Y.

VENKATA RAO

Introduction to Management

1. Introduction
Management is what managers ‘do’, It is the process of coordinating work activities with and
through other people so that work activities are completed efficiently and effectively. The Term
‘Management’ is used to refer the process of Managing the activities of Enterprise. In layman’s
Language Management refers to group of personnel of an enterprise who have supervisory role
over others. Example Good quality of Management and Bad Quality of Management. In simple
term Management the process of getting things done, effectively and efficiently, through and with
other people.

For management, it is important to be both effective and efficient. Effectiveness and efficiency
are two sides of the same coin. But these two aspects need to be balanced and management at
times, manager has to compromise with efficiency. For example, it is easier to be effective and
ignore efficiency i.e., complete the given task but at a high cost. Suppose, a company’s target
production is 5000 units in a year. To achieve this target the manager has to operate on double shifts
due to power failure most of the time. The manager is able to produce 5000 units but at a higher
production cost. In this case, the manager was effective but not so efficient, since for the same
output, more inputs (labour cost, electricity costs) were used.

At times, a business may concentrate more on producing goods with fewer resources i.e., cutting
down cost but not achieving the target production. Consequently, the goods do not reach the market
and hence the demand for them declines and competitors enter the market. This is a case of being
efficient but not effective since the goods did not reach the market. Therefore, it is important for
management to achieve goals (effectiveness) with minimum resources i.e., as efficiently as
possible while maintaining a balance between effectiveness and efficiency. Usually high efficiency
is associated with high effectiveness which is the aim of all managers. But undue emphasis on high
efficiency without being effective is also not desirable. Poor management is due to both
inefficiency and ineffectiveness.

In simple efficiency Means doing the things correctly; refers to the relationship between inputs
and outputs; Seeks to minimize the resource and cost. Effectiveness Means doing the right things;
Goal Attainment. In total we can understand that Management takes place within an organisation
structure Management positioned at top under which everything falls. Manager is the foundation
upon which an organisation is built. Within the organisation structure managers allocate resources
(Like men material machinery methods and money) and Manger uses the functions (such as
Planning organizing directing coordinating and controlling) most efficiently and effectively to
achieve organisational goals(such as increasing the sales and profitability etc)

2. Definition
There is no universally accepted definition of the term Management. Different authorities on
management defined the term ‘management’ in different ways. Here are the few definitions.
According to Mary Parker Follet, “Management is the art of getting of things through people.”
According to Harold Koontz, “Management is art of getting things done through and with the
people in formally organised groups”.

