Introduction Management

 One of the most important human activities is managing.

 Ever since people began forming groups to accomplish
aims they could not achieve as individuals, managing has
been essential to ensure the coordination of individual
efforts.
 As society has come to rely increasingly on group effort,
and as many organized groups have become large, the
task of managers has been rising in importance.
 The purpose of course is to promote excellence among
all persons in organizations, especially among managers,
aspiring managers, and other professionals.
 Why to Study Management?
The study of management builds the skills needed
in today’s workplace to succeed in:
 Becoming a partner in managing your
organization through participative management.
 Working in a team and sharing in decision
making and other management tasks.
The study of management also applies directly to
your personal life in helping you to:
 Communicate and interact with people every
day.
 Make personal plans and decisions, set goals,
prioritize what you will
 Why to Study Management?

 Society Needs Leaders and Team Players

 Be Successful in our community, religious,
social, professional, recreational and other
organizations.
 Become leaders for a — Just and
Understanding World
 Management is a critical element in the
economic growth of a country.
 Management is a dynamic & life giving element
in every organization.
 Definition of Management
Management is the process of designing and
maintaining an environment in which individuals,
working together in groups, efficiently accomplish
selected aims
 Marry Follet- Management is the art of getting
things done through people
 George R Terry- Management is distinct process
consisting of planning, organizing, actuating &
controlling performance to determine &
accomplish the objectives by the use of people
& resources
 Definition of Management…

 Koontz and O‘Donnel — Management is the

direction & maintenance of an internal
environment in an enterprise where individuals
working in groups can perform efficiently &
effectively towards the attainment of group
goals.
 F.W. Taylor —Management is the art of knowing
what you want to do and then seeing that it is
done in the best and cheapest way.
 Donald J Clough —Management is the art and
science of decision making and leadership.
 Definition of Management…
 John F Mee —Management is the art of securing
maximum results with minimum efforts so as to
secure maximum prosperity for employer and
employee and give the public the best possible
service.

 William Spriegal —Management is that function

of an enterprise which concerns itself with the
direction and control of various activities to
attain business activities
 Management: Its Nature & Purpose
 Management is the process of designing and maintaining
an environment in which individuals, working together in
groups, efficiently accomplish selected aims.
 This basic definition needs to be expanded:
 As managers, people carry out the managerial
functions of planning, organizing, staffing, leading,
and controlling.
 Management applies to any kind of organization.
 It applies to managers at all organizational levels.
 The aim of all managers is the same: to create a
surplus.
 Managing is concerned with productivity, which
implies effectiveness and efficiency.
 Management as an Activity
 Management is an activity just like playing, studying,
teaching etc.
 As an activity management has been defined as the
art of getting things done through the efforts of other
people.
 Management is a group activity wherein managers do
to achieve the objectives of the group.
 The activities of management are:
• Interpersonal activities
• Decisional activities
• Informative activities
 Management as a Process
Management is considered a process because:
 It involves a series of interrelated functions.
 It consists of getting the objectives of an
organisation and taking steps to achieve
objectives.
 The management process includes planning,
organising, staffing, directing and controlling
functions.
 Management as a process has the
following implications:
a) Social Process: Interactions among people.
b) Integrated Process: Management bring human,
physical and financial resources together to put
into effort.
c) Continuous Process: Management involves
continuous identifying and solving problems
d) Interactive process: Managerial functions are
contained within each other.
 Management as a Team

 As a group of persons, management consists of

all those who have the responsibility of guiding
and coordinating the efforts of other persons.
 These persons are called as managers who
operate at different levels of authority (top,
middle, operating).
 Management as an Economic Resource

 Like land, labour and capital, management is an

important factor of production.
 Management occupies the central place among
productive factors as it combines and coordinates
all other resources.
Management as an Academic Discipline

 Management has emerged as a specialised

branch of knowledge.
 It comprises principles and practices for effective
management of organisations.
 Management has become as very popular field of
study in institutes and offers a very rewarding and
challenging career.
 Management as a Group

 Management means the group of persons

occupying managerial positions.
 It refers to all those individuals who perform
managerial functions.
 All the managers, e.g., chief executive (managing
director),departmental heads, supervisors and so
on are collectively known as management.
 Who Are Managers?

