MANAGEMENT : DEFINITIONS OF MANAGEMENT

 Management is an art of getting things done though people–Mary Parker Follet

 Tomanageistoforecastandplan,toorganize,tocommand,toco-ordinateandto Control – Henry Fayol
 Management is the art of knowing exactly what you want your men to do and then seeing that
they do it in the best and the cheapest way. – F.W Taylor
 Management is the creation and maintenance of an internal environment in an
enterprisewhereindividualsworkingingroupscanperformefficientlyandeffectively towards the
attainment of group goals, it is an art of getting the work done through and with people in
formally organized groups – Koontz and O Donnel

NATURE OF MANAGEMENT
1. It is a Universal Activity: Management is relevant in every sphere of activity. It is relevant in
army, government, private household work etc. the work can be done in a more systematic manner
with the application of the techniques of management. The material and human resources can be
effectively handled and the goal can be attained with maximum efficiently.
2. It is goal oriented: Management focuses attention on the attainment of specific objectives. For
Ex. a business may aim for a particular level of sales. This can be achieved by proper forecast of
sales by planning production by fixing the targets.
3. It is an Intellectual activity: the practice of management requires application of mind and
intelligence. Every work needs to be properly planned and Execute work has to be assigned to
different Individuals and responsible have to be fixed on them. Ex. in a manufacturing un it
production finance and marketing are the important activities performed. It has to work in proper co-
ordination with the other departments. Then only objectives of the firm can be achieved.

It is a process: it is process consisting of various stages/ functions. Planning is the starting point of
management and control is its last stage.
1. Management Is both art and science: the practice ofscienceneedsknowledgeoftheory and
formulae. But the practice of art requires skill management is social science. It focuses attention
on the behavior of individuals and groups. The theoretical knowledge may not help always that
time they require skill. Ex if the workers in a factory demand more pay and threaten to go on
strike if their demand is not considered. Here the skill of the manager will help to avert the strike
then it’s theoretical.
 2. It is a social process: management deals with the behavior of individuals and groups. Ina work
place individuals work as a team. The behavior of an individual is bound to be different while he
is part of a group Eg.: an individual worker may be forced to join a strike program because of the
union.
3. It is an on going activity: it is a continuous process planning, organizing etc have unlimited use.
Management will exist as long as there are human activities.
4. It is intangible: it is invisible cannot be seen. But it can be felt.
5. Management is a Profession: like medical, law and engineering, management has also come to
be recognized as a profession.
Importance of Management:
1. Achievement of Group Goals: Management enables an enterprise to achieve its desired
objectives through proper planning and control. It decides what should be done and how. It lays
down the long term and short term goals keeping in mind the resources of the enterprise.
2. Optimum utilization of resources: Materials, machines and money are the physical factors of
production. The efficient use of these resources depends upon the efficiency and motivation of
workers. Management makes the workers efficient and motivate through training, supervision and
inspiring leadership. Managers guide and motivate workers towards best performance
 Fulfillment of social obligations: Sound management monitors the environment of business and
makes necessary changes in business policies and practices. So as to keep the customers and
workers satisfied.
3. Stability of Management it ensures the survival of an organization in a fast changing
environment. It coordinates the activities of different departments in an organization and monitors
team spirit amongst the personnel.
4. Human development Management improves the personality and caliber of people to raise their
efficiency and productivity. A good manager serves as a friend and guide to his subordinates. He
provides vision and confidence.
5. Meets the challenge of change Managers maintain a dynamic equilibrium b/w and enterprise and
its development through innovation and creativity.
6. Integrate various interests: Each person has his own interests. These interests are different in
nature. Management takes steps to integrate various interests to achieve the objectives of an
organization
7. Coordination and team spirit: All the activities of business are grouped into department wise;
management coordinates the activities of different departments and establishes team spirit to
achieve the objectives.

