodies and competitors.
Measuring Social Responsiveness and Managerial Ethics

Social responsiveness can be measured through various indicators, such as corporate social
responsibility (CSR) reports, stakeholder engagement, and environmental impact
assessments.

Managerial ethics involve making decisions that are morally and ethically sound, considering
the impact on stakeholders and society as a whole.

Managerial ethics is a set of principles and rules dictated by upper management that define
what is right and what is wrong in an organization. It is the guideline that helps direct a
lower manager's decisions in the scope of his or her job when a conflict of values is
presented.

The two types of managerial ethics are moral ethics, which means making decisions based
on what is right, and legal ethics, which means making decisions based on the law.

Managerial ethics refers to the moral principles, values, and standards of conduct that guide
the behaviour and decision-making of managers within an organization. It involves making
decisions that are morally and ethically sound, considering the impact on stakeholders and
society as a whole. Managerial ethics play a crucial role in shaping organizational culture,
building trust with stakeholders, and ensuring responsible business conduct.

Some are: integrity, respect, responsibility, fairness, compassion, courage, and wisdom.

Relevance of Political, Legal, Economic, and Cultural Environments to Global

Business
Global businesses must navigate various political, legal, economic, and cultural factors in
different countries and regions. Political stability, legal frameworks, economic conditions,
and cultural norms can significantly impact business operations, strategies, and success.
A country's political environment influences the operation of business both domestically and
internationally as politics and economics are interlinked. Political ideologies are the ideas,
theories and orientations.
Companies, especially international companies always study the cultural and social
environment of a country before entering the market. It is important that your goods and
services are in tandem with the social environment of the country. Otherwise, the company
could face a backlash and run into losses.
Omnipotent and Symbolic View

The omnipotent view of management holds that managers have significant control over
organizational outcomes and success.

In contrast, the symbolic view suggests that external factors such as luck, economy, and
industry trends play a more significant role in determining organizational success.

Characteristics of Organizational Culture

1. Shared Values and Beliefs: Organizational culture is characterized by shared values,

beliefs, and assumptions that guide behaviour and decision-making within the
organization.
2. Norms and Expectations: Culture establishes norms and expectations for behaviour,
defining what is considered acceptable or unacceptable within the organization.
3. Symbols and Artifacts: Culture is expressed through symbols, rituals, ceremonies,
and artifacts that represent the organization's identity and values.
4. Leadership Style: Culture is influenced by the leadership style of senior management
and key leaders, who shape and reinforce cultural norms through their actions and
decisions.
 5. Communication Patterns: Culture influences communication patterns and channels
within the organization, determining how information is shared, received, and acted
upon.
6. Employee Engagement: Culture affects employee engagement and morale,
influencing how employees feel about their work, their colleagues, and the
organization as a whole.
7. Adaptability and Change: Culture determines the organization's ability to adapt to
change and innovation, with flexible and adaptive cultures thriving in dynamic
environments.

Importance of Organizational Culture

1. Defines Organizational Identity: Culture shapes the identity and personality of the
organization, distinguishing it from others and providing a sense of belonging for
employees.
2. Guides Behaviour and Decision-Making: Culture establishes norms and values that
guide employee behaviour and decision-making, ensuring alignment with
organizational goals and objectives.
3. Enhances Employee Morale and Engagement: A positive culture fosters a sense of
pride, satisfaction, and commitment among employees, leading to higher levels of
engagement and performance.
4. Supports Recruitment and Retention: Culture attracts and retains top talent by
creating an appealing work environment that aligns with employees' values,
preferences, and aspirations.
5. Drives Organizational Performance: Culture influences organizational performance
by promoting teamwork, innovation, collaboration, and high-performance
standards.
6. Facilitates Change and Adaptation: Culture enables organizations to adapt to
change and innovation by fostering flexibility, resilience, and openness to new ideas
and approaches.
7. Shapes Customer Experience: Culture impacts the customer experience by
influencing how employees interact with customers, deliver products or services,
and uphold the organization's brand promise.
8. Mitigates Risk and Promotes Ethics: A strong culture promotes ethical behaviour,
integrity, and accountability, reducing the risk of misconduct, fraud, and compliance
failures.

Structures and Techniques Organizations Use as They Go International

Organizations may employ various structures and techniques as they expand internationally,
such as forming strategic alliances, joint ventures, mergers and acquisitions, franchising,
licensing, and establishing subsidiaries or branches in foreign markets. Each approach has its
advantages and challenges, depending on the organization's goals and the characteristics of
the target market.
Key points regarding structures and techniques organizations utilize as they expand
internationally:

1. International Division: Establishing an international division within the organization

to centralize management of global operations, with dedicated teams focusing on
specific regions or countries.
2. Global Matrix Structure: Implementing a matrix organizational structure that
combines functional departments with geographical divisions, allowing for
centralized coordination and local responsiveness.
3. Subsidiary Structure: Setting up subsidiaries or affiliates in foreign markets to
conduct business locally, providing a presence in the target market while maintaining
a degree of autonomy.
4. Joint Ventures and Strategic Alliances: Forming partnerships with local companies
or organizations in foreign markets to leverage local expertise, share risks and costs,
and access distribution networks.
5. Franchising: Expanding through franchising agreements, where the franchisor grants
the right to operate its business format and use its brand to franchisees in exchange
for fees and royalties.
6. Exporting and Importing: Engaging in exporting (selling products or services to
foreign markets) or importing (purchasing products or services from foreign
suppliers) to access new markets or acquire necessary resources.
7. Cultural Adaptation and Localization: Customizing products, services, and marketing
strategies to align with the cultural preferences and needs of target markets,
enhancing market acceptance and customer satisfaction.
8. Technology Adoption: Leveraging technology to facilitate international operations,
including communication tools, supply chain management systems, e-commerce
platforms, and global enterprise resource planning (ERP) systems.
9. Regulatory Compliance: Ensuring compliance with local laws, regulations, and
customs procedures in foreign markets to avoid legal issues and regulatory barriers.
10. Risk Management: Identifying and mitigating risks associated with international
expansion, such as currency fluctuations, political instability, cultural differences,
and supply chain disruptions.
11. Talent Management: Recruiting, training, and retaining talent with international
experience and cultural competency to lead and support global operations
effectively.
12. Market Research and Analysis: Conducting thorough market research and analysis
to assess market potential, identify opportunities and threats, and develop informed
strategies for international expansion.
13. Strategic Planning: Developing comprehensive international expansion strategies
aligned with overall corporate objectives, including market entry strategies, growth
plans, and risk mitigation strategies.
14. Financial Management: Managing financial resources effectively to support
international expansion initiatives, including budgeting, capital allocation, and
financial risk management.