Principles of Management

Role and Functions of a Manager

 Roles of a Manager-Interpersonal, Informational, Decisional

 Manager and Environment

 The Management System

 Functional areas of management

 Challenges of an Indian manager

 Principles of Management

Roles of a Manager
Interpersonal Role:

 Figurehead-performs activities like greeting visitors, give awards

to employees etc
 Leader- Lead and motivate subordinates
 Liaison- He is a link between organisation and outsiders

Informational Role:

 Monitoring- Collects information

 Disseminator- Distributes information
 Spokesperson- Represents his unit/organisation while interaction
with outsiders
 Principles of Management

Decisional Role:

 Entrepreneur- Assumes risk in terms of results, due to dynamic

factors of business
 Disturbance Handler- Tries to control forces that tend to disturb
smooth functioning of the organisation
 Resource Allocator- Allocates human, financial and physical
resources according to needs
 Principles of Management

Manager and Environment

 Economic environment

We measure organisation’s performance in financial terms

Hence, studying the economic environment is important

Factors affecting the economic environment are:

 Economic system (Capitalistic, mixed, socialist)

 National income and its distribution
 Economic policies- Monetary and Fiscal
 Availability of natural resources/raw material
 Investment needed in plant and machinery, manpower
 Availability of infrastructure
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 Political-Legal environment

These environments play two roles - Promoting and restraining

It gives incentives, protection, facilities
It also restricts the functions through laws, regulations etc

A manager needs to know:

 How do the environments influence the business

 Government policies, approach towards the business
 Legal restrictions, licensing required if any
 Restrictions on exports, pricing, distribution
 Formalities in setting up business
 Principles of Management

 Technological environment

It affects the process of conversion of RM into FG

It deals with techniques and inventions of doing things related to
designing, production and distribution

A manager needs to know:

 Level of technological development of the country

 Pace of technological changes and obsolescence
 Sources of acquiring technology
 Restrictions on acquisition/transfer/absorption of technology
 Cost factors involved
 Principles of Management

 Socio-Cultural environment

It consists of attitudes, beliefs, desires, expectations, education and

customs of the society

A manager needs to know:

 How do social factors affect business

 Do the factors affect acceptability of a product?
 Lifestyle of the society
 Level of resistance/acceptance to change
 Propensity to consume and save
 Values attached to a product
 Principles of Management

The Management System

 With growth and expansion in business organisation, different
types of managers were evolved

1) One Manager-Many Subordinates:

M anager

S u b o r d in a t e s S u b o r d in a t e s S u b o r d in a t e s S u b o r d in a t e s
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2) Vertical Specialisation:

M anager

M anager

S u b o r d in a te S u b o r d in a te S u b o r d in a te
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3) Horizontal Specialisation:

M anager

M a n a g e r - S a le s M a n a g e r - F in a n c e

S u b o r d in a te S u b o r d in a te S u b o r d in a te S u b o r d in a te
 Principles of Management

Functional Areas of Management

 Production:

Purchasing
Materials Management
Research and development

 Marketing:

Advertising
Marketing Research
Sales Management
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 Finance and Accounting:

Financial Accounting
Management Accounting
Costing
Investment management
Taxation

 Personnel:

Recruitment and selection

Training and development
Wage and salary administration
 Principles of Management

Challenges of an Indian manager

 Globalisation of economy - cope with changes, R&D in place

 Corporate restructuring - divesting, acquisition of core business

 Changing job profile – Machines replaced men, old profiles

included mere doing of work. Now thinkers, managers, learners
are needed

 Increasing role of women employees - HLL targets to have 20%

of female managers in next 5 years

 Emphasis on knowledge management – Employees are a great

source of rich knowledge. Treating them as assets and managing
the in house talent is a challenge for today;s manager