INTRODUCTION TO FUNCTIONS OF MANAGEMENT: Management - Meaning - Characteristics - Functions of Management - Levels of Management – Skills of Management- Scientific Management - Meaning - Definition - Objectives - Criticism – Fayol‘s 14 Principles of Management .

1. BUSINESS ORGANIZATION
AND MANAGEMENT
PRESENTED BY
K.BALASRI PRASAD
B.Sc(KU), M.B.A(OU), NET(UGC), (Ph.D)(MGU)

2. UNIT-3
INTRODUCTION TO FUNCTIONS OF MANAGEMENT:
Management - Meaning - Characteristics -
Functions of Management - Levels of
Management – Skills of Management-
Scientific Management - Meaning - Definition
- Objectives - Criticism – Fayol‘s 14 Principles
of Management .

3. Management
Management is co-ordination of
all resources through the process
of planning, organizing, directing
and controlling in order to attain
stated objectives.

4. Characteristics of Management
1. Universal phenomenon
2. It is an organized activity
3. It is a Group activity
4. Management is a systematic
process
5. It is a social process
6. It is about “Getting things done
through people”

5. 7. Management is an Integrated process
8. Management is Intangible
9. Goal- Oriented
10. Inter-Disciplinary Approach
11. Dynamic
12. Management is about system Authority
13. Good Leadership
14. Management is an Economic activity
15. One of the factors of production
16. Management is a profession

6. Functions of Management
There are five types of functions in management.
They are,
• Planning-Defines the goal & establishing strategy.
• Organizing-includes determining what task has to be
done, who is to do them.
• Staffing-Includes recruitment of people and training
them towards the project.
• Directing-Includes the motivating the employees and
leading the activities.
• Controlling-It is the process of monitoring the
performance.

7. Managerial Skills
There are three types of skills required by a manager.
They are:
Conceptual Skills-These skills are required by the
employee who are in top level management.
Human Relations Skills- These skills are required by
the employee who are in middle level Management.
Technical skills-These skills are required by the
employee in the supervisory level.

8. Different Managerial Levels
Top Management
Middle Management
Supervisory Level
Human Relations Skills
Conceptual
Skills
Technical Skills

9. Order of Management
Operatives
(or)
Executive
First-Line Managers
Middle
Managers
Top Management

10. Principles of Management- Henry Fayol
• Division of work
• Authority & responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordination of individual to general
interest
• Centralization
• Scalar chain

11. • Remuneration
• Order
• Equity
• Stability of tenure
• Initiative
• Esprit de corps

12. FAYOL’s PRINCIPLE OF MANAGEMENT
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to
the common good
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability
13. Initiative
14. Esprit de corps

13. Scientific Management
The scientific management theory focused on
improving the efficiency of each individual in
the organization.
The major emphasis is on increasing the
production through the use of intensive
technology, and the human beings are just
considered as adjuncts to machines in the
performance of routine tasks.

14. Objectives of Scientific Management
1. To achieve higher production by the use of
standardized tools, equipments and methods.
2. Betterment in the quality of the products by
research, quality control.
3. Decrease in the cost of production by
systematic planning, regulation and cost control
techniques.
4. Avoidance of wastage in the use of resources,
time and method of production.

15. 5. Placement of the right person on the
right job through scientific selection and
training.
6. Setting-up a sound system of wage
payment so as to attain maximum
efficiency.
7. Ensuring a regular supply of goods to the
consumers at reasonable prices.

16. Criticism of Scientific Management
Workers Viewpoint
• Unemployment
• Exploitation
• Monotony
• Weakening of Trade Union
Employer’s Viewpoint
• Expensive
• Time Consuming

18. LEVELS OF MANAGEMENT

19. • The term “Levels of Management’
refers to a line of separation between
various managerial positions in an
organization.
• The number of levels in management
increases when the size of the business
and work force increases and vice versa.
• The level of management determines a
chain of command, the amount of
authority & status enjoyed by any
managerial position.

20. The levels of management can be
classified in three broad categories: -
• Top level / Administrative level.
• Middle level management.
• Low level / Supervisory.

22. • Consists of board of directors, chief
executive or managing director. The top
management is the ultimate source of
authority and manages goals and
policies for an enterprise. They devotes
more time on planning and
coordinating functions.
Top Level of Management

23. –Top management lays down the strategic
objectives and broad policies of the
enterprise.
–Issues necessary instructions for preparation
of department budgets, procedures,
schedules etc.
–Controls & coordinates the activities of all the
departments. Provides guidance and
direction.
–The top management is also responsible
towards the shareholders and for the
performance of the enterprise.
Role of Top Mgmt

24. • The branch managers and departmental
managers constitute middle level.
• They are responsible to the top management
for the functioning of their department.
• They devote more time to organizational and
directional functions.
• In small organization, there is only one layer of
middle level of management but in big
enterprises, there may be senior and junior
middle level management.
Middle Level of Management

25. – They execute the plans of the organization in
accordance with the policies and directives of the
top management.
– They make plans for the sub-units of the
organization.
– They participate in employment & training of
lower level management.
– They interpret and explain policies from top level
management to lower level and sends important
reports and other important data to top level
management.
– They evaluate performance of junior managers.
Role of Middle level Mgmt

26. • Lower level is also known as
supervisory / operative level of
management.
• It consists of supervisors, section
officers, superintendent etc.
• According to R.C. Davis, “Supervisory
management refers to those executives
whose work has to be largely with
personal oversight and direction of
operative employees”.
Lower Level of Management

27. – Assigning of jobs and tasks to various workers.
– They guide and instruct workers for day to day
activities.
– They are responsible for the quality as well as
quantity of production.
– They communicate worker’s problems,
suggestions, and recommendatory appeals etc to
the higher level.
– They help to solve the grievances of the workers.
– They prepare periodical reports about the
performance of the workers.
– They ensure discipline in the enterprise and
motivate workers.
Role of Lower level Mgmt

28. FUNCTIONS OF MANAGEMENT

29. FUNCTIONS OF MANAGEMENT

30. PLANNING
According to KOONTZ, “Planning is
deciding in advance - what to do,
when to do & how to do. It bridges
the gap from where we are & where
we want to be”.
Planning is necessary to ensure
proper utilization of available
resources.

31. ORGANIZING
• According to Henry Fayol, “To organize a business is
to provide it with everything useful or its functioning
i.e. raw material, tools, capital and personnel”.
Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of
responsibility.
 Coordinating authority & responsibility
relationships.

32. STAFFING
• According to Koontz & O'Donnell, “Managerial function of staffing
involves manning the organization structure through proper and
effective selection, appraisal & development of personnel to fill the
roles designed un the structure”.
Staffing involves:
Manpower Planning
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.

33. DIRECTING
• It is that part of managerial function which
actuates the organizational methods to work
efficiently for achievement of organizational
purposes.
• Direction has following elements:
–Supervision
–Motivation
–Leadership
–Communication

34. CONTROLLING
The purpose of controlling is to ensure that
everything occurs in conformities with the
standards.
Therefore controlling has following steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with
the standards and finding out deviation if
any.
Corrective action.