Management is a distinct process involving planning, organizing, actuating, and controlling activities to achieve objectives through human and material resources. The document discusses the importance of management practices, principles, and the characteristics of effective organizations. Additionally, it highlights historical theories and approaches to management that have evolved over time, emphasizing the role of managers and entrepreneurs in organizational success.

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Management and Organization
 The Meaning
The Meaning

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What is management?
 Management is a distinct process
Management is a distinct process
consisting of activities of planning,
consisting of activities of planning,
organizing, actuating, and controlling,
organizing, actuating, and controlling,
performed to determine and
performed to determine and
accomplish stated objectives with the
accomplish stated objectives with the
use of human beings and other
use of human beings and other
resources.
resources.

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The Meaning of
Management
Fundamental Functions
Fundamental Functions
The Process
Basic Resources
Basic Resources PLANNING ACTUATING
PLANNING ACTUATING
Men and Women
Men and Women
Materials
Materials
Machines
Machines
Methods End Result
Methods End Result
Money
Money
Markets
Markets
ORGANIZING CONTROLLING
ORGANIZING CONTROLLING
Stated Objectives

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Why Study Management?
 We are affected by good or bad management
We are affected by good or bad management
practices, so we should learn to recognize and
practices, so we should learn to recognize and
influence the quality of management that affects
influence the quality of management that affects
our life.
our life.
 Managers affect establishment and
Managers affect establishment and
accomplishment of several social, economic, and
accomplishment of several social, economic, and
political goals in any country.
political goals in any country.
 Management makes human efforts more
Management makes human efforts more
productive. Improvements, and progress are its
productive. Improvements, and progress are its
constant watchwords.
constant watchwords.
 Knowledge and skill required for management
Knowledge and skill required for management
vary with the organizational level.
vary with the organizational level.

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Organizational Levels
 Knowledge and Skill Required
Conceptual
Human
Technical
Knowledge and Skill Requirements vary with Organizational Levels
Top
Middl
e
Supervisory

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Good Management Principles
Good Management Principles
 Good management principles should be:
Good management principles should be:
 Practical- i.e. applicable, practical, and appropriate.
Practical- i.e. applicable, practical, and appropriate.
 Relevant- to broad forms of organization structure.
Relevant- to broad forms of organization structure.
 Consistent-for similar sets of circumstances, similar
Consistent-for similar sets of circumstances, similar
results will occur.
results will occur.
 Flexible- their application should take into account
Flexible- their application should take into account
particular differences or changes in the conditions
particular differences or changes in the conditions
that affect the organization.
that affect the organization.
Use of Management principles are intended to simplify management work.
Use of Management principles are intended to simplify management work.

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Common Attributes of Well managed Companies
 A Mc Kinsey study of 37 companies that were cited as
A Mc Kinsey study of 37 companies that were cited as
well managed companies in the late 1990s showed eight
well managed companies in the late 1990s showed eight
common attributes.
common attributes.
1.
1. A bias towards action.
A bias towards action.
2.
2. Simple form and lean staff.
Simple form and lean staff.
3.
3. Continued contact with customers.
Continued contact with customers.
4.
4. Productivity improvement via people.
Productivity improvement via people.
5.
5. Operational autonomy to encourage entrepreneurship.
Operational autonomy to encourage entrepreneurship.
6.
6. Stress on one key business value.
Stress on one key business value.
7.
7. Emphasis on doing what they know best.
Emphasis on doing what they know best.
8.
8. Simultaneous loose-tight controls.
Simultaneous loose-tight controls.

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The Practices in organizations
 Today, the largest single group in labor force,
Today, the largest single group in labor force,
more than one third of the total are people
more than one third of the total are people
whom US bureau of Census calls ‘ managerial
whom US bureau of Census calls ‘ managerial
and professional’ . Until quite recently, no one
and professional’ . Until quite recently, no one
knew how to put people with different skills and
knew how to put people with different skills and
knowledge together to achieve common goals.
knowledge together to achieve common goals.
 A modern business , not only the larger ones,
A modern business , not only the larger ones,
may employ up to ten thousand people who
may employ up to ten thousand people who
represent upto sixty different areas--- all
represent upto sixty different areas--- all
working in a joint venture.
working in a joint venture. (Peter Drucker: New
(Peter Drucker: New
Realities)
Realities)

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The Practices in organizations
 Modern management and modern enterprises could not exist
Modern management and modern enterprises could not exist
without knowledge base that developed societies have built. But,
without knowledge base that developed societies have built. But,
equally, it is management and management alone, that makes
equally, it is management and management alone, that makes
effective all this knowledge and the knowledge people.
effective all this knowledge and the knowledge people.
 After world war II, it was realized that management is not business
After world war II, it was realized that management is not business
management , it pertains to every human effort that brings together
management , it pertains to every human effort that brings together
in one organization people of diverse knowledge and skills for
in one organization people of diverse knowledge and skills for
common purpose.
common purpose.
 One important advance in the discipline and practice of
One important advance in the discipline and practice of
management is that both, now, embrace entrepreneurship and
management is that both, now, embrace entrepreneurship and
innovation.
innovation.
 So, management is about human beings. It is deeply embedded in
So, management is about human beings. It is deeply embedded in
culture. Management’s first job is to think through , set, and
culture. Management’s first job is to think through , set, and
exemplify the objectives, goals, and values to which it is committed.
exemplify the objectives, goals, and values to which it is committed.
 It must be built on communication and on individual responsibility.
It must be built on communication and on individual responsibility.
Quantity of output ,or, ‘bottom line’ is not the adequate measure of
Quantity of output ,or, ‘bottom line’ is not the adequate measure of
performance of managements. Market standing, innovation,
performance of managements. Market standing, innovation,
productivity, development of people, quality, financial results– are
productivity, development of people, quality, financial results– are
all crucial.
all crucial.

