FUNDAMENTALS OF

MANAGEMENT
 MEANING OF MANAGEMENT
Traditional Definition: Art of Getting Things Done
“Management is the art of getting things done through people.”
– Mary Parker Follett
“Management consists of getting things done through others… A manager
is one who accomplishes organizational objectives by directing the efforts
of others”. - C.S. George

Modern Definition: Management is the process of getting things

done with the aim of achieving organizational objectives effectively and
efficiently.
1) Process
2) Effectiveness
3) Efficiency
4) Organizational Objectives
 EFFECTIVENESS VS. EFFICIENCY
Effectiveness Efficiency
It refers to completion of task on It refers to the completion of task
time with minimum cost.
It is concerned with end results, i.e., It is concerned with cost-benefit
target output analysis, i.e., using less resources
and getting maximum output

MANAGEMENT AS A PROCESS
“To manage is to forecast and plan, to organize, to command, to
coordinate and to control.” - He n ri Fayo l
“Management is the handling of all resources through the process of
planning, organizing, directing and controlling to attain stated
objectives.” - Gar y Des s l e r
“Management is a direct process consisting of planning, organizing,
actuating (directing) and controlling, performed to determine and
accomplish stated objectives with the use of human beings and other
resources.” - Geo rge R . Te rr y
 Managerial
Resource Objectives
Functions

Men
Planning

Money P la n
ning
Organis
Organising

Machines ing
Goods
Staffing
Staffing

Materials and
cting Services
Methods
Directing

D i re
o ll i ng
tr
Markets Con
ing
ro l
Cont

An Overview of Management Process

 OBJECTIVE OF MANAGEMENT
ORGANISATIONAL PERSONAL
SOCIAL OBJECTIVE
OBJECTIVE OBJECTIVE
• Reasonable profit • Fair remuneration • Not only
• Survival and • Reasonable representatives of
solvency working condition workers
• Growth and • Opportunities for • Quality goods and
expansion training and services at fair
• Improving the development prices
goodwill • Participation in • Honest and prompt
mgmt payment of taxes
• Reasonable • Fair dealings with
security of services suppliers ,dealers,
competitors
 OBJECTIVE OF MANAGEMENT
Maximum results with minimum efforts

Achieving growth and expansion of enterprises

Maximum prosperity for employers and employees

Human welfare and social justice

Satisfaction of customers

Contribution to national goals

APPROACHES OF MANAGEMENT

MANAGEMENT MANAGEMENT
AS PROCESS AS ACTIVITY

MANAGEMENT MANAGEMENT
AS DISCIPLINE AS GROUP
MANAGEMENT AS PROCESS

PLANNING

CONTROLLING ORGANISING

DIRECTING STAFFING
 MANAGEMENT AS PROCESS
• MANAGEMENT IS AN INTEGRATING PROCESS
• MANAGEMENT AS CONTINOUS PROCESS
• MANGEMENT IS UNIVERSAL PROCESS
• MANAGEMENT IS A SOCIAL PROCESS
MANAGEMENT AS AN ACTIVITY

Interpersonal Decisional
activities activities

Informational
activities
 APPROACHES OF MANAGEMENT
• MANAGEMENT AS A • MANAGEMENT AS A
DISCIPLINE GROUP
• Organized body of • Managing human
knowledge efforts
• Separate body of • Assigned duties and
knowledge(Concepts, responsiblities
principles, techniques • Control activities
and skills) • Accomplish business
• Exchange of knowledge activities
• Knowledge generated
 NATURE/ CHARACTERSTICS OF
MANAGEMENT
Management is Goal-Oriented

Management is Pervasive or Universal

Management is integrated process

Management is social process

Management is activity based

Management is group activity

Management is science and art

 NATURE/ CHARACTERSTICS OF
MANAGEMENT
Management is continuous activity

Management is multidisciplinary

Management is intangible

Management is creative

Management is different from ownership

Dynamic nature of principles

Relative not absolute principles

 MANAGEMENT AND ADMINISTRATION
Administration is concerned with laying down objectives of the
enterprise, formulating its policies, determining the broad
organization structure and overall control of the undertaking.

“Administration defines the goal ; management strives towards it.”

