Learn here Principles and Practices of Management an overview

1. MANAGEMENT : An Overview
Topics 1 Covered
 What is Management
 Management Definition
 What is Concept of Management
 Definition of Concept of Management
 Characteristics/Nature of Management
 Management as an art or a Science
 Levels of Management
 Functions of levels of management
 Areas/Scope of Management
 Importance/significance of Management

2.  Management is regarded as the most crucial factor
in the success or failure of any business
organisation. It plans, organises, directs and
controls the activities and resources for the
purpose of achieving common objectives.

3.  According to the Drucker : “Management is the
dynamic life- giving element in every business.
Without it the resources and never become
production.”
 According to the Henri Mintzberg : Management
plays a significant role in the welfare of the society
as a whole. As a matter of fact “ no job is more vital
to our society than that of the manager. It is the
manager who determines whether our social
institutions serve as well or whether they squander
our talents and resources.

4.  Meaning of concept- Concept is the idea or image
or understanding about a thing, activity a person
that emerges in the mind of a person. As a matter
of fact, whenever anyone sees something, activity
or person, his mind immediately caches and idea or
image about that thing or activity or person.
 Example :- Lord Ganesha Images
Some view his as deity with big head, large nose,
ears, long nose and small mouth while others treat
him ass the inspiring power,” yet others regard him
as the best power of prosperity, i.e. ‘Ridhi Siddhi’.

5.  According to theWebster’s : “A concept is an
abstract idea generalised from particular
instances.”

6.  Management is a distinct activity
 Management is human activity
 An activity dealing with human organisations
 It is a purposeful activity
 It is a creative activity
 It is a universal activity
 Management is concerned with productivity
 Management is Intangible
 Management involves decision – making
 Management is a hierarchical system of authority

7. Management:
Formulating
policies and plans
Administration :
Execution of
policies and plans
Example :– chain of command is created between the superiors and subordinates across all
the levels of organisation.

8. WHETHER MANAGEMENT IS AN
ART
 Application of skill ability
 Practical Skill
 Creative skill
 Personal possession
 No fool proof principles
 Perfection by practice
 Transfer of knowledge
 Result - oriented
WHETHER MANAGEMENT IS A
SCIENCE
 Systematised body of
knowledge
 Use of scientific methods
 Universal applications
 Cause and effect
relationship
 Verifiable knowledge
 predictability

9. AS AN ART
 Art is concerned with the
application of skill or
knowledge acquired by
observation, study and
experience to achieve
desired results
 According to Carlisle, “ Art
is the systematic
application of skill or
knowledge in effecting
desired results, “
AS AN SCIENCE
 Science is a boy of
systematised knowledge
which establishes cause
and effect relationship
between different variables
and predicts future events
or results.
 According to Keynes, “
Science is systematised
body of knowledge which
establishes relationship
between cause and effect,”

11.  The term ‘levels of management’ refers to the
categories or layers of managerial positions
demarcated according to their level of authority
and status in the organisational hierarchy.
 Top management – the individual who occupy
positions at this level are usually designated as
Chairperson of the Board, Chief Executive officer
(or CEO e.g. managing director), President,Vice –
President etc.

12.  To analyse the business environment and its
implications on the future of organisation.
 To establish overall organisational goals.
 To formulate strategies, plans, policies, master budget
for attaining the goals
 To appoint key personnel in the organisation
 To represent the organisation on other bodies and
organisations.
 To interact with representatives of external
environment e.g. investors, financial institutions,
customers, employee unions, suppliers, government
officials, political figures etc.

13.  Middle managers are subordinate and accountable
to the top management.They are responsible for
implementing plans and policies formulated by the
top management. Middle managers are usually
designated as Divisional manager, Plant manager,
Project manager, Marketing manager or Purchase
manager.

14.  To interpret, explain and monitor the strategies, policies
and plans formulated by the top management.
 To prepare and issues instructions regarding
implementation of plans and policies.
 To train, develop and motivate the first – line manager
 To monitor performance of department activities and take
corrective steps, if necessary.
 To participate in first line decision making process
 To achieve coordination among various departments.
 To suggest top management on the matters of
organisational creativity, innovation and effectiveness.

15.  It includes managers just above the worker or the
rank and file or the operative employees. It is the
lowest level of management in the organisation.
 They are accountable for operational aspects of
performance e.g. the units produced, per unit cost,
levels of inventory quality control etc.
 They manage the employees at work in an office or
a factory or in the filed.

16.  To maintain discipline and congenial atmosphere
at the work place.
 To make day-to-day operative plans within the
goals set by the middle managers.
 To maintain inventory levels of material, tools and
equipment.
 To impart training to the employees.
 To report management about the performance and
problems of subordinates.
 To supervise employees at their work and issue
instructions, whenever needed.

17. Management is an all pervasive activity. It is carried
out in every functions area of every management.
Following are the main functional areas of
management.
Production Management
Marketing Management
Financial Management
Personnel Management
Purchasing Management
Office Management
Research and development Management

18. Importance for business institutions
 Setting objectives and priorities
 Accomplishing objectives
 Optimising utilisation of resources
 Making difficult decisions
 Solving complex problems
 Ensuring success of the business
 Improving productivity
 Overcoming competition
 Developing human resources

19. Importance for Society
 Utilises society’s resources properly
 Integrates interest of various groups of society
 Provides goods and services
 Generates employment
 Career opportunity
 Promotes social change
 Protects social up lift ment
 Protects socio – cultural values
 Contributions to environment protection

20. Importance for the Nation Economy
 Proper utilisation of natural physical resources
 Proper utilisation of human resource
 Encourages capital formation
 Contributes to national planning
 Balanced economic development
 Eradicates poverty
 Contributes to the prosperity of nation
 Contribution of economic growth in developing
economies