UNIT 1.pptx

MANAGEMENT : INTRODUCTION
1. Management is the science and art of getting people together to
accomplish desired goals and objectives by coordinating and integrating all
available resources efficiently and effectively.
2. Management defined as all the activities and tasks undertaken for
archiving goals by continuous activities like; planning, organizing, leading
and controlling.
3.Management is a process of planning, decision making, organizing,
leading, motivation and controlling the human resources, financial, physical,
and information resources of an organization to reach its goals in an efficient
and effective manner.

DEFINTION OF MANAGEMENT:
Many management thinkers have defined management in their own ways. For
example, Van Fleet and Peterson define management, ‘as a set of activities
directed at the efficient and effective utilization of resources in the pursuit of one
or more goals.’
1. Megginson, Mosley and Pietri define management as ‘working with human,
financial and physical resources to achieve organizational objectives by
performing the planning, organizing, leading and controlling functions‘.
2. Kreitner’s definition of management:
‘Management is a problem solving process of effectively achieving organizational
objectives through the efficient use of scarce resources in a changing
environment.’
3. According to F.W. Taylor , ‘ Management is an art of knowing what to do, when
to do and see that it is done in the best and cheapest way ‘.

Management and Administration:
According to Theo Haimann, “Administration means overall determination of policies,
setting of major objectives, the identification of general purposes and laying down of
broad programmes and projects”. It refers to the activities of higher level. It lays down
basic principles of the enterprise. According to Newman, “Administration means
guidance, leadership & control of the efforts of the groups towards some common
goals”.
Whereas, management involves conceiving, initiating and bringing together the various
elements; coordinating, actuating, integrating the diverse organizational components
while sustaining the viability of the organization towards some pre-determined goals. In
other words, it is an art of getting things done through & with the people in formally
organized groups.
The difference between Management and Administration can be summarized under 2
categories: -
Functions
Usage / Applicability

On the Basis of Functions: -
Basis Management Administration
Meaning Management is an art of getting things done
through others by directing their efforts
towards achievement of 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 as it &
how should he dot it.
Administration decides what is to
be done & when it is to be done.
Functio
n
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.
Skills Technical and Human skills Conceptual and Human
skills
Level Middle & lower level function Top level function

Basis Management Administration
Applicability It is applicable to business
concerns i.e. profit-making
organization.
It is applicable to non-
business concerns i.e. clubs,
schools, hospitals etc.
Influence The management decisions are
influenced by the values,
opinions, beliefs & decisions of
the managers.
The administration is
influenced by public
opinion, govt. policies,
religious organizations,
customs etc.
Status Management constitutes the
employees of the organization
who are paid remuneration (in
the form of salaries & wages).
Administration represents
owners of the enterprise
who earn return on their
capital invested & profits in
the form of dividend.
On the Basis of Usage: -

Nature and Scope of Management
1.Universal Process
Wherever there is human activity, there is management. Without efficient
management, the objectives of the company can not be achieved.
2.Factor of Production
Qualified and efficient managers are essential to the utilization of labor and
capital.
3.Goal-Oriented
The most important goal of all management activities is to accomplish the
objectives of an enterprise. The goals should be realistic and attainable. The
success of management is measured by the extent to which the established goals
one achieved. Thus, management is purposeful.
4.Supreme in Thought and Action
Managers set realizable objectives and then mastermind action on all fronts to
accomplish them. For this, they require full support form middle and lower levels
of management.
5.Group Activity
All human and physical resources should be efficiently coordinated to attain
maximum levels of combined productivity. Without coordination, no work would
accomplish and there would be chaos and retention.
6.Dynamic Function
Management should be equipped to face the changes in the business environment
brought about by economic, social, political, technological or human factors. They
must be adequate training so that they can enable them to perform well even in
critical situations.

7.Social Science
All individuals that a manager deals with, have different levels of sensitivity, understanding, and
dynamism.
8.Important Organ of Society
Society influences managerial action and managerial actions influence society. Its manager’s
responsibility that they should also contribute towards the society by organizing charity functions,
sports competitions, a donation to NGO’s, etc.
9.System of Authority
Well-defined lines of command, the delegation of suitable authority and responsibility at all levels
of decision-making. This is necessary so that each individual should what is expected from him and to
whom he needs to report.
10. Profession
Managers need to possess managerial knowledge and training and have to conform to a
recognized code of conduct and remain conscious of their social and human obligations.
Process
The management process comprises a series of actions or operations conducted towards an end.