FUNCTIONSOFMANAGEMENT/MANAGEMENTPROCESS/ POSDCORB
1. Planning: Planning means forecasting or predicting the future activity in a specific manner or
structure. It is the basic function and essential for all the organization.
2. Organizing: It is collection or joining of all the resources available within the organization and
outside, in order to achieve the organizational goal with efficiency.
3. Staffing: It involves appointing the right man for the right job at the right time. The management
is to analyze the human resource, see if he is suitable for the job and accordingly allocate the work
in the organization.
4. Directing: It is showing the correct path or correct way to achieve the organizational goal within
the stipulated time.
5. Controlling: Controlling as a function involves regulating the person or examining the person
whether he is working in the right way or not. In order to achieve the common goal as efficient as
possible.
 6. Coordinating: It is a type of support function. It involves accumulating the work to achieve the
task.
7. Budgeting: It means allocation of there sources. It involves financial planning for the future
activities.
8. Reporting: It is a statement showing the various activities to the top management. It shows the
status of the work done.

LEVELS OF MANAGEMENT
A) Top Level Management: the top level management derives its powers and authority directly
from the owners of the enterprise. They are Board of Directors, Chairman, Managing Directors,
COO, CEO etc.
Functions
1. They are setting out the fundamental objectives of the enterprises.
2. They frame major policies for the business.
3. They design the strategies for the attainment of organizational objectives.
4. They appoint key managerial personnel for the middle management.
5. Develop master plans in areas of finance, human resource, technology, marketing and other
functions of organization.
6. To represent the business outside, particularly in discussing business problems with the
Government trade association and so on.
B) Middle Level Management: they are departmental managers (Head of Department) like
Production managers, Marketing managers, Personnel managers, Finance manager, Regional
manager and other managers.
Functions:
1. They play the role of a linking pin between top level management and the lowerlevel
management.
2. They explain the objectives, strategies, policies laid down by the top level management to the low
level management.
3. Communicates the problems, suggestions and view points of the lower management to the top
management.
4. They prepare the departmental plans.
 5. They submit reports on the performance at various departments to the top management.
6. They offer suggestions and recommendations to the top management for the betterment of overall
management of the enterprise.
C) Lower Level of Management: It is called as operating level management or supervisory level.
This is the level where actual operational work for the enterprise in the areas of production,
finance, marketing, personnel, etc is performed by workers. This level of management consists of
manger like supervisors, the foreman, the sales officers the accountants the sectional officers.
Functions:
1. They do day to day operational planning in view of the instructions given by the middle level
management.
2. Theyprovidenecessaryinstructionstooperatorsforthebestperformanceoftheir assigned jobs.
3. They supervise the work of operators to ensure that their performance is in accordance with the
standards laid down in plans.
4. They submit reports on the performance of operating staffs to the middle management.
5. Theyoperateasachannelofcommunicationbetweenthemiddlemanagementandthe operators.
6. The problems, suggestions and recommendations of operators are informed by them to the middle
management.
SKILLSOF MANAGEMENT
1. Technical Skills
2. Human Skills
3. Conceptual Skills
 Technical Skills: Technical skill is an imperative skill for managers at the lower level of
management. These people who guide and supervise work of operators under their subordination. E.g.
Production manager must know the type of raw materials to be used, the proportion the production
process and the knowledge of handling the various m/c.
 Human skills: The ability to tactfully deal with human beings and mould their behavior at work in
the desired manner to help attain the common objectives of the enterprises most
 Effectively and efficiently. It requires an understanding of human behavior and it is necessary for
motivating people.
 Conceptual Skills: It is concerned with concepts or ideas. Conceptual means ability to view the
enterprise as whole in totality. To analyze the implications of relevant external environmental factors
economic, social, political, technological etc. for the successful functioning of the enterprise.
CHARACTERISTICSOFQUALITY MANAGERS
Manager is a person who has the ability or strength to coordinate, motivate and guide all the
personnel working under him so as to make sure they attain the organizational goal in the most efficient
manner possible.
Qualities of a Good manager
1. Good Education
2. Technical Knowledge
3. Personality
4. Communication skills
5. Honesty
6. Positive thinking
7. Control Management
8. Motivation
9. Guide
10. Leadership qualities
11. Coordinate
12. Decision making (planning, forecasting)
13. Innovative
14. Good analysis
15. Risk taking
MANAGEMENTVS ADMININSTRATION
Administration Management
1) All the policies are made by the 1)Management has a main function of
Administration. implementing the decisions made by the
Administration.
2)They are the owners/proprietors of the 2) They are the managers of the
company.
company.
3)Conceptual, human skills are 3)Technical and human skills are more
necessary.
important here.
4)The main functions are planning and 4)The main functions are directing and
controlling. organizing.
5)Level of authority:
Administration mainly comprise of Top Management mainly carried on by
level management. Middle and lower level management.
6)Administration is thus more 6)While management may change
permanent during
in nature. The course of running the organization.
7) Objective:
They are mainly interested in They actually work for remuneration,
 Profitability thus they direct their efforts
 Sales volume towards the
Attainment of goal.
8)They don’t take part in the day today 8)Managers take part in the day today
Activity of the organization. activity.
9)Administration is the thinking process. 9)While the management are the doing
process.