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Managers and Entrepreneurs
 Entrepreneurs are individuals who conceive the idea for a new
Entrepreneurs are individuals who conceive the idea for a new
business venture; gather the necessary human, financial, and
business venture; gather the necessary human, financial, and
physical resources to start the venture; start the operations of the
physical resources to start the venture; start the operations of the
venture and grow it to the point where more people are added to
venture and grow it to the point where more people are added to
the organization; and usually bear the most personal and financial
the organization; and usually bear the most personal and financial
risk in beginning the venture.
risk in beginning the venture.
 The transitional point of growth is usually when professional
The transitional point of growth is usually when professional
managers are hired to perform basic management functions of
managers are hired to perform basic management functions of
the ongoing and growing organizations. Therefore, the traditional
the ongoing and growing organizations. Therefore, the traditional
concepts of managers have been associated with medium to large
concepts of managers have been associated with medium to large
organizations, whereas entrepreneural concepts have been linked
organizations, whereas entrepreneural concepts have been linked
with small organizations. Entrepreneurs, however, must
with small organizations. Entrepreneurs, however, must
successfully perform all the basic management functions in the
successfully perform all the basic management functions in the
startup and growth stages of the enterprise. Later, in the
startup and growth stages of the enterprise. Later, in the
organization’s growth, successful implementation of sound
organization’s growth, successful implementation of sound
management principles is important but not quite so critical or
management principles is important but not quite so critical or
intense as in the firm’s infancy.
intense as in the firm’s infancy.

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Perception of Characteristics and Role Demands
Personal
Personal
Attributes &
Attributes &
Characteristics:
Characteristics:
Personal drive
Personal drive
(Highly dedicated
(Highly dedicated
to business
to business.)
.)
Persistent, strong
character,
competitive,
Independent ,Take
s educated risk,
Builder,Has
realistic goals,
Ethics.
Self-centered
Self-centered
Unwilling to listen
Unwilling to listen
to others
to others
Takes big or small
Takes big or small
risks,
risks,
Unclear goals,
Unclear goals,
Money more
Money more
important than
important than
building the
building the
business.
business.
Proven skills and
Proven skills and
expertise, Can
expertise, Can
establish goals,
establish goals,
direct and
direct and
motivate, Self
motivate, Self
confident,
confident,
Decisive,
Decisive,
Competitive,
Competitive,
Thinking about
Thinking about
next job, Cautious
next job, Cautious
risk taker.
risk taker.
Role and Job
Role and Job
Demands:
Demands:
Own values&
Own values&
standards,Hard
standards,Hard
work,Sacrifice,Busine
work,Sacrifice,Busine
ss first, Knows
ss first, Knows
business,Team
business,Team
builder, long hours in
builder, long hours in
early years, 5-10 yrs.
early years, 5-10 yrs.
To build bus.
To build bus.
Innovation
Innovation
&creativity
&creativity
. Same as successful
. Same as successful
entrepreneur but
entrepreneur but
doesn’t meet many of
doesn’t meet many of
the demands.
the demands.
Oriented to
Oriented to
organization’s
organization’s
values,status,rewards
values,status,rewards
.More routine work
.More routine work
pattern, Security
pattern, Security
builds up, less risky
builds up, less risky
Management skills
Management skills
crucial, maintenance
crucial, maintenance
and efficiency
and efficiency
oriented.
oriented.
Successful entrepreneur : Unsuccessful : Professional Manager

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Key Characteristics to Understanding
Key Characteristics to Understanding
Management
Management
 Management is purposeful.
Management is purposeful.
 Management makes things happen.
Management makes things happen.
 Management is an activity, not a person or
Management is an activity, not a person or
group of persons Management is accomplished
group of persons Management is accomplished
by ,with, and through the efforts of others.
by ,with, and through the efforts of others.
 Management is usually associated with the
Management is usually associated with the
efforts of a group.
efforts of a group.
 Management is intangible.
Management is intangible.
 Management is aides, not replaced by the
Management is aides, not replaced by the
computer.
computer.
 Management is an outstanding means for
Management is an outstanding means for
exerting real impact on human life.
exerting real impact on human life.

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The Business Organizations and
Processes
 Business is an enterprise created for the purpose of
trading for profits and other assets it generates.
 Essentially, it consists of people joining together for the
common purpose of achieving a reward in return for
contributing money and skill in the enterprise.
 The group of people are owners and employees. Trading
activity consists of three core functions: Buying, Making,
Selling.
 Subsidiary activities within the business include
Management, Control, including Planning, Scheduling,
Monitoring for results and reporting, Administration which
provides the functions and systems supporting the
organization and all communications between constituent
parts.

