1. MANAGEMENT PRINCIPLES AND
PRACTICE.
MODULE 1-INTRODUCTION TO
MANAGEMENT
BY,
Sangeetha.G,
Assistant Professor and HOD,
Bcom ,MCom , UGC NET(Twice), JRF,(MBA).
Department of Business Administration ,
SITADEVI RATANCHANG NAHAR ADARSH COLLEGE .
3. INTRODUCTION-MANAGEMENT
Managing as an activity is considered to be of paramount significance.
Ever since human beings started forming groups in order to achieve
targets, that were not attainable individually, managing has played a big
role to ensure the coordination of individual efforts. Management
involves making others work and obtaining the desired level of work by
giving direction to their efforts in an integrated and coordinated manner
that is required to attain business objectives. It is a process comprising of
functions such as planning, organizing, actuating and controlling business
operations in such a manner that is necessary to achieve the premeditated
goals. It also involves securing men, materials, money and machinery
required for the achievement for business objectives and putting all of
them into operation and checking their performance so to assure the
productive and beneficial use of the material resources. It consists of all
organizational activities that require formation of goal and achievement,
performance appraisal and the development of an operating philosophy
that ensures organization survival.
4. MEANING OF MANAGEMENT
Management is essential for all organisations, big or
small, profit or non-profit, manufacturing
or service. Management consists of a series of inter-
related and interdependent functions that
are performed by all managers. Managers perform
different functions at different levels in
organisation. The importance of management has
been increasing, particularly after Industrial
Revolution due to change in methods of production,
scale of operations, transport revolution,
improvement in science and technology etc.
5. MEANING OF MANAGEMENT
• Management is an art of
getting things done with the
help of others in order to
achieve certain organisational
goals.
6. DEFINITIONS OF MANAGEMENT
• According to Harold Koontz and Heinz
Weihrich "Management is the process of
designing and maintaining an environment in
which individuals, working together in groups,
efficiently accomplish selected aims”.
10. Top Level Management: The top management is
the ultimate source of authority
which formulates the goals and policies of the
organisation. It consists of Board of Directors,
Chief Executives and Managing Directors.
Functions Of Top level Management:
a)Determine objectives for the Organisation:
Objectives may relate to profit, business
growth, survival, prestige, competitive pricing,
marketing method, widening the area of sales,
relations with workers, customers, public etc.
11. b)Frame the policy: To frame the policies and
chalk out the plans to carry out the objectives
and policies. Policies may relate to different
aspects of the organisation.
c)Assemble the resources: For the purpose of
executing the plans, the resources of men,
machines, materials and money have to be
assembled. This again is the task of top
management.
12. 2. Middle Level Management: The Middle Level Management is
responsible to the top level
management for the functioning of their department. They devote
more time to organisational
and directional function. It consists of Branch Managers and
Departmental Managers.
Functions of Middle Management:
a) To execute the various functions of organisation so that the top
management gets enough
time to look after their responsibilities.
b) To understand the interlocking of departments in major policies.
c) To achieve co-ordination between the different parts of the
organisation.
d) To build company spirit where all are working to provide a product
or service wanted by
the public.
13. 3. Lower Level Management: Lower level Management is
concerned with direction and
controlling function of management. It is also known as
Supervisory/Operative level of
Management/ First Line Managers. It consists of
Supervisors, Foremen, section officers,
Superintendents Etc.
Functions of Lower level Management :
a) To plan the activities of his section.
b) To classify and assign jobs to the workers.
c) To direct and guide the workers about work procedure.
d) To solve the problems of workers.
e) To maintain good human relations
14. Responsibilities & Skills of Professional
Manager:
• 1) Providing direction to the firm: The first task,
envisioning goals, is one of the tasks that
• should never be delegated. This is the ability to
define overarching goals that serve to unify
• people and focus energies. It’s about effectively
declaring what’s possible for the team to
• achieve and compelling them to accomplish more
than they ever thought possible.
15. • 2) Managing survival and Growth: Ensuring
survival of the firm is a critical task of a
• manager. The manager must also seek growth.
Two sets of factors impinge upon the firm’s
• survival and growth. The first is the set of factors
which are internal to the firm and are largely
• controllable.
• 3) Maintaining firm’s efficiency: A manager has
not only to perform and produce results, but
• to do so in the most efficient manner. The more
output a manager can produce with the same
• input, the greater will be the profit.
16. • 4) Meeting the competition challenge: A manager must
anticipate and prepare for the increasing competition.
Competition is increasing in terms of more producers,
products, better quality, etc.
• 5) Innovation: Innovation is finding new, different and
better ways of doing existing tasks. To plan and manage
for innovation is an on-going task of a manager. The
manager must maintain close contact and relation with
customers.
• 6) Renewal: Managers are responsible for fostering the
process of renewal. Renewing has to do with providing
new processes and resources. The practices and
strategy that got you where you are today may be
inadequate for the challenges and opportunities you
face tomorrow.
17. • 7) Building human organization: Man is by far
the most critical resource of an organisation.
