2. Concept of Management
Management is what managers do.
Management is the process of getting things done, effectively and
efficiently, with and through other people.
It becomes difficult to define management
The term management is used in three alternative ways
1. Management as a discipline (art and science)
2. Management as a group of people (managerial and non managerial
group), and
3. Management as a process (systematic method of handling activities)
3. MANAGEMENT
• Management is the attainment of organizational goals in an
effective and efficient manner through planning, organizing,
staffing, directing and controlling organizational resources.
• Organizational resources include men(human beings), money,
machines and materials.
4. Definitions
• Louis E Boone & David L Kurtz- The use of people and other
resources to accomplish objectives.
• Mary Parker Follet- the act of getting things done through
people.
• Frederick Taylor defines Management as the art of knowing
what you want to do in the best and cheapest way.
5. Characteristics/Nature of Management
Management as a process (systematic method of handling activities)
Operational and managerial activities
Four such orientations have been adopted in defining management process:
1. Production or efficiency oriented (Taylor)
“ Management is the art of knowing what you want to do and then seeing that it is done in
the best and cheapest way”………Taylor
2. Decision oriented (Peter Drucker)
“ Management is simply the process of decision making and control over the action of
human beings for the expressed purpose of attaining pre-determined goals”…….Stanley
Vance
3. People oriented
Management is personnel management…Lawrence Appley
“Management is the art of getting things done through and with the people in formally
organized groups”….Koontz.
4. Function oriented (more relevant for understanding)
“ Management is defined for conceptual, theoretical and analytical purposes as that
process by which managers create, direct, maintain, and operate purposive organizations
through systematic, coordinated, cooperative human efforts”…..McFarland.
6. Characteristics/Nature of Management
• Management is a distinct process.
• Management is an organized activity
• Management aims at the accomplishment of predetermined
objectives.
• Management is both a science and an art.
• Management is a group activity
• Management principles are universal in nature
• Management integrates human and other resources.
7. Characteristics/Nature of Management
• Management is a goal oriented process
• Management is all pervasive
• Management is multi dimensional
• Management of work
• Management of people
• Management of operations
• Management is a continuous process
• Management is a group activity
• Management is a dynamic function
• Management is an intangible force
8. Characteristics/Nature of Management
• Goal Oriented: Manage things so that the efforts can be put towards a common
goal. Every organization has certain stated purpose, goals and targets etc. , which
are required to be achieved.
• Pervasive: All type of organizations requires management of things,
management of people, management of processes etc
• Multidimensional: Management is a complex process , which involves series of
stages and aspects such as management of things, people, processes and
operations.
• Continuous process: it is required at every level and in every function of
organization.
• Group activity: Management involves many people. It cannot be performed in
isolation and thus requires management of group in different departments and
divisions.
• Dynamic Function: An organization has to deal with its environment, which
keeps on changing. External environment of an organization involves the social,
political, economic, legal and technological factors, which keeps on changing
• Intangible force: it cannot be seen or touched but its presence and absence can
be thoroughly felt.
9. Management as an art
Features of Art
Presence of theoretical knowledge- example public speaking is
an art. Practicing public speaking requires some theoretical
knowledge about it before hand. A person should know basic things
such as flow in which to give different kinds of speeches.
Personalized application- example There are several artists such
as painters or dancers who are never similar to another painter or
dancer unless and until it is copied. When we see the paintings of
M.F. Hussain then we realize it has a completely different style.
Creativity- Use of imagination- example film making is also an art. Every film has an element of
uniqueness.
Based on practice- example- musicians and singers have theoretical knowledge and have applied that in
real life but they continuously practice their art so that they remain in the flow and rhythm remains intact.
All these features of Art are present in Management also; hence,
Management is an Art
Goal oriented: Every art is goal oriented. Every artist performs his or her best to reach a fixed position.
10. Management as a Science
Features of Science
Science is a systematic body of knowledge which elucidate the general truth and laws based on certain
experimentations and observations.
All these features of Science are present in Management also; hence,
Management is also Science
11.
12. MANAGEMENT AS A
PROFESSION
• It is seen that management is partly an art and
partly a science.
• Now the question is: it a profession? The
answer to this question largely depends on
how we define the term ‘profession.’
• Hodge and Johnson have defined profession
as “a vocation requiring some significant body
of knowledge that is applied with high degree
of consistency in the service of some relevant
segments of society.”
