2. MANAGEMENT
“Management is the process of designing and
maintaining of an environment in which
individuals working together in groups
efficiently accomplish selected aims.”
-Koontz & Weihrich
“Management is the art of knowing what do
you want to do and then seeing that it is done
in the best and cheapest way.”
- F. W. Taylor
3. MANAGEMENT
“Management is the coordination of all
resources through the process of planning,
organizing, directing and controlling in order
to attain stated goals.”
- Henry L. Sisk
5. 1. Technical Skill
• It refers to the ability to the tools,
equipment, procedures and techniques.
• Effective supervision and coordinating of
the work of the subordinates. Therefore
depends on the technical possessed by
the lower level market.
6. 2. Human Skill
• Human skill refers to the ability of the
manager to work effectively as a group
member and to build cooperative effort in
the team he leads.
• Human skills are concerned with
understanding of ‘people’.
• Manager’s skill in working with others is
natural and conditions.
7. 3. Conceptual Skills
• This skill also called design and problem.
Solving skill involves the ability.
• To see the organisation and the various
components of it as a whole.
• To understand how its various parts and
functions mesh together.
• A higher degree of conceptual skill helps
in analyzing the environment and in
identifying the opportunities.
9. Top Level Management:
The main functions of top management are
• To formulate goals and policies of the
company.
• To formulate budgets.
• To appoint top executives.
• To provide overall direction and leadership of
the company.
• To decide the distribution of profits etc.
10. Middle Level Management:
The important functions of middle level
management.
• To monitor and control the operating
performance.
• To train, motivate and develop supervisory
level.
• To co-ordinate among themselves so as to
integrate the various activities of a
department.
11. Lower Level or Supervisory Management:
The main functions of lower level
management
• To train and develop the efficiency of the
workers.
• To assign jobs to workers
• To give orders and instructions.
• To maintain discipline and good human
relations among workers.
• To report feedback information about workers.
13. 1. Planning:
Planning is simple looking ahead. It is preparing
for the future. Effective planning leads to efficient
management. Effective planning provides
answers to questions like – what to do? When to
do? How to do? Who is to do?
14. 2.Organising:
Organizing establishes harmonious relationship
among all the workers of an organization by
providing them with suitable authority and
responsibility.
According to Louis A. Allen “Organisation
involves identification and grouping the activities
to be performed and dividing them among the
individuals and creating authority and
responsibility relationships among them for the
accomplishment of organizational objectives”.
15. 3. Staffing
Staffing process involves selecting candidates for
positions, fixing salary, training and developing
them for effective organizational functions. The
manager performs the duties of job analysis, job
description etc. which come under the staffing
function.
16. 4. Directing
One plans are made and the organisation is created
next step is to achievement of objectives of the
organisation.
Directing is involves activities like guiding,
supervising and motivating the subordinates in their
jobs. Motivation, leadership and communication are
three important sub function of directing. Motivation
helps to increase the performance of the workers.
Communication provides with proper information to
improve the effective management. Leadership the
process by which a manager guide and influences
the work of his subordinates.
17. 5. Controlling
Controlling as a function of management deals
with checking and verifying the activities against
the predetermined standards. The process of
ensuring that actual activities conform to planned
activities. Controlling process involves the
following steps.
1. Establishing standards
2. Measuring current performance.
3. Comparing this performance to the established
standards.
4. Taking corrective actions of deviation are
detected.
18. IMPORTANCE OF MANAGEMENT
1. Attainment of group goals
2. Effective functioning of business
3. Resource development
4. Management control the organisation
5. Integrates individual efforts
6. Motivation
7. Communication
8. Coordination
9. Decision-making
10. Leadership quality
20. Points of Distinction Administration Management
1. Nature It is a determinative
thinking function.
It is an executive or doing
function.
2. Scope It is concerned with the
determination of major
objectives and policies.
It is concerned with the
implementation of
policies.
3. Level It is mainly a top-level
function
It is a largely a middle and
lower-level function.
4. Influence Administrative decisions
are influenced mainly by
public opinion and other
outside forces.
Managerial decisions are
influenced mainly by
objectives and policies of
the organisation.
5. Direction of human
efforts
It is not directly
concerned with direction
of human efforts.
It is actively concerned
with direction of human
efforts in the execution of
plans.