• A good worker is a valuable asset to any
company. Every manager must constantly
look out
• for people with potential and attract them to
join the company.
• 8) Leadership: Organizational success is
determined by the quality of leadership that
is
• exhibited.
18. • Process of management is circular in
nature, as functions are interrelated
and performed one after the other.
Basically, management comprises
five functions, viz., Planning,
Organising, Staffing, Directing, and
Controlling.
19.
20. PLANNING
• Planning: Planning involves setting
organizational goals, determining the
strategies to achieve those goals, and
developing action plans. It is the foundation of
all other management functions and provides
direction and purpose to the organization.
21. • Importance of Planning
• Co-ordination in the activities of the
organisation
• Higher degree of rationality and order in
organisation
• Economy in Business
• Help in achieving the Management by
Objectives
• Help in minimizing the future uncertainties
• Effective Control
22. ORGANIZING
• Organizing: Organizing is the process of
arranging resources, such as people,
materials, and equipment, in a structured
and coordinated manner to achieve the
organization's objectives. It includes
establishing lines of authority, creating
departments, and defining job roles and
responsibilities.
23. • Basic Requirement in Organisational Structure
• To set objectives
• To motivate and communicate
• To analyse, appraise and measure
performance
• To develop human resources
• To organise
24. Staffing:
• Staffing involves recruiting, selecting, training,
and developing the right individuals for
various positions within the organization.
Managers need to ensure that the workforce
has the necessary skills and knowledge to
perform their tasks effectively.
25. • Importance of Staffing
• To fill up the gap between organisational
design and human power
• To utilize all physical resources through
human resources
• Development of executives and non
executives employees
• Helpful in performance appraisal
26. Directing
• Directing (or Leading): Directing is the process
of guiding and motivating employees to work
towards achieving the organization's goals. It
involves providing clear instructions, offering
support, resolving conflicts, and creating a
positive work environment.
27. Under directing following four activities are included:
Supervision
Communication
Leadership
Motivation
(i) Supervision: - It refers to monitor the progress of routine work of 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
28. • (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 persuade, create trust and passion among
his subordinates.
• (iv) Motivation: - It refers to that process which excites people to
work for achievement 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. Thus,
it becomes essential to motivate human resource to keep them
dynamic, aware and willing to perform their duty. Both
• monetary and non-monetary incentives are given to employees
for motivation
29. Controlling
• Controlling: Controlling is the process of
monitoring progress, comparing actual
performance to planned objectives, and taking
corrective action when necessary. It ensures
that the organization is on track and
deviations from the plan are addressed
promptly.
30. • Importance of Control
• Control is the basis of planning
• Basis for appraisal
• Control ensures performance according to
predetermined standards
• Assistance in co-ordination
• Assistance in decentralisation
• Effective control leads to greater
organisation effectiveness
31. • Coordinating: Coordinating involves harmonizing
all the activities and efforts of different
individuals and departments to ensure smooth
and efficient functioning. It helps to avoid
duplication of efforts and conflicting actions.
• Communicating:
Communication is a vital function that involves the
exchange of information, ideas, and feedback
between managers, employees, and other
stakeholders. Effective communication fosters
understanding and cooperation within the
organization
32. • Conclusion
• The various functions of management
constitute a unified body and are commonly
referred to as a process of management.
Process of management is circular in nature,
as functions are interrelated and performed
one after the other. Each function leads to
others. Each function may not be equally
important to all the firms as their nature of
business may be different.
33. CASE STUDY
Jayant is working as Head Relationship Manager in the
wealth management division of a private sector bank.
He has created an internal environment which is
conducive to an effective and efficient performance of
his team of ten relationship management executive” A
typical day at work in Jay ant’s life consists of a series of
interrelated and continue functions. He decides the
targets for his department which are in line with the
objectives of the organization as a whole. The future
course of action for his team members is laid out well
in advance. The various resources required by the
relationship managers like an iPad with GPS system,
account opening forms, brochures, details of account
holders etc. are made readily available to them.
34. The executives are given sufficient authority to
carry out the work assigned to them. Jayant
works in close coordination with the Human
Resource Manager in order to ensure that he is
able to create and maintain a satisfactory and
satisfied workforce in his department. Through
constant guidance and motivation, Jayant inspires
them to realize their full potential. He offers them
various types of incentives from time to time
keeping in view their diverse individual needs.
Moreover, he keeps a close watch on their
individual performances in order to ensure that
they are in accordance with the standards set and
takes corrective actions whenever needed. In
context of the above case:
35. QUESTIONS:
• 1. Identify the concept being referred to in the
following line, “He has created an internal
environment which is conducive to an
effective and efficient performance of his
team of ten relationship management
executives.”
• 2. Identify and describe the various functions
of the concept as identified in part (a) of the
question by quoting lines from the paragraph.
36. ANSWER
• Answer. 1. The concept of management is
being referred to in the following line, “He has
created an internal environment which is
conducive to an effective and efficient
performance of his team of ten relationship
management executives.”
37. ANSWER
• 2. The various functions of the management
concept mentioned in the above paragraph are
listed below:
• Planning: It is the function of determining in
advance what is to be done and who is to do it.