13. Main Benchmarks of a Profession
A body of specialized knowledge
or techniques.
Formal training and experience.
Representative association.
An ethical code for the guidance
of conduct.
A commitment to service rather
than to monetary rewards.
Controlled entry, usually by a
formal examination.
Dedication and commitment to
the profession and society.
15. Concept of Planning
Planning is the most fundamental function of management. Planning involves
determination of objectives of the business, formulation of programmes and courses of
action for their attainment, development of schedules and timing of action and
assignment of responsibilities for their implementation.
Its elements are:-
1. What will be done
2. What resources will be required
3. How it will be done
4. Who will do it
5. When it will be done
16.
17. Concept of organizing
Organizing is concerned with arranging in a logical and orderly manner all the
activities of the organization.
Steps in Organizing
1. Determination of objectives
2. Identification and grouping of activities
3. Assignment of duties
4. Developing authority-responsibility relationships
Dimensions/Forms of Organization Structure.
• Line Organization structures
• Line & Staff Organization structures
• Functional Organization structure
18. • Organizing is the distribution of work in group-wise or section- wise for
effective performance.
• Once the managers have established objectives and developed plans to
achieve them, they must design and develop a human organization that
will be able to carry out those plans successfully.
• Organizing involves dividing work into convenient tasks or duties,
grouping of such duties in the form of positions, grouping of various
positions into departments and sections, assigning duties to individual
positions and delegating authority to each position so that the work is
carried out as planned.
• According to Koonz O’Donnel, “Organization consists of conscious
coordination of people towards a desired goal”. One has to note that
different objectives require different kinds of organization to achieve
them. For example, an organization for scientific research will have to
be very different from one manufacturing automobiles.
19. Organization involves the following interrelated
steps:
(1)Consideration of objectives
(2)Identification and grouping of activities
(3)Assignment of duties:
(4)Delegation of authority:
20. Directing
• Theo Haimann, “Directing consists of the process and techniques utilized in
issuing instructions and making certain that operations carried on of originally
planned”.
• The functions of direction involve two major activities:
• (1) Giving orders to employees
(2) Leading and motivating them
• The following principles of directing may be useful to a manager.
(1) Harmony of objectives:
(2) Unity of direction or command:
(3) Direct supervision:
(4) Effective communication:
(5) Follow through: Direction is a continuous process. Mere issuing orders
or instructions are not an end itself. Follow is necessary, so the
management should watch whether subordinates follow the orders and
whether they face difficulties in carrying out the orders or instructions.
21. Staffing
• Staffing involves managing various positions of the organizational
structure.
• It involves selecting and placing the right person at the right position.
• Staffing includes identifying the gap between manpower required and
available, identifying the sources from where people will be selected,
selecting people, training them, fixing the financial compensation and
appraising them periodically.
• The success of the organization depends upon the successful
performance of staffing function.
22. • Staffing involves the determination of manpower requirements of the enterprise and providing
it with adequate competent people at all levels. The staffing function performs the following sub
functions:
(1) Manpower planning.
(2) Recruitment
(3) Selection of the best qualified from those who seeks job,
(4) Training and Development.
(5) Performance appraisal and compensation.
23. Significance of Staffing functions
• Increasing size of organization: Advancement in science and technology
has given rise to large scale companies employing thousands of
employees. The performance of the company depends on the quality
and character of the people. This has increased the importance of
staffing.
• Advancement of technology: In order to make use of latest technology,
the appointment of right type of persons is necessary.
• Long-range needs of manpower: In some industries, labour turn-over is
high.
• The management is required to determine the manpower requirement
well in advance. Management has also to develop the existing
personal for future promotion. The role of staffing has also increased
because of shortage of good managerial talents.
• Recognition of human relations
24. Controlling
• “Control is checking current performance against predetermined standards
contained in the plans, with the view to ensuring adequate progress and
satisfactory performance”.
• In the words of George R. Terry, “Controlling is determining what is being
accomplished, that is, evaluating the performance and if necessary applying
corrective measures so that the performance takes place according to plans”.
• (1)Physical standards such as units of production per hour.
• (2) Cost standards, such as direct and indirect cost per unit.
(3) Revenue standards such as sales per customer.
(4) Capital standards such as rate of return of capital invested.
(5) Intangible standards such as competency of managers and employees.
STEPS IN A CONTROL PROCESS
• 1. Establishment of standards
• 2. Measuring and comparing actual performance with standards:
• 3. Taking corrective action: