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Name of Course: Introduction to Management

Course Code: BM007-3-1

Objectives After studying this subject students will be able to know
i. Fundamentals of Organisations and management.
ii. Applications of theories and practices in Organisaions and management
iii. Why and how management fundamentals are implemented in the
Skill developent This subject and Lessons plan will develop a confidence among students to
manage their time of study and will develop their ability to speak and deal
with others.They will know basic knowledge on organisation and management
Essential Reading
Management.----Schermerhom Jr; John R 2014
Further Reading
Management----Stephen P Robbins, Mary Coutler 2013
Unit 1 Introduction to Management
1. Organisation- (i) Organisation is a systematic arrangement of people, money,
machine, tools, physical facilities and many things to accomplish some specific
purpose. (ii) An organization is a setup where individuals (employees) come together to
work for a common goal. (iii) An Organisation is a pattern of relationship- many
interwoven, simultaneous relationship through which people, under the direction of
managers, persue their common goals.
2. Office- (i) A place of business where professional or clerial duties are performed
to get desired result, (ii) an admnistrative unit of government; (iii) where service
recipient come to get their work done (iv) a place from where all activities are get desire output.
3. Management-(i) is the process of getting things done through co-ordinating
different tools/elements/factors efficiently and effectivly.(ii) refers to the process
of getting things done efficiently and effectively (iii) is Organisation and
coordination of the activities in order to achieve define objectives.(iv) is the
process of designing and maintaining an environment in which individuals woring
together, in group, effeciently accomplish selected aims.
4. top Level Management, middle Level Management, operations/lower Level
5. Management of (i) due to be opened organisation (ii) existing or already in
operation organisation (iii) worst conditions organisation.
Unit 2
Role and Needs of Management in organisation
CEO, G Managers, Managers
Management role in planning, organisation, controlling, directing and staffing.
Planning- defining goals, establishing strategy, devloping plans,
Organising- what needs to be done, how it will be done, who is to do it.
Leading- motivating, working and through people.
Cotrolling- Monitoring. Comparing, correcting
Staffing- Recruiting and selecting staffs, Right persons in right job.

Mintzbergs Managerial roles.

Interpersonal Roles - figure head, leader, laison
Informational Roles - monitor, desseminator, spokesperson
Decisions Roles - entrepreneur, disturbance handler, resource allocator, negotiator
Home Assignment:
What is organisation? Explain with references of objective and office.
Case Study:
Katyangkutung is a IT business corporation, whose sales turnover is Rs 20 million/year.
According to business analysis at least 25% net profit was esimated for FY 2013/2014
but at the end of FY there was no earned profit. Now find out the management lapses and
make suggestions accordingy to Katyangkutung IT business corporation so that they can
improve management.

Unit 3 Basic Principles of Oganizations Using Henry Mintzburg theory

Organization Classification..

.1. Basic Principles of Organization (Design, elements)

1. Hierarchy.- there must be a hierarchy of posts. Top level management middle level
management, lower level management
2. work specialization.- each employee are given job according to their qualification,
experienced, specialisation and ability.
3. Departmentlization- within an organisaion there should be different
departments/divisions looking after different works/jobs, this will help to run smoothly. s
4. Unity of command.- acoording to basic principle of organisationan emloyee should
receive orders and instructions only from one superior or immidiate boss.
5. Span of control.-there should be a limited number of subordinates/lower level staffs for
every supervisor, so that effective monitoring and leading can be done.
6. authority and responsbility-there must be a balance between authority and
responsibility if a person is respnsible for a particular function and job he must have a
power/authority to complete the job.
7. delegation of authority- According to hierarchy of post/designation some special
authority(power) are delegated to them. In some cases there is necessary to
delegate(handover) authorty to subordinates.
8. Supervision- every employee must be under the supervision of his boss or say upper level
management. work performace, regularity, grievances, sincerity all have to be supervised.
9. co-ordination-.All departments/divisions are created to achieve the organisation goals so
are the employees. Therefore there must be coodinations between all departments and
employee to achieve the goals.
10. accountability.-an employee gets authority and responsibility to complete his job. It is his
duty his responsibility to complete the job so he is accountable towards his job and
accountable towards person who has given him authority and responsibility.
11. centralisation and decentralisation- (i) there are some organisation who retain all major
authorities in the central office (ii) there are some organisation who retain all major
authorities in the high level of posts or within the limited posts. this is called
centralisation sytsem of organisation. (i) there are some organisation who delegate some
or major authorities to the fields offices or subordinates this is called decentralisation
system of organisation.