Scope of Management:
Although it is difficult to precisely define the scope of management, yet the following areas are
included in it:
Subject-Matter of Management
Planning, organizing, directing, coordinating and controlling are the activities included in
the subject matter of management.
Functional Areas of Management
These include:
Financial Management includes accounting, budgetary control, quality control, financial planning
and managing the overall finances of an organization.
Personnel Management includes recruitment, training, transfer promotion, demotion, retirement,
termination, labor-welfare and social security industrial relations.
Purchasing management includes inviting tenders for raw materials, placing orders, entering into
contracts and materials control.
Production Management includes production planning, production control techniques, quality
control and inspection and time and motion studies.
Maintenance Management involves proper care and maintenance of the buildings, plants, and
machinery.
Transport Management includes packing, warehousing and transportation by rail, road, and air.
Distribution Management includes marketing, market research, price-determination, taking
market risk and advertising, publicity and sales promotion.

Office Management includes activities to properly manage the layout, staffing, and
equipment of the office.
Development Management involves experimentation and research of production
techniques, markets, etc.
Management is an Inter-Disciplinary Approach
For the correct implementation of the management, it is important to have knowledge of
commerce, economics, sociology, psychology, and mathematics.
Universal Application
The principles of management can be applied to all types of organizations irrespective of
the nature of tasks that they perform.
Essentials of Management
Three essentials of management are:
Scientific method
Human relations
Quantitative technique
Modern Management is an Agent of Change
The management techniques can be modified by proper research and development to
improve the performance of an organization.

Management has been defined in the form of a process. Under the
management process (planning, organising, staffing, directing and
controlling), many activities interrelated to each other are included.
These activities are known as functions or elements of
management.

Important functions of management are:
(1) Planning:
It refers to thinking beforehand. In other words, planning is the determination of a future course of action to
achieve a desired result. Under planning, it is ascertained that what should be done, how it should be done
and who should do it.
If before the commencement of a job all these points are not contemplated then the objective of a business
cannot be achieved.
Planning is a long process, for the consummation of which following steps are taken:
(i) Setting objectives (ii) Developing premises (iii) Identifying alternative courses of action (iv) Evaluating
alternative courses (v) Selecting an alternative (vi) Implementing the plan (vii) Follow-up action
(2) Organising:
It refers to harmonious adjustment of various parts to achieve common objectives. In order to make the first
function of management (i.e., planning) functional, ‘a structure of roles’ needs to be framed and sustained.
The process of creating this structure of roles is known as organising. Planning is just to put some idea in
writing, but to convert that idea into reality, a group of people is needed.
Further, to streamline the activities of this group of people, organising is required. Under this, the whole
project is divided into various small jobs, to assign these jobs to designated posts (which will clarify that a
particular job will be performed at which post), to unite various jobs into one department, to clarify the rights
and duties of employees to be appointed at various posts, and to define relationship among various posts
(employees).
Following steps are taken to complete the organising function of management:
(i) Identification and Division of Work (ii) Departmentalization (iii) Assignment of Duties (iv) Establishing
Reporting Relations

(3) Staffing:
It refers to filling and keeping filled the post with people. In planning, ideas are given a
written shape, on the other hand organising, with the objective of converting these ideas into
reality, prepares a structure of various posts.
After organising comes staffing which deploys people on these posts so that jobs can be
performed. In view of the fact that the success of an organisation is commensurate with how
adroitly every employee performs his job, the importance of staffing function increases even
more.
Following steps are taken to complete the staffing function of management:
ADVERTISEMENTS:
(i) Estimating the manpower requirements
(ii) Recruitment
(iii) Selection
(iv) Placement and Orientation
(v) Training and Development
(4) Directing:
It refers to instructing, guiding, communicating and inspiring people in the organisation.
Under directing following four activities are included:
(i) Supervision (ii) Communication
(iii) Leadership (iv) Motivation

Brief description of these four activities is as follows:
(i) Supervision:
It refers to monitor the progress of routine work of one’s subordinates and
guiding them properly. Supervision is an important element of the directing
function of management. Supervision has an important feature that face to face
contact between supervisor and his subordinate is a must,
(ii) Communication:
It refers to an art of transferring facts, ideas, feeling, etc. from one person to
another and making him understand them. A manager has to continuously tell his
subordinates about what to do, how to do, and when to do various things.