In the words of Henry Fayol Management is “To manage is to forecast and to plan, to organise, to
command, to co-ordinate and to control.” In the words of George R Terry, “Management is a
distinct process consisting of planning, organising, actuating and controlling performance to
determine and accomplish the objectives by use of people and resources” Management is defined
in terms of functions undertaken by the manager to achieve organisational goals. Management is
the systematic way of doing things. It is an art of creating an environment in which people can
perform and an individual could co-operate towards attaining the group goals.
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3. Nature of Management
The Nature of Management can be understood through a study of its important characteristics or
features the following are the important characteristics
1. Universal Application: Management is applicable to all types of organisation.
Managers more or less perform same functions irrespective of their position and nature of
organisation. The basic principles of management can be applied in all organisation and all
managerial positions regardless of their nature size and location of the organisation.
Educational Institutions, Hospitals, Government, Urban centers, Team of Players, Cultural
body, NGO’s
2. Purposeful: Management is always aimed at achieving some definite organisational goals and
objectives. It aims to achieve economic and social objectives. Achieving aims implies
mobilisation interaction and utilisation of human physical and financial resources in a
disciplined manner in order to meet the needs of the society. The objective may be economic
or Social Ex: Increasing the sales in next quarter, providing employment opportunity to local,
Providing quality education to rural students
3. Social Process: Management is concerned with dealing with people. It essentially involves
managing people at work managers are required to direct coordinate and regulate human efforts
to achieve the desired organisational goal hence management is regarded as social process
4. Co-Ordinating Force: Management coordinates the effort of employees of the organisation.
Orderly arrangement of activities to avoid duplication and overlapping. It balances the
individual goals and organisational goal and integrate human and physical resources to
achieve the organisational goals
5. Group Activity: Management plans organises directs and controls the group efforts to achieve
enterprise objectives. It is always concerned with group efforts and not individual efforts
6. Intangible: Management is intangible. It is an unseen force. Its results can be felt in the forms
of orderliness, adequate work output, satisfactory work climate, Employee Satisfaction etc.
7. System of Authority: Management is process of directing men to perform the task. Authority
or power to give orders and instructions is implied in the concept of management.
Management cannot perform its functions in the absence of authority.
8. Separate Identity: Activities in the organisations are classified in to managerial and Non-
Managerial ‘Managers’ are considered as Thinkers. ‘Doers’ are workers who are entrusted to
execution of work.
9. Working Through others: Management Involves working through others to accomplish
organisational goals. Management has to appoint right type of people, assign duties motivate
and control the subordinates to accomplish the work.
10. Management Is a Continuous function: Management is dynamic on-going process. It
Continues to operate as long as there is organised action to achieve group goals. It is never
ending process.
11. Management is science as well as art: Management is science because it has definite
principles, these principles are universally applicable. It is a social science. Management is
art because, it is concerned with the application of management knowledge and skills. Every
Manager applies certain knowledge and skills while dealing with the people to achieve desired
results.
12. Management is Profession: Management has some chrematistics of profession. It is
comparatively anew field of knowledge which can be acquired through formal training, like
other professions Manager has to apply management principles, Techniques skills to solve the
problems of the organisations
13. Needed at every level: Management is needed at every levels of the organisation. That is at Top
level the middle level and Lower level. Conceptual and Design skills play greater role at top
level, Human skills managing people are mostly required skills at middle level. At lower level
technical skills play a very important role while shadowing the pear employee.
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4. Scope of Management
Management is an all-pervasive function. There is hardly any field today without Management
Harbison and Myers have tried to restrict it under three broad groups, They Are
1. Economic Resource
2. Class or Elite
3. System of Authority
However, whenever we study Scope of Management, we see it as Functional arears of
Management.
Economic Resource: Business Economics classifies the factors of production into four basic inputs,
viz. land, labour, capital and entrepreneur. By the use of all these four, basic production can be
done. But to turn that into a profitable venture, an effective utilization of man, money, material,
machinery and methods of production has to be ensured. This is guaranteed by application of
management fundamentals and practices. The better is the management of an enterprise, the higher
is its growth rate in terms of profit, sales, production and distribution. Managing 5 ‘M’s effectively
and Efficiently to achieve organisational objectives.
Management as Class or Elite: Management is considered to be a distinct class that has its own
value system. Managerial class, often referred to as a collective group of those individuals that
perform managerial activities is essential component of each organisation. The importance the
class has become so huge that the entire group of mangers is known as “management” in every
organisation. Managers Constitute a class of professionals who are elite all over the world.
Management as a system of authority: Management is a system of authority. It formalises a
standard set of rules and procedure to be followed by the subordinates and ensures their compliance
with the rules and regulations. Since management is a process of directing men to perform a task,
authority to extract the work from others is implied in the very concept of management.
Functional Areas of Management: Management has several functional areas or branches we study
the scope or area of coverage under following heads
1. Production Management: Includes work analysis planning scheduling, routing, quality
control, inventory control and nspection. Production planning and control include
following steps
• Work analysis Planning (Determining in advance what is to be
produced and how to produce)
• Routing (Determine the exact route or path to be followed in Production)
• Scheduling (Determining the time when each operation to be
commenced and completed)
• Despatching or Implementing (Setting the production work in
motion by releasing order or instruction)
• Follow Up (Appraisal of the work performed)
• Inspection (Quality control and Inventory Control)
2. Financial Management:
Includes estimation of financial requirement their procurement their application in
a manner which they contribute to growth of enterprise
• Includes economic forecasting, (Fund requirement analysis)
• Capital structure determination (Finding optimum sources of fund)
• Procurement of Financial resources
• Proper allocation (working capital decisions, investment decisions)
• Measurement of earning
• Dividend decisions
• Cost accounting, budgeting, Insurance and statistics
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3. Personnel Management: Personnel management is concerned with the obtaining an maintain
the satisfactory workforce in the enterprise to achievement of organisational objectives. It
includes recruitment, Placement, Training, transfer, promotion, safety, health welfare,service etc
of the employees
Personnel Management covers following Activities
• Manpower planning
• Procurement of right type of right number of persons
• Training and development of employees
• Determination of adequate and equitable compensation
• Integration of the interest of the employee with the interest of the enterprise
4. Marketing Management: Marketing management is concerned with all those purposeful
activities aimed towards attainment of marketing Goals. It Includes selling, advertisement, sales
promotion, marketing research, Price determination, marketing risk etc. It is the process of getting
a right product to the right place in the right time at right price.
5. Maintenance Management: Aim of Maintenance department is to ensure the all the machines
and equipment’s are in working condition. Actions carried out to replace and repair the
components in manufacturing plant to ensure the smooth operation. Keeping the building plant
and equipment in working condition.
6. Material Management and Purchasing: Planning directing, controlling and co-ordinating all
the activities which are inputs (Men, Machines, Materials) to manufacturing process so as to
ensure smooth working of the plant.Purchasing and procurement concerned with Procurement of
raw material to ensure the quality output (Finished Goods) 5 R’s Right Quality, Right quantity,
Right source, Right Price, Right Time taken into account while procuring the inputs.
7. Transport Management: Goods are produced in one place and are consumed at another place.
Goods must be carriedfrom the factory to place of consumption. Transportation of Raw material
to factory as well as Finished goods from factory to place of consumption every action must
reduce transportation cost. It includes studies on transportation by rail road air and water,
packagingand warehousing etc.
8. System Management: Total project is divided into sub units of projects delegate duties, Track
status periodically, communicate with clients, integrate sub units test the supervisor and worker
responsible formeeting the deadlines for project completion.
9. Office Management: It is the task of planning, co-ordinating motivating the effort of others
towards the specific objectives in the office. It includes Organising all activities within the office.
Planning and controlling all office work including Maintaining and keeping records, Delegating
the duties to respective personnel in order to achieve common business objective

