Principles of Business Management

1. Module-I Introduction to Management

2. Management istheartofgettingthingsdonethroughothers’’.
"Tomanageistoforecastandtoplan,toorganize,tocommand,to
co-ordinateandtocontrol.“
Management Includes
1). Planning
2) Organising
3) Staffing
4) Directing
5) Controlling
6) Co-ordination
Management

3. Components of Management
Management consists of following:
1. Organizational Activity
2. Goal formation
3. Goal accomplishment and evolution
4. Implementation

4. Characteristics or features of management
1.Managementisgoalorientedprocess:
Management always aims at achieving the organisational
objectives. The functions and activities of manager lead to the
achievement of organisational objectives; for example, if the
objective of a company is to sell 1000 computers then
manager will plan the course of action, motivate all the
employees and organise all the resources keeping in mind the
main target of selling 1000 computers.

5. Continued…
2. Management is Pervasive:
Management is a universal phenomenon. The use of
management is not restricted to business firms only rather it
is applicable in profit-making, non profit-making, business
or non-business organisations; even a hospital, school, club
and house has to be managed properly. Concepts of
management are used across the globe.

6. 3.ManagementisMultidimensional:
Management does not mean one single activity but it
includes three main activities:
i. Management of work
ii. Management of people
iii. Management of operations
Continued…

7. (a)Managementofwork:
All organisations are set up to perform some task or goal.
Management activities aim at achieving goals or tasks to be
accomplished. The task or work depends upon the nature of
Business for example, work to be accomplished in a school is
providing education, in hospital is to treat patients, in
industry to manufacture some product. Management makes
sure that workis accomplished effectively and efficiently.
Continued…

8. (b)Managementofpeople:
Here “Management of People" refers to Management of
Human resources. Human resources are the most important
assets of an organisation. An organisation can win over its
competitors with efficient employees only because two
organisations can have same physical, technological and
financial resources but not human resources. Management
has to get task accomplished through people only.
Managing people has two dimensions:
(i)Taking care of employee’s individual needs
(ii)Taking care of group of people
Continued…

9. 4.Managementisa continuousprocess:
Management is a continuous or never ending function. All
the functions of management are performed continuously.
For example; planning, organising, staffing, directing and
controlling are performed by all the managers all the time.
Sometimes, they are doing planning, then staffing or
organising etc. Managers continuously perform an ongoing
series of functions in an organization.
Continued…

10. 5.Managementisa groupactivity:
Management always refers to a group of people involved in
managerial activities. The management functions cannot be
performed in isolation. Each individual performs his/her role
at his/her status and department. Even the result of
management affects every individual and every department of
the organization; hence, it always refers to a group effort and
not an individual effort.
Continued…

11. 6.Managementisa dynamicfunction:
Management has to make changes in goals, objectives and
other activities according to the changes taking place in the
environment. The external environment such as social,
economical, technical and political environment has great
influence over the management. As changes take place in
these environments, same are implemented in organisation
to survive in the competitive world.
Continued…

12. 7.Intangible:
Management function cannot be physically seen but its
presence can be felt. The presence of management can be felt
by seeing the order and coordination in the working
environment. It is easier to feel the presence of
mismanagement as it leads to chaos and confusion
For example; if the inventory of finished products is
increasing day by day it clearly indicates mismanagement
of marketing and sales.
Continued…

13. 8.Compositeprocess:
Management consists of series of functions which must be
performed in a proper sequence. These functions are inter-
dependent on each other. The main functions of management
are planning, organizing, staffing, directing and controlling.
Organizing cannot be done without doing planning, Similarly,
directing function cannot be executed without staffing and
planning and it is difficult to control the activities of employees
without knowing the plan. All the functions inter-dependent on
each other that is why management is considered as a composite
process of all these functions.

14. 9.Balancingeffectivenessandefficiency:
Effectiveness means achieving targets and objectives on time
by ensuring the optimum utilization of resources. Managers
always try to balance both and get the work done
successfully.