“He decides the targets for his department which
are in line with the objectives of the organization
as a whole. The future course of actions for the
team members are laid out well in advance.”
38. ANSWER
• Organizing: Organizing is the process of bringing
together human, physical and financial resources
and establishing productive relations among
them for the purpose of achieving the desired
goals efficiently and effectively. “The various
resources required by the relationship managers
like an iPad with GPS system, account opening
forms, brochures, details of account holders etc.
are made readily available to them. The
executives are given sufficient authority to carry
out the work assigned to them.”
39. ANSWER
• Staffing: The managerial function of staffing
involves manning the organizational structure
in order to fill in the roles designed into the
structure. “Jayant works in close coordination
with the human resource manager in order to
ensure that he is able to create and maintain a
satisfactory and satisfied workforce in his
department.”
40. ANSWER
• Directing: Directing involves leading,
influencing and motivating employees to
perform the tasks assigned to them. “Through
constant guidance and motivation, Jayant
inspires them to realize their full potential. He
offers them various types of incentives from
time to time keeping in view their diverse
individual needs.”
41. ANSWER
• Controlling: Controlling is the management
function of ensuring that events conform to
plans. ”Moreover, he keeps a close watch on
their individual performances in order to
ensure that they are in accordance with the
standards set and takes corrective actions
whenever needed.”
42.
43. Evolution of Management Thoughts
• The Industrial Revolution in the early 19th century brought monumental
changes in the workplace. As factories were the primary source of
employment, management theorists studied the operations and
workforce present on the factory floors. There were times when the
demand was high but the lack of productivity and efficiency held
workplaces back. The Industrial Revolution gave birth to multiple
management theories and concepts that developed over time and are
still relevant today.
• Management theories help you study an organization, its corporate
designs, structures and behavior of individuals or groups. By studying
the impact of internal and external business environments, these
theories provide a lens to address critical questions about how a
business works or operates. Management theories can be grouped
under three categories—classical theory, neoclassical theory and
modern management theory
44. Pre - Scientific Management Era,
• The pre-Scientific Management era refers to the period before the
introduction of the Scientific Management theory in the late 19th
and early 20th centuries. During this time, industrial practices
were often inefficient, and there was a lack of systematic
approaches to manage and optimize work processes.
• Before Scientific Management, work was typically carried out
based on traditional craftsmanship and personal skill. Workers
had significant autonomy in their tasks, and management relied
on their experience and judgment to supervise employees. The
processes were often slow and prone to variations in quality and
output.
• Key features of the pre-Scientific Management era include:
45. • Craftsmanship: Workers were skilled artisans who had mastered specific
trades and techniques. They were responsible for producing entire products
or parts, using their expertise to achieve quality results.
• Division of Labor: While some division of labor existed, it was not as
specialized as later approaches. Workers may have performed multiple tasks
within a production process.
• Lack of Standardization: There were no standardized procedures for
performing tasks or managing workflows. Each worker had their own way of
doing things, leading to inconsistencies and inefficiencies.
• Limited Management Techniques: Managers relied heavily on personal
experience and intuition to run operations. There were no formal
management techniques or principles in place.
46. • Limited Use of Technology: The use of machinery and
technology was limited, and most of the work was
manual, which contributed to slower production rates.
• Absence of Time Studies: There were no time studies or
scientific analysis of work processes to determine the
most efficient ways of performing tasks.
• Absence of Incentive Systems: Incentive systems based
on performance or productivity were uncommon, which
might have resulted in less motivation for workers to
improve their efficiency.
47. • The pre-Scientific Management era laid the
foundation for subsequent developments in
management theories, particularly the Scientific
Management approach pioneered by Frederick
Winslow Taylor. His ideas emphasized the
scientific analysis of work processes,
standardization of tasks, and the development of
incentive systems to improve worker productivity.
This marked the beginning of a new era in
management thinking and paved the way for
more systematic and efficient industrial practices.
48. Classical Management Era
•
• The Classical Management Era refers to a
period in the history of management theory
that emerged during the late 19th and early
20th centuries. It encompasses three major
schools of thought: Scientific Management,
Administrative Management, and Bureaucratic
Management.
49. • Scientific Management:
• Scientific Management was developed by Frederick
Winslow Taylor, an engineer and management
consultant. Taylor's approach aimed to apply scientific
principles to the study of work processes and
productivity. He conducted time-motion studies to
analyze and standardize work tasks, determining the
most efficient methods of performing them. Taylor's
focus was on optimizing worker performance through
task specialization, training, and the use of incentives to
increase productivity. Scientific Management sought to
eliminate wasteful practices, improve worker efficiency,
and enhance overall organizational productivity.
50. • Administrative Management:
• Administrative Management was proposed by Henri
Fayol, a French mining engineer and management
theorist. Fayol's principles focused on the functions of
management, which he identified as planning,
organizing, commanding, coordinating, and controlling.
He believed that management principles could be
universally applied to various organizations and
industries. Fayol emphasized the importance of clear
organizational structures, authority relationships, and
efficient communication to ensure effective
management. His ideas laid the foundation for the
administrative approach to management.
