Class 11 accountancy chapter 1

1. MANAGEMENT
Definition, Nature,
Importance And
Functions of
Management

2. CONCEPT OF MANAGEMENT
“ Management is the art of getting things done
through and with the people in formally
organized groups.”
_ Koontz H.
Management is the process of Planning,
Organizing, Staffing, Directing and
Controlling to accomplish organizational
objectives through the coordinated use of
human and material resources.

3. CHARACTERISTICS OF MANAGEMENT
 Goal oriented process
 Dynamic Process
 Multidimensional
 Continuous Process
 Group activity
 Intangible
 Pervasive

4. 1. GOAL ORIENTED PROCESS
 Basic goals are basic reasons for its
existence.
 Different organizations have different goals.
 Goals should be simple & clear.
 Management unites the efforts of different
individuals .

5. 2. DYNAMIC PROCESS
 Management has to adapt itself to the
changing environment including social,
economic, political, legal & technical
factors.
 Ex: McDonalds made major changes in
its menu to survive in Indian market

6. 3. MULTIDIMENSIONAL PROCESS
Management is a complex process
having three dimensions:
 Management of Work
 Management of People
 Management of operations

7. MANAGEMENT OF WORK
 All organisations exist for the performance of
some work
 Management
 translates this work in terms of goals to be
achieved.
 assigns the means to achieve it.

8. MANAGEMENT OF PEOPLE
 Human resources are organisation’s greatest
assets.
 Management of people has two dimensions:
 Dealing the employees as individuals
with diverse needs & behavoiur.
 Dealing individuals as a group of people.

9. MANAGEMENT OF OPERATIONS
 Every organization has some basic product
or service to provide in order to survive.
 It requires a production process to convert
the inputs & technology into desired output.
 This is interlinked with both management of
work & management of people.

10. 4. CONTINUOUS PROCESS
 Management is a series of continuous,
composite but separate functions- planning,
organising, staffing, directing & controlling.
 All functions are simultaneously performed
by all the managers all the time.

11. 5. GROUP ACTIVITY
 Management should enable:
 Team work & coordination of individual
efforts in a common direction.
 All the members to grow & develop as needs
and opportunities change.

12. 6. INTANGIBLE
 Management is an intangible force –
it cannot be seen but its presence can be felt
in the way organization functions in following
ways:
 Targets are achieved according to plans
 Employees are happy and satisfied
 There is orderliness instead of chaos

13. 7. PERVASIVE
 Management function is common to all
organizations e.g. business, government,
military, hospitals etc. in any country.
 But the ways of management is different due
to difference in culture, traditions & history.

14. IMPORTANCE OF MANAGEMENT
 Achievement of Group Goals
 Increases Efficiency
 Creates dynamic organization
 Helps in achieving personal
objectives
 Helps in development of society.

15. ACHIEVEMENT OF GROUP GOALS
The task of manager is to give a common
direction to the individual effort in achieving the
overall goal of the organisation by coordinating
the efforts of different departments.

16. INCREASES EFFICIENCY
The aim of manager is to reduce costs and
increase productivity through better planning,
organizing, directing, staffing and controlling
the activities of the organisation.

17. CREATES DYNAMIC ORGANISATION
Management helps people adapt to these
changes so that the organization is able to
maintain its competitive edge.

18. ACHIEVING PERSONAL OBJECTIVE
 Manager motivates & leads his team in
such a manner that individual members
are able to achieve personal goals while
contributing to overall organizational
objectives.

19. DEVELOPMENT OF SOCIETY
Management helps to provide good quality
products & services, creates employment
opportunities, adopts new technology for
greatest good of people and lead the path
towards growth and development.

20. OBJECTIVES OF MANAGEMENT
1. Organisational Objectives: The main
objective of any organisation should be to
utilise human & material resources to fulfill the
economic objectives which are as follows:-
a) Survival- In order to survive an organisation
should earn sufficient revenues to cover the
costs.
b) Profit- Profit is essential for covering costs
and risks of the business.

