Management involves coordinating human, physical, financial, and information resources to efficiently and effectively achieve organizational goals. It is a universal process that is essential for all organizations, regardless of size, type, or purpose. Effective management allows organizations to utilize resources optimally, reduce costs, establish sound structures, adapt to changing environments, and contribute to societal prosperity through economic growth and job creation. The study of management principles is important for understanding how to direct group efforts towards predetermined objectives.

1. •Management is a universal phenomenon.
•All organizations (business, political, cultural or
social) are involved in management because it helps
and directs group efforts towards the attainment of
certain predetermined goals /purposes.
•Goals may vary from one enterprise to another.
•For one enterprise it may be launching of new
products by conducting market surveys and for
other it may be profit maximization by minimizing
cost.
What is Management?

2. Management involves creating an internal environment
•Management puts into use the various factors of
production.
•Responsibility of management to create such conditions
which are conducive to maximum effort so that people
are able to perform their task efficiently and effectively.
•Management includes ensuring availability of raw
materials, determination of wages and salaries,
formation of rules and regulations etc.
What is Management?

3. Management is the process of working with and through others to
effectively achieve the goals of the organization, by efficiently using
limited resources in the changing worlds.
What is Management?
ACHIEVE
Human Financial Physical Information
Efficiently
Effectively
Organizing Leading ControllingPlanning &
Decision making

4. According to F.W. Taylor, “
According to Harold Koontz, “Management is an art of getting things
done through and with the people in formally organized groups. It
is an art of creating an environment in which people can perform
and individuals can co-operate towards attainment of group goals”.
Alternatively, the process of activities, completed efficiently and
effectively with and through people is called management.
Efficiency: A measure of how well resources are used to achieve a goal.
In short, “Doing things right-Getting the most output for the least
inputs.”
Effectiveness: A measure of the appropriateness of the goals chosen
(are these the right goals?), and the degree to which they are
achieved.
In short, “Doing the right things”- Attaining organizational goals.

5. According to Kreinter, Management is the process of working with and
thorough others to achieve organizational objectives in a changing
environment.

6. The definition of management covers four
components. These are:
1. Working with and through others
2. Achieving organizational objectives
3. Balancing effectiveness and efficiency
4. Getting the most out of limited resources
Kreinter definition of Management…

7. Evolution of Management
• Father of management-Henry Fayol (1841-1925)
• Father of Scientific Management –F.W. Taylor
(1856-1915)
“Management is an art of knowing what to do,
when to do and see that it is done in the best
and cheapest way”.

8. 1. Division of work: Division of work and
specialization produces more and better work with
the same effort.
2. Authority and responsibility: Authority is the
right to give orders and the power to exact obedience.
Authority creates responsibility.
3. Discipline: Good discipline requires managers to
apply sanctions whenever violations become
apparent.
4. Unity of command: An employee should receive
orders from only one superior.
Henry Fayol contributed 14 principles to management
which is applied in all the organization.

9. 5. Unity of direction: Organizational activities must have
one central authority and one plan of action.
6. Subordination of individual interest to general interest:
The interests of one employee or group of employees are
subordinate to the interests and goals of the organization.
7. Remuneration of personnel: Salaries to employees should
be fair and provide satisfaction both to the employee and
employer.
8. Centralization: The objective of centralization is the best
utilization of personnel.
9. Scalar chain: A chain of authority exists from the
highest organizational authority to the lowest ranks.
14 principles…

10. 10. Order: The right materials and the right employees are
necessary for each organizational function and activity.
11. Equity: equity is a combination of kindliness and
justice. Both should be considered when dealing with
employees.
12. Stability of tenure of personnel: To attain the
maximum productivity of personnel, a stable work force is
needed.
13. Initiative: Zeal, energy, and initiative are desired at all
levels of the organizational ladder.
14. Esprit de corps: Teamwork is fundamentally
important to an organization.
14 principles…

11. •Nature of management
•Importance of management
Chapter Name: Management
Topics to be discussed

12. Nature of Management
• Mgt is a purposeful activity. It is a tool which helps use
of human & physical resources to fulfill the pre-
determined goals.
• Success of Mgt activity is assessed by its achievement
of the predetermined goals/objective
• E.g. Goal, maximum consumer satisfaction by
producing quality goods and at reasonable prices by
employing efficient persons and making better use of
scarce resources.

13. • Human beings work with non-human resources
• Mgt. integrates human efforts to those resources.
• It brings harmony among the human, physical, financial and
informational resources.
• Continuous handling of problems and taking appropriate steps
to solve it.
• E.g. Maximum production, various policies have to be framed
but this is not the end. Marketing and Advertising, policies have
to be again framed.
Nature of Management…

14. • Political, social, cultural or business, clubs, hospitals,
political parties, colleges, hospitals, business
• Small business or a large firm, Mgt. is required everywhere
irrespective of size or type of activity.
• More than one person is engaged in working for a common
goal
• Mgt. is very much less concerned with individual’s efforts,
more concerned with groups.
• It involves the use of group effort to achieve predetermined
goal of management
Nature of Management…

15. Why study management or importance of management?
1. It Helps in Achieving Group Goals
• Arranges the factors of production, assembles
and organizes the resources, integrates the
resources in effective manner to achieve goals
• converts disorganized resources of men,
physical, money into usual enterprise
• resources are coordinated, directed and
controlled in such a manner that enterprise
work towards attainment of goals

16. 2. Optimum utilization of resources
• utilizes all the resources productively
which leads to efficiency in
management.
• If employees and machines are
producing its maximum there is no
under employment of any resources
Why study Mgt….

17. 3. Reduce cost
• gets maximum results using minimum
input and getting maximum output.
• This helps in cost reduction.
Why study Mgt….

18. 4. Establishes sound organization
• no overlapping of efforts
• establishes effective authority and
responsibility relationship
• fills up various positions with right process,
having right skills, training and qualification
Why study Mgt….

19. 5. Establishes equilibrium
• enables the organization to survive in changing
environment, keeps in touch with the changing
environment
• with the change in external environment, the initial co-
ordination of organization must be changed
Why study Mgt….

20. 6. Essential for prosperity of society
• leads to better economical production
which helps to increase the welfare of
people, improves standard of living
• increases the profit which is beneficial to
business and society, creates employment
opportunities which generate income in
hands
• Organization comes with new products and
researchers beneficial for society.
Why study Mgt….