Manager
Someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals
 Some Managers You May Know
 Steve Jobs and Tim Cook of Apple Computer;
 Bill Gates , Satya Nadella of Microsoft,
 Larry Ellison of Oracle
 Bill Ford, Jr., at Ford Motor Company;
 Jack Welch of General Electric and his successor,
 Jeff Immelt; Cisco's John Chambers; and
 The President of the United States (Barack Obama,
Trump) and the Prime Minister of India are also
managers.
 The Governor of the State is also a manager and, in
some ways.
 Types of Managers
 First-line Managers
– Are at the lowest level of management and
manage the work of non-managerial
employees
 Middle Managers
– Manage the work of first-line managers
 Top Managers
– Are responsible for making organization-wide
decisions and establishing plans and goals that
affect the entire organization
 What is an Organisation?
 An organisation is a social arrangement, which
pursues collective goals, controls its own
performance, and has a boundary separating it
from its environment.
 Organisations consist of individuals who work
together and are dependent on one another, what
brings them together is the common goal that
they are striving to achieve.
 What is an Organization?
 Organization defined as a group of people
working together to create a surplus.
 In business organizations, surplus is profit.
 In nonprofits organizations, such as charitable
organizations, surplus may be satisfaction of
needs.
 Universities also create a surplus through
generation and dissemination of knowledge as
well as providing service to the community or
society.
 What is an Organization?

 An Organization Defined

– A deliberate arrangement of people to

accomplish some specific purpose

 Common Characteristics of Organizations

– Have a distinct purpose (goal)

– Are composed of people

– Have a deliberate structure

 Characteristics of Management
The critical analysis of the definitions, the following
characteristics of management evolve.
1. Management is a continuous process:
 The process of management consists of
planning, organizing, directing and
controlling the resources to ensure that
resources are used to the best advantages of
the organization.
 A single function alone cannot produce the
desired results.
 Management involves continuous planning,
organizing, directing and controlling.
 Characteristics of Management…
2. Management is an art as well as science:
• Management is an art in the sense of
possessing managing skill by a person.
• Management is science because certain
principles, laws are developed which are
applicable in place where group activities are
coordinated.
3. Management aims at achieving predetermined
objectives:
• All organizations have objectives that are laid
down.
• Every managerial activity results in
achievement of these predetermined
objectives.
 Characteristics of Management…
4. Management is a factor of production:
 An enterprise produce goods or services
using resources like land, labour, capital,
machines etc.
 These resources themselves cannot realize
the organizations goals.
 The goals are achieved when these are
effectively coordinated by the entrepreneur.
 In case of small enterprises an individual can
do such type of job where as in large
enterprises the coordination job is done by
management.
 Therefore, management is a factor of
production.
 Characteristics of Management…
5. Management is decision-making:
 Decision-making is selecting the best among
alternative courses.
 Decision-making is an important function of
a manager.
 Whatever a manager does, he does it by
making decisions.
 The success or failure of an organization
depends upon the quality of decision.
 A manager must make a right decision at
right time.
 Characteristics of Management…
6. Universal application:
 The principles and concepts of management
are applicable to every type of industry.
 The practice of management is different from
one organization to another according to
their nature.
7. Management is needed at all levels:
 The functions of management are common
to all levels of organization.
 The functions of planning, organizing,
directing, controlling, decision-making are
performed by top level as well as lower level
supervisors.
 Characteristics of Management…
8. Management aims at maximum profit:
 The resources are properly utilized to
maximize profit.
 Maximizing the profit is the economic
function of a manager.
9. Dynamic:
 Management is not static.
 Over a period of time new principles,
concepts and techniques are developed and
adopted by management.
 Management is changed accordingly to the
social change.
 Characteristics of Management…
10. Management as a career:
 Today management is developed as a career
focused on specialization.
 Marketing management, finance
management, personal management,
industrial management, production
management, quality management are some
of the specializations in management.
 Specialists are appointed at various positions
of the organizational hierarchy.
 Hence management is career.
 Characteristics of Management…
11. Management is a profession:
 Management is a profession because it
possesses the qualities of a profession.
 The knowledge is imported and transferred.
 The established principles of management
are applied in practice.