5. Functions of Management
Management functions are common to all business organisations and even to non-profit
organisations they are integrated and interrelated and integrated. Luther Gullick an early writer of
Management Coined the word “POSDCORB” to describe the. Functions Planning, (O)
Organizing, (S) Staffing, (D) Directing, (Co)Coordinating, (R) Reporting, (B) Budgeting. The
important functions of management or important elements of Management process are
1) Forecasting
2) Planning
3) Organising
4) Staffing
5) Directing and Motivating
6) Co-ordinating
7) Controlling
8) Communication
9) Leadership
10) Decision -Making
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Forecasting: It is the important element of planning. It is the systematic attempt to probe the future
by inference from known facts. It is the process of predicting projecting and estimating the future
conditions in relation to operations of the enterprise. Example estimation of future sales in order
to effectively plan the production activities.
Planning: It is the primary function of every manager. It is the determination of future course
of action to achieve the desired results. It is the process of deciding in advance what is to be. done,
how and where is to be done, who is going to do it, and how the results are going to be evaluated.
It is future oriented ex: Planning of all the activities to achieve production & sales as per the target
in next quarter. Planning is necessary to avoid difficulties that may be arise in future.
Planning is function performed at all levels Be it a Top Middle or Supervisory. Management might
plan short term or Long term
Organising: Management must organise human and physical resources of the firm. Organising
refers to Identification of activities to be carried out, grouping of similar activities and creation of
departments It is also concerned with Creation of authority and responsibility relationship within
and among the group. Organising is the process of identifying and grouping the work to be
performed, defining and delegating responsibility arranging Money, Material, Machinery, men and
selecting the optimal method of actual execution of work in order to accomplish the objective
effectively.
Staffing: Determining the manpower requirement of the organisation, Recruitment of personnel
required for Managerial and non-managerial positions. In this function manager tries to appoint
right man for the right job. Staffing fixes the manager with the responsibility to recruit and provide
manager with adequate number of competent and qualified personnel at all levels in the enterprise.
Directing and motivating: next step in the management process would be direct and supervise the
employee towards organisational goals. Directing concerned with activities of issuing order and
instructions, guiding counselling, and instructing subordinates, supervising the work of
subordinates, motivating the subordinates, inspiring subordinates for better performance giving
them incentives so that they can perform to best of their abilities.
Controlling: It is the process of evaluating and regulating the activities of the organisation to ensure
they are in accordance with pre-determined plans procedure and desired results
Following are the element of controlling
• Establishing the standard of performance
• Measuring the actual performance
• Comparing the actual with standard
• Measuring the variance or deviation
• Taking the corrective actions
Co-ordinating: Orderly synchronisation of efforts of the employees in all departments to move
towards common goals. Harmonious blending of activities of different individuals and group
individuals for achievement of desired end
Communication: Communication is an attempt to share understanding of two or more persons, it
is to share messages, ideas, opinion and to create an impression or understanding in the minds of
receiver. Communication system should be efficient so as to avoid confusion and miss
understanding
Leadership: Is the process of influencing the subordinates, so that they co-operate enthusiastically
in the achievement of group goals Leadership qualities are required in supervision and
management
Decision making: Decision Making be professional and Result oriented. Decision making involves
selecting a particular action among set of possible alternatives. It is Choosing the best among
various alternatives
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6. Process of Management
Management is a unique and distinct process. Distinct in the sense that it is different from all other
activities. It is concerned with allocation utilisation and co-ordination of all human and material
resources.

