CHAPTER:1

LESSON-1
INTRODUCTION TO MANAGEMENT AND
DEFINITIONS OF MANAGEMENT BY
VARIOUS SCHOOLS

Overview of The Lecture i. Management is an art or technique of getting things

PRINCIPLES OF MANAGEMENT
There’s no doubt that the world has changed, is changing, and done.
continues to change. The dynamic nature of today’s ii. Management is a process of planning, organizing,
organizations means both rewards and challenges for those staffing, directing and controlling.,
individual who will be managing those organizations. iii. Management is a distinct activity of any organisation.
Management is a dynamic discipline and a course pack on the
iv. Management is a discipline, which represents a body of
subject must undergo significant changes to prepare you to
knowledge.
manage under these conditions.
v. Management denotes a group of people.
Management is the organizational process that aids us in
creating a service or product from the raw materials we have at Lets start with the basic definition of management
hand. It is the sum of the input processes that allow us to Management is the process of designing and maintaining an
mold something useful from what otherwise is a disarray of environment in which individual working together in groups
human resources and raw components. The output of this efficiently accomplish the selected arm.
controlled processing creates a valuable product or service, which The following points explain this definition.
someone (a customer) is generally willing to pay for. Simply
1. Management functions: As Manager, person carry out the
stated, the manager’s job is to help all these processes run
managerial function of planning, organizing, staffing,
smoothly, and to address the roadblocks to successful output.
leading and controlling
Objective 2. Role of Mgmt: Mgmt is an essential for any kind of
• Introduction organization. Manager are charged with the responsibility
• Meaning of Management taking actions that will make it possible for individuals to
• Managerial skills and the organization hierarchy make their best contribution to the group objective. Mgmt
thus applies to small and large organization, to profit and
• Nature of management
non-profit organization to manufacturing as well as service
management is universal in the modern industrial world and industry.
there is no substitute for good management. It makes human
i. Small organization – shop (organizer will be owner itself)
efforts more productive and brings better technology, products
and services to our society. It is a crucial economic resource and a Large organization – hierarchy is maintained separate depts.
life-giving element in business. Without proper management, Like HRD, Account Department
the resources of production (men, machines and materials) ii. Non-profitable society- charitable trust (used for welfare).
cannot be converted into production. Thus management is a iii. Profit making organization – Escorts industry.
vital function concerned with all aspects of the working of an iv. Service industry- Banks, life insurance, Courier, Hotel.
organisation. Management is a must to accomplish desired
goals through group action. It is essential to convert the v. Manufacturing – Automobile (Escorts), Refrigeration
disorganized resources of men, machines, materials, and industry (whirlpool).
methods into a useful and effective enterprise. Thus 3. Levels of Management - Management applies to managers
management is the function of getting things done through at all organizational levels. All managers carry out managerial
people and directing the efforts of individuals towards a function. However the time spent for each function may
common objective differ.
Meaning Of Management Planning – Top level more involved lower level less
Management is relatively a new discipline. Being a new involvement.
discipline, it has drawn concepts and principles from economics, Organizing – Little bit higher in top.
sociology, philosophy, psychology, statistics, and so on. The Span of control – No. of persons reporting a manager.
result is that each group has defined management differently.
Leading – more in top mgmt.
For example, economists see management as a factor of
production; sociologists see it as a class or group of persons; Top-level managers spent more time on planning and
practitioners of management treat it as a process. In spite of no organizing their lower level managers. Leading on the other
clear unanimity, it is not difficult to identify the following hand takes at great deal of time for lower level managers. The
meanings of the term management. difference in the amt of time spent on controlling varies only
slightly for the manager at various levels

© Copy Right: Rai University

3E.231/3E.632 1
 4. Management Concerned: - Management is concerned with subordinates are non-managerial ‘white-collar’ or ‘blue-collar’
PRINCIPLES OF MANAGEMENT

productivity i.e. the effectiveness and efficiency. Successful workers.

