Business management

Chapter 1

What is management

Management is the art of getting things done through others

Meaning

 Management is an activity this is necessary where is a group of people

working in an organisation,
 And management coordinate various resources like men, material ,
money, machines ect in best manner to achive organisational objectives

Concept of management

1. Functional concept

This concept says that there are some

2. Human relation concept

Management are considered group activity , many of peoples are involved. It is

because of their hard work that we achieve goals

3. Decision making concept

Here management are considered the tool of taking number of decisions

4. Productivity concept

This functions achieving objectives of management through effective using of

peoples

5. Integrations concept

Through this concept management integreat all the factors of productions

features of management/characteristics

1. Management is goal oriented process

Different organisations have different goals, so management has to take effort

to get objective of the business

2. Management has continues process

The process of management is a series of continues process but separate

functions like planning, organising, staffing, directing and controlling

3. Management is a group activity

Management required group activity and team work to achieve objective of the
business

4. Social process
Management should fulfil the expectations of society

5. Organisational process
Organisational resources include money, machine , material and man. The
management integrates all these resources for achieving organisational goals

6. Leadership activity

The management has lead to a team of workers

1. Management is an art

 Art is an applications of knowledge and personal skill to achive desired

result

 And , it is a theoretical body of knowledge and based on creativity.

 So we can say management is an art

2. Management is science

 Science is based on experimentation and observations and its systematic

body of knowledge so we cannot say management has not exact science

3. Management is an profession

 Profession is an occupation to get special knowledge and skill

 And it has well defined body of knowledge and code of conduct

 It has restricted entry , so we can say management is a profession

Importance of management

1. Management help in achieving group goals

Management is required for achieving group goals

2. Management increase efficiency

By achieving goals with minimum resources , management increase efficiency

3. Mgt help in achieving personal objectives

A manager of an organisations leads to team by motivating them to achieve

organisational objectives

4. It help in developing society

By providing high quality goods and services help in development of society

5. It help in reduce cost

Management help in reduce organisational cost

Levels of management
Top level

middle level

lower level
top level management

 It consist board of directors , chireman ceo ect

 They formulate policy and plans, coordinate control the activities of
various department

Middle level of management

 Middle level of management

 This level consist of branches of management , head of the department
ect
 Implement the policy decisions taken by the top management and take
department decisions
 Communicate top level management to lower level management

Lower level of management

 Lowest level of mangment

 This level include supervisors, salesman ect
 They planning day to day works and arranging material machinery tools
ect
 And sending reports to higher authorities

Approaches of management/ school of management

School of management thought means ideal thinking by different thinkers from

time to time
 1. Classical approach

 This explain that management how to reduce cost and increases

productions
 It does not considered employees related factors like motivations,
satisfactions ect
 They considered employees a tool of production and does not considered
social needs and job satisfations

1. Henry fayols functional management

 Henry fayol contribute 14 principal of management and classify various

functions of management like planning, organising, staffing, directing,
controlling

2. Fw Tylor scientific management

 Fw Tylor suggest scientific way for all the activities with in the
organisation like

Scientific method of various work

Scientific method of selections of employees

3. Max weber

 In this theory he explain formal relationship between employee and

employer

2. Neo classical approach

  In this approach more important is given to humen being with
the consideration of result oriented work

Human relation approach

 elot mayo considered father of human relation movement

 he mainly focus on people who were working in an organisations
 an organisation is a wonder full business plan, but without
employees its worthless and he often said that happy employee
is a more productive employee

Human behavioural approach

 the theory main focus on interpersonal relations
 motivation , leadership, communications, are the essential
element of school

3. Morden approach

 It is entirely new approach in provide some new

aspect in the management field
 In this aspect give more importance and job
satisfactions for employees

System method
 According to this school management is a system made up no of sub
system
 This school suggest an intagreated approach for solving managerial
problems
Urgency method

Scope of management

1. Subject matter of management

 It include managerial functions such as planning, organising ,

staffing, directing, controlling

2. Functional areas of management

1. Financial management: It deals with planning, controlling and

rising of financial resources

2. Personal management : it is concerned with the management of

people at work

3. Material managements: this is related with purchase of

materials , storage and control of materials

4. Production management : it is related with production planning ,

quality control , productions control ect

5. Transport management : it include packing , where housing,

transportations ect
Tylors scientific management

 Scientific Mgt means knowing exactly what you want men to

do and seeing that they do it in the best and cheapest way.

Principles of scientific Mgt

1. Science not rule of tumb

 The basic principle of scientific Mgt is the application of

scientific methods in solving business problems.

2. Harmony not discord

 This principle state that there should be complete harmony

between management and workers
 The management should share the part of surplus with the
workers and workers should contribute maximum work to
success of the organisations

3. Different price wage system

 It is refers to a wage system paying on the basis of work

 Efficient worker give high wage and in efficient worker give
less

4. Scientific work study

1. Time study
 It is the technique of determining the standard time required
to complete a job
 A stop watch is used to measure the time a movement or an
element of task taken to complete

2. Motion study

 Motion study refers to the study of movement ( man ,

material , machine) while doing a typical job
 It is eliminate unnecessary movements while doing a job

3. Method study

 The main objective of method study is to find out one best way
of doing a job

4. Fatigue study

 It is the technique of determining the time and frequency of

rest intervals required to complete a job

5. Co-operation, not individualism

 The essence of these principle that there should be complete

cooperation between management and workers
 Mgt should take workers into confidence and give them
participation in decision making process.
 Workers should not take unnecessary strike and un
reasonable demands
Fayols 14 principles of management

1. Division of work

 This principle states that divide work into small jobs and each
job assign a suitable person based on experience and
qualifications

2. Authority and responsibility

 Authority is the right of giving orders to subordinate

 Responsibility is the obligation of doing a job

3. Discipline

 Discipline is essential for the smooth running of business

4. Unity of command

 This principle says that an employee should receive orders

from one superior at a time

5. Unity of directions

 This principles states that There should be only one head and
one plan for a group of activities .

6. Subordinations of individual interest to group interest

 Every worker has some individual interest for working in a

company.
  company should take priority over the interests of any one
individual employee.

7. Remmunarations of employee

 The remunerations of employee should be fair both employee

and organisations

8. Centralizations and decentralizations

 The concentration of dicision making authority is called

centralizations
 dispersal among more than one person is called
decentralisation

9. scalar chain

 The chain of superiors ranging from the highest ranks to the

lowest ranks is called scalar chain
 In quick communications fayol suggest gangplang

10. Order
 This principle states that setting right thing in right place

11. Equity

 This principles states that the management should treat

everyone same without discrimination
12. Stability of personal

 Workers should not be shifted from their positions frequently.

They should be given reasonable time to show result

13. Espirit de crops

 Mgt should promote team spirit and harmony among

employees