15. FunctionsofManagement
Planning– Planning is first function performed by every
Manager. Planning refers to “deciding in advance what
to do, how to do, when to do, and who is going to do it.
Planning bridges the gap between where we stand today
and where we want to reach”. Every manager starts with
deciding in advance the objectives of an enterprise and
how to accomplish these objectives. Planning is the base
of all other function of management.

16. Functions of Management - Planning
Planning-
“ Thinkingbefore action ”
In brief , Planning is mental exercise done by
a manager, through which a line of thinking
and a course of action is pointed out in
Advance before using the existing resources
of organisation.

17. Functions of Management
Organising -
After setting up of plans next function of every manager is to
organise the activities and establishing an organisational
structure to execute the plan. Setting up organisational structure
means deciding the framework of working how many units and
sub-units or department are needed, how many posts or
designations are needed in each department, how to distribute
the authority and responsibility among different people. Once
these decisions are taken an organisational structure gets set up.

18. Functions of Management - Organising
Organising-
In organising function,
“The managementis concerned with the
determination of the total work-load which
is necessary for the attainment of objectives
anda suitable division of suchwork among
individuals”.

19. Functions of Management
Staffing-
Staffing is the third step or function of a manager. It
Refers to recruiting, selecting, appointing the employees,
assigning them duties, maintaining fair relations and
taking care of grievances of employees. It also includes
training and developing the employees, deciding their
Remuneration, promotion, increment, etc., evaluating the
performance, maintaining personal records of records
of employees .

20. Functions of Management - Staffing
Staffing-
“Staffing implies the selection and placement
Of most able and competent person on each
position provided in the organisational
Structure. Staffing means placement of the
right man on the right job at the right time. ”.

21. Functions of Management
Directing-
Once the employees are appointed there is need to
instruct them and get the work done. Directing refers to
giving instructions to employees by motivating them,
supervising the activities of employees, communicating
with them. Managers acts as leader and guide them to
right direction, so directing function includes,
supervising, motivating, communicating and leadership.

22. Functions of Management - Directing
Directing-
“It is the stage where the manager guides
his subordinatestowardsbest attainment of
commonobjectives”.

23. Functions of Management - Directing
Thereare four aspects of Directing Function.
1. Leadership
2. Motivation
3. Communication
4. Supervision

24. Functions of Management
Controlling –
This the last function of managers. In this function
managers try to match the actual performance with the
planned performance and if there is no match between
both then managers try to find out the reasons of
deviation and suggest corrective measures to come on
path of plan. Controlling functions refer to all the
performance measurements and follow up actions that
Keep the actual performance on the path of plan.

25. Functions of Management - Controlling
Controlling –
“It implies that the actions of people working
throughout the enterprise are according to
plan or not”.

26. Levelof Management
Thereare three Levels of Management
1. Top level management
2. Middle level management
3. Supervisory level, operational level or
Lower level management.

27. Level of Management
Top Level Management
Top level management consists of Chairman, Board of
Directors, Managing Directors, General Manager,
President, Vice President, Chief Executive Officer(C.E.O.),
Chief Financial Officer (C.F.O.) and Chief Operating
Officer etc. It includes group of crucial persons essential
for leading and directing the efforts of other people.

28. Level of Management - Top Level Management
Main functionsof top level management are :
A. Determining the objectives of enterprise.
B. Framing of plans and policies.
C. Organising activities to be performed by persons
working at middle level.
D. Assembling all the resources such as finance, fixed
assets.
E. Responsible for welfare and survival of the
organisation.
F. Affair with outside world such as meeting
government officials etc.

29. Level of Management
Middle LevelManagement
This level of management consists of department heads
such as purchase department head, sales department
head, finance manager, marketing manager, executive
officer, plant superintendent, etc. People of this group
are responsible for executing plans and policies made by
top level. They act as a linking pin between top and lower
level management.