12. Management is a discipline:

 Discipline refers to the field of study having
well defined concepts and principles.
 Classifying management as disciplines
implies that it is an accumulated body of
knowledge that can be learnt.
 Characteristics of Management…
 Thus, management is a subject with
principles and concepts.
 The purpose of studying management is to
learn how to apply principles and concepts at
right circumstances, at the right time to
produce desired result.
 Nature of Organization
 It allocates tasks and responsibilities to its employees.
 It educates and notifies its employees about the rules
and regulations and procedures, of the organisation,
expectation of the company from them in respect of
their jobs and performance.
 It makes the optimum use of technology and other
resources required to run an organisation.
 It collects relevant information essential for problem
solving and decision-making and also makes an attempt
to efficiently convey the information to its employees.
 It exerts power and control on the employees so that
they make maximum effort to meet their shared
 Nature of Management
Management is goal-oriented:
 It is a means to achieve certain goals.
 Management has no justification to exist without
goals.
 Management goals are called group goals or
organizational goals.
 The basic goal of management is to ensure
efficiency and economy in the utilization of human,
physical and financial resources.
 The success of management is measured by the
extent to which the established goals one achieved.
 Nature of Management Contd..
Management is a Social Process:
 Management is done by people, through people and
for people.
 It is a social process because it is concerned with
interpersonal relations.

Management is a Continuous Process:

 Management is an unending process as past
decisions always carry their impact for the future
course of action.
 Nature of Management Contd…
Universal in Nature:
 Management is universal in nature i.e., it exists
everywhere in universe wherever there is a human
activity.
 The basic principles of management can be applied
any where whether they are business or non-
business organization.

Multidisciplinary:
 Management is basically multidisciplinary.
 Though management has developed as a separate
discipline it draws knowledge and concepts of
various other streams like sociology psychology,
economics, statistics etc.
 Nature of Management Contd…
Dynamic:
 Management is dynamic in nature
 i.e. techniques to mange business changes itself over
a period of time.

System of authority:
 Authority is power to get the work done by others
and compel them to work systematically.
 Management can not perform in absence of
authority.
 Authority and responsibility depends upon position
of manager in organization.
 Conclusion from Nature of Management

 On the basis of these characteristics, management

may be defined as a continuous social process
involving the coordination of human and material
resources in order to accomplish desired objectives.
 It involves both the determination and the
accomplishment of organisational goals.
 Management as an Art or Science
Management is an Art:
 Management is considered as art, as art it requires
skills, knowledge, experience and creativity for
achievement of desired results.
Management is Science:
 Management is considered as science.
 Science tells about the causes and effects of
applications based on some specific principles and
procedures.
 Management also uses some principles and specific
methods formed by continuous observations.
 Management as an Art
 Art involves practical application of personal skills
and knowledge to achieve concrete results.
 Art is a personalised process and every artist has its
own style.
 Art is creative and the success of artist is measured
by the results he achieves.
 Art is practice based to achieve perfection
 Main element of an Art

The main element of art are:

• Personal Skills
• Practical Know how
• Result Orientation'
• Creativity
• Constant practice aimed perfection.
 Management is an Art because
 Like an artist, a manager applies his knowledge and
skills to coordinate the efforts of his people.
 Management seek to achieve concrete practical
results like profits, growth, social service etc.
 Like art management is creative. It brings out new
situations and converts resources into output.
 The success of manager is measured by the results
he achieves.
 Management is a personalised process. Every
manager adopts his own approach towards
problems depending upon his perception and
environmental conditions.
 Mastery in management requires a sufficiently
long period of experience in managing.
 Science
 Science is a systematised body of knowledge
pertaining to particular field of inquiry.
 Systematised means it establishes cause and
effect relationship between different variables.
 It contains principles and theories developed
through continuous observation, experimentation
and research.
 The principles have universal applicability.
 Science can be taught and learn in the classroom
and outside.
 Management is a Science
 Universally acceptance principles - Scientific
principles represents basic truth about a
particular field of enquiry.
 These principles may be applied in all
situations, at all time & at all places.
 Management also can be applied in all
countries irrespective of the time.
 contains some fundamental principles which
can be applied universally like the Principle of
Unity of Command
 i.e. one man, one boss.
 This principle is applicable to all type of
organization – business or non business.
 Management is a Science Contd…
 Experimentation & Observation - Scientific
principles are derived through scientific
investigation & researching
 i.e. they are based on logic.
 E.g. the principle that earth goes round the
sun has been scientifically proved.
 Management principles are also based on
scientific enquiry & observation.
 They have been developed through
experiments & practical experiences of large
number of managers.
 E.g. it is observed that fair remuneration to
personal helps in creating a satisfied work
force.
 Management is a Science contd…
 Cause & Effect Relationship - Principles of
science lay down cause and effect relationship
between various variables.
 E.g. when metals are heated, they are
expanded.
 The cause is heating & result is expansion.
 The same is true for management, therefore it
also establishes cause and effect relationship.
 E.g. lack of parity (balance) between authority
& responsibility will lead to ineffectiveness.
 If you know the cause i.e. lack of balance, the
effect can be ascertained easily i.e., in
effectiveness.
 Management is a Science contd…
 Similarly if workers are given bonuses, fair
wages they will work hard but when not
treated in fair and just manner, reduces
productivity of organization.
 Test of Validity & Predictability - Validity of
scientific principles can be tested at any time or
any number of times i.e., they stand the test of
time. Each time these tests will give same result.
 Moreover future events can be predicted with
reasonable accuracy by using scientific principles.
 E.g. H2 & 02 will always give H20.
 Management is a Science contd…
 Principles of management can also be tested for
validity.
 E.g. principle of unity of command can be
tested by comparing two persons - one having
single boss and one having 2 bosses.
 The performance of 1st person will be better
than 2nd.
 Objectives of Management
 Organizational objectives: Management is
expected to work for the achievement of the
objectives of the particular organization in which it
exists.
 Organizational objectives include:
a) Reasonable profits so as to give a fair return on
the capital invested in business
b) Survival and solvency of the business, i.e.,
continuity.
c) Growth and expansion of the enterprise
d) Improving the goodwill or reputation of the
enterprise.
 Objectives of Management Contd..
Personal objectives:
 An organization consists of several persons who
have their own objectives.
 These objectives are as follows:
a) Fair remuneration for work performed
b) Reasonable working conditions
c) Opportunities for training and development
d) Participation in management and prosperity of
the enterprise
e) Reasonable security of service.
 Objectives of Management Contd..
Social objectives:
 Management is not only a representative of the
owners and workers, but is also responsible to the
various groups outside the organisation.
a) Quality of goods and services at fair price to
consumers.
b) Honest and prompt payment of taxes to the
Government.
c) Conservation of environment and natural
resources.
d) Fair dealings with suppliers, dealers and
competitors.
e) Preservation of ethical values of the society.
f) Avoidance of anti-social practices such as black
marketing, smuggling, overcharging etc., to earn
profit.
 The Functions of Management
 Managers found that the analysis of management is
facilitated by a useful and clear organization of
knowledge.
 In studying management, therefore, it is helpful to
break it down into five managerial functions.
 Such as planning, organizing, staffing, leading, and
controlling—around which the knowledge that
underlies those functions can be organized.
 Thus, the concepts, principles, theories, and
techniques of management are grouped into these
five functions.
 The Functions of Management

 Five managerial functions around which

managerial knowledge organized is:
 planning,
 organizing,
 staffing,
 leading, and
 controlling.
 The Functions of Manager
The functions of managers provide a useful structure for
organizing management knowledge.

Planning:
 Planning involves selecting missions and objectives as
well as the actions to achieve them;
 It requires decision-making, which is choosing future
courses of action from among alternatives.
 There are various types of plans, ranging from overall
purposes and objectives to the most detailed actions to
be taken such as ordering a special stainless steel bolt for
an instrument or hiring and training workers for an
assembly line.
 The Functions of Manager
 No real plan exists until a decision—a commitment of
human or material resources has been made.
 Before a decision is made, all that exists is a planning
study, an analysis, or a proposal; there is no real plan.

Planning: Selecting missions and objectives as well as

the actions to achieve them, which requires decision-
making.
 The Functions of Manager…
Organizing