‘Management’ and ‘Administration’ has given rise to three

viewpoints:
1) American Viewpoint : Administration is a higher level
function, whereas management is a lower level function.
2) British Viewpoint : Management is a generic term and
includes administration.
3) Modern Viewpoint : Both the terms are used
interchangeably
 MANAGEMENT VS ADMINISTRATION
Basis Management Administration
1. Definition Management means getting Administration is concerned with
the work done through and the formulation of objectives,
with others by leading and plans and policies of the
motivating them. organization
2. Nature of Management refers to Administration relates to decision
Functions execution of decisions. It is a making. It is a thinking function.
doing function.
3. Stage of It is concerned with It is concerned with determination
Performance implementation of policies laid of major objectives and policies
down by administration.
4. Leading of It is actively concerned with It is not directly concerned with
Human Efforts direction of human efforts at direction of operative personnel.
the operative level.
5. Type of Management has operational Administration has authority to
Authority authority to execute take strategic and policy decisions.
administrative decisions.
6. Level in the Management is relevant at Administration refers to higher
organization lower levels of management. levels of management.
 MANAGEMENT VS ADMINISTRATION
Basis Management Administration
7. Decision- Management decides who Administration determines what is
making shall implement the to be done and when it is to be
administrative decisions. done.
8. Usage The term ‘management’ is The term ‘administration’ is
widely used in business associated with non-business
organizations in the private organization such as government
sector departments, public enterprises,
military organizations, socio-
cultural organizations etc.
9. Designation General Manager, Managing Minister, Secretary, Commissioner,
Organizations Director, Plant Director, Vice- Chancellor,
Superintendent, Branch Registrar, etc.
Manager, Controller etc.
10. Influencing Managerial decisions are Administrative decisions are
Factors influenced mainly by influenced by economic
organizational mission, environment, social forces,
objectives, policies values government policies, etc.
and beliefs of managers.
 Management science / art
Management as a science Management as art
• Systematic body of • Practical knowledge
knowledge • Involves acquisition of Personal
• Scientific method of skill & ability
• Result oriented approach
observation
• Creativity
• Principles based on
• Improvement through practice
experiments
• Produces new situations for
• Cause and effect further improvement
relationship • It is creative
• Empirical confirmed and • It is personalized as every
universally valid person has personal approach
 PROCESS OF MANAGEMENT

Deduction of
Formulation of Construction
specific
problem of theory
hypothesis

Recasting of
confirmation Testing
hypothesis
Management is not perfect science
• Many principles of management are not
supported by research
• It is difficult to establish cause and effect
relationship
• Application of management depends upon the
situational factors
• Management deals with people at work and it
is very difficult to predict their behaviour
accurately.
 Significance of management

Effective and
Achievement of optimum Minimization of
group goals utilization of cost
resources

Establishment of a
Providing Vision
sound organization
and Foresight
structure
 Significance of management

Innovations
required for survival Generation of Integrating various
and growth of employment interest groups
organization

Helping the
Development of Employees in
nation or resources Achieving Personal
Objectives
 M a n a ge m e nt M a nt ra fo r S u c c e s s
Jack Welch joined as CEO of GE in 1981. At that time the firm
had a market capitalization of $13 billion. In 2000 when he
stepped down the firm’s turnover had increased multifold to
$500 billon. What was the secret of Welch’s success? He laid
down the following pointers for managers to be successful:
 Create a Vision and Then Ignite Your Organization to Make
This Vision a Reality. Get people so passionate about what
they are doing that they cannot wait to execute this plan. Have great
energy, competitive spirit and the ability to spark excitement and
achieve results. Search for leaders who have such qualities.
 Focus on Strategic Issues. Your job is to understand the
vital issues within each of your business. Recognize the talent
needed to win in those markets.
Focus on the Main Issue. Your job is to see the big picture. Don’t
manage every detail. Don’t get caught up in the minute details, but
instead inspire others to execute some of your vision. Surround yourself
with great people and trust them to do their job and contribute their best
to the organization.
Involve Everyone and Welcome Great Ideas from Everywhere.
Anyone can be a leader, just so long as they contribute, and the most
meaningful way for anyone to contributes is to come up with a good idea.
Business is all about getting the best ideas from everyone. New ideas are
the life & blood of the organization, the fuel that makes it ru. “There is
the person with a new idea.” There is simply nothing more important to
an organization that expressing ideas and creating a vision.
Lead by Example. To spark others to perform, you must lead by
example, Jack Welch’s mastery of the four E’s of leadership- Energy,
Energize, Edge and Execution- was always in evidence. “He had great
energy, sparked others, had incredible competitive spirit, and had a
record of execution that was second to none. This is a key of the Welch
phenomenon.”
 LEVELS OF MANAGEMENT
Mgmt levels signifies the BOARD OF
hierarchy of management DIRECTORS,
CHIEF
Levels depends upon : EXECUTIVES,
GM
- Size of business
DEPARTMENTAL
- Number of workers HEADS, REGIONAL
MANAGERS, PLANT
- Effective span of control MANAGERS
Levels determine amount
Of authority SUPERVISORS , FOREMEN ,
SECTION OFFICERS
 LEVELS OF MANAGEMENT
TOP MGMT MIDDLE MGMT LOWER MGMT
• Lays down policies and • Managers are in direct
• Organize department to
objectives contact with operative
implement policies
• Coordinates business employees to supervise
• Perform management
affairs and guide
functions • Link between managers
• review the
• Issuing instructions to
performance and workers
lower level • Plan and organise
• Taking decisions to
• Planning for execution
fulfill goals activities
of policies • Arrange necessary
• Laying down guidelines
• Discussing current
• Making appointments materials , machine
policies and future tools
planning • Provide training to
• Guiding and motivation
workers
• Appraising the • Communicate problems
performance of workers
• Achieving coordination
between various units
SKILLS IN MANAGEMENT
 MANAGERIAL SKILLS
Person ability for accomplishment of goals
Modern manager job has become very complex
Different type of skills are required for managing
organization.
R.L. Katz has given three type of managerial skills:
1) Technical skills
2) Human skills
3) Conceptual skills
some authors have added two more skills 1) analytical
skills 2) administrative skills
 MANAGERIAL- TECHNICAL SKILLS
 Proficiency in specific kind of activities particularly
one involving methods process procedure or
techniques.
 Specialized knowledge , analytical ability within the
specialized field.
 Technical skills are more required at lower levels
 Managers need technical skills to guide and train
subordinates
 Manager will understand subordinate job and its
interrelationship between different skills.
 HUMAN SKILLS
 Managers ability to work effectively as a group
member.
 To build cooperative effort within the team he leads.
 Required to win cooperation of others and build
effective team.
 Human skills requires sense of feeling for other
 Human skills are reflected in the way a manager
perceives his superiors
 Human skills are required to understand needs and
motivation of employees.
 CONCEPTUAL SKILLS
 Ability to see the organization as a whole
 Recognizing how various functions of organization
depends on each other.
 Skill to understand how change in one part affects
the organization.
 Recognizing and building relationship between
individual and industry.
 Skill to gain insights into improving the overall
effectiveness of the organization.
 ANALYTICAL SKILLS
• Ability to proceed in a logical, step by step and
orderly and systematic manner.
• Ability to analyze specific issues.
• Ability to understand complex characteristics of
a phenomenon
• Ability needed for problem solving and decision
making
• Ability to evaluate performance and to manage
complex situations
 ADMINISTRATIVE SKILLS
• Ability to act in a pragmatic/realistic manner
• Ability to get things done by implementing
decisions and plans
• Ability to mobilize and organize resources and
efforts
• Ability to coordinate diverse activities
• Ability to regulate organizational events in
orderly manner.
 QUALITIES OF SUCCESSFUL MANAGER
ABILITY TO THINK

