Introduction of Management to Beginners in Commerce field.

1. PRESENTATION
ON
SOME COMMON MANAGEMENT
TERMINOLOGY
PRESENTED BY –
MS. KOMAL MAHAJAN
ASTT. PROF. IN COMMERCE

2. SOME COMMON MANAGEMENT TERMS
 MANAGEMENT – The organization and coordination of the
activities of business in order to achieve defined objectives.
It is the art of getting things done through people.
 ADMINISTRATION - Administration means the overall
determination of policies, setting of major objectives, the
identification of general purposes and laying down of broad
programmes and projects.
 ORGANIZATION – A social unit of people structured and
managed to meet a need or pursue collective goals.
 PLANNING – A basic management function involving
formulation of one or more detailed plans to achieve
optimum balance of needs or demands with the available
resources.

3.  ORGANIZING – Another function of management where
physical, financial and human resources are brought
together and productive relationship amongst them is
developed in order to achieve organisational goals.
 STAFFING – It is the function of manning the organization
structure through proper and effective selection, appraisal
and development of personnel to fill the roles designed in
the structure.
 DIRECTING – It is the managerial function which deals
directly with influencing, guiding, supervising, motivating
subordinates for the achievement of organisational goals.
 COORDINATION - The synchronisation and integration of
activities, responsibilities and command and control
structures to ensure that resources are used efficiently to
achieve the objectives.

4.  CONTROLLING – It is the measurement and correction of
performance activities of subordinates in order to make
sure that the enterprise objectives and plans desired to
obtain them as being accomplished.
 SUPERVISION – It implies overseeing the work of
subordinates by their superiors.
 MOTIVATION – It means inspiring, stimulating or
encouraging the subordinates with zeal to work.
 LEADERSHIP – It may be defined as a process by which
manager guides and influences the work of subordinates in
desired direction.
 COMMUNICATION – It is the process of passing
information, experience, opinion etc. from one person to
another.

5.  ORGANISATIONAL STRUCTURE – The hierarchical
arrangement of lines of authority, communications, rights
and duties of an organization.
 DELEGATION OF AUTHORITY – Transfer of Authority
and the associated responsibility from an employer or
superior to an employee or subordinate.
 CENTRALISATION – The concentration of management
and decision making power at the top of organisational
structure.
 DECENTRALISATION – It is the transfer of authorities,
functions, rights, duties, powers and accountability of the
top level management to middle or lower level of
management.

6.  AUTHORITY – It is the power or right to command a
situation, commit resources, give orders and expect them to
be obeyed and is always accompanied by Responsibility.
 RESPONSIBILITY – An obligation to perform or complete a
task satisfactorily that must be fulfilled and if not performed
properly results in penalty for failure.
 ACCOUNTABILITY – The obligation to account for the
activities performed, accept responsibility for the same and
to disclose the results in a transparent manner.
 SPAN OF CONTROL – The number of subordinates that a
manager or supervisor can directly control.

7.  MANAGEMENT BY OBJECTIVES – It is a management
model that aims to improve performance of an
organisation by clearly defining objectives that are agreed
by both management and employees.
 MANAGEMENT BY EXCEPTION – It is a practice
whereby only the information that indicates a significant
deviation of actual results from the budgeted or planned
results is brought to the management’s notice.
 LINE AUTHORITY – It is the relationship where superior
exercises direct supervision over a subordinate.
 STAFF AUTHORITY – It is the relationship where
counseling is provided to the company’s management
personnel or line managers.

8.  FUNCTIONAL AUTHORITY – It is the relationship where
right is delegated to individual or department to control
specified processes, practices or other matters relating to
activities undertaken by persons in other departments.
 CHAIN OF COMMAND – The order in which authority and
power in an organisation is wielded and delegated from top
management to every employee at every level of the
organization.
 UNITY OF COMMAND – Principle which states that an
employee or employees is/are responsible to only one
supervisor.
 UNITY OF DIRECTION – This principle states that all the
employees having same objective must be directed towards
the achievement of the common goal and thus must have
One Head, One Plan.

9.  MANAGEMENT STYLE - A management style is an
overall method of leadership used by a manager. There are
two sharply contrasting styles viz. Autocratic and
Pessimisive.
 MANAGEMENT INFORMATION SYSTEM - Management
Information System (MIS) refers to the processing of
information through computers to manage and support
managerial decisions within an organization.
 STRATEGY - Strategy is the direction and scope of an
organization over the long-term, which achieves
advantage for the organization through its configuration
of resources within a challenging environment, to meet
the needs of markets and to fulfill stakeholder
expectations.

10.  STRATEGIC MANAGEMENT - Strategic management
involves the formulation and implementation of the major
goals and initiatives taken by a company's top
management on behalf of owners, based on consideration
of resources and an assessment of the internal and external
environments in which the organization competes.
 TOTAL QUALITY MANAGEMENT – Total Quality
Management (TQM) is a management approach of an
organization centered on quality, based n the participation
of all its members and aiming at long term success through
customer satisfaction and benefits to all members of the
organization and the society.
 CHANGE MANAGEMENT - Change management is the
process, tools and techniques to manage the people side of
change to achieve the required business outcome.