Structures and Classification of Organisation

1. Nature of the business, 2 nature of ownership, 3. environment, 4. technology
A. Line organisation
B. Functional organisation
C. Line and Staff organisation
D. Matrix organisation

Max Webers theory of organisation---Bureacracy

1. Mechanistic Organization
Max Weber: A bureaucracy; a structure that is high in
specialisation, formalization and centralisation
a. Rigid hierarchical relatinship
b. Fixed duties
c. Many rules
d. Formulised communication channel
e. Centralised decision authority
f. Taller strucure
Henry Mintzbergs theory of organisation---Adhocracy

2. Organic Organization
An adhocracy,: a structure that is low in specialisation, formalization and centralization
a. Collaboration(both vertical and horizontal)
b Adaptable duties.
c. Few rules
d. Informal communication
e. Decentralisation decision authority
f. Flatter structure.

Unit 4 The overall Organisational environments.

Overview of internal and external factors affecting organisation and work place.

Business organisations and other organisations are operated and managed in our society. They
functions, they grow and develop in our society. So business organisations are aways effected by
societial components and surronding elements. Organisation environmets means those componets or
surrondings of the society which effect functioning of an business organisation.
1. Internal Environment:
a. Company- owner, BOD b. organisation resources. .c organisation culture
d. organisational structure e organisational culture. f employee g intermediaries
2. External Environment
a. Govt policy b. customers. c financial institutions, d competitors. e pressure group
f suppliers
3. political and legel environment.- constitution, political parties, legal provision
4. Economic and monitory environment-economic policy,economic conditions, capital market,
monitory policy
5. Social culture environment.-demography, lifestyle, social value, religion, language.
6. Technological environment-
Unit 5 and 6. Introduction to underlying principles of management theory according to

(i) Frederick Taylor (ii) Charles Handey (iii) Peter Drucker (iv) Alfred Sloan

A. Classical Theory- (1) Scientfic management theory by Frederic Winslow Tayler (2) General
Administrative theory by Henry Fayol and Max Weber.
B. Human Relation and Behavioural Theory- (1) Elton Mayo- human relation (2) Douglas Mc
Greger- theory X and Y (3) Fedric Herberg two factor (4) Abraham Maslow-need hierarchy (5)
Charles Handy organisation theory
C. Management Science or Quantitatve Theory- (1) System Theory- Chester Barnard (2) MBO by
Peter Drucker (3) Alfred Sloan management theory (4) Quantitative approach statiticals tools,
economical tools, optimization model , TQM etc
D. Contigency/Situational Theory- to day, situational solving the problem

(i) Frederick Taylor 1856-1915; worked in steel company: scientific management is an attitude and
philosophy, which discards the traditional methods of hit and miss rule of thumb, trial and error of
managing work and workers.
1. Standardisation of work method: development of a scientific methods for each task. Replacing
old rule of thumb method. Good working condition reward system.
2. Scintific selection ad training of workers: scientific selection, placement and training of
3. Equal division of work between management and workers: equal diision of work and
4. Mutual collaboration of the workers and management: active cooperation ad cordial relation,
there should be mutual faith and trust.
(ii) Charles Handy, Irish 1932: The British management writer, classified organisational culture by
the power of individuals' roles and functions within an organisation.

1. Power : power remains in hands of few people, few privilage people, liberty of expression, no
delegation of authority. this culture is one of centralized, or top-down, power and influence.
2. Task Culture: individuals with common interests and specializations come together to
form a team. of 4 to 5 members. this culture is small-team-based, results- and solutions-
oriented, and marked by flexibility, adaptability and empowerment
3. Person culture: person culture, priority are given to person rather organisation. oganisation
should come first. this culture focuses on the individual. Such an organization is values-oriented,
people-focused and geared toward meeting individual employees' self-actualization needs.
4. Role culture: every employee is delegated roles and responsibilities, work specialization,
education, qualification, interest. this culture is a bureaucratic one, run by strict procedures,
narrowly defined roles and precisely delineated powers.

