Introduction, Meaning, Nature, Characteristics of Management, Scope and Functional areas of management, Management as a science or art or profession, management & administration, Henry Fayol’s Principles of Management.

1. MR.T.SOMASUNDARAM
ASSISTANT PROFESSOR
DEPARTMENT OF MANAGEMENT
KRISTU JAYANTI COLLEGE,
BANGALORE.
UNIT II

2. UNIT II
INTRODUCTION TO MANAGEMENT
Introduction, Meaning, Nature,
Characteristics of Management,
Scope and Functional areas of
management, Management as a
science or art or profession,
management & administration,
Henry Fayol’s Principles of
Management.

3. 3

4. MANAGEMENT
Definition:
“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
“A set of management functions directed at the efficient
and effective utilization of resources in the pursuit of
organization goals.” - Griffin
“Management is the process of designing and
maintaining an environment in which individuals working
together in groups, efficiently accomplish selected aims.”
- Koontz and Weihrich
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5. Management :
On expanding : Manage – Men – tactfully
Manage – Men – technology
Manage – Men – as team
Manage – competencies
Manage – objectives (MBO)
Manage – Men and things (resources – physical,
inanimate)
MANAGE – f ( RISKS, REWARDS)
Management -
◦ the process of coordinating work activities so that they are
completed efficiently and effectively with and through other people
◦ elements of definition
 Process - represents ongoing functions or primary activities
engaged in by managers
 Coordinating - distinguishes a managerial position from a non-
managerial one
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6. Management:
- The process of getting things done, effectively and efficiently,
through and with other people
* Effectively - Means doing thing right; refers to the relationship
between inputs and outputs; seeks to minimize resource costs; getting
the most output from the least amount of inputs.
* Efficiently - Means doing the right things; goal attainment; concerned
with ends. Management Strives For:
Low resource waste
(high efficiency)
High goal attainment
(high effectiveness)
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Unit 1 - POM

7. Nature / Characteristics of Management:
Management as an activity (or process).
Management as a discipline.
Management as a group.
Management as an economic resource.
Management as a system of authority.
Management as an art.
Management as a Science.
Management as a Profession.
Management also implies skill and experience in
getting things done through people.

8. Nature / Characteristics of Management:
Management is an endeavour to achieve pre-
determined objectives.
Management involves decision - making.
Management implies good leadership.
Management is dynamic and not static.
Management draws, ideas and concepts from
various disciplines.
Management is Goal oriented.
Management is intangible.

9. Importance of Management:
1. Attainment of group goals – to achieve the objective of
organization which depends on many factor.
2. Effective functioning of business – organization should be
ability, understanding, motivation, coordination, etc to be
effective.
3. Resource development – identified and develop the
resources to achieve objective.
4. Management Control the organization – management will
control the organization activities to eliminate the
unnecessary activities.
5. Sound organization structure – it shows how far the
authority and responsibility are there in organization.
6. Integrates individual efforts – steps to coordinate various
effects take by individual to attain objective. 9

10. 7. Motivation – important tool to achieve organization goal.
8. Communication – important role for organization to be
effective management.
9. Co-ordination – coordinate / combine all these activities
done by each department together to achieve the objective.
10. Decision – making – decision taken by management will
guide the manager to take correct decision.
11. Leadership quality – this quality is developed in person
based on his work and experience in top level management.
12. Management is needed at all levels – functions / activities
of management are common to all levels of organization.
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11. Scope & Functions of Management:
Management includes following aspects –
1. Subject – matter of Management.
2. Functional Areas of Management:
a) Financial Management - includes forecasting, cost control,
management accounting, budgetary control, statistical control, financial
planning etc.
b)Human Resource Management - Personnel/Human Resource
management covers the Notes various aspects relating to the employees of
the organisation such as recruitment, training, transfers, promotions,
retirement, terminations, remuneration, labour welfare and social security,
industrial relations etc.
c) Marketing Management - deals with marketing of goods, sales
promotion, advertisement and publicity, channels of distribution, market
research etc.
d) Production Management – Production management includes production
planning, quality control and inspection, production techniques etc.