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Organizational Patterns
Organizational Patterns
 Issues that come into focus when establishing
an organization are , top management’s desire
to exercise close control, size of operations,
diversity of product range, quality of middle
management, and geographic speed.
 Common organizational patterns include
Centralized organizations, Decentralized
organizations, Functional organizations, matrix
organizations, Line and Staff organizations

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Choosing a Structure
When considering an optimal structure for itself, the business will seek :
When considering an optimal structure for itself, the business will seek :
 Consistency of quality of service or products
Consistency of quality of service or products
 Adherence to agreed corporate directions and standards
Adherence to agreed corporate directions and standards
 Cost effective method of administering,
Cost effective method of administering,
In order to achieve these needs to avoid duplication or conflict of efforts;
In order to achieve these needs to avoid duplication or conflict of efforts;
exercise control to ensure that various parts of the organization stay
exercise control to ensure that various parts of the organization stay
within agreed boundaries( budget, regions, product ranges etc.) or seek
within agreed boundaries( budget, regions, product ranges etc.) or seek
approval before going outside them.
approval before going outside them.
 Establish good information flow on customer satisfaction local
market conditions, and competitor activities. This question will
concern the division of power between head office & units/ branches
when it is asked how much control a fewer senior people should
have.
 Conscious or otherwise, all businesses consider the question of
Conscious or otherwise, all businesses consider the question of
centralization vs. decentralizations.
centralization vs. decentralizations.

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Traditional Management Theories
 Growth of professional business management was preceded by
Growth of professional business management was preceded by
political and charismatic leadership which tended to be organized
political and charismatic leadership which tended to be organized
upon Logical Power Structures appointed by the leaders.
upon Logical Power Structures appointed by the leaders.

Therefore, the Leader depended upon: POWER
Therefore, the Leader depended upon: POWER ( IN CASE OF MILITARY
( IN CASE OF MILITARY
LEADERS),
LEADERS),CHARISMA
CHARISMA (IN CASE OF PERSONALITY BASED LEADERS) , and RESPECT (IN
CASE OF POSITIONALLY BASED LEADERS).
 Early methods of structuring and organizing management came
under three main theoretical approaches: Bureaucracy ( where
emphasis is in the structure and systems), Scientific (where emphasis is on the
measurement of the amount of work done) , Functional (where the study of
successful managers was used to develop principles that others could follow) .

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Theoretical Approaches
 Max Weber (1864-1920)
Max Weber (1864-1920)
 He contributed the theory of structures that characterized
He contributed the theory of structures that characterized
organizations in terms of authority structures and relations within
organizations in terms of authority structures and relations within
them. Three types of organizations he outlined were, Charismatic,
them. Three types of organizations he outlined were, Charismatic,
Rational, Legal. Wber regarded bureaucracy being made rational by
Rational, Legal. Wber regarded bureaucracy being made rational by
the fact that he saw its control being exercised on the basis of
the fact that he saw its control being exercised on the basis of
knowledge, experience, and technical expertise.
knowledge, experience, and technical expertise.
 Frederick Taylor(1856-1915) is called ‘Father of Scientific
Frederick Taylor(1856-1915) is called ‘Father of Scientific
Management’ movement.
Management’ movement.
His scientific approach is based on the assumption that a person will
His scientific approach is based on the assumption that a person will
be motivated to work if rewards and penalties are tied directly to
be motivated to work if rewards and penalties are tied directly to
Performance. He maintained that management should be ‘well
Performance. He maintained that management should be ‘well
recognized, clearly defined, and fixed principles instead of depending
recognized, clearly defined, and fixed principles instead of depending
on more or less hazy ideas. His objective was to maximize efficiency.
on more or less hazy ideas. His objective was to maximize efficiency.
He suggested four principles of scientific management. D
He suggested four principles of scientific management. D

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Principles by Taylor and Fayol
 1. Development of a True Science of Work. Management should apply
techniques to the solution of problems and not rely just on experience.
 2. Scientific Selection. and,
 3. Progressive Development of Work: workmen should be carefully trained and
given jobs to which they are best suited.
 4.The Bringing together of Science and Scientifically selected and trained
men. These are the 4 tenets by Taylor.
 The Functional Approach: another way of looking at management is to break
the tasks down and group them by function, e.g. accountancy.
 An early practitioner of this theory was Henry Fayol who said, the Process of
Management consists of five functions:
 1.Planning, 2. Organizing ,3.Commanding, 4.Co-Ordinating, 5. Controlling.
 Fayol offered 14 principles of good management. Division of work, Authority &
Responsibility,Discipline,Unity of Command, Unity of Direction, Subordination
of Individual Intetrest,Remuneration of Personnel, Centralization, Scalar
Chain (flow of authority), Order, Equity, Stability or tenure of personnel,
Initiative, and, Espirit de Corps.
 There is no one correct method, but combinations ,in reality.