Definition :

Management is the art of getting things done through and with people in formally organized
groups. – Harold Koontz

To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.

– Henri Fayol

Management is a multi-purpose organ that manages business and manages mangers and
manages workers and work. – Peter Drucker

Characteristics of Management Principles

1. Continuous and never ending process --- A manager has to plan, organize all the
activities, guide his subordinates, control all the activities continuously throughout his
work life. Hence management is continuous and never ending process.
2. Getting things done through people --- Managers do not work themselves, but get
things done by his subordinates under a favorable and good working conditions in the
organization.
3. Multidisciplinary in nature --- it isd difficult job because the managers have to deal with
people with different emotions, feelings, aspirations etc. similarly same person will have
multiple emotions and expectations from the management of the organization. Hence
management is a mix of various subjects like Economics, Information technology,
psychology..etc.

4. Group activity --- Management is not an individual activity. It is always a group activity
where group (employees) efforts are used to achieve group (owners) objectives and to
satisfy the needs and wants of the group (consumers).
5. Follows established rules and principles --- certain principles are laid down that have to
be followed to maintain discipline, dision of work, wages, unity of command etc.

6. Situational in nature --- Plans, policies, procedures, decisions and programs of the
organization have to be changed as per the situational demand based on valid data.

7. Pervasive --- Management is necessary for any business activity irrespective of its size
and product or service.
Objectives of Management
1. Obtain maximum output with minimum input
2. Maximize employer’s and employee’s prosperity
3. Improve efficiency
4. Social justice and Hyman betterment

Importance of Management
1. Management helps in Achieving Group Goals:

Organisation consists of number of persons who work as a group. Management helps in achieving group
goals by giving a common direction to the individual effort.

For example, an employee’s objective is to earn maximum wages whereas the organisational objective is
to maximize output. Employees can achieve their objectives by maximizing output which helps in the
achievement of organisational goal too. This is what management strives to achieve.

2. Management Increases Efficiency:

The main aim of every manager in any organisation is to minimise the cost and to increase the output
through effective planning, organising, directing, staffing, controlling etc. Efficiency increases when we
use fewer resources (i.e. inputs) and achieve more benefit or output.

In any organisation, input resources are men, money, material and machinery. Management uses these
inputs efficiently by properly allocating them to reduce the wastage which ultimately decreases cost and
thus leads to higher profits.

3. Management Creates a Dynamic Organisation:

The environment in which an organisation works is subject to continuous changes and the people
working in the organisation resist change because they don’t want to move from a familiar and secure
environment to a new environment.

An organisation must change itself and its goal according the needs and aspirations of the environment.
Management helps to adapt to these changes in order to be successful. For example, to survive in the
Indian market, Mc Donald, a leader in fast foods, has made major changes in its menu

4. Management helps in Achieving Personal Objectives:

Management not only helps in achieving the organisational objectives but also the personal objectives
of the employees. With the help of self motivation and leadership techniques, management helps
individuals to develop spirit of cooperation, commitment and team spirit etc. that help them to achieve
their personal goals as well.
5. Management helps in the Development of the Society:

An organisation has many obligations towards different groups that constitute it. The process of
fulfilling all the objectives must help in growth and development of the organisation as well as
society.

For example, providing better quality goods and services, generating employment
opportunities, increasing the wealth of the nation, providing fair wages to the workers etc.
Effective management helps the organisation in fulfilling all these obligations.

6. Optimum Utilization of Resources - Management utilizes all the physical & human resources
productively. This leads to efficacy in management. Management provides maximum utilization
of scarce resources by selecting its best possible alternate use in industry from out of various
uses. It makes use of experts, professional and these services leads to use of their skills,
knowledge, and proper utilization and avoids wastage. If employees and machines are
producing its maximum there is no under employment of any resources.

7. Acts as a Tool of Personality Development -- Management is not the direction of things, but
the development of men. It makes the personality of the people. Management strives to
improve quality, efficiency and productivity.