According to Henry Fayol, “To manage is to forecast and plan, to organise, to command, to co-
ordinate and to control” thus Fayol viewed the process of management consisting of five functions
which will be planning organising commanding Co-ordinating and controlling. Management is
the process of effective utilization of human and material resources to achieve enterprise objectives

Management is the sum total of various activities or functions concerned with the working of an
organization we will see what are those activities/ Functions
1) Determine the objectives / aims of the enterprise
2) Formulations of plans and polices to achievement of objectives framed by the
organization
3) Bringing together various factors of production such as men materials money machine
method and putting them in efficient working order we call this function as organizing
a. Identification of activities to be carried out,
b. Grouping of similar activities
c. Creation of departments
d. Creation of authority and responsibility relationship within and among the group
4) Allocating men to departments training and development
5) Communicating with Subordinates, Motivating subordinates
6) Exercise of proper control over the performance of various factors of production
Comparing the actual preperformance with Plans. Taking corrective actions if there are any
deviations
7) Creation of proper web of relations and conditions in which persons associated with
business linked (owners, Employees, Customer and society at Large)

7. Management as a science, art or a profession

Management is called a process because it comprises a series of functions that lead to the
achievement of certain objectives. It is continuous process consisting of planning, organizing
staffing, directing, and controlling. When manager reaches a last step, his job does not end there.
He will again start with planning on the basis of his past observation and experience and his
projection about the future. One cannot say manager will only when the job of planning is over,
he performs various activities simultaneously to achieve the desired results.

Management may be regarded as both science as well as art. Management also assumes some
characteristics of profession. Science is systematised body of knowledge pertaining to particular
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branch of study. Profession involves application of expert specific knowledge for the solution of
specific problem. Art is application of scientific knowledge and skills to accomplish results we
will discuss whether management is science, art or profession. If yes why so?

Management as a Science: Science is systematised body of knowledge related to particular field

of enquiry. It contains concepts principles hypothesis experimentation and theories. Science
explains phenomena, events and situations and establishes cause and effect relationship between
variables. A subject is scientifically developed and consist of universally accepted principles.
Science has following features
❖ Systematised body of Knowledge
❖ Includes concepts, Principles, theories
❖ Have a method of scientific enquiry
❖ Establish Cause and Effect Relationship
❖ Principles should be verifiable
❖ Ensure predictable results
❖ Have Universal Application

Management is science because it has systemised body of knowledge pertaining to its field.
Management use scientific techniques to collect and analyse data about human behaviour. Several
principles have been developed which also establish cause and effect relationship. The
management principles have been verified by many researchers. Management is not a perfect
science. The main reason for the inexactness of science is management deals with people and it is
very difficult to predict the behaviour accurately.