21. CONT..
c) Growth- To remain in industry, management
must exploit fully the growth potential of the
organization. It can be measured in terms of
increase in employees, products, sales volume
etc.
2. Social Objective:- Every organisation
whether business or non- business, has a
social obligation i.e. creating economic value
for various constituents of society. Ex- giving
employment

22. CONT…
Opportunity, providing basic amenities etc.
3. Personal Objectives:- Management has to
reconcile personal goals with organizational
objectives for harmony in the organization.

23. NATURE OF MANAGEMENT
 Management as a Science
 Management as a Profession
 Management as an Art

24. MANAGEMENT AS A SCIENCE
 Science is a systematised body of
knowledge that explains certain general
truths or the operations of general laws.

25. THE BASIC FEATURES ARE:
1. Systematised body of knowledge:
Science has its own systematic theory and
principles based on cause & effect relationship.
Example: Law of gravitation.
Management is also a systematic body of
knowledge having its own theory & principles.
Eg: Fayol’s principles of management.

26. 2. Principles based on experimentation:
Scientific Principles have been developed
through observation & experimentation under
controlled conditions. Eg- If we boil water at
100degree C it will evaporate.
Mgt principles are also developed over a
period of time on basis of experimentation &
observation. But since it deals with human
behaviour the results are not so exact.

27.  3. Universal Validity:
Scientific principles are universal i.e. they hold
true under each & every situation. Eg- Principle
of Gravitation.
Principles of Management are not universal.
They have to be modified according to the
situation.

28.  Conclusion:
In the absence of two main features i.e.
‘Principles based on Experimentation’ &
‘Universal Validity’, Management cannot be
considered as perfect science, rather it is a
Social Science/ Soft Science/ Inexact Science.

29. MANAGEMENT AS AN ART
 Art is the skillful and personal application of
existing knowledge to achieve desired
results.

30. THE BASIC FEATURES ARE:
1. Existence of theoretical knowledge:
Art involves the existence of theoretical
knowledge. For eg: literature in music, acting,
dancing etc is widely recognised.
The various areas of management like
marketing, sales, finance etc involves a lot of
literature. It can be studied as a discipline.

31. 2. Personalised Application:
Individuals make use of basic knowledge in his
own personal way. For eg- two singers having
same basic knowledge of music will sing
differently.
A manager skillfully applies the acquired
knowledge according to the situation in his own
unique way.

32. 3. Based on practice and creativity:
Art involves creative practice of acquired
knowledge in order to be expert in his/ her
field.
A manager over a period of time gains lot of
experience and formulates his own theories &
ways for use in given situation.

33. Conclusion
Management posses all the features of an art
which strengthen the view that management is
an art.

34. MANAGEMENT AS A PROFESSION
 Profession is a well defined body of
knowledge which can be acquired through
training and instruction and it follows ethical
standards. For eg: Doctors, Advocates etc.

35. The basic features are:
1. Well-defined body of knowledge: All
professions are based on a well-defined
body of knowledge that can be acquired
through instruction.
Management has also grown as a discipline
having a systematic body of knowledge and
well defined principles.

36. 2. Restricted entry: The entry to a profession is
restricted through an examination or through
acquiring an educational degree.
But there is no restriction on any one being
appointed as manager irrespective of the
educational qualification possessed by him/her.
Hence this criterion is not fully satisfied in
management.

37. 3. Professional association: All professions are
affiliated to a professional association which
regulates entry, grants certificate of practice
and formulates and enforces a code of
conduct.
There is no compulsion for managers to be
members of any management association.
Hence this criterion is not fully satisfied in
management.

38. 4. Ethical code of conduct: All professions are
bound by a code of conduct which guides the
behaviour of its members.
There is no compulsion for managers to be
members of any management association and
abide by the code of conduct.
Hence this criterion is not fully satisfied in
management.

39. 5. Service motive: The basic motive of a
profession is to serve their client’s interests by
rendering dedicated and committed service.
The basic motive of management is to strice
for profits. Though in order to survive in long
run they have to fulfill their social
responsibilities too.
Hence this criterion is not fully satisfied in
management.