Management Skills

Technical Skills Job specific knowledge and techniques to do work tasks

Human Skills Ability to work with other people either individually or in group

Conceptual Skills Ability to think and conceptualize about abstract and complex situations
Corporate social responsibility
 Business is an economic activity; it is carried out to earn profits.
 Corporate social responsibility is the firm’s obligation to take decisions and make actions
that will contribute to the welfare of the society and interests of the organization.
 Businessmen spend money on various non-profit aspects such as transport, education,
healthcare, developing gardens and parks for the wellness of employees and their
families.
 Organizations take inputs from the society and produce products or services which are
again delivered to the customers who are the part of the society. So the organizations
need to be careful in protecting the natural resources and interests of the society.

Towards Owners ---- Owners are the persons who own the business and they are responsible for the
profit or losses and they contribute the capital and bear the risks. The primary responsibility of the
business towards its owners is to,

 Should run the business efficiently

 Proper utilization of capital and resources
 Timely repayment of on capital invested

Towards Investors ---- Investors provide the capital by way of investment, it is in the form of
debentures, deposits and bonds etc. without investors companies may not be run successfully. The
investors included in this category are banks, public and financial institutions. The responsibilities of the
business towards its investors are,

 Providing assurance to their investment

 Paying interests timely to the investors
 Giving important updates to the investors
 Repayment of principle amount timely
Towards Employees ---- Business needs workers or employees to work for the organization . It is the
basic responsibility of the organization to take care of the interest of the employees and to fulfill their
needs. Employee satisfaction leads to the achievement of the organizational goals. The responsibilities
of the organization towards its employees or workers include,

 wages and salaries should be paid timely and regularly

 Providing proper welfare amenities and working conditions
 Providing better opportunities for the career prospects
 Providing Job security and social security
 Providing facilities like pension, provident fund, retirement benefits, and group insurance, etc
 Providing housing, canteen, transport, and creches etc
 Identifying and fulfilling training and developmental needs

Towards Suppliers ---- Suppliers are the persons who supply semi finished goods, finished goods, raw
materials and other items required by the firms. Market demand conditions can only be fulfilled on the
basis of the supply of the raw materials. So the suppliers are the part of the success of the business.
Managers should always notice the importance of the suppliers. Certain suppliers are called as
distributors because they supply finished products to the consumers. The responsibilities of business
towards these suppliers are,

 Giving regular orders to purchase goods

 Dealing with fair terms and conditions
 Maintaining reasonable credit period
 Dues should be paid timely

Towards Customers ---- The success of the business completely depends on the customer satisfaction
and customer loyalty. The responsibility of business towards customers is,

 Products and services must fulfill the needs of the customers

 Qualitative Products and services must be delivered
 Regularity in supply of goods and services must be maintained
 Prices of the goods and services should be fixed reasonable and affordable
 Procedure, advantages and disadvantages of the product and the use of the products must be
informed to the customers
 Organisations must provide after sales service
 Grievances of the customers must be settled quickly
 Fewer quality services, under weighing the product and adulteration must be avoided

Towards Competitors ---- Competitors always help the business in becoming more innovative and
dynamic. To become better than their competitor’s firms sometimes may follow unfair practices like
giving sales commissions to the agents, heavy discounts to the customers, false advertisements, bribing
the competitor’s employees to know the business secrets etc. The responsibilities of business towards
its competitors are,

 Not to offer high sales commission to distributors and agents

 Not to offer heavy discounts to the customers
 False advertisements should not be given to defame the competitors
 Should not bribe the competitor’s employees to copy their products and services
Towards Government ---- Firms should follow the rules framed by the government. These guidelines
are for the safety measures and for the benefit of the society. Responsibilities of the firms towards
government are,
 Following the guidelines are given by the government
 Fees, duties and taxes should be paid regularly and honestly
 Should not follow the restrictive trade practices

 Firms should follow the pollution control norms

 Should not follow the corruption and other unlawful activities

Towards Society ---- In almost all activities individuals, groups, organisations and families, etc interact
with each other and dependent on each other. The increase in per capital income increases the value of
the money and national income. With the increase in national income revenues of the business also
increases. Thus it has certain responsibilities towards the society which may be as follows,