51. • Bureaucratic Management:
• Bureaucratic Management was developed by Max
Weber, a German sociologist, and economist.
Weber's theory emphasized the importance of
rationality and formal rules in organizational
design and decision-making. He described
bureaucracy as an ideal organizational form
characterized by hierarchical authority, division of
labor, clearly defined rules and procedures, and
impersonal relationships. Weber believed that
bureaucratic structures provided stability,
efficiency, and predictability within organizations.
52. • The Classical Management Era sought to bring order, efficiency,
and rationality to organizations during a time of significant
industrial growth and expansion. While each school of thought
addressed different aspects of management, they shared a
common goal of improving organizational performance through
systematic approaches and principles. The ideas from this era laid
the groundwork for subsequent management theories and
continue to influence modern management practices today.
However, it's essential to note that contemporary management
approaches have evolved beyond the strict application of classical
principles, incorporating more flexible and human-oriented
perspectives in the management of organizations.
53. Concepts of the classical management theory
1) Centralized structure of leadership:- The classical
management theory holds that a workplace should
be overseen by three levels of leadership. The first
level is composed of the business owners and/or
executives of the company. These individuals are
given the highest level of authority and set the
long-term goals of an organization. The second level
of leadership consists of middle management.
Individuals considered to be middle
management are in charge of overseeing managers
and setting department-level goals. The third level
is composed of supervisors or managers who
oversee the day-to-day operations of a company.
54. 2) Labor specialization:- This concept focuses on an
“assembly line” set up within an organization. This
structure involves breaking down large tasks or projects
into smaller tasks that are assigned to employees.
Workers are typically responsible for only one specific task
to prevent multitasking and increase productivity.
3) Wage incentives:- The classical management theory
places emphasis not on employees’ job satisfaction or
social needs but rather on physical needs. This theory
holds that these physical needs can be met through
income and monetary incentives and uses the
opportunity for wage increases to motivate employees.
55. Advantages of the classical management theory
1) Clear organization hierarchy:- The classical management
theory includes three distinct levels of management within an
organization. This provides a clear outline of responsibilities
and objectives for each member of management and reduces
any confusion as to what a particular manager should focus
on.
2) An easy-to-understand division of labour:- Under the
classical management theory, organizations establish clear
divisions of labour that plainly outline the expectations and
duties of an employee. Tasks are typically easier to understand
and employees are given specific projects to complete that fall
within their abilities and specializations. As a result,
productivity is often increased and workers avoid having to
multitask to fulfill their
56. 3) Increased productivity through monetary rewards:- The
classical management theory believes that employees are
strongly motivated by their physical needs and more specifically,
monetary incentives. As such, organizations that implement this
management style often incorporate regular opportunities for
employees to be rewarded for their productivity with incentives.
This can increase an employee’s feeling of appreciation through
recognition of their accomplishments as well as make it easier for
managers to motivate workers.
4) Single-leader decision making:- A primary component of the
classical management theory is that a single leader or select few
leaders make decisions on behalf of a company. Organizations
that use this method of management make decisions at the
highest level and then communicate the decisions down the
ladder of management. This can be beneficial for companies that
regularly need decisions to be made quickly or for smaller
businesses that rely on a single leader.
57. Disadvantages of the classical management theory
1) Limited emphasis on employee job satisfaction and human relations:-
This theory focuses primarily on the physical needs of an employee and
can overlook the employee’s social needs which is a vital component for
some in their overall job satisfaction.
2) Increased levels of pressure placed on employees:- The classical
management theory is primarily concerned with an employee’s
productivity and output. As a result, employees can feel increased pressure
to complete tasks in a certain period of time, which can lead to stress and
discouragement.
3) Restricts the implementation of new ideas and concepts:- This
management theory is based on the belief that there is one right way to
complete tasks for maximum production.
As a result, an organization’s ability to grow and implement new ideas and
concepts is often limited. In turn, employees may feel restricted in their
ability to express their ideas and unique value.
58. Neo Classical Management era
• The Neo-Classical Management Era, also known as
the Human Relations Era, emerged as a response
to the limitations of the Classical Management
approaches during the mid-20th century. This era
shifted the focus from strict scientific and
bureaucratic principles to a greater emphasis on
the human aspect of organizations.
• Key features of the Neo-Classical Management Era
include:
59. • Human Relations Approach: The Neo-Classical Management Era
emphasized the importance of understanding human behavior,
motivation, and social interactions within the workplace.
Managers began to recognize that satisfied and motivated
employees tend to be more productive.
• Hawthorne Studies: One of the defining events of this era was the
Hawthorne Studies conducted at the Western Electric Hawthorne
Works in Chicago between 1924 and 1932. The studies revealed
that factors such as social interactions, employee participation,
and attention from management had a significant impact on
productivity and job satisfaction.
• Employee Participation: Managers started to involve employees in
decision-making processes and sought their input on various
organizational matters. This participative approach aimed to
empower workers and increase their commitment to the
organization.