 People working together in groups to achieve some goal

must have roles to play, whether these roles are the ones
they develop themselves, are accidental or haphazard, or
are defined and structured by someone who wants to
make sure that they contribute in a specific way to group
effort.
 The concept of a role implies that what people do has a
definite purpose or objective;
 they know how their job objective fits into the group
effort and they have the necessary authority, tools,
and information to accomplish the task.
 The Functions of Manager…
 Everyone could do anything they wants to do, but activity
would almost certainly be more effective and certain
tasks would be less likely to be left undone if one or two
persons were given the job of gathering firewood, some
the assignment of getting water, others the task of
starting a fire, yet others the job of cooking, and so on.
 Organizing, then, is that part of managing which involves
establishing an intentional structure of roles for people to
fill in an organization.
 It is intentional in the sense of making sure that all the
tasks necessary to accomplish goals are assigned and, it is
hoped, assigned to people who can do them best.
Organizing  Establishing an intentional structure of
roles for people to fill in an organization.
 The Functions of Manager…
 It is then a management tool and not an end in and of
itself.
 Organising structure defines the tasks to be done, the
roles is established must also be designed in light of the
abilities and motivations of the people available.
 Designing an effective organization structure is not an
easy managerial task.
 Many problems are encountered in making structures fit
situations, including both defining the kinds of jobs that
must be done and finding the people to do them.
 The Functions of Manager…
Staffing
 Staffing involves filling & keeping filled the positions in the
organization structure.
 Staffing is done by:
• identifying workforce requirements;
• inventorying the people available; and
• recruiting, selecting, placing,
• promoting, appraising,
• planning the careers of, compensating, and
• training or otherwise developing both candidates and
current jobholders so that tasks are accomplished
effectively and efficiently.
Staffing  Filling and keeping filled the positions in the organization
structure.
 The Functions of Manager…
Leading
 Leading is influencing people to contribute to organizational and
group goals;
• it has to do predominantly with the interpersonal aspect of
managing.
 All managers most important problems arise from people—their
desires and attitudes as well as their behaviour as individuals
and in groups—and that effective managers also need to be
effective leaders.
 Since leadership implies followership, and people tend to follow
those who offer means of satisfying their own needs, wishes,
and desires, therefore leading involves motivation, leadership
styles and approaches, and communication.

Leading  Influencing people so that they will contribute to

organizational and group goals.
 The Functions of Manager…
Controlling
 Controlling is measuring and correcting individual and
organizational performance to ensure that events conform
to plans.
 It involves measuring performance against goals and
plans, showing where deviations from standards exist, and
helping to correct deviations from standards.
 In short, controlling facilitates the accomplishment of
plans.
 Although planning must precede controlling, plans are not
self- achieving.
 Plans guide managers in the use of resources to
accomplish specific goals;
 then, activities are checked to determine whether they
conform to the plans.
 The Functions of Manager…
Controlling  Measuring and correcting individual and
organizational performance to ensure that events conform to
plans.

 Control activities generally relate to the measurement of

achievement.
 Some means of controlling like the budget for expenses,
inspection records, and the record of labour hours lost are
generally familiar.
 Each of them measures and each shows whether plans are
working out.
 If deviations persist, correction is indicated.
 But what is corrected? Activities, through persons.
 The Functions of Manager…
 Nothing can be done about reducing scrap,
 for example, or buying according to specifications, or
handling sales returns unless one knows who is
responsible for these functions.
 Compelling events to conform to plans—means locating the
persons who are responsible for results that differ from the
planned action and then taking the necessary steps to
improve performance.
 Thus, outcomes are controlled by controlling what people
do.
 The Functions of Manager…
Coordination, the Essence of Managership
 Some authorities consider coordination to be a separate
function of the manager.
 It seems more accurate, however, to regard it as the
essence of managership, for achieving harmony among
individual efforts toward the accomplishment of group
goals.
 Each of the managerial functions is an exercise
contributing to coordination.
 Even individuals often interpret similar interests in
different ways, and their efforts toward mutual goals do
not automatically mesh with the efforts of others.
 It thus becomes the central task of the manager to
reconcile differences in approach, timing, effort, or
interest and to harmonize individual goals to contribute
to organizational goals.
 Productivity, Effectiveness, and Efficiency

 Another way to view the aim of managers is that

they must raise productivity.
 After World War II, the United States became
the world leader in productivity.
 But in the late 1960s, productivity growth began
to decelerate.
 Today, the urgent need for productivity
improvement is recognized around the world by
governments, industry, and universities.
 The Organization for Economic Cooperation and
Development (OECD) measures productivity
across nations.
Productivity, Effectiveness, and Efficiency…

 As of 2017, the OECD found that Luxembourg is the most

productive country as measured by the gross domestic
product per person.
 Ireland, Norway, Switzerland, and the United States
make up the next four most productive countries.
 Definition of productivity
 Successful companies create a surplus through
productive operations.
 Although there is no complete agreement on
the true meaning of productivity.
 Productivity is defined as the output-input ratio
within a time period with due consideration for
quality.
 It can be expressed as follows:
This image cannot currently be displayed.