Management as an art: Art is all about bringing the desired results through the application of
skills. It is concerned with application of knowledge and skills. If science is learnt art is practiced.
Art has following Features
❖ Denotes the Personal skills
❖ Signifies the Practical Knowledge
❖ Achievement of Concrete results
❖ Creative in nature
❖ Personal touch
❖ Constant practice (Experience)

Art is application of scientific knowledge and skills to accomplish results. It’s a practical
application of theoretical knowledge Every manager has to apply certain knowledge and skills while
dealing with people to achieve desired results. Management is one of the most creative arts as it
requires a vast knowledge and certain innovating, initiating and implementing and integrating
skills in relations to goals resources and techniques. Management is art in the sense that
management principles are developed not only for the sake of knowledge but also for their
application to specific situation.
Management is an art because of that management does involve the use of know how and it is
directed towards accomplishing the desired goals. Management is creative as manager become
experienced; he handles the situations in much better. No two managers handle the same situation
in same way. Manger on the basis of his experience and knowledge give personal touch to
solutions

Management as a Profession: With the emergence of company form of organisation, with

separation of ownership from management, growing administrative complexities and development
of management as a separate discipline, Management grown as a distinct profession.
Prof. McFarland gives following attribute to the profession.
1) Existence of separate body of Knowledge
2) Formal method of acquiring training and experience
3) Existence of representative association with professionalisation as its goals
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4) The formation of strict code of ethics to regulate the behaviour of the member of the
profession
5) A Commitment to service rather than Monetary rewards

If try to analyse the above characteristics in management discipline and if management try to fulfil
these natures then we call Management as a profession.
1) Existence of specialised Knowledge: In management we have specialised body of
knowledge with interrelated sets of concepts, principles, theories. Theories techniques and
principles of management have been developed by extracting knowledge from various other
disciplines like economics Mathematics sociology and from the experience of various
experienced men in the field of management over the years.
2) Formalised Methods of acquiring Knowledge: An Individual can take up the
profession only after possessing knowledge and skills in particular field through formal
training and education. Management Knowledge can be acquired trough formal training and
education Ex: BBA, MBA, PGDBA
3) Existence of representative body: A representative body or association is a must for the
regulation and control of professional activities. These body lay down the criteria for
individuals who wants to enter particular profession. The main function of these association
is to regulate the behaviour of members and co-ordinate various research activities
4) Code of Conduct: Every profession Must have a code of ethical standard to regulate and
control the conduct of its members. Code of conduct provides rules and regulation, norms of
behaviour integrity and professional morality. Every professional is expected to follow
morality.
5) Committed to service: even though, A profession is a way of life to an individual, his
success is not measured in terms of money he earns but a way he provides service to the
society. If Managers fulfil their social obligation, he commands the respect from the society
which will in turn increase his social status

8. Differences between Management and Administration

The terms administration and management are used synonymously. Some writers argue that both
these terms have same meanings and there is no difference between these two terms. Running of
a business requires skill which is called management and functioning of government departments
and non-profit institutions requiring skill is called administration.

Some writers argue that executive functions of a business unit are referred as Management and
executive functions of other institutions are referred as administration. In this way, administration
is distinguished as a top-level function while management as a lower level function. Policy and
objectives of a business are determined by the top-level executives (Administration). At the same
time, the lower level people (Managment) work to attain the objectives of the business unit and
follow the policy framed by the administrators
.
Definition of terms
Management is defined as an act of managing people and their work, for achieving a common goal
by using the organization’s resources. It creates an environment under which the manager and his
subordinates can work together for the attainment of group objectives. It can also be defined as a
group of people who use their skills and talent in running the complete system of the organization.
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Administration is a systematic process of administering the management of a business
organization, an educational institution like school or college, government office or any non- profit
organization. The main function of administration is the formation of plans, policies, and
procedures, setting up of goals and objectives, enforcing rules and regulations. Administration
lays down the fundamental framework of an organization, within which the management of the
organization functions.

The use of two terms management and administration has been a controversial issue in the
management literature. Some writers do not see any difference between the two terms, while others
maintain that administration and management are two different functions. Those who held
management and administration distinct include Oliver Sheldon, Florence and Tead, Spriegel and
Lansburg, etc. According to them, management is a lower-level function and is concerned
primarily with the execution of policies laid down by administration. But some English authors
like Brech are of the opinion that management is a wider term including administration. This
controversy is discussed as under in three heads:
i. Administration is concerned with the determination of policies and management with
the implementation of policies. Thus, administration is a higher-level function.
ii. Management is a generic term and includes administration.
iii. There is no distinction between the terms management and administration and they are
used interchangeably.

