MANAGEMENT
Basic Concepts in Management
What is an Organization---?
• An organization is a social unit, composed of two or
more persons that works to achieve a set of
common goals or objectives
• Organization is a group of people to work
collectively to achieve some certain goals.
• Organizations may be government or nongovernment; profit based or non-profit based
• Government organization are to improve the life
quality of people, or to serve people.
How Organizations are formed?
Individual-1
Individual-2
Individual-3
COMMON
GOALS
A Formal Structure
Individuals should agree to some common goals and
then they should have a formal structure.
What is Management
• “Management is the process of efficiently
achieving the organization goals by coordinating
the activities of other people”
• “Management is the process of planning,
organizing, leading and controlling to efficiently
and effectively achieve the organizational goals”
• Manager: Manager is a person who makes
others to do jobs by having the authority and
responsibility.
Management as a Process
• Study of management & learning
management theories are science, on the
other hand practicing management is art.
• In order to practice the process of
management, a manager has to perform
certain activities or functions.
• These are called basic management
functions
Basic Management Functions
Planning
Organizing
Leading
Controlling
Planning: Defined
• Definition: planning is the process of
setting goals and deciding how best to
achieve them
• Examples:
– Planning for a picnic party with your
classmates/ family members
The Planning Function
• Planning is setting organization goals and
defining a strategy on how best to achieve
them
• Planning is done by managers at all levels
• Manager through their plans , outline what
the organization must do to be successful
Organizing: Defined
• Definition: organizing is the process of
allocating and arranging resources so that
plans can be carried out successfully
• Examples:
– Making traveling, food and other arrangements
for a picnic party
The Organizing Function
• The purpose of organizing function is to turn
Plans into Actions
• Right person for the right job, who will do
what
• Who reports to whom (define a Hierarchy)
The Leading Function
• Definition: Leading is the process of
influencing others to engage in the work
behaviors necessary to reach the
organization goals
Leading
• Leading is to move the people towards the
common objectives of the organization
already defined in the planning stage
• It is also sometimes called as Directing or
Motivating
• It is influencing the members of
organization to perform in a way that will
help in achieving the organization
objectives
Controlling: Defined
• Controlling is the process of regulating
organizational activities so that actual
performance matches the expected
organizational standards and goals
• Or controlling is getting work according to
rules, Policies and standards of
organization.
The Controlling Function
• Matching the actual performance with the
performance standards
• This is done in 3 steps:
– Establishing standards of performance
– Assessing deviation from standards agreed
– Taking corrective actions
• The purpose of controlling is to keep the
organization on the path planned for it
A Review Summary
• Management is achieving the organization goals
by coordinating the activities of other people
• Four functions of Management:
1. Planning: setting organization goals and
defining a strategy on how best to achieve them
2. Organizing: allocating and arranging for
material and human resources
3. Leading: moving people towards organization
goals. Also called directing and motivating
4. Controlling: matching actual performance with
the performance standards
Basic Management Functions
Planning
Setting
goals
and
defining a
strategy
Organizing
Arranging
for human
and
Non-human
resources
Leading
Controlling
Directing
and
motivation
Monitoring
and
evaluation