Also, it is very essential to know their reactions. To do all this it becomes essential to develop
effective communication facilities. Communication by developing mutual understanding
inculcates a sense of cooperation which builds an environment of coordination in the
organisation.
(iii) Leadership:
It refers to influencing others in such a manner to make them do work what the leader wants
them to do. Leadership plays an important role in directing. Only through this quality, a manager
can inculcate trust and zeal among his subordinates.
(iv) Motivation:
It refers to that process which excites people to work for attainment of desired objective. Among
the various factors of production, it is only the human factor which is dynamic and provides
mobility to other physical resources. If human resource goes static then other resources
automatically turn immobile.
Thus, it becomes essential to motivate human resource to keep them dynamic, aware and eager
to perform their duty. Both monetary and non-monetary incentives are given to employees for
motivation.

(5) Controlling:
It refers to bringing the actual results closer to the desired results.
Under this, the manager monitors whether the jobs are being performed
in accordance with the set plans or not. He also checks whether the
quality and quantity of job performed is in alignment with the pre-
determined standards/parameters or not.
Deviations are then checked for by matching actual performance with
predetermined standards. After this corrective action is taken for
negative deviations so that the difference between actual result and
desired results can be minimised.
Thus, with the enforcement of controlling process all the bottlenecks
coming in the way of work-progress are removed and efforts of all the
people start approaching in the desired direction, in the form of
conclusion, controlling process has five main steps:
(i) Setting performance standards
(ii) Measurement of actual performance
(iii) Comparison of actual performance with standards
(iv) Analysing deviations
(v) Taking corrective action.

The contribution of F.W.Taylor to scientific management
Frederick Taylor (1856-1915), developer of scientific management. Scientific management (also
called Taylorism or the Taylor system) is a theory of management that analyzes and synthesizes
workflows, with the objective of improving labor productivity. The core ideas of the theory were
developed by Frederick Winslow Taylor in the 1880s and 1890s, and were first published in his
monographs, Shop Management
(1905) and The Principles of Scientific Management (1911). Taylor believed that decisions based upon
tradition and rules of thumb should be replaced by precise procedures developed after careful study of
an individual at work. Its application is contingent on a high level of managerial control over employee
work practices.
Taylorism is a variation on the theme of efficiency; it is a late 19th and early 20th century instance of
the larger recurring theme in human life of increasing efficiency, decreasing waste, and using empirical
methods to decide what matters, rather than uncritically accepting pre-existing ideas of what matters.
Thus it is a chapter in the larger narrative that also includes, for example, the folk wisdom of thrift, time
and motion study, Fordism, and lean manufacturing. It overlapped considerably with the Efficiency
Movement, which was the broader cultural echo of scientific management's impact on business
managers specifically.
In management literature today, the greatest use of the concept of Taylorism is as a contrast to a new,
improved way of doing business. In political and sociological terms, Taylorism can be seen as the
division of labor pushed to its logical extreme, with a consequent de-skilling of the worker and
dehumanisation of the workplace.

General approach
Shift in decision making from employees to managers
Develop a standard method for performing each job
Select workers with appropriate abilities for each job
Train workers in the standard method previously developed
Support workers by planning their work and eliminating interruptions
Provide wage incentives to workers for increased output.
Contributions
Scientific approach to business management and process improvement
Importance of compensation for performance
Began the careful study of tasks and jobs
Importance of selection criteria by management
Elements
Labor is defined and authority/responsibility is legitimised/official
Positions placed in hierarchy and under authority of higher level
Selection is based upon technical competence, training or experience
Actions and decisions are recorded to allow continuity and memory
Management is different from ownership of the organization
Managers follow rules/procedures to enable reliable/predictable behavior

Henry Fayol’s Contribution to Management # Introduction to Fayol and His Work:
Henry Fayol (1841 -1925) was a French mining engineer who turned a leading industrialist and a
successful manager.
He was a mining engineer in a French mining company and rose to the position of the Chief
Managing Director.
His life-long experience, in the field of managing, was reproduced in a monograph titled
‘Administration Industrial and General’. Fayol’s work gained popularity and was made known to
scholars and practitioners of management; only when his monograph was published in English in
the U.S.A. in 1949.
Henry Fayol’s Contribution to Management # A Broad Structure of Fayol’s Work:
Following is a brief comment on various facets of Fayol’s work:
(a) Fayol’s classification of business functions:
According to Henry Fayol, all the activities of a business enterprise could be divided into the
following six groups:
(i) Technical activities (relating to production)
(ii) Commercial activities (relating to buying, selling or exchange).
(iii) Financial activities (relating to search for and optimum use of capital i.e. finances)
(iv) Security activities (relating to protection of the properties and personnel of the enterprise)