 Firms should help the weaker sections of the society

 Organisations should protect the social and cultural values
 Firms should generate the employment by extending their business

 Should protect the environment by taking proper measures

 Natural resources and wildlife should not be harmed

Levels of Management
Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is
the ultimate source of authority and devotes more time on planning and coordinating
functions. The role of the top management can be summarized as follows -

 Top management lays down the objectives and broad policies of the enterprise.
 It issues necessary instructions for preparation of department budgets, procedures, schedules
etc.
 It prepares strategic plans & policies for the enterprise.
 It appoints the executive for middle level i.e. departmental managers.
 It controls & coordinates the activities of all the departments.
 It is also responsible for maintaining a contact with the outside world.
 It provides guidance and direction.
 The top management is also responsible towards the shareholders for the performance of the
enterprise.

Middle Level of 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. Their role can be emphasized as -

 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 coordinate the activities within the division or department.
 It also sends important reports to top level management.
 They evaluate performance of junior managers.
 They are also responsible for inspiring lower level managers towards better
performance.

Lower Level of 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. Their activities include -

 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 are also entrusted with the responsibility of maintaining good relation in the
organization.
 They communicate workers problems, suggestions, and recommendatory appeals etc to
the higher level management.
 They help to solve the grievances of the workers.
 They are responsible for providing training to the workers.
 They arrange necessary materials, machines 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.
 They are the image builders of the enterprise because they are in direct contact with the
workers.

Henry Mintzberg's Management Roles

Category Roles

Figurehead
Interperson Leader
al Liaison

Monitor
Information Disseminator
al Spokesperson

Entrepreneur
Disturbance
Handler
Resource
Allocator
Decisional Negotiator

Interpersonal Category
The managerial roles in this category involve providing information and ideas.
Figurehead – As a manager, you have social, ceremonial and legal responsibilities. You're
expected to be a source of inspiration. People look up to you as a person with authority, and as
a figurehead.
Leader – This is where you provide leadership for your team, your department or perhaps your
entire organization; and it's where you manage the performance and responsibilities of
everyone in the group.
Liaison – Managers must communicate with internal and external contacts. You need to be able
to network effectively on behalf of your organization.

Informational Category
The managerial roles in this category involve processing information.
Monitor – In this role, you regularly seek out information related to your organization and
industry, looking for relevant changes in the environment. You also monitor your team, in
terms of both their productivity, and their well-being.
Disseminator – This is where you communicate potentially useful information to your
colleagues and your team.
Spokesperson – Managers represent and speak for their organization. In this role you're
responsible for transmitting information about your organization and its goals to the people
outside it.

Decisional Category
The managerial roles in this category involve using information.
Entrepreneur – As a manager, you create and control change within the organization. This
means solving problems, generating new ideas, and implementing them.
Disturbance Handler – When an organization or team hits an unexpected roadblock, it's
the manager who must take charge. You also need to help mediate disputes within it.
Resource Allocator – You'll also need to determine where organizational resources are
best applied. This involves allocating funding, as well as assigning staff and other
organizational resources.
Negotiator – You may be needed to take part in, and direct, important negotiations within
your team, department, or organization.

Functions of Managament
01. Planning
Planning is a management process. It is the first step of management function. Planning is how to do a
work, when have to do this work, who will do this work and by whom will do this work. Planning means
the process of achieving goals, development and establishment. Planning means deciding how best to
achieve goals, profit and applying best strategies.

02. Organizing
Organizing is the second function of management. Organizing is a management process that refers to
the relationship between manpower, material, resources ( Men, Money, Machines, Material,
managerial personeel ) which are put together to achieve organizational goals. In organizing the
manager assigns work, fixes responsibilities, delegation of sufficient authority to the people to carry out
their responsibilities with proper co-ordination among the activities and personnel.