30. Level of Management - MiddleLevelManagement
Main functions of middle level management are :
A. Interpretation of policies made by top level
management.
B. Organising the activities of their department.
C. Finding out or recruiting/selecting and appointing the
required employees.
D. Motivating the personsto perform their best ability.
E. Controlling and instructing the employees.
F. Cooperate with other departments for smooth
functioning.
G. Implementing the plans formed by top level.

31. Level of Management
Lower Level Management
This level of management consists of supervisors,
superintendent, foreman, sub-department executives;
Clerk, etc. managers of this group actually carry on the
work or perform the activities according to the plans of
top and middle level management. Their authority is
limited. The quality and quantity of output depends
upon the efficiency of this level of managers. They pass
on the instruction to workers and report to the middle
level management.

32. Level of Management - LowerLevelManagement
Main functionsof Lower level management are :
A. Representing problems of workers.
B. Maintaining good working condition and developing
healthy relations between superior and subordinate.
C. Looking for safety of workers.
D. Helping the middle level management in recruiting,
selecting and appointing the workers.
E. Communicating with workers and welcoming their
suggestion.
F. They try to maintain precise standard of quality.
G. They are responsible for boosting the morale of the workers

33. MANAGEMENTANDADMINISTRATION
It is said that there is no exact difference between
management and administration.
There is another school that asserts management is
quite different from administration.
The third school is of the opinion that management
includes administration.
According to Horence and Tead, Administration is the
process of thinking, and Management is the process
and agency of actual operation

34. Basis Management Administration
Meaning Management is the art of
getting things done through
others by directing their efforts
toward achieving pre-
determined goals.
It is concerned with
formulation of broad
objectives, plans & policies.
Nature Management is an executing
function.
Administration is a decision
making function.
Process
.
Management decides who should
do it & how should he do it.
Administration decides what
is to be done & when it is to be done
Function Management is a doing function
because managers get work
done under their supervision.
Administration is a thinking function
because plans & policies are
determined under it.
Level Middle & lower level function. Top level function.

35. Managementas a Profession
“Profession can be defined as an occupation
backed by specialised knowledge and training, in
which entry is restricted."

36. Managementas a Profession
Themainfeaturesofprofessionare:
1.SpecializedKnowledgeandExpertise:
Just as professionals in fields like medicine or law acquire
specialized knowledge and expertise through formal
education and experience, managers also develop specific
skills, techniques, and knowledge related to organizational
dynamics,leadership,decision-making,andmore.
Example: A manager in a technology company possesses a
deep knowledge of software development methodologies,
project management techniques, and the latest
programming languages. They use this expertise to guide
theirteamindevelopinginnovativesoftwareproducts.

37. Management as a Profession- Features
2- Continuous Learning and Development:
Similar to professionals in other fields, managers need
to engage in continuous learning to stay updated with
the latest trends, best practices, and advancements in
management theories and techniques.
Examples: An HR manager attends workshops, and
conferences to stay updated with evolving labor laws,
employee engagement strategies, and diversity and
inclusion practices, ensuring their organization
maintains a progressive workplace environment.

38. Management as a Profession- Features
3. Accountabilityand Responsibility:
Professionals are often held accountable for their actions
and decisions. In management, accountability is essential
as managers are responsible for achieving organizational
goals, managing resources, and guiding teams to success.
Example: An operations manager is accountable for
ensuring the timely delivery of products to clients. When
a supply chain disruption occurs, they take responsibility
by collaborating with suppliers and their teams to find
alternative solutions, minimizing the impact on clients.

39. 4. Autonomy and Decision-Making:
Like professionals who are granted a certain level of
autonomy in their decision-making, managers also
have the authority to make decisions that affect their
teams and organizations.
Example: A marketing manager has the autonomy to
decide which advertising channels to allocate the
budget to for an upcoming product launch. They
make data-driven decisions based on market research
and target audience preferences.

40. Management as a Profession- Features
5. Critical Thinking and Problem-Solving:
Both professionals and managers require strong critical
thinking and problem-solving skills. Managers regularly
face complex challenges and need to analyze situations,
consider options, and make informed decisions.
Example: An operations manager faces a production
delay due to equipment malfunction. They quickly
analyze the situation, allocate resources effectively, and
collaborate with maintenance and production teams to
resolve the issue and minimize production downtime.