12. e) Material Management: Material management includes
purchase of materials, issue of materials, storage of materials,
maintenance of records, materials control etc,
f) Purchasing Management: Purchasing management includes
inviting tenders for raw materials, placing orders, entering into
contracts etc.
g) Maintenance Management: Maintenance management relates
to the proper care and maintenance of the buildings, plant and
machinery etc.
h) Office Management: Office management is concerned with
office layout, office staffing and equipment of the office.
3. Management is an Inter-disciplinary Approach.
4. Principles of Management.
5. Management is an Agent of Change.
6. Essentials of Management.(scientific methods, human relations
and quantitative techniques)

13. Classical View of Management:
1. Management as an Art:
* Art – application of skill in finding a desired result & it is way of
doing things skillfully.
* Management is art -
- it process involve practical knowledge & personal skill.
- management is creative, knowledge & skills help to achieve results.
* Management is both science and art because it contains principles
and it is art because it need personal skills to achieve results.
2. Management as a Science (Scientific Management):
* Science – i) existence of systematic body of knowledge with array of
principles.
ii) based on scientific enquiry, iii) principles should verifiable
iv) reliable basis for predicting future events.
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14. * Science are two types -
a) Accurate results are exact science.
b) Management are inexact science.
* Reason are -
- HR in organization are different attitudes, aspirations & perception.
- standard solution is not possible.
- management is complex & unpredictable.
- decision depend on environment where it is complex & unexpected change.
F.W. Taylor’s Scientific Management (1856 – 1915):
* Scientific Management – use of scientific method to define the “one best way”
for a job to be done.
- Father of Scientific Management, Chief Engineer in 1884.
- Published ‘Price rate System’ & ‘Principles of Scientific Management’ in 1911.
* 4 Principles – 1) observation & measurement used in organization, 2) employee
should trained & selected, 3) opportunity to earn high pay rate due to training &
selection, 4) cooperation (employer & employee) will give benefit to
management.
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15. Principles of Scientific Management:
1. Separation of planning and doing:
- separation of planning from actual doing.
- supervisor should done planning & workers should concentrate.
2. Functional foremanship:
- this theory based on different specialization on function.
- 18 foreman need to direct & control activities of workers.
3. Job analysis:
- every job need minimum time & cost to do it. Its determined by –
a) Time study – movement individual take work for minimum time
will be best &it help firm to do fair work.
b) Motion study – eliminating wasteful movements & performing
only useful movements.
c) Fatigue study – it involves the amount and frequency of rest
required in complete the job.
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16. 4. Standardization:
- maintained properly like period & amount of work, production cost,
etc.
5. Scientific selection & training:
- workers should selected scientifically.
- they should be suitable for technical & scientific process.
6. Financial incentives:
- motivate workers to put more effort, wage based on performance.
- scheme worker get more wage at high rate for his work done.
7. Economy:
- scientific management enhance profit & economy.
- using resource & eliminating wastage helpful for more production.
8. Mental Revolution:
- co-operation between management & workers.
- mutual conflict replaced by mutual co-operation.
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17. Management as a profession:
 Professionalization imparts a certain social responsibility
and dignity to management.
 Professionalization makes business more efficient, dynamic
and socially responsible.
 Form of business organization have increased the need for
professional managers.
“Professional management is a function, a discipline, a
task to be done; and managers are the professionals who
practice this discipline, carry out the functions and discharge
these tasks. It is no longer relevant whether the manager is
also an owner; if he is it is incidental to his main function,
which is to be a manager." - Peter Drucker

18. The following criteria for professionalization. They
are:
1. Members of a profession subordinate self-interest
to the client interest and the official interest.
2. A profession is based on a systematic body of
knowledge that is held to common and lends to Notes
application.
3. Membership of a profession should depend on the
observance of certain rules of conduct or behaviour.

19. A critical evaluation of professionalization of business
management shows that:
1. There exists a systematic body of knowledge on
management. A professional should have formally acquired
the specialized knowledge and skill for management.
Management is taught as a discipline in various educational
institutes, throughout the world.
2. Membership of a profession should depend on the
observance of certain rules of conduct and behaviour. The
decisions and actions of a professional are guided by certain
ethical considerations.
3. A profession is based on a systematic body of knowledge
that is held in common and lends itself to application. Thus, a
profession should have no ideological bias in the discharge of
his functions.