ROLES OF A MANAGER

Mintzberg has identified ten roles of a manager which are grouped into three categories.
1. Interpersonal Roles
a) Figure head : Manager performs symbolic duties required by the status of his office, making
speeches, bestowing honors, welcoming official visitors; distributing gifts to retiring employees are
Examples of such ceremonial and social duties
b) Leader :The manager relationship with his own subordinates. The manager sets an Example
legitimizes the power of subordinates and brings their needs in accord with those of his organization.
c) Liaison: It describes a manager’s relationship with the outsiders Eg. Government, industry
groups.
 2. Information Roles
a) Monitor: Seeks and collects information to obtain thorough understanding of organization and
environment Eg. Reading periodicals
b) Disseminator: Transmits information received from outsiders or insiders to other organization
members Eg. forwarding mail.
c) Spokesman: Transmits information to outsiders on organization plans, Policies, actions Eg.
board meetings , handling mail.
3. Decisional roles
a) Entrepreneur: an initiate change adapting to the environment and supervises Design of
organization. Improvement projects as opportunities arise. Prepares strategies

B) Disturbance handler: Responsible for corrective action when organization faces unexpected
crisis.

c) Resources allocator :responsible for allocation of human monetary and materials resources Eg.
scheduling , requests.
D) Negotiator: Responsible for representing the organization in bargaining and negotiations with
others.
EVOLUTION OF MANAGEMENT: PRE SCIENTIFIC MANAGEMENT ERA
1. Robert Owen (1771- 1858) he advocated that workers should be treated as human beings, he has taken
efforts to improve working conditions in the factory reduce working hours, increase minimum wages,
provide meals to employees, allocate education provision , housing and other labor welfare facilities. His
main contribution is that the effective and good personnel management was essential part of manager’s
job since it pays dividends to the employer.
2. Charles Babbage (1792-1872):he was a professor of math’s of Cambridge university from 1828to
1839.He has suggested aspects like division of labor, work measurement, profit sharing and engineering
to improve the efficiency of management.
He has invent ed mechanical calculators which were called as“differential machine”.
He has emphasized in improving efficiency through the application of math’s and science in the operation
of factories.
3. Charles Dupin (1784-1873): he has emphasized systematic education in management
He was French engineer and formally tried to structure the subject matter of management. These
early contributors focused attention on managerial problems.
They have not presented any unified theory of management.
Systematic and scientific study of management started after1880.Due to the creation of joint stock
corporate organizational set up.