60. • Focus on Informal Groups: Neo-Classical theorists recognized the
existence and influence of informal groups and social dynamics
within the workplace. They understood that these groups could
have both positive and negative effects on productivity and
morale.
• Motivation Theories: The era witnessed the development of
various motivation theories, such as Abraham Maslow's hierarchy
of needs, Frederick Herzberg's Two-Factor Theory, and Douglas
McGregor's Theory X and Theory Y. These theories emphasized
the importance of understanding individual needs and
motivations to improve employee satisfaction and performance.
• Human-Centered Management: The Neo-Classical Management
Era promoted a shift towards a more human-centered approach
to management. Managers were encouraged to consider the
psychological and social needs of employees, fostering a more
supportive and conducive work environment.
61. • Organizational Behavior: The study of organizational
behavior became more prevalent during this era,
focusing on how individuals and groups interact within
organizations and how these interactions impact
performance and productivity.
• The Neo-Classical Management Era marked a significant
shift in management philosophy, acknowledging that
organizational success is heavily influenced by the
human element. This period laid the groundwork for
modern management practices that prioritize employee
engagement, satisfaction, and well-being as essential
factors in achieving organizational goals. The human
relations approach remains a crucial aspect of
management thinking and has influenced subsequent
management theories and practices.
62. Modern Management Era
• The Modern Management Era refers to the period
from the latter half of the 20th century to the
present, where management practices have
evolved to meet the challenges of a rapidly
changing global business environment. This era
encompasses various management theories and
practices that reflect a more flexible, dynamic, and
adaptive approach to organizational management.
63. • Key features of the Modern Management Era include:
• Total Quality Management (TQM): TQM emerged as a management
philosophy that emphasizes the importance of continuous improvement,
customer focus, and employee involvement. It seeks to enhance product and
service quality through the involvement of all employees in the quality
improvement process.
• Business Process Reengineering (BPR): Business Process Reengineering
involves the radical redesign of business processes to achieve significant
improvements in efficiency, cost-effectiveness, and customer satisfaction. It
often involves the use of technology to streamline workflows and eliminate
inefficiencies.
• Strategic Management: Strategic management became a critical aspect of
modern management, focusing on setting long-term organizational goals,
formulating strategies to achieve them, and adapting to changing market
conditions.
64. • Knowledge Management: With the increasing importance of
knowledge-based industries, knowledge management emerged as
a discipline to identify, capture, and leverage an organization's
knowledge assets for better decision-making and innovation.
• Agile Management: Agile management methodologies,
popularized in software development, have been widely adopted
across various industries. They prioritize flexibility, collaboration,
and iterative development to respond quickly to changing
customer needs and market demands.
• Diversity and Inclusion: Modern management recognizes the
value of diverse perspectives and inclusivity in the workplace.
Organizations have been increasingly focusing on creating diverse
and inclusive work environments to enhance creativity,
innovation, and employee well-being.
65. • Sustainability and Corporate Social Responsibility (CSR): As
awareness of environmental and social issues has grown, modern
management includes a focus on sustainability and CSR.
Companies are now expected to consider their impact on the
environment and society while making business decisions.
• Digital Transformation: The advent of digital technologies has led
to the digital transformation of organizations. This involves
integrating technology into various aspects of business operations
to increase efficiency, improve customer experiences, and drive
innovation.
• Remote and Flexible Work: The rise of technology and changing
work cultures have facilitated the adoption of remote and flexible
work arrangements. Modern management practices
accommodate remote teams and flexible work schedules to
support work-life balance and attract talent from diverse
locations.
66. • The Modern Management Era is characterized
by a shift from hierarchical, command-and-
control structures to more participative,
innovative, and employee-centric approaches.
Organizations are continuously adapting to
new challenges and opportunities, leveraging
technology and data-driven insights to thrive
in an ever-changing business landscape. As we
move forward, modern management will
continue to evolve in response to emerging
trends and societal shifts.
67. • Modern theory of Management - Systems approach and
Contingency approach
• Systems Approach:
• The Systems Approach is a management theory that
views organizations as complex and interconnected
systems. It considers the organization as a whole,
comprising various subsystems that interact and
influence one another. This approach emphasizes the
interdependence of different components within an
organization and how changes in one part can affect the
entire system.
68. • Contingency Approach:
• The Contingency Approach, also known as the
Situational Approach, suggests that there is no
one-size-fits-all solution to management. Instead,
the most effective management practices depend
on the specific circumstances or contingencies
faced by an organization. Different situations
require different approaches, and managers should
adapt their strategies based on the unique
characteristics of each situation.
70. CASE STUDY
Anju and Manju are good friends. Considering the
fact that the activities involved in managing an
enterprise are common to all organizations, after
completing their masters in business
management, both of them take up a job at
managerial level in different organizations as per
their individual areas of interest. Anju takes up a
marketing job in a retail company and strives to
increase sales whereas Manju joins an NGO and
works diligently to realize its objective related to
providing employment to especially abled
persons. Both of them have to perform a series of
continuous, composite, but separate functions.
