2. Management is the art of knowing what you want to do and then seeing that it is
done in the best and cheapest way. 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.
DEFINITION OF MANAGEMENT
According to Henry Fayol,
"To manage is to forecast and to plan, to
organise, to command, to co-ordinate
and to control."Henri Fayol gave this
definition of management in his book
"Industrial and General Administration".
Henry fayol is regarded as the 'Father of
General Management' after his book named
'General and Industrial Management'. He is
also regarded as one of the early fathers of
human relations movement.
3. NATURE OF MANAGEMENT
• Universal Process
Wherever there is human activity, there is management. The principles of management are
applicable to all types of organization all over the globe. The organizationsneed not always be
formed with the motive of profit making. Without efficient management, the objectives of the
entity cannot be achieved.
• Factor of Production
Factors of production are classified into land, labor, capital and organization. It is highly
important that all the factors are into sync with each other and no factor is left alone. It is essential
for the optimum utilization of labor and capital.
• Goal-Oriented
The most important goal of all management activities is to accomplish the objectives of an
enterprise. The goals should be realistic and attainable. The success of management is measured
by the extent to which the established goals one achieved. The Management by Objectives (MBO)
has gained much popularity in recent times.
• Group Activity
All human and physical resources should be efficiently coordinated to attain maximum levels of
combined productivity. Without coordination, no work would be accomplished and there would be
chaos and stagnation. The employees though their representatives should also form part of the
planning commission to enforce a sense of confidence on the work flow.
4. • Dynamic Function
Management should be dynamic to adapt to the changing business environment. It should be equipped to face the changes in
the business environment brought about by economic, social, political, technological or human factors. The effects of
Globalization has forced management to be flexible to external factors.
• System of Authority
There are well-defined lines of command, the delegation of authority and responsibility at all levels of decision-making. This
is necessary so that each individual is aware from whom he should take order and in what order he could solve any grievance
or report any act.
• Social Science
Society influences managerial action and managerial actions influence society. Its manager’s responsibility that they should
also contribute towards the society by organizing sports competitions, do charity functions and other CSR (Corporate Social
Responsibility) activities. All individuals have different levels of sensitivity, understanding, attitude and the management
should take this into consideration.
• Management as an Art
Art is the experienced and personal utilisation of subsisting
information to accomplish solicited outcomes. It can be
procured via education, research and practice. The managers
have to apply their theoretical knowledge in the operations of
the organization. This application of primary information
differs from person to person. Hence, it is a highly
personalised notion.
Art includes the creative practice of subsisting intellectual
knowledge. The managerial persons have to be creative in
their approach and not stick to textual frameworks for solving
a dispute or an issue in an organization.
5. • Management is an Inter-Disciplinary Approach
For the correct implementation of the management, it is important to have knowledge of commerce, economics, sociology,
psychology, and mathematics. The managerial body has to be well versed with accounting, human resources,
microeconomics and macroeconomics to take the right decision.
• Agent of Change
The management techniques are commonly used as an agent of change. Any technological development or change in supply
chain can be brought about by management. It is highly needed that the top management is in contact with the lower level
management to understand the nature and requirements for such change.
• Management as a Science:
Science is an organized collection of knowledge that emphasizes definite universal truths or the action of comprehensive
laws. Its systems are based on a purpose and consequence association.
• Management as a Profession
The profession can be described as an occupation upheld by specific education and practice, in which entry is limited. All
services are based on a well-defined form of education that can be procured through education.
The entrance to a profession is defined through an examination or through obtaining an educational degree.
7. • 14 management principles by Henri Fayol are universally accepted
guidelines for managers to do their job according to their responsibility.
• Henri Fayol, a French industrialist, is now recognized as the Father of
Modern Management. In the year 1916 Fayol wrote a book entitled
“Industrial and General Administration”. In this book, he gave the 14
Principles of Management.
• Division of Work – When employees are specialized, output can
increase because they become increasingly skilled and efficient.
• Authority – Managers must have the authority to give orders, but
they must also keep in mind that with authority comes responsibility.
• Discipline – Discipline must be upheld in organizations, but methods
for doing so can vary.
• Unity of Command – Employees should have only one direct
supervisor.
• Unity of Direction – Teams with the same objective should be
working under the direction of one manager, using one plan. This
will ensure that action is properly coordinated.
8. • Subordination of Individual Interests to the General Interest – The
interests of one employee should not be allowed to become more
important than those of the group. This includes managers.
Remuneration – Employee satisfaction depends on fair remuneration for
everyone. This includes financial and non-financial compensation.
• Centralization – This principle refers to how close employees are to
the decision-making process. It is important to aim for an appropriate
balance.
• 9.Scalar Chain – Employees should be aware of where they stand in
the organization's hierarchy, or chain of command.
