This document discusses key concepts of management. It defines management as a process of taking decisions and putting them into action to achieve organizational objectives. Management deals with five factors of production - men, machine, money, material and methods. It is characterized as goal-oriented, dealing with people, requiring teamwork and authority. The functions of management are planning, organizing, directing and controlling. Management involves applying both scientific principles and art through creativity and skill. Henri Fayol's 14 principles of management are also outlined, including division of work, authority and responsibility, discipline, unity of command, and remuneration.

1. FUNDAMENTALS OF
MANAGEMENT
UNIT -1
BASIC CONECEPTS OF MANAGEMENT.
(class -1)

2. What is Management
 Management is a process of taking managerial decisions and putting them into
action.
 It determines the objectives of the organization.
 It is taking various steps to achieved the organization objectives.
 It is concerned with motivation of the employees.
 Management is the brain of any organization because it takes decision making
policies,rules,and regulations.

3. Management deals with the five factors of production
 Men
 Machine
 Money
 Material
 Methods

4. Definition of Management
 According to Harold Koontz, “Management is an art of getting things done through
and with the people in formally organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-
 operate towards attainment of group goals”.
 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”.

5. Characteristics of management
1. Goal oriented.
2. Deals with people
3. Team based activity
4. System of authority
5. Requires multiple activities.
6. Dynamic function.
7. Its science and art
8. Its multidisciplinary.

6. Scope of management
 The existence of management ensures proper function and running of an enterprise.
 Management plans the activities ,coordinates and utilizes the available recourses
effectively and efficiently at minimum cost.
 Scope of management is not limited only to business organization ,but it is
extended to business establishment ,hospitals, educational institutions, govt
offices, service organizations ,security organization etc.

7. Functions of Management
 Planning
 Organizing
 Directing
 Controlling

8.  Planning: Defining goals establishing strategy, developing plans to co-ordinate
activities.
 Organizing: Determining what needs to be done how it will be done and who
is to do it.
 Leading: Directing and motivating involves parties and resolving conflicts.
 Controlling: Monitoring activities to ensure parties that they resolving
accomplished planned.

9. Levels of Management
 There are 3 levels of management :
1. Top level Management
2. Middle level Management
3. Lower level or first line Management

11. Management as science
 Universally acceptance principles
 Experimentation & Observation
 Cause & Effect Relationship
 Test of Validity & Predictability
 It is a behavioral science.

12. Management as art:
 Practical Knowledge
 Personal Skill
 Creativity
 Perfection through practice
 Goal-Oriented

13. Management is science and art both
1)Management is both science as well as art.
2) science it has systematic and well- organized body of knowledge and like art
it requires personal skill, creativity and practice to apply such knowledge in the
best possible way.
3)Science and art are not in contrast to each other; both exist together in every
function of management.

14. Management is a profession
 Profession can be defined as an occupation backed by specialized knowledge
and training, in which entry is restricted.
The features of profession are as follows:
1)Well defined Body of knowledge
2)Existence of ethical codes
3) Service Motive.
4) Restricted Entry

15. Henri Fayol’s 14 Principles Of
Management:
1. Division Of Work
 Work should be divided among individuals and groups to ensure that effort
and attentionare focused on special portions of the task.
2. Authority & Responsibility
 The concepts of Authority and responsibility are closely related. Authority was defined
by Fayol as the right to give orders and the power to exact obedience. Responsibility
involves being accountable, and is therefore naturally associated with authority.
Whoever assumes authority also assumesresponsibility.
3. Discipline
 According to Fayol, “Discipline means sincerity, obedience, respect of authority
& observance of rules and regulations of the enterprise”.

16.  Unity of Command
 Each worker should have only one boss with no other conflicting lines ofcommand.
5. Unity of Direction
 The entire organization should be moving towards a common objective in a common direction.
6. Subordination of individual interests to the general interests
 The interests of one person should not take priorityover the
interests of the organization as a whole.
7. Initiative
 Management should encourage initiative. That is, they should encourage the employees to suggest ideas,
experiences& new method of work.
8. Equity
 The employees should be treated with fairness, kindness & justice if devotion is expected of them.
 It implies that managers should be fair and impartial while dealing with the subordinates.

17.  Scalar Chain :It is a line of authority. This line joins all the members (managers and employees) from topto
bottom.
 Every member must know who his superior is. He must also know who his subordinate is. Scalar Chain is
necessary for good communication.
 Scalar Chain must not be broken in norm circumstances.
10. Order
 There should be an Order for Things and People in theorganization.
 Order for things is called Material Order. Order for people is called SocialOrder.
11. Centralization (Or Decentralization)
 Centralization means concentration of authority at the top level. In other words, centralization isa
 situation in which top management retains most of the decision makingauthority.
 Decentralization means disposal of decision making authority to all the levels of the organization.In other
words, sharing authority downwards is decentralization

18.  Stability of Tenure of Personnel :Employees work better if job security and career
progress are assured to them. An insecure tenure and ahigh rate of employee turnover will
affect the organizationadversely
13. Remuneration
 Remuneration is the price for services received. If an organization wants
efficient employees andbest performance, then it should have a good remuneration
policy. This policy should give maximum satisfaction to both employer and
employees.
Team spirit
 Management must foster the morale of its employees. He further suggests that:
“real talent is needed to coordinate effort, encourage keenness, use each person’s
abilities, and reward each one’s merit without arousing possible jealousies and
disturbing harmoniousrelations.”