71. On some days, Anju may spend more time in planning a
future display layout and on another day, she may
spend time in sorting out an employee’s problem.
Both Anju and Manju make conscious efforts to build a
feeling of team spirit and coordination among diverse
individuals with different needs who work under them.
The effect of their management is noticeable in their
respective departments as the targets are met
according to plans, employees are happy and satisfied,
and there is orderliness in its functioning rather than
chaos.
In context of the above case:
Identify the various features of management highlighted
in the above paragraph by quoting lines from it.
72. ANSWER
• Answer. The various features of management
highlighted in the above paragraph are stated
• below:
• 1. Management is all pervasive: “Considering the
fact that the activities involved in
• managing an enterprise are common to all
organizations, after completing their masters in
business management, both of them take up a
job at managerial level in different
• organizations as per their individual areas of
interest.”
73. • 2. Management is a goal-oriented process:
“Anju takes up a marketing job in a retail
• company and strives to increase sales whereas
Manju joins an NGO and works diligently
• to realize its objective related to providing
employment to especially abled persons.”
74. • 3. Management is a continuous process:
“Both of them have to perform a series of
• continuous, composite, but separate
functions. Like on some days, Anju may spend
more time in planning a future display layout
and on another day, she may spend time in
sorting out an employee’s problem.”
75. • 4. Management is a group activity: “Both
Anju and Manju make conscious efforts to
build a feeling of team spirit and coordination
among diverse individuals with different
needs who work under them.”
76. • 5. Management is an intangible force: “The
effect of their management is noticeable in
• their respective departments as the targets
are met according to plans, employees are
happy and satisfied, and there is orderliness
in its functioning rather than chaos.”
77. FEATURES OF MANAGEMENT
• Characteristics of management refer to the fundamental
qualities or attributes that define the practice of effective
management. These characteristics contribute to the
successful attainment of organizational goals and the
overall functioning of an organization. Here are some key
characteristics of management:
•
• Goal-Oriented: Management is focused on achieving
specific objectives and goals. It involves setting clear targets
and working towards their accomplishment through proper
planning, organizing, leading, and controlling of resources.
•
78. • Universal Application: Management principles are applicable in
various types of organizations, whether they are businesses, non-
profit entities, government agencies, or educational institutions.
• Multidimensional: Management covers a wide range of activities,
including human resource management, financial management,
marketing management, operations management, and more.
• Continuous Process: Management is an ongoing and dynamic
process. It involves a series of interrelated functions and activities
that continue over time to sustain and improve the organization's
performance.
•
• Integrative Function: Management integrates the efforts of
different individuals and departments within the organization to
work cohesively towards the common goals and objectives.
79. • Decision-Making: Effective management involves making sound
decisions based on analysis, evaluation, and consideration of available
information and alternatives.
•
• Flexibility: Good management is adaptable and flexible to accommodate
changes in the internal and external environment. It can adjust strategies
and plans as needed to respond to new challenges and opportunities.
•
• People-Oriented: Management is not just about managing resources and
processes; it also involves managing people. Understanding and
effectively dealing with human behavior and motivation are crucial for
successful management.
•
• Efficiency and Effectiveness: Management aims to achieve results
efficiently (using resources optimally) and effectively (reaching the
desired outcomes). Balancing efficiency and effectiveness is essential for
long-term success.
80. • Authority and Responsibility: Managers have
authority over their subordinates and the
responsibility to ensure that tasks are performed as
expected. With authority comes accountability for
outcomes.
•
• Continuous Improvement: Effective management
encourages a culture of continuous improvement,
seeking ways to enhance processes, productivity, and
overall performance.
•
• Problem-Solving Orientation: Managers are often
faced with challenges and problems. A problem-
solving approach involves identifying, analyzing, and
resolving issues to overcome obstacles and achieve
desired results.
81. • Ethical Conduct: Ethical management entails conducting business
in a morally responsible manner, considering the impact of
decisions on stakeholders, employees, customers, and the wider
society.
•
• Interdisciplinary: Management draws knowledge and insights
from various disciplines like economics, sociology, psychology, and
engineering to understand complex organizational dynamics.
•
• Time-Bound: Management operates within specific time frames,
considering short-term goals and long-term objectives.
•
• These characteristics provide an overview of what effective
management entails. Successful managers exhibit these traits
while navigating the complexities of running an organization,
leading teams, and achieving sustainable growth and success
82. FUNCTIONAL AREAS OF
MANAGEMENT
• The functional areas of management refer to the different roles
and responsibilities that exist within an organization. These areas
represent the core functions necessary for the smooth and
efficient operation of a business. The main functional areas of
management include:
• Human Resource Management (HRM): HRM is responsible for
managing the organization's human capital. This includes
recruitment, hiring, training, performance evaluation, employee
relations, compensation, and benefits administration.
83. • Operations Management: Operations management
is concerned with overseeing the production
processes, ensuring efficient use of resources,
managing supply chains, and optimizing workflows
to deliver products or services to customers.
• Marketing Management: Marketing management
focuses on understanding customer needs and
preferences, developing marketing strategies,
promoting products or services, conducting market
research, and managing customer relationships.