MANAGEMENTTHEORIES
 Classical Theories
 Taylor’s Scientific Management theory
 Fayol’s Administrative theory
 Weber’s bureaucracy theory
 Behavioural theories
 Human Relations theory
 Behavioural Science theory
 Modern Management theories
 Quantitative theory
 Systems theory
 Contingency theory

CLASSICAL THEORIES
Classical approach is the oldest formal school of thought which began around 1850 and continued in to the
1920s.Its mainly concerned with the increasing the efficiency of workers and organizations based on management
practices, which were an outcome of careful observation. Classical approach mainly looks for the universal
principles of operation in the striving for economic efficiency. Classical approach includes scientific.
Administrative & bureaucratic management

TAYLOR’S SCIENTIFIC MANAGEMENT THEORY

F.W. Taylor: He is known as the father of scientific management. He started his career as apprentice
(machinist)in a small machines hop in USAin1875and by his handwork he could go up to chief engineer
in the organization. Acc to him management “the art of knowing exactly what you want your meant to do
and seeing that they do it in the best and the cheapest way” ELEMENTS AND TOOLS OF
SCIENTIFIC MANAGEMENT
 Separation of planning &doing: Taylor emphasized the separation of planning aspect from actual
doing of the work. In other words planning should be left to the supervisor and the worker should
concentrate only operational work.
 Functional foremanship: Taylor introduced the concept of functional foremanship based on
specialization of functions. In this system, eight persons are involved to direct the activities of
workers. Out of these four persons are concerned with planning viz., route clerk, instruction card
clerk, time and cost clerk and disciplinarian. The remaining four persons are concerned with doing
aspect of the job, viz., speed boss, inspector, gang boss and maintenance foreman. It is against to the
principle of unity of command.
o Route clerk: his job is to determine the sequence of operations to be performed in any work.
o Instruction card clerk: he will prepare the necessary instructions pertaining to the work and
accordingly the workers will perform their duties.
o Time and Cost Clerk: he will frame the timetable for doing the various jobs. He will also
keep the necessary cost records.
o The persons who will work in the factory areas follows.
 Gang Boss: his duty is to keep all the materials and tools ready so that the workers can
start their work without any delay.
 Speed boss: he will ensure that each job is done well in time
 Repair Boss: he will keep all the tools and machines in the factory in perfect
condition.
 Inspector: his duty is to ensure that the work is done in accordance with standard laid
down by the planning department.
 Disciplinarian: to coordinate the work of all the even persons mentioned above.
 Job Analysis: It is useful to find out the one best way of doing the things. The best way of doing a job
is one which requires the least movements, consequently less time and cost. The best way of doing the
thing can be determined by taking up time –motion - fatigue studies.
o Timestudy involves the determination of time a movement takes to complete.
o Motion study involves the study of movements in parts which are involved in doing a job and
thereby eliminating the wasteful movements.
 o Fatigue study shows the amount and frequency of rest required in completing the work. Thus,
job analysis identifies the fair amount of a day’s work requiring certain movements and rest
periods to complete it.
 Standardization: As far as possible, standardization should be maintained in respect of instruments
and tools, period of work, amount of work, working conditions, cost of production etc.,. These things
should be fixed in advance on the basis of job analysis and various elements of costs that in
performing a work.
 Scientific Selection and Training of Workers: A worker should be given work for whichhe is
physically and technically most suitable like, education, work experience, aptitude, physical strength
etc.
 Financial Incentives: Financial incentives can motivate workers to put in their maximum efforts. If
provisions exist to earn higher wages by putting in extra effort, workers will be motivated to earn
more.
 Economy: The economy and profit can be achieved by making the resources more productive as well
as by eliminating the wastages.
8. Mental Revolution: Scientific management depends on the mutual co-operation between management
and workers. For this co-operation, there should be mental change in both parties from conflict to co-
operation
PRINCIPLES OF SCIENTIFIC MANAGEMENT:
 Replacing rule of thumb with Science: scientific management requires scientific study and analysis
of each element of a job in order to replace the old rule of thumb method. Decisions should be made
on the basis of facts rather than opinions and beliefs. Ex. a school admission.
 Harmony in group action
Scientific management enables efficient workers to earn more as payment is linked to output. As the
management is also benefited as a result of increased output, there exists harmonies relationship
between the workers and the management.
 Cooperation
Management can expect higher profits only if the workers work with maximum efficiency than the
management comes forward recognizes their efficiency and reward them.
 Maximum Output
More output enables the workers to earn more remuneration this both the management and the workers are interested
in maximizing protection under scientific management.
 Development of workers
The workers should be selected and trained in accordance with the requirements of the jobs.
Placement of workers will be done based on their capacities. Training enables the workers to perform
their duties with maximum efficiency.
HENRY FAYOL(1841-1925) GENERAL PRINCIPLES OF MANAGEMENT
1. Division of work: The total work to be done is divided into small parts, each entrusted to a particular
individual. As each individual performs only a particular activity, he becomes specialist in due course.
2. Authority and Responsibility: Authority is the official right of the manager. It comes to him
byvirtueofhisofficialposition.Responsibilityisthedutyonthepartofasubordinatetoaccount for the work done
by him.
3. Discipline: Fayol says that employees must follow the discipline by being obedient, by applying
themselves fully in the task undertaken by being energetic and leader must be efficient to enforce
discipline.
4. Unity of Command: An employee should receive orders from one superior only and is accountable to
him alone. If there are two superiors for an employee he will not know whom he should report to and
whose orders he should carry out first.
5. Unity of direction: Each group of activities having the same objective should have one head and one
plan, the efforts of all the members of departments must be directed towards the attainment of that
departmental target.
6. Subordination of Individual interest to common interest: The interest of the individual is should be
based on common interest. This should be maintained by constant supervision and fair agreement.
7. Remuneration of Personnel: Remuneration payable to the employees should be fair and should give
maximum satisfaction to both the employees and the employers. It should be based on cost of living,
financial position of the company etc.
8. Centralization: The authority at a particular place is centralization and dispersal of authority in
different places of the organization is known as decentralization. It is based on the size of the
organization.,
9. Scalar chain: it is chain of superiors ranging from the highest to the lowest level in the organization.
Every communication should follow the prescribed line of authority.