Output
Pr oductivity 
Input
Productivity : The output-input ratio within a
time period with due consideration for quality.
 Definition of productivity…
 The formula indicates that productivity can be improved by:
1) increasing outputs with the same inputs,
2) decreasing inputs but maintaining the same outputs, or
3) increasing outputs and decreasing inputs to change the
ratio favourably.
 Companies use several kinds of inputs such as labor,
materials, and capital.
 Total factor productivity combines various inputs to arrive
at a composite input.
 In the past, productivity improvement programs were
mostly aimed at the worker level.
 Yet, The greatest opportunity for increasing productivity is
to be found in knowledge work itself, and especially in
management.
 Definitions of Effectiveness and Efficiency
 Productivity implies effectiveness and efficiency in
individual and organizational performance.
 Effectiveness is the achievement of objectives and
efficiency is the achievement of the ends with the least
amount of resources.
 Managers cannot know whether they are productive
unless they first know their goals and those of the
organization.
 Effectiveness  The achievement of objectives.
 Efficiency  The achievement of the ends with the least
amount of resources.
 Management and Administration
 Administration means overall determination of
policies, setting of major objectives, the
identification of general purposes and laying
down of broad programmes and projects.

 Management is concerned with the execution of

the policy, within the limits setup by
administration and the employment of the
organization for the particular objects before it.

 Administration is a thinking process and

management is doing process.
 Management and Administration
 Administration is function concerned with
determination of corporate policies while
Management is concerned with execution of
those policies.
 Management and Administration on the basis of Function

Basis Management Administration

Meaning Management is an art of getting It is concerned with
things done through others by formulation of broad
directing their efforts towards objectives, plans &
achievement of pre-determined policies
goals.
Nature Management is an executing Administration is a
function. decision making function.
Process Management decides who should Administration decides
and how should he do it what is to be done and
when it is to be done.
Functions Management is a doing function Administration is a
because managers get work done thinking function because
under their supervision the plans and policies are
determined under it.
Skills Technical and human skills Conceptual and Human
skills
Level Middle and Lower level function Top level function
 Management as Profession
 Profession may be defined as an occupation that requires
specialized knowledge and intensive academic
preparations to which entry is regulated by a
representative body.
 The essentials of a profession are:
 Specialized Knowledge - A profession must have a
systematic body of knowledge that can be used for
development of professionals.
 Every profession has a well defined body of knowledge
relevant to the area of specialization.
 In order to practice a profession, a person requires
specialized knowledge of its principles and techniques.
 A manager must have intensive devotion and
involvement to acquire expertise in the science of
management.
 Management as Profession…
Formal Education & Training –
 There are number of institutes and universities to
impart education & training for a profession.
 No one can practice a profession without going
through a prescribed course.
 For example, a CA cannot audit the A/C's unless
he has acquired a degree or diploma for the same
 Management as Profession…
Code of Conduct :

 Every profession formulates its ethical codes for

conduct of its members but there is no uniform code
of conduct for practicing managers.
 Members of a profession have to abide by a code of
conduct which contains certain rules and regulations,
norms of honesty, integrity and special ethics.
 Any member violating the code of conduct can be
punished and his membership can be withdrawn.
 The AIMA has prescribed a code of conduct for
managers but it has no right to take legal action
against any manager who violates it.
 Management as a Profession
Social Obligations:

 Profession is a source of livelihood but professionals

are primarily motivated by the desire to serve the
society.
 Their actions are influenced by social norms and
values.
 For example, a doctor earns his living from his
medical practice. But he does not treat his
patients only for the sake of money.
 Similarly a manager is responsible not only to its
owners but also to the society and therefore he is
expected to provide quality goods at reasonable
prices to the society.
 Management as a Profession
Representative Association:

 In every profession there is a statutory association

or institution which regulates that profession
 In management there is AIMA for the regular
exchange of knowledge and experience.
 However, this association does not have the
statutory power to regulate the activities of
managers.
 Membership of this association is not compulsory in
order to become a manager.
 Management as a Profession

The essential features of profession are as follows:

(i) Well defined body of knowledge
(ii) Restricted entry
(iii) Service motive
(iv) Code of Conduct
(v) Representative professional association
 Difference Between Management &Profession

 Management does not restrict the entry into

managerial jobs to people with a special
academic degree.
 No minimum qualifications have been prescribed
for managerial personnel.
 No management association has the authority to
grant certificates of practice or to regulate entry
into management careers.
 Difference Between Management & Profession