Basis Management Administration

Meaning Management is an art of getting things done It is concerned with formulation of
through others by directing their efforts towards broad objectives, plans & policies.
achievement of pre- determined goals.
Nature Management is an executing function. Administration is a decision-
making function.
Process Management decides who should as it & how Administration decides what is to
should he dot it. be done & when it is to be done.
Function Management is a doing function because Administration is a thinking
managers get work done under their supervision. function because plans & policies
are determined under it.
Skills Technical and Human skills Conceptual and Human skills

Level Middle & lower level function Top level function

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9. Managerial Functions
Management has been described as a social process involving responsibility for economical and
effective planning & regulation of operation of an enterprise in the fulfilment of given purposes.
It is a dynamic process consisting of various elements and activities. These activities are different
from operative functions like marketing, finance, purchase etc. Rather these activities are common
to each and every manger irrespective of his level or status. Different experts have classified
functions of management. According to George & Jerry, “There are four fundamental functions
of management i.e. planning, organizing, actuating and controlling”.

According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to
control”. Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting
& B for Budgeting. But the most widely accepted are functions of management given by Koontz
and O’Donnel i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e. they are highly inseparable. Each function
blends into the other & each affects the performance of others.

Planning
It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre- determined
goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how
to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of
actions. It is an exercise in problem solving & decision making. Planning is determination of
courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals. Planning is necessary to ensure proper
utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it
also helps in avoiding confusion, uncertainties, risks, wastages etc. The process of planning
involves the following steps:
• Determination of goals or objectives of the enterprise
• Forecasting
• Search for alternative courses of action
• Evaluation of various alternatives & formulation of a plan
• Formulation of polices & procedures
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Organising
It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals. According to Henry
Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw
material, tools, capital and personnel’s”. To organize a business involves determining & providing
human and non-human resources to the organizational structure. Organizing as a process involves:
• Identification of activities.
• Classification of grouping of activities.
• Assignment of duties.
• Delegation of authority and creation of responsibility.
• Coordinating authority and responsibility relationships.

Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in size
of business, complexity of human behavior etc. The main purpose o staffing is to put right man
on right job i.e. square pegs in square holes and round pegs in round holes.

According to Kootz & O’Donell, “Managerial function of staffing involves manning the
organization structure through proper and effective selection, appraisal & development of
personnel to fill the roles designed un the structure”. Staffing involves:
• Manpower Planning (estimating man power in terms of searching, choose the person
and giving the right place).
• Recruitment, Selection & Placement.
• Training & Development.
• Remuneration.
• Performance Appraisal.
• Promotions & Transfer.

Directing/Leading
It is that part of managerial function which actuates the organizational methods to work efficiently
for achievement of organizational purposes. It is considered life-spark of the enterprise which sets
it in motion the action of people because planning, organizing and staffing are the mere
preparations for doing the work. Direction is that inert-personnel aspect of management which deals
directly with influencing, guiding, supervising, motivating sub- ordinate for the achievement of
organizational goals. Direction has following elements:
• Supervision
• Motivation
• Leadership
• Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of
subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc from one person
to another. It is a bridge of understanding.

Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any
to ensure achievement of organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient system of control helps to predict
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deviations before they actually occur. According to Theo Haimann, “Controlling is the process of
checking whether or not proper progress is being made towards the objectives and goals and acting
if necessary, to correct any deviation”. According to Koontz & O’Donell “Controlling is the
measurement & correction of performance activities of subordinates in order to make sure that the
enterprise objectives and plans desired to obtain them as being accomplished”. Therefore,
controlling has following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.