(iii) Peter Drucker, Australian: A system in which specific performance objectives are jointly determined
by subordinates and their supervisors, progress toward objectives is periodically reviewed and rewards are
allocated on the basis of that progress.
A overall orgnizational objectives
B. Divisional objectives
C. Departmental objectives(Sectional)
D. Individual objectives.
How to set employee objectives
1. Identify an employees key job task
2. establish specific challenging goals for each key task
3 allow the employee to actively participate
4 prioritize goals
5. build in feedback mechanism to assess goal progress.
6. link reward to goal attainment.
(iv) Max Weber 1990; Ideal Beaurocracy
1. Division of labour
2. Authority hierarchy
3. Formal selection
4. Formal rules and regulation
5. Career orientation
(v) Henri Fayol, 1841-1925. Principles of management.
1. Division of work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordinate
7. Remunaration
8. Centralisation
9. Scaler chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de corps
(vi) Synergy approach - when two or more subsystems working together can produce more than they can
working a part is called SYNERGY. 1+1 = 3,
(vii) Contigency perspective /Situational approach- suggest that appropriate manegerial behaviour in a
given situation . Recognition of the situational natureof management.Respond to particular characteristics
of situation
Unit 7 & 8. Management and Motivation
The critical role of motivation in managing the workforce
Motivation is a human psychological characteristics that contributes to a personss degree of commitent.
(i) Motivation is the set of forces that initiates, directs and makes people persists in their efforts to
accomplish a goal.(ii) Motivation is th process by which a persons efforts are energized, directed and
sustained towards attaning a goal.(iii)Motivation is the set of forces that cause people to behave in certain
ways.(iv) Motivation is the art of inspiring and encouraging subordinates to do work in an effective way
so that both organizational and individual goals can be achieved.
Role of Motivation in managing the workorce.
1 Financial incentives, 2 Participation. 3 Delegation of authority. 4 Job security. 5 Job enlargement.
6 Job enrichment. 7 Job rotation 8 Reinforcement. 9 Quality of work life 10 Competition.

Introduction to the (i) Abraham Magslows Hirarchy of needs (ii) Douglas Mc Gragors theory X and Y
(iii) Herzbergs Motivation- Hygiene Theory

(1) Abraham Maslow: Needs Hierarchy Theory

1. Psychological Needs- food, shelter,clothing, water, air, sleep, love,
2. Security/ Safety needs- protection against deprivation, danger, threat, off the job
3. Affiliated/ Social needs- sense of belonging, affection, acceptance, friendship
4. Esteem needs- Internal factors = self respect, autonomy, achievement.
Extrnal factors = status, recognition, attention.
5. Self-Actualization needs- growth, self fulfilment, self actualization, what one is capable
Of being
(2) Douglas Mc Gragors X and Y theory. He proposed two different views of human being. One is
negative X theory and another is positive Y theory. He concluded that managers view of human nature is
based on group assumption either positive or negative. X is a set of pessimistic assumption about worker
and Y is a set of optimistic assumption about worker.

Theory X : A manager who veiws employee from a Theory X (negative) perspective believes.
A. Employee inherently dislike work and whenever possible, will attemt to avoid it.
B. Because employees dislike work, they must be coerced, controlled, or thratened with
punishment to achieve desire goals.
C. Employees will shirk responsbilities and seek formal direction whenever possible.
D. Most workers place security above all other factors associated with work and will display little
Theory Y: A manager who veiws employee from a Theory Y(positive) perspective believes.
A. Employees can view work as being as natural a rest or play
B. Men and women will exercise self-direction and self control if they are committed to the
C. The average person can learn to accept, even seek responsibility
D. The ability to make good decisions is widely dispersed throughout the population and is not
necessarily the sole province of managers.
(3) Frederick Herzbergs Hygiene Theory:- The motivation-hygiene theory was proposd by psychologist
Frederick Herzberg.His theory is based on the contents of interviews conducted on 200 engineers and
accountants. Participants were asked to describe job experience that produced good and bad feeling about
their jobs. From the research he found that there are two sets of needs or factors namely , Hygiene factors
and Motivating factors.
1. company policy and administration
2. supervision
3. relationship with supervisor
4. working condition
5. salay
6. relationship with peer
7. personal life
8. relationship with subordinates
9. job securty
10. status
11. security
1. achievement
2. recognition
3. advancement
4. work itself
5. personal growth
6. responsibility.
Case Study
1. Scenario
a. Earthquick erected on Baishakh 12 and 26, 2072
b. India imposed economic blockade since Asoj 6, 2072
2. Business
A Variety Stores, is being operated by Mr and Mrs BHUNDE and PUDKI in Thamel area since five
years. There are 20 employee, including Two Departmental Managers and Two Sales Executives working
in the Variety Stores to sale more than 900 items. Last year its annual sales turnover was Rs.10 ten crores.
3. New situation
Due to the above situation (1) sales turnover has decreased upto 55%, so profit also decreased in the same
ratio.Now BHUNDE and PUDKI are feeling burden of 20 employee.
4. Your suggestions for BHUNDE and PUDKI
a. How many environmental factors affect their business?
b. Should organisation be reshaped or not ?
c. Is it possible to rerailed sales turnover as previous?

Home Assignement
1. Lesson Review Question
Explain the managerial skills sets required at different levels of management
2. Application Question
You have just visited an organisation. How was the organisation stuctured?