40. Conclusion:
Management does not fulfill the exact criteria of
profession. Hence, it can not be recognised as
a full fledged profession.
Though it is on the path of becoming a
profession in near future.

41. LEVELS OF MANAGEMENT
Management is a universal term used for
certain functions performed by individuals in an
enterprise who are bound together in a
hierarchy of relationships.
This authority-responsibility relationship binds
individuals as superiors and subordinates and
gives rise to different levels in an organisation.

43. THREE LEVELS IN THE HIERARCHY OF AN
ORGANISATION
(i) Top Management
(ii) Middle Management
(iii) Supervisory or Operational Management

44. TOP MANAGEMENT
 It consist of managers at the highest level in
management hierarchy.
 Responsible for welfare and survival of the
organization.
 Consist of – Chairman, Managing Director,
BOD, Chief Executive Officer, Chief
Operating Officer, President, Vice President,
General Manager etc.

45. FUNCTIONS OF TOP MANAGEMENT
 Develop long term objectives
 Framing Policies
 Organising
 Key Appointments
 Controlling

46. MIDDLE MANAGEMENT
 Act as link between Top management &
Supervisory Management.
 Responsible implementing & controlling
plans & strategies formulated by top level..
 Consist of- Division Head like Factory head,
Plant Superintendent etc. and Departmental
Heads like Finance manager, marketing
manager etc.

47. FUNCTIONS OF MIDDLE MANAGEMENT
 Formulation of departmental objectives
 Assignment of duties
 Link
 Communication
 Coordination

48. SUPERVISORY MANAGEMENT
 Also called Operational Management.
 First line managers oversee the work force &
actually carry out operational work in an
organization.
 Consist of – Supervisor, Foremen, Inspector
etc.

49. FUNCTIONS OF SUPERVISORY MANAGEMENT
 Link between middle managemet & work
force
 Maintenance of quality
 Act as guide to workers
 Act as supervisors
 Ensures discipline
 Provide training
 Ensures safety measures.

50. THE FIVE FUNCTIONS OF MANAGEMENT
Planning
Organising
Staffing
Directing
Controlling

51. 1. PLANNING
 Planning is the function of determining in
advance what is to be done and who is to do
it.

52. 2. ORGANIZING
After planning, next step is organizing. The
process of organizing consists of following
steps:
1. Determining and defining activities to
achieve goal.
2. Grouping of activities into convenient and
logical group.
3. Assigning duties to people at various levels.

53. 3. STAFFING
 Staffing is finding the right people for the right
job
This is also known as the human
resource function and it involves
activities such as recruitment,
selection, placement and training of
personnel.

54. 4. DIRECTING
 Directing involves leading, influencing and
motivating employees to perform the tasks
assigned to them.

55. 5. CONTROLLING
 Controlling is the management function of
monitoring organisational performance
towards the attainment of organisational
goals

56. COORDINATION
• It is an orderly arrangement of group efforts
to maintain harmony among individuals
efforts towards the accomplishment of
common goals of an organization.

57. CHARACTERISTICS OF COORDINATION
 Integrates group efforts
 Ensure unity of action
 Continuous process
 Pervasive function
 Responsibility of all managers
 Deliberate functions

58. IMPORTANCE OF COORDINATION
 Growth in size
 Functional differentiation
 Specialisation

59. COORDINATION – ESSENCE OF MANAGEMENT
 Needed in all functions of
Management-
 Planning - Coordination between the master
plan and departmental plan.
 Organising - Required between authority,
responsibility and accountability.
 Staffing - Achieve balance between job
requirement and qualities of personnel

60.  Directing - Required between supervision,
motivation and leadership.
 Controlling - Ensures actual result conform
to expected results.
 Needed at all levels of Management-
 Top level - needs coordination to integrate
activities of the organisation for
accomplishing the organisational goal

61.  Middle level - Coordination of the efforts of
different sections and sub-sections
 Lower level - Coordination in the activities of
workers to ensure work progresses as per
plans.