6. Main functions Planning and control are
the main functions
involved in it.
Directing and organizing
are the main functions
involved in it.
7. Skills required Conceptual and human
skills.
Technical and human
skills.
21. NATURE & CHARACTERISTICS
OF MANAGEMENT
1. Management is Universal
2. Management is Purposeful
3. Management is an Integrative Force
4. Management is a Social Process
5. Management is Multidisciplinary
6. Management is a Continuous Process
7. Management is Intangible
8. Management is an Art as well as a Science
23. What is Science?
The science portion of management is
apparent in the body of management knowledge,
its fundamental principles and what experience
and experimentation have shown.
In some management subjects, we can build
models and use mathematics to prove our study
toward the scientific end of the spectrum.
Management as a discipline fulfills the science
criterion. The application of these principles
helps any practicing manager to achieve the
desired goals.
24. Science classified into two types. They are
exact science and inexact science. Exact
science where the results are accurate. In the
case of management it is an inexact science.
What is Science?
25. Management is inexact science because
Every organizations human resources are
different attitude, aspirations and perceptions. So
standard results may not be obtained.
Readymade and standard solutions cannot be
obtained
Management is complex and unpredictable.
Every organisation decisions are influenced by
the environment. The environment is so
complexes and unexpected changes.
What is Science?
26. What is an art?
Art means application of skill in finding a desired
result. Art is the way of doing things skillfully.
Management is an art because of the following
facts.
Management process involves the use of
practical knowledge and personal skill.
Management is creative.
Application of practical knowledge and certain
skills helps to achieve concrete results.
27. Management is both – science
and an art:
Management is a science because it contains
general principles. It is also an art because it
requires certain personal skills to achieve desired
results.
28. HENRY FAYOL’S
CONTRIBUTION – (1841 – 1925)
Fayol was a contemporary of Taylor.
He started his career as a junior engineer in a
coal mining company in France in 1860 and
became its general manager in 1880.
We published his famous book Administration
Industrielle et Generale in 1916 which was
published in English in 1949 under the title
‘General and Industrial Management’.
This book is now considered to be one of the
best classics in management.
29. Principles of Management
1. Division of Work
2. Authority & Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual interest to General
interest
7. Remuneration of personnel
8. Centralization
30. 9. Scalar Chain
10. Order
11. Equity
12. Stability of Staff
13. Initiative
14. Esprit-de-corps
31. Case Study
ABI Ltd., is a medium sized company Mr.
Pramod has been working in the company for
over 12 years as a secretary. He has got an
excellent track record and recently he has been
raised to the position of Administrative Manager.
As a result of this change, the output of his work
in the office dropped considerably and morale
become low. There was alarming increased in
Staff turnovers.
32. To study the situation, the managing director
engaged a consultant. His report while praising
the aspects of office administration pointing out
his incapabilities especially in dealing with
people. Surprisingly, Mr. Pramod enjoyed much
popularity of the senior executives of the
company. He won their appreciation for his
valuable service as a manager. They were much
worried over the incapabilities of Mr. Pramod in
dealing with people. They were helpless.
33. Questions:
1. What is the real possible cause of this
problem?
2. What can be done to rectify the situation
considering Mr. Pramod’s value to the
company?
34. ROLE OF A MANAGER
1. Director
2. Motivation
3. Human being
4. Guide
5. Friend
6. Planner
7. Supervisor
8. Reporter
35. TASKS / RESPONSIBILITIES OF A
PROFESSIONAL MANAGER
1. Planning of work
2. Proper and Effective Communication
3. Co-ordination of Efforts
4. Getting co-operation of employees
5. Encourages a team spirit
6. Better utilization of Resources
7. Selecting the Procedure
8. Maintaining good human relations
9. Solve the problem
10. Arranging training and development facilities
36. QUALITIES OF MANAGER
1. Physical
2. Mental
3. Moral
4. General Education
5. Special knowledge
6. Experience
38. System concepts:
System theory was first applied in the fields
of science and engineering.
“A system is essentially a set or assemblage
of things interconnected or independent, so as to
form a complex unity”.
Just as a doctor effective manager should
collect information about all parts of the
organisation in order to diagnosis a problem and
take necessary corrective action.
39. Some key concepts:
Subsystem: While an organisation as a
whole is a system, the various components or parts
within it are called the subsystem. Thus a department is
a subsystem of the organisation.