Functions of a Manager
The smooth functioning of a business unit depends on the performance of the manager. If a
manager has adequate skill, he can discharge his duties effectively. Generally, the following
functions are performed by a manager.
1. Planning the work: Planning involves deciding the course of action well in advance. The
manager can decide the procedure to be followed in order achieve the objectives of an
organisation. Planning the work is a rational activity.
2. Taking decisions: Manager has to take lot of decisions with regard to the assignment of
work to every worker and delegation of authority to do a job. A wise decision can be taken
by an efficient manager. Quality of decision is based on the intelligence of the manager.
3. Delegating authority: Manager should delegate authority whenever a project or work is
assigned to others. Nobody can do anything without authority. So, the manager has to
delegate authority on need basis.
4. Solving the problems: Subordinates bring problems before the manager. The manager has
to solve the problems instead of solving the problems quickly. Finding solution to a
problem will prevent cropping up such problems in future.
5. Co-ordination: The tasks or activities of the subordinates are coordinated for quick
execution of a work. Increased productivity is to be achieved through effective co-
ordination. overall organisational objectives could be achieved only by the process of co-
ordination of various individual efforts.
6. Stimulating workers: The workers have to be motivated to do their work. Workers will
be idle in the absence of motivation. Motivation could be done by money or kind. The
manager has to choose between the two depending on the situation.
7. Setting target: Target is to be fixed by the manager section wise. Setting of target indicates
in the overall performance. Target is fixed on the basis of the main objectives of the
organisation.
8. Guiding sub-ordinates: Even though the manager is a boss to his subordinates, he can
guide the subordinates in the performance of their work. The manager is acting as a friend
at this stage. The guidance of the manager is an indispensable tonic to subordinates.
9. Arranging the facilities: Availing the facilities in the working place is imperative for
effective performance of any work. So, the manager has to arrange the required facilities.
Besides, the manager has to watch over the utilisation of the facilities.
10. Control the deviations: The manager has to control the workers if there is any difference
between standards of performance and actual performance. The control ensures the right
performance. The exercise of control is in the hands of the manager.
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10. Skills of Manager
A skill is an individual's ability to translate knowledge into action. Hence, it is manifested in an
individual's performance. Skill is not necessarily inborn. It can be developed through practice and
through relating learning to one's own personal experience and background.

Management skills can be defined as certain attributes or abilities that an executive should possess
in order to fulfill specific tasks in an organization. They include the capacity to perform executive
duties in an organization while avoiding crisis situations and promptly solving problems when they
occur. Management skills can be developed through learning and practical experience as a
manager. The skills help the manager to relate with their fellow co- workers and know how to deal
well with their subordinates, which allows for the easy flow of activities in the organization.

Types of Managerial Skill

Social psychologist Robert L. Katz in 1974, in his article,” Skills of an Effective Administrator”
in Harvard Business thought about the relationship of managerial skills (competences) and
hierarchical management levels. The result was the setting of the three areas of managerial skills
and determination, for which level they are characterized:
• Conceptual skills
• Human skills
• Technical skills

Conceptual Skills : The conceptual skill refers to the ability of a manager to take a broad and
farsighted view of the organization and its future, his ability to think in abstract, his ability to
analyze the forces working in a situation, his creative and innovative ability and his ability to assess
the environment and the changes taking place in it. It short, it is his ability to conceptualize the
environment, the organization, and his own job, so that he can set appropriate goals for his
organization, for himself and for his team. This skill seems to increase in importance as manager
moves up to higher positions of responsibility in the organization.
Human Skill: Human relations skill is the ability to interact effectively with people at all levels.
This skill develops in the manager sufficient ability (a) to recognize the feelings and sentiments of
others; (b) to judge the possible actions to, and outcomes of various courses of action he may
undertake; and (c) to examine his own concepts and values which may enable him to develop more
useful attitudes about himself. This type of skill remains consistently important for managers at all
levels.
Technical Skill: The technical skill is the manager's understanding of the nature of job that people
under him have to perform. It refers to a person's knowledge and proficiency in any type of process
or technique. In a production department this would mean an understanding of the technicalities
of the process of production. Whereas this type of skill and competence seems to be more important
at the lower levels of management, its relative importance as a part of the managerial role
diminishes as the manager moves to higher positions. In higher functional positions, such as the
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position of a marketing manager or production manager, the conceptual component, related to
these functional areas becomes more important and the technical component becomes less
important. Apart from above three skills, manager should have other skills, they are: Analytical &
Diagnostic skill, Administrative & Decision-making skill, Design skill, Digital skill, Soft skill,
Teamwork skill, Strategic Action skill and Global Awareness skill