 Few managers have uniform background in terms

of education and experience.
 The management associations have no legal right
to enforce their code of conduct.
 There is no single group to which the majority of
the managers belong and whose authority is
recognised by law as a sanction.
 Managers are known by their performance and
not mere degrees.
 Management Skills
 In modern business the job management has
become very difficult therefore several skills are
required to manage successfully a large
organization in a dynamic environment.
 Four Categories of Skills
 Technical,
 Human,
 Diagnostic and
 Conceptual skills.
Management Skills
 Management Skills
Technical skills:
 Technical skills refer to the ability and knowledge
in using the equipment, technique and
procedures involved in performing specific tasks.
 These skills require specialized knowledge and
proficiency in the mechanics of particular job.
 For example Ability in programming and
operating computers, for instance, a technical
skill.
 Management Skills
Diagnostic skills:
 The ability to visualize most appropriate response to a
situation.
 Diagnostic skills include the ability to determine by
analysis and examination the nature and
circumstances of particular conditions.
 Used for investigating problems and having a solution.
Managers should determine and know the cause of a
certain problem.
 It is the ability to cut through unimportant aspects
and quickly get to the heart of the problem.
 Diagnostic skills are probably the most difficult ones
to develop because they require the proper blend of
common sense and intelligence.
 Management Skills
Human skills:
 Human skills consists of the ability to work
effectively with other people both as individual
and as members of a group.
 These are required to win cooperation of others
and to build effective work teams.
 Human skills are reflected in the way a manager
perceives his superiors, subordinates and peers.
 the ability to communicate with, understand, and
motivate both individuals and groups.
 Management Skills
Conceptual skills
 Conceptual skills are used to analyze complex
situations.
 Conceptual skill is the cognitive ability to see the
organization as a whole and the relationship among
its parts.
 Managers need the mental capacity to understand
how various functions of the organization
complement one another, how the organization
relates to its environment, and how changes in one
part of the organization affect the rest of the
organization
 Conceptual skills are mostly required by the top-level
management because they spend more time in
planning, organising and problem solving.
Levels of Management
 Top Level of Management
 It consists of board of directors, chief executive or managing
director.
 Top management lays down the objectives and broad policies of
the enterprise.
 It devotes more time on planning and coordinating functions.
 The role of the top management can be summarized as follows:
• It issues necessary instructions for preparation of
department budgets, procedures, schedules etc.
• It prepares strategic plans & policies for the enterprise.
• It is also responsible for maintaining a contact with the
outside world.
• The top management is also responsible towards the
shareholders for the performance of the enterprise.
 Middle Level Management
 The branch managers and departmental managers constitute middle
level.
 They are responsible to the top management for the functioning of
their department.
 They devote more time to organizational and directional functions.
 They execute the plans of the organization in accordance with the
policies and directives of the top management.
 They make plans for the sub-units of the organization.
 They participate in employment & training of lower level management.
 They interpret and explain policies from top level management to lower
level.
 They are responsible for coordinating the activities within the division
or department.
 It also sends important reports and other important data to top level
management.
 They evaluate performance of junior managers.
 They are also responsible for inspiring lower level managers towards
better performance.
 Lower Level Management
 Lower level is also known as supervisory / operative level of
management.
 It consists of supervisors, foreman, section officers,
superintendent etc.
 They are concerned with direction and controlling function of
management.
 Assigning of jobs and tasks to various workers.
 They guide and instruct workers for day to day activities.
 They are responsible for the quality as well as quantity of
production.
 They help to solve the grievances of the workers.
 They supervise & guide the sub-ordinates.
 They are responsible for providing training to the workers.
 They arrange necessary materials, machines, tools etc for getting
the things done.
 They prepare periodical reports about the performance of the
workers.
 They ensure discipline in the enterprise.
 They motivate workers.
 Characteristics of a Quality Manager
 Competent - Extremely competent in his or
profession, very knowledgeable and up to date
with the new programs of regulating the every
day affairs of a business.
 Self-motivation - the ability to get yourself going,
and take charge of what's next for you. Manager
should also be highly motivated, self driven, and
have a strong desire to help the company
become highly profitable and successful.
 Characteristics of a Quality Manager