Closed system: A system that does not
interact with its environment. A closed system has fixed
boundaries, its operation is relatively independent of the
environment outside the system.
Open system: A system that interacts with
its environment. Thus an open system is one which
constantly comes into contact with the environment.
Synergy: Synergy means that departments
that interact cooperatively are more productive than they
would be if they operated in isolation.
40. Open system model of an
Organisation
External Environment
Information
INPUTS
Human
Machines
Money
Technology
Transformation
Feedback
OUTPUTS
Goods &
Services
41. SOCIAL RESPONSIBILITIES OF A
BUSINESS
1. Responsibility towards shareholder/owners
2. Responsibility towards Employees
3. Responsibility to customers
4. Responsibility towards Government
5. Responsibility towards community
42. 1. Responsibility towards shareholder/owners
• a fair return on investment
• safety of investment
• steady appreciation of investment
• regular, accurate and full information about the
working and progress of the company.
43. 2. Responsibility towards Employees
• Fair wages and salaries
• Good and safe working conditions
• Adequate service benefits such as housing,
medical facilities insurance cover, retirement benefits
• Recognition of workers’ rights to form trade unions,
to collective bargaining and strike
• Opportunities for education, training and promotion.
• Workers’ participation in decision-making.
44. 3. Responsibility to customers
• Regular supply of quality goods at right time and
place
• Change reasonable prices
• Supply goods that meet the needs of different
classes and taste with different purchasing power.
• Prompt, adequate and continuous service
• Prompt, redressal of customers’ grievances
• True and fair information through advertisements
• Avoid unfair and unethical practices like
adulteration, hoarding and black marketing.
45. 4. Responsibility towards Government
• To abide by the laws of the land
• To pay taxes honestly and in time
• To avoid corrupting public servants
• To encourage fair trade practices
• To avoid monopoly and concentration of economic
power
46. 5. Responsibility towards community
• To make the best possible or efficient use of the
society’s resources
• To provide maximum possible employment
opportunities
• To keep the environment healthy and free from all
types pollution
• To refrain from indulging in anti-social and unethical
practice
• To improve public health, education and cultural life
of the community.
47. PLANNING
• Planning is the most basic of all management
functions.
• Lots of planning activities are done by the
management people at all levels.
• Planning is the process of selecting objectives
and determining the course of action required to
achieve these objectives.
• Planning bridges the gap from where we are
and where we want to go.
48. Definition
According to Koontz and O’Donnell, “Planning is
deciding in advance what to do, how to do it,
when to do it, and who is to do it. It is the
selection among alternatives of future course of
action for the enterprise as a whole and each
department within it. Plans involve selecting
enterprise objectives and determining ways of
achieving them”.
49. Definition
In the words of Mary Cushing Niles, “Planning is
the conscious of selecting and developing the
best course of action to accomplish an objective.
It is the basis from which future management
action spring”.
52. 1. Identification of Opportunities
Identification of awareness of the opportunity is
the starting point of planning. First of all, we
should identify the possible future opportunities
and analyze them clearly and completely. From
that, we should know:
Where we stand,
What is our strength and weakness,
What problem we wish to solve and why, and
What we expect to gain.
53. 2. Establishment of Objectives
The next step in planning is to establish
objectives for the entire organization and then for
each subordinate units. Objectives specify and
indicate the results expected.
What is to be done?
Where is the primary emphasis to be placed?
What is to be accomplished by the various types of
plans?
54. 3. Developing planning premises
Planning premises are the assumptions that should
be made about the various elements of the
environment. It provides the basic framework in
which plans operate. These premises may be
internal or external.
Internal premises include organizational,
policies, resources of various types, sales forecasts
and the ability of the organisation to withstand the
environmental pressure. External premises include
the total factors in task environment like political,
social, technological, competitors, plans and actions,
and government policies etc.
55. 4. Identification of Alternatives
A particular objective can be achieved through a
number of ways. The entire alternative cannot be
analysed. Some alternative can be rejected at its
preliminary stage itself by considering preliminary
criteria such as minimum investment required,
matching with the present business, market
conditions government control, skilled workers,
technique available etc.
Only the alternatives which meet the preliminary
criteria may be chosen for further detailed
analysis.
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