• 10.Order – The workplace facilities must be clean, tidy and safe for
employees. Everything should have its place.
• 11.Equity – Managers should be fair to staff at all times, both
maintaining discipline as necessary and acting with kindness where
appropriate.
• 12.Stability of Tenure of Personnel – Managers should strive to
minimize employee turnover. Personnel planning should be a priority.
• 13.Initiative – Employees should be given the necessary level of
freedom to create and carry out plans.
• 14.Esprit de Corps – Organizations should strive to promote team
spirit and unity.
9. Media management is seen as a business administration
discipline that identifies and describes strategic and operational phenomena and problems in the
leadership of media enterprises.
Media management contains the functions strategic management, procurement management,
production management, organizational management and marketing of media enterprises.
Need for Management
Management in all business and organizational activities is the act of getting people
together to accomplish desired goals and objectives using available resources
efficiently and effectively. Since organizations can be viewed as systems,
management can also be defined as human action (including design) to facilitate the
production of useful outcomes from a system. Therefore, management is needed in
order to facilitate a coordinated effort toward the accomplishment of the
organization’s goals.
10. Since most managers are responsible for more work than one person can normally
perform, a good manager delegates and integrates his or her work (or the work of
others). A manager does this by acting as a clear channel of communication
within the business that he or she serves. Good management is needed to inject
motivation, creativity, discipline, and enthusiasm into areas in which they either
don’t exist or they’re not necessarily wanted.
Need for Organization Management
• Organization management gives a sense of security and oneness to the
employees.
• An effective management is required for better coordination among various
departments.
• Employees accomplish tasks within the stipulated time frame as a result of
effective organization management.
• Employees stay loyal towards their job and do not treat work as a burden.
• Effective organization management leads to a peaceful and positive ambience at
the workplace.
12. 5 FUNCTIONS OF MANAGEMENT
Management in an organization plays a
dominant role to achieve the targeted goals
of profit maximization and increased market
share.
For this purpose, the manager
performs some fundamental functions.
They are called managerial functions
The father of principles of management
HENRY FAYOL, has classified
managerial functions as follows:
(a)Planning, (b) Organizing,
(c) Commanding, (c) Coordinating,
(d) Controlling
13. Planning
Planning is future-oriented and determines an organization’s direction. It is a
rational and systematic way of making decisions today that will affect the future of
the company. It is a kind of organized foresight as well as corrective hindsight. It
involves predicting of the future as well as attempting to control the events. It
involves the ability to foresee the effects of current actions in the long run in the
future.
Importance of planning
1. Helps in decision making
2. Facilities coordination of all activities
3. Can help to set clear objectives
4. Optimum utilization of resources
5. Minimizes risk
6. Provides path for action
7. Useful in setting the standards for controlling
14. Organizing
Organizing requires a formal structure of authority and the direction and flow of
such authority through which work subdivisions are defined, arranged and
coordinated so that each part relates to the other part in a united and coherent
manner so as to attain the prescribed objectives
Importance of organizing
1. Administration and operations is facilitated
2. Brings specialization
3. Defines job properly
4. Clarifies authority and responsibility
5. Scope of innovation
6. Growth and diversification is achieved
15. Staffing
Staffing is the function of hiring and retaining a suitable work-force for the
enterprise both at managerial as well as non-managerial levels. It involves
the process of recruiting, training, developing, compensating and evaluating
employees and maintaining this workforce with proper incentives and motivations.
Importance of staffing
1. Effective managerial function
2. Leads to effective utilization of
human resources
3. Improves efficiency
4. Long term effects
5. Provides job satisfaction
6. Maintains harmony and builds cordial
relationship
16. Directing
The directing function is concerned with leadership, communication, motivation,
and supervision so that the employees perform their activities in the most efficient
manner possible, in order to achieve the desired goals.
The leadership element involves issuing of instructions and guiding the
subordinates about procedures and methods.
The communication must be open both ways so that the information can be passed
on to the subordinates and the feedback received from them.
Importance of directing
1. Increases efficiency level
2. Means of motivation
3. Team spirt is creatImportance of directing
4. Increases efficiency level
5. Means of motivation
6. Team spirt is created
7. Achieves cooperation
8. Explores capabilities of individualed
9. Achieves cooperation
10. Explores capabilities of individual
17. Controlling
Controlling consists of those activities that are undertaken to ensure that the
events do not deviate from the pre-arranged plans. The activities consist of
establishing standards for work performance, measuring performance and
comparing it to these set standards and taking corrective actions as and when
needed, to correct any deviations.
Importance of controlling
1. Organizational goals are achieved
2. Psychological pressure
3. Acts as guide
4. Insures accuracy of standards
5. Orders and discipline is ensured
6. Coordination is facilitated
