FUNDAMENTALS OF MANAGEMENT

CASE STUDY ON MANAGEMENT AND ITS FUNCTIONS

Background:
XYZ Corporation, a leading
manufacturing company, faced
declining productivity and
increasing employee turnover. The
company’s management team
recognized the need to revamp their
management practices to address
these issues.
Problem:
The company's outdated management practices led to low employee morale,
poor communication, and a lack of clear objectives, resulting in decreased
productivity and high employee turnover.
Solution:
The management team implemented a new management strategy focusing on the
following key features:
1. Planning: The management set clear, achievable goals for the company and
developed a strategic plan to meet these objectives. This included setting
specific targets for production, quality control, and employee
satisfaction.
2. Organizing: They restructured the organization to improve efficiency. This
involved redefining roles and responsibilities, streamlining processes,
and eliminating redundant tasks.
3. Leading: The management adopted a more participative leadership style,
encouraging employees to share ideas and contribute to decision-making.
This approach improved employee engagement and motivation.
4. Controlling: The company introduced performance metrics to monitor
progress towards goals. Regular feedback sessions were held to discuss
performance and make necessary adjustments.
 5. Staffing: XYZ Corporation focused on hiring the right talent and providing
ongoing training and development opportunities. This ensured that
employees had the skills needed to meet the company's goals.
6. Coordinating: Improved communication channels were established to
ensure that all departments were aligned with the company’s objectives.
This involved regular inter-departmental meetings and the use of
collaborative tools.
Results:
Within a year, XYZ Corporation saw a significant improvement in productivity
and a reduction in employee turnover. The clear planning and goal-setting
provided direction, while the focus on leadership and staffing boosted employee
morale. The new controlling and coordinating mechanisms ensured that the
company stayed on track to achieve its goals.
Conclusion:
This case study highlights the importance of effective management in improving
organizational performance. By focusing on the key features of management—
planning, organizing, leading, controlling, staffing, and coordinating—XYZ
Corporation was able to overcome its challenges and achieve its objectives.

INTRODUCTION TO MANAGEMENT:
"At its core, management is the backbone of any organization, guiding it from the
abstract realm (Ideas, thought that exists in the mind but are not physically present in the world
ex: theories, vision and strategies etc) of ideas to the tangible world of results.

Imagine an orchestra (large group of musicians) where each musician is a master of

their instrument, but without a conductor, their music would be chaotic (Completely
disorganized). Similarly, in any organization—be it a business, a school, a hospital,
or even a family—management acts as the conductor, harmonizing various
elements to achieve a common goal.
Management is both an art and a science. It is an art because it requires
creativity, intuition, and interpersonal skills to inspire and lead people. It is a
science because it involves systematic planning, data analysis, and strategic
decision-making. The blend of these two aspects makes management a dynamic
and vital process that adapts to the ever-changing environment.
In every facet of life, we encounter management.
 • When a teacher plans lessons to ensure students grasp complex concepts,
that's management.
• When a CEO sets a vision for a company, allocates resources, and motivates
employees to innovate, that's management.
• When a sports coach develops a game strategy, assigns player roles, and
adjusts tactics during a match, that's management.
• Even in our personal lives, when we plan our day, budget our expenses, or
coordinate a family event, we are practicing management.
Management is essential because it provides structure, direction, and purpose. It
turns resources—whether human, financial, or material—into results. Without
effective management, even the most talented teams and the best resources can
go to waste, leading to inefficiency, confusion, and failure to meet objectives.
Moreover, management is not limited to the top echelons (Ranks and levels in an
organization) of an organization. It permeates (spreads) every level, from the CEO to
the frontline workers. Everyone in an organization, knowingly or unknowingly,
engages in management when they set goals, organize tasks, make decisions, and
evaluate outcomes. Therefore, understanding and mastering management
principles is crucial for everyone.
In today’s fast-paced world, the role of management has become even more
critical. With rapid technological advancements, globalization, and evolving
consumer expectations, organizations must be agile, innovative, and responsive.
Effective management ensures that organizations not only survive but thrive
in this complex environment, turning challenges into opportunities and
driving sustainable success."