11. Roles of Managers

Management performs the functions of planning, organizing, staffing, directing and controlling
for the accomplishment of organizational goals. Any person who performs these functions is a
manager. The first line manager or supervisor or foreman is also a manager because he performs
these functions. The difference between the functions of top, middle and lowest level management
is that of degree. For instance, top management concentrates more on long-range planning and
organization, middle level management concentrates more on coordination and control and lowest
level management concentrates more on direction function to get the things done from the workers.
Every manager is concerned with ideas, things and people. Management is a creative process for
integrating the use of resources to accomplish certain goals. In this process, ideas, things and
people are vital inputs which are to be transformed into output consistent with the goals.

Dr. Henry Mintzberg a prominent management researcher conducted a researcher to find out what
are manager duties or responsibilities. In 1916 Henri Fayol was first to define the manager. Dr.
Henry Mintzberg wanted to find out that if Henri Fayol’s 50-year-old definition of manager and
management definition still stood in the 60s and 70s.So he conducted a research base on the
structured observation method.

For this Mintzberg observed the daily activities of five executives for one week.They all were from
5 different types of organization; a consulting firm, a school, a technology firm, a consumer goods
manufacturer and a hospital. He kept track of all there activates and analyzed it. His research report
titled “Managerial Work: Analysis From Observation” was for his doctoral dissertation, at the
Sloan School of Management, M. I. T.In January 1971 he submitted the report and it was accepted
and published in October 1971. In his research, Mintzberg said that what managers do can best be
described by looking at the roles they play at work. The term management role refers to specific
categories of managerial behavior.

Mintzberg identified 10 identified roles of a manager played in an organization which falls into 3
basic categories:
1. Interpersonal roles
2. Informational roles
3. Decisional roles
1.
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Interpersonal Roles:
These roles relate to the manager’s behavior that focuses on interpersonal contact Interpersonal roles
are roles that involve people (subordinates and persons outside the organization) and other duties that
are ceremonial and symbolic. According to Dr. Henry Mintzberg, these three interpersonal roles
derive from the authority and status associated with managers’ post. The three interpersonal
roles include
Figurehead: In this role, every manager has to perform some duties of a ceremonial nature, such as
greeting the touring dignitaries, attending the wedding of an employee, taking an important
customer to lunch and so on.
Leader: As a leader, every manager must motivate and encourage his employees. He must also try
to reconcile their individual needs with the goals of the organization.
Liaison: In this role of liaison, every manager must cultivate contacts outside his vertical chain of
command to collect information useful for his organization.
2. Informational Roles:
Informational roles involve receiving, collecting, and disseminating information.
Monitor: As monitor, the manager has to perpetually scan his environment for information,
interrogate his liaison contacts and his subordinates, and receive unsolicited information, much of
it as result of the network of personal contacts he has developed.
Disseminator: In the role of a disseminator, the manager passes some of his privileged information
directly to his subordinates who would otherwise have no access to it.
Spokesman: In this role, the manager informs and satisfies various groups and people who
influence his organization. Thus, he advises shareholders about financial performance, assures
consumer groups that the organization is fulfilling its social responsibilities and satisfies
government that the origination is abiding by the law.
3. Decisional Roles
Decisional roles revolved around making choices. Managers’ interpersonal role leads to decisional
roles. Information and resources that are collected and gathered by the interpersonal make a
manager able to play the decisional roles or responsibilities that he is obligated to.
Entrepreneur: In this role, the manager constantly looks out for new ideas and seeks to improve
his unit by adapting it to changing conditions in the environment.
Disturbance Handler: In this role, the manager has to work like a fire fighter. He must seek
solutions of various unanticipated problems – a strike may loom large a major customer may go
bankrupt; a supplier may renege on his contract, and so on.
Resource Allocator: In this role, the manager must divide work and delegate authority among his
subordinates. He must decide who will get what.
Negotiator: The manager has to spend considerable time in negotiations. Thus, the chairman of a
company may negotiate with the union leaders a new strike issue, the foreman may negotiate with
the workers a grievance problem, and so on.

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