Significance or importance of management in pom

1. PRINCIPLES
OF
MANAGEMENT
TOPIC : “Significance or importance of management “

2. “There is no more important area of human
activity than management since its task is
that of getting things done through others “
KNOOTZ AND O’DONNELL

3. POINT FOLLOWING THE SIGNIFICANCE OF MANAGEMENT
 Achievement of group goals
 Optimum utilisation of resources
 Minimisation of cost
 Change and growth
 Efficient and smooth running of business
 Higher profit
 Provide innovation
 Social benefits
 Useful for developing countries
 Sound organisation structure

4. ACHIEVEMENT OF GROUP GOALS
Management make group effort more
effective . They cannot achieve its
objective until or unless there is mutual
co-ordination among the members of the
group . management create a team work
and team sprit in an organisation and it
also lead to achieve their common goal

5. MINIMISATION OF COST
OPTIMUM UTILISATION OF RESOURCES
The availability of resources in an organisation are scarce and it should
be utilised in order to avoid wastage and achieve optimum result.
In the modern era every business enterprise must minimise the
cost of production and distribution . Only those concerns can
survive. The principles of management helps in knowing certain
techniques used for reducing cost.

6. CHANGE AND GROWTH
An enterprise has to change and adjust itself in the everchanging
environment . Change in business environment create uncertainities
and risk and also provide opportunity for grow
EFFICIENT AND SMOOTH RUNNING OF BUSINESS
Management ensure efficient and smooth running of business ,
through better planning , sound organisation and efficient control
of the various factors of production.

7. Higher profit
Profit can be enhanced in any enterprise either by
increasing the sale revenue or reducing the cost.
Management by decreasing costs increasing its
profit and thus provides opportunities for future
growth and development

8. PROVIDE INNOVATION
Management gives new ideas, imagination and visions to an enterprise.
SOCIAL BENIFITS
It improves the standard of living of the people through higher production
and more efficient used scare resources.
USFUL FOR DEVELOPING COUNTRIES
Management has to play more important role in developing countries like india.
In such countries , the productivity is low and the resources are limited.
SOUND ORGANISATIONAL STRUCTURE
Management establishes proper organisation structure and avoid conflict between
the superiors and subordinates . It help to developing cooperation between them.

9. TYPES & STAGES OF MANGEMENT
I
• Authoritarian management
II
• Centralized management
III
• Unified management
IV
• Decentralized management
V
• Bottom-up management
VI
• Enterprise management

10. I. AUTHORITARIAN MANAGEMENT
In family or proprietary concerns management is authoritarian . The
owners themselves are responsible for the entire management.
II.CENTRALIZED MANAGEMENT
The authority is centralized to facilitate wide judgement of the top
executives . Authoritarian and centralized management represent
revolution stage.

11. III. UNIFIED MANAGEMENT
In this type of management , professional manager start
asking for dispersal of responsibility with authority in a
manner that will help each member in the management to
feel responsible for his assignment
IV. DECENTRALIZED MANAGEMENT
In this type of management , authority is decentralized .

12. V. BOTTOM-UP MANAGEMENT
The extreme of decentralisation is bottom-up management .
the success of decentralised and bottom-up management provides
Condition for the culmination managerial revolution
VI. ENTERPRISE MANAGEMENT
It is the type which belongs to post revolution stage . Peter
Drucker observes that mass production enterprise in the U.S.A
Bringing in their wake a new society.

13. SKILLS OF A MANAGER
1. Technical skill
2. Human skill
3. Conceptual skill
4. Decision-making skill

14. TECHNICAL SKILL
Technical skill is kind of knowledge which involves the use of
equipments , techniques and procedures for the
accomplishment of specific tasks
HUMAN SKILL
Human skill refers to the ability to work effectively with other people as an
Individual and as member of the team

15. CONCEPTUAL SKILL
Conceptual skill is the ability to integrate and coordinate
various activities to take rational decision, such a competence
is necessary
DECISION –MAKING SKILLS
Management is the art of decision making . At all levels, manager
has to take decision . To be a successful manager, one must having
ability to analyse and examine a problem and also the ability to work out
a practical solution for the problem.

16. MANAGERIAL ROLES
INTEPERSONAL
RELATIONSHIP
As a figure
head
Leadership
role
Liaison officer
INFORMATION
PROCESSING
Monitoring
information
Disseminating
Organisation’s
spokesman
Decision-
Making
As an
entrepreneur
As an conflict
handler
As a
negotiator

17. AS A FIGURE HEAD
A manager has to perform many symbolic functions as a figure head
of the organisation . He has to sign various papers for the
organisation , greet peoples , speaks at functions etc.
LEADERSHIP ROLE
I. INTEPERSONAL RELATIONSHIP :
A manager is responsible for the activity of his subordinate.
Eg : * He has to communicative with them &
* Motivate them
LIALISON OFFICER
A manager has to establish contact with higher management &
subordinate . He has to maintain liaison by attending meeting ,
functions etc

18. II. INFORMATION PROCESSING
Monitoring information
A manager always collect information about his organisation and the
Outside environment that affecting his business
Disseminating information
The information is disseminated to those who need it.
Eg : * Subordinate may be need information
* Government may need some information
Organisation’s spokesman
A manager act as a spokesman of the enterprise while dealing
outsiders.
Eg : *Done through letters
*Telephones
* Personal meeting etc

19. III. DECISION-MAKING
As an entrepreneur
As a entrepreneur , a manager has to take many strategic
decision. The decision such as ;
*Sources of fund.
*Arranging various inputs.
*Marketing strategies. etc
As a resources allocator
A management makes budgetary allocation for different
departments.
As a negotiator
A manager has to negotiate with outsiders for taking certain decision
eg : * The prices may be negotiable with suppliers
* The rate may fixed by the customer

20. Thank you