This document discusses organizations and management. It defines an organization as a systematic arrangement of people brought together to accomplish a specific purpose. Management is defined as the process of coordinating organizational activities to achieve defined objectives. The four basic management functions are planning, organizing, leading, and controlling. Management involves both conceptual, human, and technical skills. Management is described as both an art and a science, requiring specialized knowledge and skills to apply principles toward achieving goals. The document also distinguishes management from administration and outlines various managerial roles and qualities.

1. Principle and Practices
of Management Chapter 1

2. Organizations
 A systematic arrangement of people brought together to
accomplish some specific purpose; applies to all
organizations—for-profit as well as not-for-profit
organizations.
 Where managers work (manage)
 Common characteristics
 Goals
 Structure
 People

3. Common Characteristics of
Organizations

4. Organizational Levels

5. Management
 The organization and coordination of the activities of
a business in order to achieve defined objectives.
 "Management is the art of getting things done through
and with people in formally organized groups.“-Harold
Koontz
 "To manage is to forecast and to plan, to organize, to
command, to co-ordinate and to control.“- Henri Fayol,

6. Management….(Cont)
 "Management is a multi-purpose organ that
manages business and manages managers
and manages workers and work.“- Peter
Drucker
 "Management is the art of getting things done
through people.“-Mary Parker Follet
 Management brings together all Six Ms i.e.
Men and Women, Money, Machines, Materials,
Methods and Markets. They use these
resources for achieving the objectives of the
organisation such as high sales, maximum
profits, business expansion, etc.

7. Characteristics of Management
Continuous and Never Ending Process
Result Oriented Approach
Result through others
Universal Approach
Intangible
Dynamic in Nature
Both Art and Science
Authoritative Structure
Based on Group Activity

8. Management Functions
 The 4 basic management functions that make up the
management process activities are :
 Planning
 Organizing
 Leading
 Controlling

9. Management Functions

10. Planning
 Deciding in Advance.
 Includes defining goals, establishing strategy, and
developing plans to coordinate activities
 Planning involves choosing tasks that must be
performed to attain organizational goals, outlining how
the tasks must be performed, and indicating when they
should be performed.

11. Organizing
 Organizing can be thought of as assigning
the tasks developed in the planning
stages, to various individuals or groups
within the organization. Organizing is to
create a mechanism to put plans into
action.
 People within the organization are given
work assignments that contribute to the
company’s goals. Tasks are organized so
that the output of each individual
contributes to the success of
departments, which, in turn, contributes
to the success of divisions, which
ultimately contributes to the success of
the organization.

12. Leading
 The purpose of leading is to increase productivity.
Human-oriented work situations usually generate higher
levels of production over the long term than do task
oriented work situations because people find the latter
type distasteful.
 Includes motivating employees, directing the activities
of others, selecting the most effective communication
channel, and resolving conflicts

13. Controlling
 The process of monitoring performance,
comparing it with goals, and
correcting any significant
deviations
 Gather information that measures
performance
 Compare present performance to pre
established performance norms.
 Determine the next action plan and
modifications for meeting the desired
performance parameters.
 Controlling is an ongoing process

14. Management: Art
Art implies application of knowledge &
skill to trying about desired results.
 Practical Knowledge: E.g. to become
a good painter, the person may not only
be knowing different colour and brushes
but different designs, dimensions,
situations etc to use them appropriately.
 Personal Skill: E.g. there are several
qualified painters but M.F. Hussain is
recognized for his style. Similarly
management as an art is also
personalized.

15. Management: Art (Cont..)
 Creativity: Every artist has an element of
creativity in line. That is why he aims at
producing something that has never existed
before which requires combination of intelligence
& imagination. Eg. It tries to produce sweet music
by combining chords in an efficient manner.
 Perfection through practice: Managers learn
through an art of trial and error initially but
application of management principles over the
years makes them perfect in the job of managing.
 Goal-Oriented: Every art is result oriented as it
seeks to achieve concrete results. In the same
manner, management is also directed towards
accomplishment of pre-determined goals.

16. Management: Science
Science is a systematic body of
knowledge pertaining to a specific field of
study that contains general facts which
explains a phenomenon. It establishes
cause and effect relationship between two
or more variables and underlines the
principles governing their relationship.
 Universally acceptance principles - E.g. - law of
gravitation which can be applied in all countries
irrespective of the time.
 Experimentation & Observation - E.g. the principle
that earth goes round the sun has been scientifically
proved. Same as for Management like Henry Fayol.