BROAD VISION

CLEAR EXPANSION

TECHNICAL ABILITY

HUMAN RELATION SKILLS

ORGANISTAIONAL ABILITIES

DYNAMIC PERSONALITY

EMOTIONAL STABILITY

INTERGRITY
 FUNCTIONAL AREAS OF MANAGEMENT
• 1.PRODUCTION AND OPERATION MANAGEMENT
 creation of goods and services.
 Transforming inputs to output
 production function is most important function in
organization.
 production should be managed in an efficient and
effective manner
 it involves coordination of various resources to
design and manufacture

SCOPE OF PRODUCTION FUNCTION
• Design of product and production system
• Production planning and control
• Choice of plant location
• Determining size of plant
• Determining the type of plant layout
• Selection of plant and machinery
 2.FINANCIAL MANAGEMENT
• Life and blood of organization
• Required for sustenance and growth of
organization
• Management of optimum funds
• Funds should be used properly for profit
maximization and wealth maximization.
 RESPONSIBILITIES OF FINANCIAL
MANAGEMENT
Estimation of financial requirements

Laying down investment plans

Determination of capital structure

Procurement of goods at lower cost

Management of earnings to the best advantage of enterprise

Working capital management

Capital budgeting decisions

Distribution of dividend
 3. MARKETING MANAGEMENT
• Marketing satisfies need and wants of
customers
• Focal point of business
• Integrating business activities with “P”s
• It is designed to maintain mutually beneficial
exchange relationship between target market
and organizational objectives
 FUNCTIONS OF MARKETING MANAGEMENT

Buying and selling

Branding ,packagi Marketing
of product and
ng and labeling research
services

Storage and
Pricing of goods Promotion of
transportation of
and services goods
goods

Determining
After sales
channels of
services
distribution
 PERSONAL AND HUMAN RESOURCE
MANAGEMENT
• It is concerned with people and their
relationship.
• Performed by all people and not the
responsibility of one .
• Help managers at various levels.
• It involves employment, training , appraisal
and compensation.
ACTIVITIES OF PERSONNEL MANAGEMENT

Estimating of manpower needs

Recruitment and selection personnel

Training and development of personnel

Remuneration of personnel

Performance and potential appraisal

ACTIVITIES OF PERSONNEL MANAGEMENT

Providing better Satisfactory

working conditions, relationship between
health and welfare organization and
activities employees

Formulation of
organizational
policies
 PURCHASING AND MATERIALS
MANAGEMENT
• Big organizations it is separate department.
• Inviting tenders, choosing the source of
supply, transport arrangements , import of
raw materials.
• Receipt and issue of materials and machine
equipment.
 OBJECTIVES OF PURCHASING AND
MATERIALS DEPARTMENT

Right material in right quality in right quantity

Procurement of material at right time.

Purchase of material from the right source and right price,

Delivery of persons at right time.

Control of excessive investment in stock

Effective utilization of resources.

 LEGAL FUCTION
• To ensure that business houses are abiding by
rules and regulations framed by government.
• Gives advice to management in case of
disputes with suppliers , customers
• Advices over various commercial and legal
matters
 PUBLIC RELATIONS FUNCTION
• Link between public and business house
• Link between government and business house
• Organize publicity campaigns to increase
image and goodwill of company.
• It keeps liaison with outsiders.
• It maintains relation between press and other
public media.