20. Administrative View of Management:
* Administrative Management – principles to be used by managers,
both individually & collectively to improve the performance of
overall functions of organization.
Henry Fayol’s Contribution (1841 – 1925):
- French Industrialist concentrated on administrative area of
management.
- Published a book “The general and Industrial administration”.
* Fayol divided industrial activities into 6 categories -
1. Technical (Production & Manufacture).
2. Commercial (Buying, Selling & Exchange).
3. Financial (Optimum use of capital).
4. Security (Protection of property & persons).
5. Accounting (Balance sheets & Cost statistics).
6. Management (Planning, organizing, co-ordinating, Directing &
Controlling). 20

21. Management Vs Administration
According to American viewpoint, Administration
is a term bigger than Management.
According to British viewpoint, which is reverse of
American viewpoint, Management is a term bigger
than administration.
Governance of non-business institutions has been
called administration, while the governance of
business enterprises called management.

22. Management Vs Administration
Administration Management
Higher level activity Lower level activity
It is concerned with
determination of objectives
and policies
It is concerned with
implementation of policies
and direction
It involves decision-making
and policy formulation
It involves the execution of
policies and supervision of
work
It deals with installation and
carrying out of procedures
It deals with total control
involving responsibility for
effective planning and
guidance of operations
It is an implementing agency It is an determinative agency

23. Henry Fayol’s 14 Principles of Management:
 Division of work
 Authority
 Discipline
 Unity of command
 Unity of direction
 Subordination of the
individual
 Remuneration
 Centralization
 Scalar chain
 Order
 Equity
 Stability of tenure of
personnel
 Initiative
 Esprit de corps
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24. Henry Fayol’s 14 Principles of Management:
S.No. Principles Previous
Interpretation /
Application
Current
Interpretation /
Application
1 Division of work Specialization Specialization exists.
Cross training is used so
that employees (and
organizations) have more
capabilities
2 Authority &
Responsibility
The right of the boss to
give orders and exact
obedience
Empowerment and
process ownership enable
people at all levels to
make decisions. Fayol’s
ideas are still very
relevant (e.g. authority &
responsibility must be
co-equal)
3 Discipline Obedience, respect
based on mandated or
freely debated
agreements
Self – discipline. Respect
based on knowledge
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25. S.No. Principles Previous
Interpretation /
Application
Current
Interpretation /
Application
4 Unity of Command Employee should
receive orders from
only one boss
With matrix
organizations and
teams, people receive
instruction from
multiple people which
can cause problems.
Functionally
employees may report
to one boss who
evaluates the
employee
5 Unity of Direction One plan for a group of
activities having the
same objective;
focusing the effort;
primarily vertically
oriented
Strategic management
involves bottom up,
top down and cross
functional input to
integrated plans
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26. S.No. Principles Previous
Interpretation /
Application
Current
Interpretation /
Application
6 Subordination of
individual interest to
general interest
Supervisor requires this Team members align
individuals and team,
personal and work goals.
Those goals still have to
support the general
interest / organization
7 Remuneration of
personnel
Depends on personnel
availability, value of
employee, economic
position of
organization. Individual
rewards
Pay for knowledge and
core competencies. Team
rewards and profit
sharing
8 Centralization and
Decentralization
Role of employees is
reduced. Decisions are
made by management –
a continuum
Role of employee is
increased. Local
decisions. Process
ownership. More
decentralization 26

27. S.No. Principles Previous
Interpretation /
Application
Current
Interpretation /
Application
9 Scalar Chain Hierarchical chain of
command / line of
authority, vertical
communication
Horizontal or cross
functional authority.
Team structure
10 Order A place for everything
and everything in its
place. Social and
hierarchical order
Chaos, creativity and
innovation
11 Equity Equity results from
kindliness and justice
Equity is demanded by
workers based on
performance
12 Stability of tenure of
personnel
Mediocre managers
who stay preferable to
outstanding managers
who come and go
It is better to have best
managers for a while
than mediocre managers
for a longer time
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28. S.No. Principles Previous Interpretation /
Application
Current
Interpretation /
Application
13 Initiative Thinking out and executing a
plan. Limits imposed by
respect for authority and
discipline. A manager who
permits the exercise of
initiative is valued
Respect and caring for
customers is an impetus
for initiative. Managers
who encourage initiative
are valued. The principle
of initiative is relevant to
today’s concepts of
empowerment and
process ownership
14 Esprit de Crops Union is strength. Harmony.
Real talent coordinates effort.
“Dividing enemy forces to
weaken them is clever, but
dividing one’s own team is a
grave sin against business”
Only dysfunctional
conflict is bad. Diversity
and differences are
necessary if creativity
and innovation are to
flourish. The concept of
esprit de crops is still
relevant in terms of
strength of teams to
accomplish objectives
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