INTRODUCTION
TO
MANAGEMENT
DEFINATIONS:
Management is the art of knowing what
you want to do and then seeing that it is
done in the best and cheapest way
F W TAYLOR
To manage is to forecast and to plan, to
organize to command, o coordinate and to
control
HENRY FAYOL
Management is a multipurpose organ
that manage a business and manages
Managers and manages Workers and wok.
PETER DRUCKER
NATURE OF MANAGEMENT
MANAGEMENT IS GOAL ORIENTED
Management has no justification to exist without goals
The basic goal is to ensure efficiency and economy in the
utilization of human, physical and financial resources.
The success of management is measured by the extent
to which the established goals one achieved.
MANAGEMENT IS UNIVERSAL
Management is an essential element of every organized
activity irrespective of the size or type of activity.
Wherever two or more persons are engaged in working for
a common goal, management is necessary.
All types of organizations eg: family, club, university,
government, cricket, army, team or business requires
management.
Managers at all levels perform the same basic functions
MANAGEMENT IS AN INTEGRATIVE FORCE
The essence of management lies in coordination of
individual efforts into a team.
Management reconciles the individual goals with
organizational goals.
As unifying force, management integrates human and
other resources.
MANAGEMENT IS A SOCIAL PROCESS
Management is don by people, through people and for
people.
It is a social process because it is concerned with
interpersonal relations.
Human factor is the most important element in the
management.
A good manager is a leader not a boss.
MANAGEMENT IS INTER DISCIPLINARY
Management has to deal with human behaviour under
dynamic conditions.
So it depends upon wide knowledge from varied
disciplines like engineering, sociology, psychology,
economics, statistics, operation research, statistics,
operation researchh etc.
MANAGEMENT IS A CONTINOUS CPROCESS
The cycle of management continues to operate so long as
there is organized action for the achievement of group
goals.
MANAGEMENT IS INTANGIBLE
Management is an unseen or invisible force.
It cannot be seen but its presence can be felt everywhere
in the form of results.
The managers who perform the functions of management
are very much tangible and visible
MANAGEMENT IS AN ART AS WELL AS
SCIENCE
It contains a systematic body of theoretical knowledge
and it also involves the practical application of such
knowledge.
Management involves specialized training
Also an ethical code arising out of its social obligations.
DYNAMIC NATURE OF MANAGEMENT
Principle is a fundamental truth which establishes cause
and effect relationships of a function.
Based on integration and supported by practical
evidences, management has framed certain principles.
But, these principles are flexible in nature and change
with changes in the environment in which an organization
exists.
No principle can be regarded as final truth. There is
nothing permanent in the landslide of management
RELATIVE BUT NOT ABOLSUTE PRINCIPLES
IN MANAGEMENT
Management principles are relative and absolute and they
should be applied according to the need of the organization.
The difference may exist because of time, place, socio
cultural factors etc.
Thus, a particular management principle has different
strengths in different conditions.
So, the principles of management should be applied in
the light of prevailing conditions.
MANAGEMENT FUNCTIONS
WRITERS MANAGEMENT FUNCTIONS
Planning, orgnanizing, commanding, coordinating,
HENRY FAYOL
controlling
POSDCORB - planning, organizing, staffing,
LUTHER GULICK
directing, coordinating, reporting, budgeting
Planning, organizing, commanding, coordinating,
LYNDALL URWICK
communicating, forecasting, investigating
RALPH DAVIS Planning, organizing, controlling
KOONTZ and O'DONNELL Planning, organizing, staffing, leading, controlling
COMBINED LIST OF MANAGEMENT
FUNCTIONS
• Commanding
• PLANNING
• Activating
• Formulating purpose
• Securing Efforts
• Decision making
• Communicating
• Innovating
• Controlling
• Organizing Staffing
• Investigating
• Appraising
• Evaluating
• DIRECTING
• Coordinating
• Leading
• Representing
• Motivating
• Administering
PLANNING
Planning is the conscious determination of the future
course of action.
This involves why an action, what action, how to take an
action and when to take an action.
Planning includes determination of specific objectives,
determining projects and programmes, setting policies and
strategies, setting rules and procedures, preparing budgets.
Plans may be prepared for long term (5 years or more),
intermediate (2-5 years) and short term (less than one year)
ORGANIZING
Organizing is the process of
a) dividing work into convenient tasks on duties,
b) grouping of such duties in the form of positions,
c) grouping of various positions into departments, sections,
d) assigning duties to individual positions,
e) delegating authority to each position so that work can be
carried out as planned.
Organizing function can be viewed as a bridge connecting the
conceptual idea developed in creating and planning to the
specific means for accomplishing these ideas.
STAFFING
Staffing means manning the various positions created by
the organizing process.
It includes preparing inventory of personnel available
Identifying the gap between manpower, required and
available
Identifying sources from where people can be selected.
Selecting people, training and developing them,
Fixing financial compensation
Appraising them periodically etc
DIRECTING
When people are available in the organization they
should what they are expected to do in the organization.
Superior managers fulfill this requirement by
communicating to the subordinates about their expected
behavior.
Once oriented, the superiors have continuous
responsibility of guiding and leading them for better work
performance
Motivating them to work with zeal and enthusiasm.
Thus, directing includes communicating, motivating
and leading.
CONTROLLING
It involves identification of actual results,
Comparison of actual results with the expected results
as set by planning process
Identification of deviation between the two if any
Taking of corrective action so that actual results match
with expected results
It brings to light all bottlenecks in work performance and
operates as straight pointer to the needs of the situation.
Relative Amount of Emphasis Placed
on Each Function of Management
IMPORTANCE OF
MANAGEMENT
According to PETER DRUCKER, “ Management
is a dynamic life-giving element in an
organization, without it the resources of
production remain mere resources and never
become production”
ACHIEVEMENT OF GROUP GOALS
OPTIMUM UTLIZATION OF RESOURCES
MINIMISATION OF COST
DEVELOPMENT OF RESOURCES
TO INCORPORATE INNOVATIONS
INTEGRATING VARIOUS INTEREST GROUPS
SURVIVAL AND GROWTH
STABILITY IN THE SOCIETY
GENERATION OF EMPLOYMENT
DEVELOPMENT OF THE NATION
SCOPE
OF
MANAGEMENT
PRODUCTION MANAGEMENT
It includes the following activities:
Designing the product
Location and layout of plant and building
Planning and control of factory operations
Operation of purchase and storage of materials
Repairs and maintenance
Inventory cost and quality control
Research and development
MARKETING MANAGEMENT
Marketing research to determine the needs and expectation
of the consumers
Planning and developing suitable products
Setting appropriate prices
Selecting the right channel of distribution
Promotional activities like advertising and salesmanship to
communicate with the customers.
FINANCIAL MANAGEMENT
Estimating the volume of funds required for both long
term and short term needs of the business
Selecting the appropriate source of funds
Raising the required funds at the right time
Ensuring proper utilization and allocation of raised
funds so as to maintain safety and liquidity of funds and
the creditworthiness and profitability of business
Administration of earnings
PERSONNEL MANAGEMENT
Manpower planning
Recruitment and selection
Training
Appraisal
Promotion and transfers
Compensation
Employee welfare services
Personal records, research etc
PRINCIPLES OF MANAGEMENT
Henry Fayol’s 14 Principles of Management
Division of work
Authority and Responsibility
Discipline
Unity of command
Unity of direction
Subordination of individual interest to general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability of tenure of personnel
Initiative
Espirit – de-crops