Henry Fayol’s Contribution to Management
Henry Fayol (1841-1925) started his career as a junior engineer in a coal mine company in
France and became its general manager in 1880.
He not only saved a large coal and steel company from bankruptcy, but also led to crowning
success.
His ideas on management have been summed up as the Administrative Management
Theory, which later evolved into the Management Process School. A contemporary of
Taylor, Fayol for the first time attempted a systematic analysis of the overall management
process. In 1916, he published his famous book in French language ‘Administration
Industrielle Generale.’
It was reprinted several times in French and later published in English language under the
title, General and Industrial Management in 1929. Fayol’s contribution to management can
be discussed under the following four heads:
1. Division of Industrial Activities:
Fayol observed the organizational functioning from manager’s point of view.

He found that all activities of the industrial enterprise could be divided into six
groups:
(i) Technical (relating to production);
(ii) Commercial (buying, selling and exchange);
(iii) Financial (search for capital and its optimum use) ;
(iv) Security (protection of property and persons);
(v) Accounting (Preparation of various statements, accounts, returns etc.) and
(vi) Managerial (planning, organisation, command, co-ordination and control)
He pointed out that these activities exist in every enterprise. He further said that the first
five activities are well known to a manager and consequently devoted most of his book
to analyse managerial activities.
2. Qualities of an Effective Manager:
Henry Fayol was the first person to recognise the different qualities for manager.

6 Major Contributions of Peter Drucker to Management:
Some of the major contributions of Peter Drucker are as follows: 1. Nature of Management
2. Management Functions 3. Organisation Structure 4. Federalism 5. Management by
Objectives 6. Organizational Changes.
Among the contemporary management thinkers, Peter Drucker outshines all. He has varied
experience and background which include psychology, sociology, law, and journalism.
Through his consultancy assignments, he has developed solutions to number of managerial
problems. Therefore, his contributions cover various approaches of management. He has
written many books and papers.
The more important books are; Practice of Management (1954), Managing by Results
(1964), The Effective Executive (1967), The Age of Discontinuity (1969), Management:
Tasks, Responsibilities and Practices (1974), and Management Challenges for 2Century
(1999)

1. Nature of Management:
Drucker is against bureaucratic management and has emphasised management
with creative and innovative characteristics. The basic objective of management
is to read towards innovation. The concept of innovation is quite broad. It may
include development of new ideas, combining of old and new ideas, adaptation
of ideas from other fields or even to act as a catalyst and encouraging others to
carry out innovation.
He has treated management as a discipline as well as profession. As a
discipline, management has its own tools, skills, techniques and approaches.
However, management is more a practice rather than a science. Thus, Drucker
may be placed in ’empirical school of management’.
While taking management as a profession. Drucker does not advocate to treat
management as a strict profession but only a liberal profession which places
more emphasis that managers should not only have skills and techniques but
should have right perspective putting the things into practice. They should be
good practitioners so that they can understand the social and cultural
requirements of various organisations and countries.

2. Management Functions:
According to Drucker, management is the organ of its institution. It has no functions in itself, and no
existence in itself. He sees management through its tasks. Accordingly, there are three basic
functions of a manager which he must perform to enable the institution to make its contribution for:
(i) the specific purpose and mission of the institution whether business, hospital or university;
(ii) making work productive and the worker achieving; and
(iii) managing social impacts and social responsibilities.
All these three functions are performed simultaneously within the same managerial action. A
manager has to act as administrator where he has to improve upon what already exists and s already
known. He has to act as an entrepreneur in redirecting the resources from seas of tow or diminishing
results to areas of high or increasing results.
Thus, a manager has to perform several functions: setting of objectives, making, organising and
motivating. Drucker has attached great importance to the objective setting function and has specified
eight areas where clear objective setting is required. These are: market standing, innovation,
productivity, physical and financial resources, profitability, managerial performance and
development, worker performance and attitude, and public responsibility.

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