company creates a surplus three productive open. ‘Getting things done’ means to get tasks and activities
Productivity can be measured as the Output to Input ratios performed. Management gets things done through people both
within a time period with due consideration for quality. as individuals and as members of the work group.
O/P Getting things done through people is really an art. It
Productivity = (within time period and comprises a range of skills acquired and refined in the course of
I /P practice. The skills which are required to get things done
considered) Productivity can be improved by through people consist of conceptual skills, technical skills,
a. By increasing O/P with same I/P. administrative skills, social skills, and so on.
b. By decreasing I/P but maintaining same O/P. With a view to getting things done through people,
c. By Increasing O/P and decreasing I/P to change the ratio management has to first plan the things which are to be done.
favorably. The plans to be performed to attain the objectives are
determined and assigned to individuals and work units. Besides
The I/P can be labour, material capital etc.In the past
planning and organizing tasks, management has to devise the
productivity improvement program were mostly aimed at
techniques and methods of getting things done. These are
workers level but now it is for the management also.
effective leadership, team spirit, peoples’ participation,
Managerial skills and the organization hierarchy appropriate system of cash and non-cash incentives, and so on.
Technical Skills: Further, the obstacles, the problems and the distortions in the
It is the knowledge of and proficiency in activities involving work environment have to be removed or minimised. This art
methods, process and procedures. Thus it involves working of management is increasingly based on the Science of
with tools and specific work. E.g. supervisor should have the management. Professor Harold Koontz agrees with this concept
ability to teach, how to use the tools for mechanical work. of management. In the words of Harold Koontz
Human skills: It is the ability to work with the people. It is Management is the art of getting things done through and with people in
the creation of an environment in which person feels secure and formally organised groups. It is the art of creating the environment in
free to express their opinion. which people can perform as individuals and yet cooperate towards
Conceptual Skills: Ability to recognize the element in a attainment of group’s goals. It is the art of removing blocks to such
situation and to understand the relationship among the performance, a way of optimising efficiency in reaching goals.
elements.
Design Skills: It is the ability to solve the problem in such a
way that it will benefit the organization. However, there is danger in defining management in terms of
The importance of these skills may differ at various levels in the getting things done through people. This definition is subject
organization hierarchy. to the following criticism.
1. Lower level management: - For lower level managers i. The workers are merely treated as means of getting results. It
technical skill are of greatest importance, human skills are completely ignores the needs of the workers and does not
also helpful in interaction with subordinate but conceptual offer them human treatment.
skills are normally not critical for them. ii. The definition is quite vague. It fails to define the functions
2. Middle management: - For middle management the need which a manager has to carry out to get results from others.
for technical skills decreases, human skills are still essential iii. This gives the impression of the manipulative character of
and the conceptual skills gain in importance. the practice of management.
3. Top management: - For top management conceptual and iv. Management is treated as an art. But today, it has satisfied
human skills are very valuable but there is very less need for the basic characteristics of science too. Thus management is
technical abilities.This is true for large companies but in small both an art and a science.
organization technical skills may still be quite important. To conclude, let us point out that the techniques of getting
Management is an art of getting things done things done through and by the people may work for
through and with people sometime but people cannot be oppressed or befooled all the
This definition emphasizes the accomplishment of tasks time. Hence, management may be viewed as a technique of
through the efforts of people. It makes a distinction between getting things done through others by satisfying their needs. It
managers and non – managers. Whereas managers guide and is not merely getting things done through others.
coordinate the efforts of others towards certain specified goals, Nature of Management
the non-managers actually perform the task. A manager, The following are the important features or characteristics of
whatever may be his level in the organisation, has to get things management.
done through his subordinates. At higher levels, the 1. Management is getting things done: A manager does not
subordinates are themselves mostly managers. It means do any operating work himself but gets it done through
‘management of managers’. At supervisory levels, the

© Copy Right: Rai University

2 3E.231/3E.632
 others. He must motivate the subordinates for the Notes

PRINCIPLES OF MANAGEMENT
accomplishment of the task assigned to them.
2. Management is an activity: Management is a process of
organized activity. It is concerned with the efficient use of
resources like men, money and materials in the organisation.
3. Management is a group activity: Management cannot
exist independent of the group or organisation it manages.
It is a cardinal part of any group activity and inspires workers
to put forth their best efforts.
4. Management is a universal activity: Management is a
universal phenomenon. However, management principles
are not universally applicable but are modified to suit the
given situation and the type of organisation.
5. Management is purposeful: Management is a goal-
oriented activity. It is concerned with the accomplishment of
goals through its various functions like planning, organizing,
staffing, directing, and controlling.
6. Management is a process: Management is a process which
involves planning, organizing, directing and controlling the
efforts of human resources in the use of material resources.
These are the basic functions which every manager performs
for the accomplishment of certain goals.
7. Management is an integrating process: Management
integrates men, machines and materials for performing
various operations and accomplishing the stated goals. Thus,
management acts as a catalytic agent in getting maximum
productivity from all the resources.
8. Management is intangible: Management is abstract and
cannot be seen with the eyes. It is evidenced by the quality of
the organisation and the results. Thus, feeling of
management is result-oriented.
9. Management is a profession: Management is a profession
because some of its established principles are being applied
in practice.
10.Management is a science and an art: Management has
developed certain principles and laws which have wide
applications. So it is treated as a science. It is also an art,
because it is concerned with the application of knowledge for
the solution of organisational problems.
11. Management is dynamic: Management is dynamic because
it adapts itself to the social changes and introduces
innovation in methodology.
12. Management involves decision-making: Management
process involves decision-making at various levels for getting
things done by others. It involves selecting the most
appropriate alternative out of the several.
13. Management applies economic principles. Management
is the art of applying the economic principles that underline
the control of men and materials in the organisation.
14. Management is concerned with direction and control:
Management is concerned with the direction and control of
the various activities. It deals particularly with the active
direction of the human effort.

© Copy Right: Rai University

3E.231/3E.632 3