17. Management: Science(Cont...)
 Cause & Effect Relationship -E.g. when metals
are heated, they are expanded. The cause is heating
& result is expansion. Same as in Management lack
of parity (balance) between authority & responsibility
will lead to ineffectiveness.
 Test of Validity & Predictability -Validity of
scientific principles can be tested at any time or any
number of times i.e. they stand the test of time.
Each time these tests will give same result. E.g. H2 &
O2 will always give H2O.
 Same as in Management principle of unity of
command can be tested by comparing two persons -
one having single boss and one having 2 bosses. The
performance of 1st person will be better than 2nd.

18. Management: Just A Science
 It cannot be denied that management has a
systematic body of knowledge but it is not as
exact as that of other physical sciences like
biology, physics etc.
 It deals with human beings and it is very difficult
to predict their behavior accurately.
 Since it is a social process, therefore it falls in
the area of social sciences.
 It is a flexible science & that is why its theories
and principles may produce different results at
different times and therefore it is a behavior
science.
 Ernest Dale has called it as a Soft Science.

19. Management: Art and Science
 Management is both an art and a science.
Science because it has an organized body of
knowledge which contains certain universal truth.
Art because managing requires certain skills which
are personal possessions of managers.
 Science provides the knowledge & Art deals with the
application of knowledge and skills.
 For Manager and Organization Science is the root and
Art is the fruit.

20. Management: Profession
 A profession may be defined as an
occupation that requires specialized
knowledge and intensive academic
preparations to which entry is regulated by a
representative body.
 Specialized Knowledge –Eg. Expertise,
Skills and Innovation.
 Formal Education & Training -Minimum
Qualification is required. Eg. MBA or other
relevant degree required.
 Social Obligations –Eg. Provide quality
goods at reasonable prices to the society.

21. Management: Profession(Cont..)
 Code of Conduct - Rules and regulations,
norms of honesty, integrity and special
ethics to be followed.
 Representative Association –Always
connected with various group and
departments.
 Authority and Responsibility-
Responsible for many group performance
like employees, shareholders and society.
 Responsible for Professional Goal- Eg.
Maximizing profit and Growth of
organization.

22. Management vs Administration
BASIS FOR COMPARISON MANAGEMENT ADMINISTRATION
Meaning
An organized way of managing
people and things of a business
organization is called the
Management.
The process of administering an
organization by a group of people is
known as the Administration.
Authority Middle and Lower Level Top level
Role Executive Decisive
Area of operation It works under administration.
It has full control over the activities
of the organization.
Applicable to
Profit making organizations, i.e.
business organizations.
Government offices, military,
clubs, business enterprises,
hospitals, religious and educational
organizations.
Work
Putting plans and policies into
actions.
Formulation of plans, framing
policies and setting objective
Focus on Managing work
Making best possible allocation of
limited resources
Represents
Employees, who work for
remuneration
Owners, who get a return on the
capital invested by them.

23. Managerial Skills

24. Managerial Skills (Cont.)
Conceptual skills:
 Conceptual skills involve the ability to see the
whole organization and the interrelationships
between its parts.
 These skills refer to the ability to visualize the
entire picture or to consider a situation in its
totality.
 These skills help the managers to analyze the
environment and to identify the opportunities.
 Conceptual skills are especially important for
top-level managers, who must develop long-
range plans for the future direction of their
organization.

25. Managerial Skills (Cont.)
Human skills:
 Human skills refer to the ability of a
manager to work effectively with other
people both as individual and as members
of a group.
 Human skills are concerned with
understanding of people.
 These are required to win cooperation of
others and to build effective work teams.

26. Managerial Skills (Cont.)
Technical skills:
 Technical skills refer to the ability and
knowledge in using the equipment,
techniques and procedure involved in
performing specific tasks.
 These skills require specialized knowledge
and proficiency in the mechanics of a
particular.
 Technical skills lose relative importance at
higher levels of the management hierarchy,
but most top executives started out as
technical experts.

27. Managerial Roles

28. Qualities of Excellent Manager
 Leadership
 Result Oriented
 Creativity
 Effective Decision
Making
 Demonstrate Maturity
 Visionary
 Positive Attitude
 Accountability
 Honest
 Self Motivation
 Industry Knowledge
 Delegation
 Patience
 Flexibility
 Empathy

29. Levels of Management

30. Thanking You