03. Staffing
Third function of management is staffing. Employees are the most important resource of any
organization. The right person to the right job is very important for a company because he can change
and ensure the organization future success. Staffing is like a function or term that refers recruitment,
selection, acquiring, training, appraising employees.

04. Directing
Directing is a process in which the managers instruct, guide and overview the performance of the
workers of a company to achieve goals. Directing is a very hard and heart task of management process.
It is the function where the actual work starts. Directing is a continuous process that runs its function at
top level and flows to the bottom with organizational hierarchy.

05. Communication
Communication is most essential element for the organization to have unity and understanding the
objectives, policies and programs of the top management for the success of the organization. Effective
communication is necessary to gather-share views, ideas, facts from-to the employees (top to bottom
and vice-versa).

06. Co-ordination
In organization, different types of work are performed by various departments and no single
department or group cannot achieve the goals if they doesn't work as a whole. Co-ordination is ensures
the unity of action among individuals, department and groups in carrying out the different tasks as to
achieve the organizational goals properly. The coordinating is only applies to groups efforts but there is
no need it when only individual is working.

07. Controlling
Controlling is the last step in the management functions process. The duty of manager to determine
whether organizational goals have been met. It is comparison of pre-determined with actual results
for identification of variances or deviations. If any identified corrective actions have to be taken to
improve the performance and to achieve the pre-determined results (quality , quantity, reaching goals…
etc)
Challenges of Management in new era

1. Impact of globalization on business

Managing people , plants, resources who work across borders in a particular organization is the
difficult task before the management. Communication with the diversified workforce, cultural
issues, different time zones are the serious problems management people have to deal with
who have their operating units away from the headquarters.

2. Technological revolution

Evolution of IT, change is inevitable to every organization. Hence all the organizations have to
adapt and use the latest technology of production to be the leaders in the market and grab the
maximum customer base. The management has the biggest challenge to motivate and train the
employees to use the better technology for effective and efficient output in their activities.

3. Managing across borders

Trading across borders is tough as the rules, regulations and laws laid down have to followed in
each and every step of the production, marketing, employment, wage payment, investment,
Existence and promotion of the organization. Managing people who work across borders have
to be managed effectively for the efficient output.

4. Managing the knowledge workers

In modern society, employee with high knowledge tends to move away from one organization
to other for his/her own career development. It is the challenge to the management to hold the
knowledge worker (highly skilled, experience and knowledge) for long term for the bright and
successful future of the firm. This can be achieved by satisfying the wants and demands in the
right time to retain him.

5. Renewing the workplace social and psychological contract

 In new era there is shift in people management approach from exploitation by the management.
Employee contract is taking new form of psychological contract where both employee and
employer should respect each other’s need.
6. Corporate social responsibility
The responsibility of the management to be socially responsible to various elements of the
society and surroundings where the organization exists. Every organization takes input from the
society and give output (product or service) to the society. Hence necessary measures should be
taken during the execution of all activities by the organization.

7. Creating new models of leadership

In today’s scenario and new challenges there is a need for new model of leadership in the
organization. Leadership will not only control the employees but rather thinks about
development, empowerment and transformation of people by addressing their issues of
diversity, cross culture. Etc.

8. Competing with low-cost labor

In this new era, labor is available at low cost and management want to find ways to minimize
overall cost of production.

9. Workforce diversity
Management have the biggest challenge to manage the diversified workforce who come from
various family backgrounds, culture, gender, geographical areas etc into one organization to
work together for achieving the objectives of the organization.
10. Manage new forms of organization
Virtual and flat forms of organizations are replacing the old and vertical form of organization
structures. Learning organizations are emerging where every employee need to learn the latest
skills and technology and upgrade himself to be prepared for future projects or tasks.

11. Ethical issues

Ethics and values have to maintained by every employee in the organization for its growth and
success. Both employee and management are equally responsible to practice of ethics.

12. Ecological issues

Every business organization need to have concern about the ecology and follow green
practices , incorporate strategies and measure to take care of the environment either by their products
or services .