Gang Plank
If E wants to communicate anything to I, it will be route through DCBAFGH and if I wants to convey
any information to E, it will pass through HGFABCD. In such an arrangement there is scope for delay. So
to avoid delay E and I may establish direct contact with each other after obtaining permission from their
respective superior namely D & H.
10. Order: two types to order, material order and social order. Material order means everything in its
place, in order to avoid loss of material. Social order means the selection of the right man for the right
job.
11. Equity: it ensures fairness, kindness and justice in the treatment of employees by their managers. The
managers shall be impartial in their dealings with their subordinates.
12. Stability of Tenure of Personnel: it means that an employee shall not be shifted
unnecessarilyfromonejobtoanother.Anemployeeshouldbegivenenoughopportunitytolearn every aspect of
his work only then he will become an expert in his time of work.
13. Initiative: according to him the freedom to think and act is what initiative is. An employee who has
the freedom to think and act in an organization will show greater interest in his workand this will lead to a
higher level of job satisfaction.
14. Espirit De Corps: Union is strength, team spirit and co-operation among the members of an
organization are essential for its success.
MAX WEBER BUREAUCRACY THEORY

Max Weber(1864-1920), a German sociologist introduced the rational-legal authority system to manage the
business organizations. His model is characterized by

 Division of work
 Rules and regulations
 Hierarchy of authority
 Technical competence
 Recordkeeping
 Impersonal relations
BEHAVIOURALTHEORY

These theories focus on organizational goals along with satisfaction of human needs. Shift in focus from workplace
conditions to human side of the organization People- oriented approach substituted the production oriented
approach

Two important theories:

 Human relations theory

 Behavioural science theory
HUMANRELATIONS THEORY
ELTONMAYO: HAWTHRONE EXPERIMENTS

Illumination Experiments, Relay assemble test room Experiments, Interview programme, Bank wiring
group observations
The Hawthorne experiments were conducted in four stages. These are given below:

