UNIT : 1

Management
Introduction
Management is an important element in every
organization. It is the element that coordinates
current organizational activities and plans for the
future.
The management adapts the organization to its
environment and shapes the organization to make it
more suitable to the organization.
Definition
“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
Management as a process “consisting of planning,
organizing, actuating and controlling, performed to
determine and accomplish the objective by the use of
people and resources.”
……George R. Terry
Cont…
In this definition,
• Planning means Plan in advance.
• Organizing means coordination between human
resources and material resources.
• Actuating means motivation and giving direction to
subordinate.
• Controlling means to ensure about implementation of plan
without deviation.
• Thus, this definition summarizes that management is
an act of achieving the organization objectives.
Cont..

Management
The process of getting things done, effectively and
efficiently, through and with other people
Efficiency
Doing the thing correctly; refers to the relationship between
inputs and outputs; seeks to minimize resource costs
Effectiveness
Doing the right things; goal attainment
Nature of Management
MANAGEMENT FUNCTIONS OR THE PROCESS OF
MANAGEMENT

Planning, Organizing, Leading & Controlling (Newman & Summer)

Planning, Organizing, Commanding, Coordinating and Controlling
(Henri Fayol)
‘POSDCORB’: Planning, Organizing, Staffing, Directing,
Coordinating, Reporting & Budgeting (Luther Gulick)
Decision Making, Organizing, Staffing, Planning, Controlling,
Communicating & Directing (Warren Haynes & Joseph Massie)
Planning, Organizing, staffing, directing & Controlling (Koontz
O’Donnell)
 Functions of Management
Planning
It is a process of deciding the business objectives and
charting out the plan/ method for achieving the same. This
includes determination of what is to be done, how, and
where it is to be done, who will do it and how result are to
be evaluated.
This function expected to be carried out throughout the
organization. It should be performed by the manager at all
levels.
Organizing:
According to Allen, the organizing refers to “ the
structured which results from identifying and grouping
the work, defining and delegating responsibility and
authority and establishing relationships.”
To organize a business is to provide it with everything
useful to its functioning i.e. personnel, raw materials,
machineries, capital etc.
Once objectives are established, manager has to
develop plan to achieve them with help of human
resources as well as material resources.
Directing
Directing involves communication, leadership and
motivation.
Communication is the process of passing the information
and understanding it from one person to other person.
Leadership is the function whereby the person or
manager guides and influences the work of his
subordinates.
Motivation is to motivate the employee to give their best to
the organization.
Controlling
The controlling involves-
1. Establishing standards of performance.
2. Measuring current performance and comparing it
against the established standard.
3. Taking corrective action that does not meet the standard.
Control compels the events to confirm to plans.
IMPORTANCE OF MANGEMENT

Management is critical element in the critical growth of

the organisation/country.
Management is essential in all organized effort, be it
business activity or any other activity.
Management is the dynamic, life giving element in every
organization.
LEVELS OF MANAGEMENT
Lower level (first line): foremen & white collar supervisor.
often called supervisors stand at the base of the
managerial hierarchy
Middle management: sales managers, personnel
managers, other departmental heads. heads of various
departments and organize human and other resources to
achieve organizational goals.
Top management: company presidents, executives, vice
presidents. Set organizational goals, strategies to
implement them and make decisions
MANAGERIAL SKILLS

Top Conceptual
Management Skills

Middle Human
Management Relation Skill

Supervisory Technical
Level Skills
MANAGERIAL SKILLS
1. Technical Skills: Technical skills refer to the ability and knowledge in using the
equipment, technique and procedures involved in performing specific tasks.
These skills require specialized knowledge and proficiency in the mechanics of
particular job. Ability in programming and operating computers is, for instance, a
technical skill.
2. Human Skills: Human skills consists of the ability to work effectively with other
people both as individual and as members of a group. These are required to win
cooperation of others and to build effective work teams. Such skills require a
sense of feeling for others and capacity to look at things from others point of view.
Human skills are reflected in the way a manager perceives his superiors,
subordinates and peers.
3. Conceptual Skills :Conceptual skills comprise the ability to see the whole
organisation and the interrelationships between its parts. These skills refer to the
ability to visualize the entire picture or to consider a situation in its totality. Such
skills help the manager to conceptualize the environment, to analyze the forces
working in a situation and take a broad and far-sighted view of the organisation.
INTERPERSONAL ROLE
Figurehead- ethical guidelines and the principles of behavior
employees are to follow in their dealings with customers and
suppliers
Leader- give direct commands and orders to subordinates and make
decisions
Liaison-coordinate between different departments and establish
alliances between different organizations
INFORMATIONAL ROLE
Monitor- evaluate the performance of managers in different functions
Disseminator-communicate to employees the organization’s vision
and purpose
Spokesperson- give a speech to inform the local community about
the organization’s future intentions
DECISIONAL ROLE
Entrepreneur- commit organization resources to develop innovative
goods and services
Disturbance handler- to take corrective action to deal with
unexpected problems facing the organization from the external as
well as internal environment
Resource allocator- allocate existing resources among different
functions and departments
Negotiator- work with suppliers, distributors and labor unions
WHAT MAKE MANAGERS SUCCESSFUL?

Hard work
Smart work
Patience
Out of box thinking
Reading and acquiring knowledge
Ethical consciousness
Collaborative relationship
Perseverance
Henri Fayol 14 Principles of Management
1. Division of Work-
Henri believed that segregating work in the workforce amongst the worker will
enhance the quality of the product. Similarly, he also concluded that the division of
work improves the productivity, efficiency, accuracy and speed of the workers. This
principle is appropriate for both the managerial as well as a technical work level.
2. Authority and Responsibility-
These are the two key aspects of management. Authority facilitates the
management to work efficiently, and responsibility makes them responsible for the
work done under their guidance or leadership.
3. Discipline-
Without discipline, nothing can be accomplished. It is the core value for any project
or any management. Good performance and sensible interrelation make the
management job easy and comprehensive. Employees good behavior also helps
them smoothly build and progress in their professional careers.
Henri Fayol 14 Principles of Management
4. Unity of Command-
This means an employee should have only one boss and follow his command. If
an employee has to follow more than one boss, there begins a conflict of interest
and can create confusion.
5. Unity of Direction-
Whoever is engaged in the same activity should have a unified goal. This means
all the person working in a company should have one goal and motive which will
make the work easier and achieve the set goal easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly towards the interest of a company
rather than personal interest. Be subordinate to the purposes of an organization.
This refers to the whole chain of command in a company.
7. Remuneration-
This plays an important role in motivating the workers of a company.
Remuneration can be monetary or non-monetary. However, it should be according
to an individual’s efforts they have made.
Henri Fayol 14 Principles of Management
8. Centralization-
In any company, the management or any authority responsible for the decision-
making process should be neutral. However, this depends on the size of an
organization. Henri Fayol stressed on the point that there should be a balance
between the hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the hierarchy steps should be from the top to
the lowest. This is necessary so that every employee knows their immediate
senior also they should be able to contact any, if needed.
10. Order-
A company should maintain a well-defined work order to have a favourable work
culture. The positive atmosphere in the workplace will boost more positive
productivity.
Henri Fayol 14 Principles of Management
11. Equity-
All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.
12. Stability-
An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives
in an organization. It will help them to increase their interest and make then worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be
supportive of each other regularly. Developing trust and mutual understanding will
lead to a positive outcome and work environment.