Introduction to Management: Concept of Management, Importance & Nature of Management, Management as profession, professionalization of management in India.

1. Principle & Processes of
Management
By Durgesh Satpathy
Asst. Professor in Management
http://durgeshsatpathy.com

2. Management is essential for organized life.

3. Good management is the backbone of
successful organizations.

4. Definition
According to F.W. Taylor, ‘Management is an art of knowing
what to do, when to do and see that it is done in the best and
cheapest way‘.
Kreitner’s definition of management:
‘Management is a problem solving process of effectively
achieving organizational objectives through the efficient use of
scarce resources in a changing environment.’

5. Management can be defined in detail in following categories :
• Management as a Process
• Management as an Activity
• Management as a Discipline
• Management as a Group
• Management as a Science
• Management as an Art
• Management as a Profession

6. Nature/Charesterstics of Management
A science
& an art
Universal
Goal
Oriented
Group
Activity
Multi-
disciplinary
Dynamic
Profession
Integrated
Force

7. Scope of Management
Subject matter
Functional areas
Interdisciplinary
Approach
Universal
Application
Essentials of
Management
Agent of Change

8. 1. Subject-matter of management:
• Planning, organizing, directing, coordinating and controlling
are the activities included in the subject matter of
management.

9. 2. Functional areas of management:
• Financial management
Accounting, budgetary control, quality control, financial planning
and managing the overall finances of an organization.
• Personnel management
Recruitment, training, transfer, promotion, demotion,
termination, labor-welfare and social security industrial
relations.
• Purchasing management
• Inviting tenders for raw materials, placing orders, entering
into contracts and materials control.

10. • Production management
Production planning, production control techniques, quality
control and inspection and time and motion studies.
• Maintenance management
Maintenance of the buildings, plant and machinery.
• Transport management
Packing, warehousing and transportation by rail, road and air.
2. Functional areas of management:

11. • Office Management
Includes activities to properly manage the layout, staffing and
equipment of the office.
Simply basic administration.
• Development management
Involves experimentation and research of production
techniques, markets, etc.
• Distribution management
Marketing, market research, price-determination, taking market
risk, advertising, publicity and sales promotion.
2. Functional areas of management:

12. 3. Management - an inter-disciplinary approach:
• For the correct implementation of the management, it is
important to have knowledge of commerce, economics,
sociology, psychology and mathematics.

13. 4. Universal application:
• Can be applied to all types of organizations irrespective of the
nature of tasks that they perform.

14. 5. Essentials of management:
• Scientific method
• Human relations
• Quantitative technique

15. 6. Modern management is an agent of change:
• The management techniques can be modified by proper
research and development to improve the performance of an
organization.

16. Importance of Management

17. It helps in Achieving Group Goals:
It arranges the factors of production, assembles and organizes
the resources, integrates the resources in effective manner to
achieve goals.
Optimum Utilization of Resources:
Management utilizes all the physical & human resources
productively. This leads to efficacy in management.

18. Reduces Costs:
It gets maximum results through minimum input by proper
planning and by using minimum input & getting maximum
output.
Establishes Sound Organization
No overlapping of efforts (smooth and coordinated functions). To
establish sound organizational structure is one of the objective
of management which is in tune with objective of organization
and for fulfillment of this, it establishes effective authority &
responsibility relationship

19. Establishes Equilibrium
It enables the organization to survive in changing environment. It
keeps in touch with the changing environment.
Essentials for Prosperity of Society
Efficient management leads to better economical production
which helps in turn to increase the welfare of people. Good
management makes a difficult task easier by avoiding wastage of
scarce resource.

20. Management as an Art
Practical
Knowledge
Personal Skill
Creativity
Perfection
through
practice
Goal-
Oriented

21. • Practical Knowledge:
E.g. to become a good painter, the person may not only be
knowing different color and brushes but different designs,
dimensions, situations etc. to use them appropriately. A manager
can never be successful just by obtaining degree or diploma in
management; he must have also know how to apply various
principles in real situations by functioning in capacity of
manager.
• 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. Every manager has his own way of managing
things based on his knowledge, experience and personality, that
is why some managers are known as good managers (like Aditya
Birla, Rahul Bajaj) whereas others as bad.