84. • Financial Management: Financial management deals with
financial planning, budgeting, financial analysis, investment
decisions, and managing the organization's financial resources to
achieve financial goals and ensure fiscal stability.
• Strategic Management: Strategic management involves
developing long-term organizational goals and objectives,
formulating strategies to achieve them, and making decisions to
adapt to changing market conditions and competitive
environments.
• Information Technology Management (ITM): ITM is responsible
for managing the organization's information technology
infrastructure, systems, and applications, ensuring data security,
and leveraging technology to support business processes.
85. • Research and Development (R&D): R&D is responsible for
conducting research, innovation, and product development
activities to create new products or improve existing ones.
• Sales Management: Sales management oversees the sales team,
sets sales targets, develops sales strategies, and monitors sales
performance to achieve revenue and growth targets.
• Customer Service Management: Customer service management
focuses on ensuring high-quality customer service, handling
customer inquiries and complaints, and maintaining strong
customer relationships.
• Legal and Compliance Management: This functional area deals
with legal matters, regulatory compliance, and ensuring that the
organization operates within the legal framework.
86. CONCLUSION
• These functional areas are typically found in
most organizations, although the specific roles
and responsibilities may vary depending on
the organization's size, industry, and structure.
Effective coordination and collaboration
among these functional areas are essential for
achieving the organization's overall goals and
success. Managers in each functional area play
a crucial role in contributing to the
organization's overall performance and
strategic direction.
87. SCOPE OF MANAGEMENT
1. PLANNING
2. ORGANIZING.
3. STAFFING
4. DIRECTING/ LEADING.
5. CONTROLLING
6. DECISION MAKING
7. COMMUNICATION
8. PROBLEM-SOLVING
9. TEAM BUILDING
88. Management as a Science
• Management is often considered both an art and a science. While the
art of management involves the application of skills, experience, and
intuition, the scientific aspect of management is based on systematic
and evidence-based principles. As a science, management follows
certain characteristics that align with the scientific method:
• Systematic Study: Management involves the systematic study of
organizational processes, structures, and behaviors. Researchers and
practitioners use rigorous methodologies to analyze data, conduct
experiments, and make evidence-based decisions.
• Theory Development: Management theories are developed to
explain and predict organizational behavior and outcomes. These
theories provide a framework for understanding management
practices and help guide decision-making.
89. • General Principles: Management science aims to identify general
principles that can be applied across various organizations and
industries. These principles are intended to provide insights into
how organizations can achieve efficiency, effectiveness, and
competitiveness.
• Empirical Research: Management as a science relies on empirical
research, which involves collecting and analyzing data to test
hypotheses and validate theories. This approach helps in
developing a deeper understanding of management practices and
their impact on organizational performance.
• Predictive Power: Scientific management principles enable
managers to predict the outcomes of certain decisions and actions
based on evidence. This predictive power allows for informed
decision-making and helps minimize uncertainty and risk.
90. • Replicability: Scientific management studies should be replicable, meaning
that other researchers should be able to conduct similar studies using the
same methodology to validate or challenge the findings.
• Continuous Improvement: Like any scientific field, management is subject to
continuous improvement and refinement. New research and insights
contribute to the evolution of management practices over time.
• CONCLUSION :
• While management is undoubtedly influenced by social and human factors,
the scientific approach allows for a more structured and objective analysis of
organizational processes. By applying the scientific method, management
can improve its effectiveness and efficiency, leading to better decision-
making and overall organizational performance. However, it's essential to
acknowledge that not all aspects of management can be fully quantified or
measured, as human behavior and emotions also play a significant role in
organizational dynamics. As such, the art of management complements the
science, making it a complex and multifaceted discipline.
91. Management as a Art
•
• Management is often regarded as an art due to its creative
and subjective nature. The art of management involves
applying skills, intuition, experience, and judgment to address
complex and dynamic organizational challenges. Here are
some key aspects that highlight management as an art:
• Creativity: Effective managers often need to think creatively
and innovatively to devise unique solutions to organizational
problems. They may need to adapt to changing circumstances
and come up with novel approaches to achieve organizational
goals.
92. • Subjectivity: Management decisions are influenced by subjective
factors, such as personal values, experiences, and intuition.
Managers often have to make judgments based on incomplete
information and uncertain outcomes.
• Flexibility: Management practices are not rigid formulas but
require flexibility and adaptability to suit the specific needs of an
organization and its employees. Managers must adjust their
strategies based on the context and changing situations.
• People Skills: A crucial aspect of management as an art lies in the
ability to understand and motivate people. Effective managers
must possess strong interpersonal and communication skills to
build relationships and foster a positive work environment.
93. • Experience-Based Learning: Successful management often comes with
experience and the ability to learn from past successes and failures.
Managers refine their skills over time, gaining insights from practical
experiences.
• Vision and Leadership: Artful managers have a vision for the organization's
future and the ability to inspire and guide their team members toward
shared goals. They provide direction and leadership to achieve long-term
success.