41. 6.EthicalStandards:
Professionals are expected to adhere to a set of ethical
standards and codes of conduct. Managers also face ethical
dilemmas and are expected to make decisions that align
with the best interests of their organizations and
stakeholders.
Example: A manager in a pharmaceutical company faces a
decision about whether to prioritize the company's profit
margins or the well-being of patients when launching a new
drug.Adheringtoethical standards,theychooseto delaythe
launchuntiladditional safetytestingisconducted.

42. 7. Certification and Education:
While there isn't a universally recognized certification
for managers, many organizations offer management-
related certifications, and educational programs are
available to help individuals develop the necessary skills
and knowledge for effective management.
Example: A project manager obtains a Project
Management Professional (PMP) certification from the
Project Management Institute. This certification
validates their knowledge and expertise in project
management, enhancing their credibility in the field.

43. SignificanceofManagement
1. Accomplishmentof goals:
It is the management that determines the goals of the
organization and of various departments and functional
groups. The goals are communicated to the employees to
seek their cooperation. All organizational activities are
directed toward the organizational objectives. Clear-cut
definition of goals is essential for the success of every
organization.

44. 2. EffectiveUtilizationof Resources:
Management ensures optimum utilisation of resources.
Through planning and organisation, management
eliminates all types of wastages and achieves efficiency in
all business operations. Management motivates workers
to put in their best performance. This would lead to the
effective working of the business.

45. 3. Order to Endeavour or Efforts:
Management deals with integration of human and non-
human resources in order to achieve organizational
objectives. It directs and coordinates the activities of
individuals and groups in the use of materials, methods
and machines. It, thus, brings order to endeavors of
different groups.

46. 4. SoundOrganization:
Management establishes sound organisation for the
accomplishment of the desired objectives. It clarifies
authority-responsibility relationships among various
positions in the enterprise. It fills various positions with
persons having the right qualification and training.
Management also provides the workers with proper
environment and encourages the spirit of cooperation.

47. 5. Provides Visionand Foresight:
Management keeps itself in touch with the external
environment and supplies vision and foresight to the
enterprise. It helps in predicting what is going to happen
in future which will influence the working of the
enterprise. It also takes steps to ensure that the
enterprise is able to meet the demands of changing
environment.

48. 6. NationalGrowthand Prosperity:
Efficient management of resources is equally important
at the national level. According to Peter Drueker,
“Management is the crucial factor in economic and
social development.” The development of a country
virtually depends on the quality of management of its
resources. Efficient management of resources is a key to
growth of the economy and prosperity and better
standard of living of the general public.

49. Roles Performed by Managers
 Interpersonal: This role involves human interaction.
 Informational: This role involves the sharing and
analyzing of information.
 Decisional: This role involves decision-making.
(Henry Mintzberg - The Nature of Managerial Work)

50. Mintzberg’s Set of Ten Roles
Category Role Activity
Interpersonal Figurehead
Leader
Liaison
Perform ceremonial & symbolic duties.
Direct and motivate subordinates.
Maintain information links.
Informational Monitor 
Disseminator
Spokesperson
Seek and receive information.
Forward information to members.
Transmit information to outsiders.
Decisional Entrepreneur
Disturbance
handler
Resource 
Allocator
Negotiator 
Initiate improvement projects.
Take corrective action during disputes
or crises.
Decide who gets resources; prepare
budgets; determine priorities.
Represent department during
negotiations.

51. Skills Needed by Managers
Managerial skills fall under the following three
categories:
Technical: Technical skills involve understanding and
proficiency in a specific area of expertise.
Interpersonal: Interpersonal skills, also known as soft
skills, are essential for effective communication,
collaboration, and building relationships within and
outside the organization.
Conceptual: Conceptual skills involve thinking abstractly,
analyzing complex situations, and making informed
decisions that align with the organization's goals.