UNIT- 1 PME NOTES OF BTECH 6TH SEM

NOTES CLASS/SEMESTER- BTECH(IT) 6TH SEM

SUBJECT CODE- MS-302

SUBJECT NAME- PRINCIPLES OF MANAGEMENT FOR ENGINEERS

FACULTY NAME- MS. DIVYA CHAUHAN

UNIT 1: INTRODUCTION TO MANAGERS AND MANAGEMENT

Definition of Management

  • Management is a universal concept inherent in every organization, whether business or non-business (e.g., hospitals, schools, etc.).
  • An organization’s success hinges on the successful functioning of its management, especially when human and non-human resources work together toward objectives.
  • As organizations grow in size and complexity, the significance of management increases.

Contextual Variations of Management Definitions

Traditional Definitions of Management
  • "Management consists of getting things done through others. A manager is one who accomplishes objectives by directing the efforts of others." – C.S. George
  • "Management is the art of getting things done through others." – Follett
Modern Definitions of Management
  • "Management is the creation of an internal environment where individuals working in a group can perform effectively and efficiently for the achievement of organizational goals." – Koontz and Donnell
  • "Management is defined as the process of planning, organizing, actuating, and controlling an organization’s operations to achieve coordination of the human and material resources essential for effective and efficient attainment of objectives." – Trewelly and Newport

Essential Elements of Modern Management

  1. Management as a Process: Involves interrelated functions such as planning, organizing, staffing, directing, and controlling.
  2. Effective Performance: Represents achieving goals on time, indicating effectiveness in management practices (e.g., meeting sales targets).
  3. Efficiency Requirement: Involves completing tasks correctly and with minimum costs, highlighting the importance of resource utilization for higher profitability.

Characteristics of Management

  1. Continuous Process:
    • Management persists for as long as the organization exists, facilitating the achievement of organizational goals through ongoing functions.
  2. Goal-Oriented:
    • Each organization has predetermined goals, with management helping to optimally utilize limited resources (e.g., Airtel aiming for its specific customer growth target).
  3. All Pervasive:
    • Management processes are universal, applied at every level of all organizations, regardless of their domain (economic, social, etc.).
  4. Multidimensional:
    • Involves management of work, people, and operations.
      • Management of Work: Focuses on goal achievement specific to organizational nature (e.g., treating patients in hospitals).
      • Management of People: Emphasizes effective use of human resources, addressing individual and group needs.
      • Management of Operations: Concerns activities involved in production cycles, blending management of work and people.
  5. Dynamic Function:
    • Organizations must adapt to internal and external changes to achieve their goals.
  6. Group Activity:
    • Management requires collaborative efforts where roles are fulfilled by individuals across various departments.
  7. Intangible Force:
    • Management cannot be physically seen but is evidenced through orderliness, coordination, and employee satisfaction.

Objectives of Management

  1. Social Objectives:
    • Social responsibilities include environmentally friendly practices, employee welfare, and offering opportunities to disadvantaged groups.
  2. Organizational Objectives:
    • Major goals include survival, profit, and growth.
      • Survival: Vital for organizations to make decisions that favor longevity.
      • Profit: Necessary for organizational growth, covering costs and ensuring financial viability.
      • Growth: Exploiting resources effectively is vital for development in a competitive environment.
  3. Personal/Individual Objectives:
    • Managers ensure alignment between individual and organizational goals, addressing social, financial, and working conditions needs.

Importance of Management

  1. Increases Efficiency:
    • Enhances productivity by optimally utilizing resources, leading to reduced costs.
  2. Achieves Group Goals:
    • Builds teamwork and coordination, guiding employees toward shared objectives.
  3. Creates Dynamic Organizations:
    • Helps organizations adapt to change, ensuring survival and long-term growth.
  4. Development of Society:
    • Organizations contribute towards societal development through quality products and community support.
  5. Fulfills Personal Objectives:
    • Supports employees in achieving their individual job-related objectives.

Nature of Management

  • Management as Science:
    • Incorporates systematic principles and theories.
  • Management as Art:
    • Involves creativity and the ability to inspire individuals to achieve objectives.
  • Management as Profession:
    • Defined body of knowledge, formal education, and ethical standards.

Functions of Managers

  • Managers master five basic functions: planning, organizing, staffing, leading, and controlling.
Planning
  • Involves detailed mapping of steps necessary to achieve specific organizational goals (e.g., increasing sales).
Organizing
  • Assigning team roles and organizing resources according to the established plan.
Staffing
  • Involves recruiting, selecting, training, and developing employees to meet organizational needs.
Leading
  • Encompasses motivating, communicating, and guiding employees toward goal accomplishment.
Controlling
  • Continuous monitoring of performance against goals and making adjustments as necessary.

Roles of Managers

  • Managers fulfill multiple roles as team leaders, planners, organizers, coaches, problem-solvers, and decision-makers.
  • According to Henry Mintzberg, the ten managerial roles cover interpersonal, informational, and decisional aspects, summarized as follows:
Interpersonal Roles
  • Figurehead: Perform ceremonial duties.
  • Leader: Motivate and direct subordinates.
  • Liaison: Maintain information links within and outside the organization.
Informational Roles
  • Monitor: Gather and analyze information.
  • Disseminator: Share information with organizational members.
  • Spokesperson: Relay information to outside stakeholders.
Decisional Roles
  • Entrepreneur: Initiate improvement projects.
  • Disturbance Handler: Resolve conflicts during crises.
  • Resource Allocator: Decide resource distribution and priorities.
  • Negotiator: Represent the department in agreements and negotiations.

Levels of Management

Top Level Management
  • Comprises board members and chief executives (CEO, CFO, etc.), responsible for overall organizational direction.
  • Functions include:
    1. Laying down objectives and policies.
    2. Preparing strategic plans and issuing departmental directives.
    3. Appointing middle-level managers.
    4. Control and coordination across all departments.
    5. Maintaining external communications and stakeholder relations.
Middle Level Management
  • Includes managers responsible for departmental functions, reporting to top management.
  • Functions encompass:
    1. Executing plans in alignment with top management directives.
    2. Planning for subunits and facilitating employee training.
    3. Interpreting top management policies for lower levels.
    4. Coordinating departmental activities and reporting progress.
Lower Level Management
  • Also known as supervisory/operative management, consisting of supervisors and foremen.
  • Their activities include:
    1. Assigning daily tasks to workers.
    2. Guiding staff in operational duties.
      3.