• Emphasis on Individuality: Each manager brings their unique style and
approach to the role, reflecting their personality, values, and leadership
philosophy. This individuality is an essential aspect of management as an art.
• Emotion and Intuition: Artful managers understand the emotional aspects of
their team members and use their intuition to make decisions that go
beyond purely data-driven analysis.
94. CONCLUSION
• While the art of management is subjective and
creative, it complements the scientific aspect of
management. The scientific principles provide a
systematic foundation and evidence-based
knowledge, while the art allows managers to apply
these principles in a personalized and contextually
appropriate manner. The combination of
management as both an art and a science makes it
a dynamic and multifaceted discipline that
continues to evolve in response to organizational
and societal needs.
95. Management as a Profession
• Management is often considered a profession, especially when it is
practiced with a high level of expertise, ethical standards, and
specialized knowledge. However, the professional status of
management can be debated due to certain characteristics that may
differ from traditional professions like medicine or law. Here are
some aspects of management as a profession:
• Specialized Knowledge: Management requires a specific body of
knowledge and skills that are developed through education, training,
and experience. Professional managers possess expertise in areas
such as organizational behavior, strategic planning, finance, human
resources, and operations.
96. • Ethical Standards: Like other professions, management is expected to adhere
to ethical standards and principles in decision-making and interactions with
stakeholders. Professional managers are guided by codes of conduct and
professional ethics.
• Formal Education and Certification: Many managers pursue formal
education in business administration, management, or related fields.
Additionally, there are certifications, such as Certified Professional Manager
(CPM) or Project Management Professional (PMP), that demonstrate a
manager's competence and commitment to professionalism.
• Continuous Professional Development: Professional managers engage in
continuous learning and development to stay updated with the latest
management practices, theories, and industry trends.
97. • Accountability: Professional managers are held accountable for their actions
and decisions. They are responsible for the performance and outcomes of
their teams and are expected to be transparent in their communication.
• Client-Centric Approach: Managers often work with clients or stakeholders
to achieve organizational goals. A client-centric approach involves
understanding the needs of stakeholders and delivering value to them.
• Autonomy and Responsibility: Professional managers typically have a degree
of autonomy in decision-making within the scope of their roles. They are
entrusted with the responsibility to lead and manage the organization or
department effectively.
98. • However, it is essential to note that management's professional
status can vary depending on the context and specific roles. Some
managers may not have formal education or certifications, and
management roles can be found in various industries and sectors.
Additionally, the absence of strict licensing requirements or a
unified regulatory body may distinguish management from more
traditional professions.
• In conclusion, management exhibits many characteristics of a
profession, such as specialized knowledge, ethical standards, and
accountability. However, its professional status may not be
universally recognized in the same way as traditional professions
due to the diversity of management roles and the absence of
standardized licensing requirements.
99. Henry Fayol s 14 principles of
Management
•
• Henri Fayol, a French mining engineer and management theorist, developed 14 principles of management in his
book "General and Industrial Management" published in 1916. These principles are still considered influential in
modern management theory. Here are Fayol's 14 principles of management:
• Division of Work: Specializing tasks and assigning specific roles to employees increases efficiency and productivity.
• Authority and Responsibility: Managers have the authority to give orders, and employees have the responsibility
to follow them. Authority and responsibility should go hand in hand.
• Discipline: A disciplined and respectful work environment is essential for the smooth functioning of the
organization.
• Order: Ensuring a clean and organized workplace helps improve efficiency and reduces errors.
100. • Unity of Command: Employees should have only one direct
supervisor to avoid conflicting instructions and maintain clear
communication channels.
• Unity of Direction: Teams working towards a common goal should
be under the direction of one manager to ensure coordination and
focus.
• Subordination of Individual Interest to the Common Good: The
organization's interests take precedence over individual interests
to achieve overall objectives.
101. • Remuneration: Employees should receive fair compensation for
their work, considering market rates and performance.
• Centralization: The degree of decision-making authority should be
balanced between top management and lower levels.
• Scalar Chain: The hierarchical chain of command should be
followed for effective communication and decision-making.
The formal lines of authority from highest to the lowest ranks are
known as scalar chain. According to Fayol, "Organisation should have
a chain of authority and communication from top to bottom and
should be followed by managers and subordinates”.
Gang Plank is a shorter route in a scalar chain which allows
employees at the same level to communicate with each other
directly. It is acceptable only in case of emergency and it should
be ensured it does not become a normal practice.
102. • Equity: Employees should be treated fairly and with kindness to foster a positive work
environment.
• Stability of Tenure of Personnel: Minimizing employee turnover allows for better expertise
and stability within the organization.
• Initiative: Encouraging employees to take initiative and be creative improves innovation
and problem-solving.
• Esprit de Corps: Building team spirit and harmony among employees boosts morale and
cooperation.
• Fayol's principles provide a foundation for effective management practices, emphasizing
the importance of organization, coordination, and discipline in achieving organizational
objectives. These principles have been influential in shaping management theories and
practices, although modern management thinking has evolved to consider additional
factors such as employee empowerment, motivation, and flexibility in response to
changing business environments