 High quality manager should be very

independent, but also humble and willing to seek
the advice and instructions from people of higher
positions.
 Excellent Communication Skills - The best leaders
can effectively communicate in all forms, whether
it is written or verbal.
 Public Speaking - As a good manager, you should
know how to speak publicly, annunciating your
words, and concisely communicating your ideas,
whether in an interview, or addressing workers.
 Characteristics of a Quality Manager
 Power of Creativity- If a manager has the skill of
being creative and coming up with new ideas,
they will have a greater impact on the growth of
the company and will be more self-driven to help
the entire need of the business.
 Active Listening- One of the most important
communication skills is listening. Make sure you
are listening to your workers, superiors and
customers, and that you acknowledge them.
 Dependability/Reliability: A good manager
should be dependable and reliable.
 Principles of Management
 We all know that management is an art of
getting things done, by others.
 No one excels in this art like our mothers,
which is why they are the best managers
around.
 On a more serious note, it has often been
debated whether the study of management is
an art or science.
 One of the earliest scientists of management
Henri Fayol has laid down 14 principles of
Management to explain this elaboratively.
 Principles of Management
 Management is essential to any organization
that wishes to be efficient and achieve its aims.
 Without someone in a position of authority
there would be organizational anarchy with no
structure and very little, if any focus.
 It has been said that management has four
basic functions – planning, organizing, leading
and controlling.
 Common sense dictates that without these
principles of management being in place an
organization would have trouble achieving its
aims, or even coming up with aims in the first
place.
 Principles of Management
 A classic theory on the principles of
management was written by Henri Fayol.
 It seeks to divide management into 14
principles.
 Principles of Management
• Division of work
• Authority & responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordinate of individual interest to group interest
• Remuneration of personnel
• Centralization
• Scalar Chain
• Order
• Equity
• Stability of tenure of personnel
• Initiative
• Espirit De Corps
 Principles of Management
1. Division of work:

 In the management process produces more and

better work with the same effort as the various
functions of management cannot be performed
efficiently by a single proprietor or by a group
of directors which must be entrusted to
specialists in related fields.
 Principles of Management
2. Authority and responsibility:
 Imply that the manager should have the right to
give orders and power to exact obedience and
the manager also may exercise formal authority
and also personal power.
 Formal authority is derived from the official
position and personal power is the result of
Intelligence, experience, moral worth, ability to
lead, past service etc.
 Responsibility is closely related to authority and
an individual who is willing to exercise authority
must also be prepared to bear responsibility to
perforators etc., the work in the manner desired.
 Principles of Management…
3. Discipline:

 Absolutely essential for smooth running of the

business and discipline means the obedience of
authority, observance of rules of service and
norms of performance, respect for agreements,
sincere efforts of completing the given job,
respect for superiors.
 Best means of maintaining discipline are:
a) good supervisors at levels
b) clear and fair agreements between the
employees and the Employer.
 Principles of Management…
4. Unity of command:

 This principle requires each employee should receive

instructions about a particular work from one
superior only, if reported to more than one superior
would result in confusion and conflict of instructions.
5. Unity of direction:
 Each group of activities having the same objective
must have one head and one plan
 As distinguished from the principle of unity of
command, unity of direction is related to the
functioning of personnel.
 Principles of Management…
6. Subordination of individual interest to general interest:
 In any group the interest of the group should
supersede that of the individual; when these are
found to differ, it is the function of management to
reconcile them.

7. Remuneration of personnel:

 The remuneration and methods of payment should

be fair and afford the maximum satisfaction to
employee and employer.
 Principles of Management…
8. Centralization:
 Although Fayol does not use the term ‘Centralization
of Authority’, his principle definitely refers to the
extent to which authority is concentrated or
dispersed in an enterprise.
 Individual circumstances will determine the degree
of centralization that will give the best overall yield.
 Principles of Management…
9. Scalar chair:

 scalar chair is a line of authority, a ‘Chain of

Superiors” from the highest to the lowest ranks held,
while it is an error of subordinate to depart
‘needlessly’ from lines of authority, the chain should
be short-circuited when scrupulous following it
would be detrimental.
 Principles of Management…
10. Order:
 Breaking this principle into ‘Material order’ and ‘Social
Order’, it is the simple edge of “a place for everything
(everyone), and everything (everyone) in its (his)
place”.
 This is essentially a principle of organization in the
arrangement of things and persons.
11. Equity:
 Fayol perceives this principle as one of eliciting loyalty
and devotion from personnel by a combination of
kindliness and justice in managers dealing with
subordinates.
 Principles of Management…
12. Stability of tenure of personnel:
 Finding that such instability is both the cause and
effect of bad management, Fayol points out the
dangers and costs of unnecessary turnover.
13. Initiative:
 Initiative is conceived as the thinking out and
execution of a plan.
 Since it is one of the “Keenest satisfactions for an
intelligent man to experience”, Fayol exhorts
managers to “Sacrifice Personal Vanity” in order to
permit subordinates to exercise it.
 Principles of Management…
14. Esprit de corps:

 This is the principle that ‘union is strength’ an

extension of the principle of unity of command.
 Fayol here emphasizes the need for teamwork and
the importance of communication in obtaining it.