22. • 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.
Management is also creative in nature like any other art. It
combines human and non-human resources in useful way so as
to achieve desired results.
• Perfection through practice:
Practice makes a man perfect. Every artist becomes more and
more proficient through constant practice. Similarly 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.

23. Management as a Science
Universally
acceptance
principles
Experimentation
& Observation
Cause & Effect
Relationship
Test of Validity
& Predictability

24. • Universally acceptance principles -
E.g. - law of gravitation which can be applied in all countries
irrespective of the time. Management also contains some
fundamental principles which can be applied universally like the
Principle of Unity of Command i.e. one man, one boss. This
principle is applicable to all type of organization - business or
non business.
• Experimentation & Observation -
E.g. the principle that earth goes round the sun has been
scientifically proved. Management principles are also based on
scientific enquiry & observation and not only on the opinion of
Henry Fayol. They have been developed through experiments &
practical experiences of large no. of managers. E.g. it is observed
that fair remuneration to personal helps in creating a satisfied
work force.

25. • Cause & Effect Relationship -
E.g. when metals are heated, they are expanded. The cause is
heating & result is expansion.
In management if workers are given bonuses, fair wages they will
work hard but when not treated in fair and just manner, reduces
productivity of organization.
• Test of Validity & Predictability -
E.g. H2 & O2 will always give H2O.Principles of management can
also be tested for validity. E.g. 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.

26. Management as a Profession
Specialized
Knowledge
Formal
Education &
Training
Social
Obligations
Code of
Conduct
Representative
Association

27. • Specialized Knowledge -
Every professional must make deliberate efforts to acquire
expertise in the principles and techniques. Similarly a manager
must have devotion and involvement to acquire expertise in the
science of management.
• Formal Education & Training -
No one can practice a profession without going through a
prescribed course. For example, a CA cannot audit the A/C’s
unless he has acquired a degree or diploma for the same but no
minimum qualifications and a course of study has been
prescribed for managers by law. For example, MBA may be
preferred but not necessary.

28. Social Obligations -
Profession is a source of livelihood but professionals are primarily
motivated by the desire to serve the society. Their actions are influenced by
social norms and values.
Code of Conduct -
Members of a profession have to abide by a code of conduct which
contains certain rules and regulations, norms of honesty, integrity and
special ethics. The AIMA has prescribed a code of conduct for managers but
it has no right to take legal action against any manager who violates it.
Representative Association -
For the regulation of profession, existence of a representative body is a
must. For example, an institute of Charted Accountants of India establishes
and administers standards of competence for the auditors but the AIMA
however does not have any statuary powers to regulate the activities of
managers.

29. Functional
concept
Human relation
concept
Leadership and
decision
making concept
Productive
concept
Integration
concept
5 concepts of management

30. Functional concept
According to this concept, management is what a manager does
(planning, executing, and controlling)
Human relation concept
According to this concept, Management is the art o getting things
done through and with people in organized groups.
Leadership and decision making concept
According to this concept, management is the art and science of
preparing, organizing, directing human efforts for the benefits to
man.

31. Productive concept
According to this concept, management may be defined
as the art of securing maximum prosperity with a
minimum effort so as to secure maximum prosperity
and happiness and provide best services thereby.
Integration concept
According to this concept, management is the
coordination of human and material resources towards
the achievement of organizational objectives.

32. Drawbacks:
• It has been realized by many that it will not be fair to
define management based upon any one aspect.
Management can be taken as process-managerial
process or social process either engage in planning,
organizing, staffing, directing and controlling or
mobilizing the group activities to achieve the corporate
goals.

34. • The individuals who manage the organization and
departments are managers. As a noun, the term
management is used as single name of managers,
board of directors, managing directors, departmental
managers etc are included in management.
• Thus, Theo Haiman the leading management expert
explained the meaning and concept of management

35. Assignment
• Professionalization of Management in India