1. Illumination Experiments: the main objective of the illumination experiments was to study the
effect of the quality of lighting in the workroom on the efficiency of the workers. For this purpose
the workers were divided into two groups. One group of workers was made to work in a room
where lighting remained constant. The other group was made to work in a room where lighting
was varied. The experiments revealed the production increased in both the rooms and therefore
the quality of lighting had noimpact on the efficiency level of the workers.
2. Relay Assembly Test room experiments – these experiments were conducted in an assembly
department where telephone relay units were assembled. The object of the experiments was to
ascertain the relationship between working conditions and productivity. Those employed in the
department were all women and the work was repetitive one. A group of six women workers was
made to take in a separate room. As they were doing their work a series of changes were
introduced during the period of investigation. A new financial incentive plan was introduced to
the group that assured additional remuneration for an each worker depending on the collective
performance of the group. Therest periods during week werealso gradually increased. The workers
were alsopermittedtoleaveanhourearlier.Theywerealsogivenonefulldayholiday(on
 Saturdays). The study revealed that output of each individual and also that of the group increased
due to the changes introduced.
3. Interview program: a massive interview programmed was conducted covering morethan ten
thousand workers to find out their views on their jobs, working conditions , supervision etc. the
interview programmed revealed that the morale of the workers improved as they had the
satisfaction that their views were heard. The complaints of the workers were not objective
statements of facts. They were reflections of a workers personal feelings and sentiments.
4. Bank wiring Group observations- the main aim of the study here is to find out the influence of
the group on a worker to restrict his output in spite of the existence of incentives for higher output.
The working conditions were not altered for the sake of the investigation. The group consisted of
fourteen workers and its task was to attach wires to the telephone equipment, soldering and to
check the quality of work. The incentivesgiven for the work were attractive. But neither an
individual worker not he group as a whole made an attempt to increase output. The group also did
not let any worker exceed his output.
Findings of Hawthorne Experiments: the following are the findings of the Hawthorne Experiments:

1. A social factors such as recognition, sense of belongings etc, influence production more than physical
factors.
2. Monetary incentives do not induce a worker, working in a group to increase output. He cares more for
the friendship and respect of his co-workers.
3. Workers do not react as individuals but as members of a group. No workers want to incur the ill will or
displeasure of his co – workers.
4. An individual in a group is a accepted as its leader by the other members. Suchan informal leader is
able to guide and influence the co-workers.
5. What encourages worker more is the feeling that his views and suggestions are heard by the
management.

BEHAVIOURALSCIENCETHEORY

It applies scientificvisiontohumanrelationstheory.ConceptsfromPsychology,Sociologyand
Anthropology are applied to study human behaviour

 Psychology–Study of individual behaviour

 Sociology–Studyofhumanbehaviour ingroups
 Anthropology - Study of human behaviour as individuals and members of
groups
Conceptsfromvariousdisciplinesaretestedbeforeapplyingtheminbusinessorganisatio
ns MODERN

 MANAGEMENTAS AN ART AS WELL AS SCIENCE

Management as a Science
1. Science is a systematized body of knowledge pertaining to a
particular field of inquiry.
2. It contains underlying principles and theories developed through
continuous observations experimentation and research
3. Theprincipleshaveuniversalapplicabilitytheycanbeappliedwithlogic.
4. The organized body of knowledge can be taught and learnt in the
classroom and outside, physics, mathematics etc are examples
It is a science because the principles and theories are now available in
every area of management.
Management as an Art:
Art involves the practical application of personal skills and
knowledge to achieve concrete results. Art is a personalized process and
every artist has his own style. Art is creative and success of an artist is
measured by the results he achieves. Art is practice based over a long period
of time Eg. A carpenter making furniture out of wood, goldsmith shaping
gold into ornaments are Examples.
Management is an art because
1. A Manager applies his knowledge and skills to co-ordinate the
efforts of his people like any other artist
2. Management seeks to achieve concrete results Eg. profits, growth,
social service etc ina given situation.
3. Every manager adopts his own approach towards problems
depending upon his perception and the environmental conditions.
4. Management requires a sufficiently long period of Experience in
managing. The managerial art can be refined through continuous practice.