WHAT IS MANAGEMENT?
A universal concept that is needed in every organisation whether it is a business
organisation or a non-business organisation such as hospital school, etc., is known
as Management. An organisation’s success depends on the successful
functioning of its management and is always required whenever human and non-
human resources of an organisation work together for the accomplishment of any
objective. In present times, with an increase in the size and complexities of
modern organisations. the concept of management has gained immense
importance.
 https://www.youtube.com/watch?v=YMet7uSDHdo

Management is the art of getting things done through others.” – Follett

Management consists of getting things done through others. A manager is one
who accomplishes objectives by directing efforts of others.” – C.S. George

The traditional definitions of Management were vague as they were unable to

identify the functions, a manager has to perform to get things done through others.
Besides, these definitions gave an impression of the manipulative practice
(unethical and deceitful activities such as favouritism, keeping employees in dark, blaming
others, exaggerating achievements, false competition etc ) of management and ignored
the needs of workers and treated them as a means for getting results in any way.
MODERN DEFINITIONS OF MANAGEMENT
“Management is the creation of an internal environment where individuals
working in a group can perform effectively and efficiently for the achievement of
organisational goals.” – Koontz and Donnell
Management is defined as the process of planning, organising, actuating, and
controlling of an organisation’s operations in order to achieve coordination of the
human and material resources essential in the effective and efficient attainment
of objectives.”– Trewelly and Newport

MODERN CONCEPT OF MANAGEMENT

Management is a process through which an organisation designs and maintains
an environment in which individuals work together with the motive of achieving
organisational goals effectively and efficiently. The three essential elements that
come under the modern concept of Management are as follows:
1. Management is a ‘Process’.
2. Management requires Effective Performance.
3. Management needs Efficiency.
 • Management involves a series of int-related functions like planning,
organising, staffing, directing, and controlling, which makes it a process. Every
Process manager performs these functions to achieve goals.

• : Effectiveness in Management means achieving goals on time. In simple

terms, it aims at end result. For example, if an organisation achieves its sales
Effective target within time, it is said to be effective.
Performance

• Efficiency in Management means doing tasks correctly and with minimum

cost. It is not enough to just complete the task on time, it should be accurate
Needs also. Besides, management also aims at using its resources efficiently as it
Efficiency reduces the cost of the firm ultimately resulting in higher profits.

CHARACTERISTICS OF MANAGEMENT

1. Continuous Process: Management is a continuous process. It means that the

process of business management goes on until the company exists, as it helps in
achieving the organisational goals. Every manager of an organisation has to
perform the different functions of management in a series (planning, organising,
staffing, directing, and controlling).
2. Goal-oriented: Every organisation has a set of predetermined goals or
objectives that it aims to accomplish during its existence. Every organisation has
different goals. Hence, management helps these organisations in fulfilling their
goals by utilising the given limited resources in the best optimum manner. For
example, If the objective of Airtel is to add a billion Airtel Xtreme customers in
a year, then all of its managerial activities will be directed toward the achievement
of this objective.
3. All Pervasive: The process of business management is universal in nature.
Every organisation, whether small scale, large scale, economic, social, etc., uses
the process of management at every level or stage. Besides, the activities involved
in the management of an organisation are common for all whether it is a social,
political, or economic enterprise.
4. Multidimensional: Management is a multidimensional process as it does not
involve only one activity. The three main activities involved in management are
Management of Work, Management of People, and Management of Operations.
• Management of Work: Every organisation is set up to perform some work
or goal, and the management aims at achieving these goals or tasks. The
work of an organisation depends upon the nature of Business; for
example, work to be fulfilled in a hospital is treating patients, in a university
is educating students, etc.
• Management of People: People are the most essential assets of an
organisation and refer to human resources. It is the duty of the management
to get the work completed through human resources/people by making their
strengths effective and weaknesses irrelevant. Managing people have two
dimensions; viz., Taking care of a group of people and Taking care of
employees’ individual needs.
• Management of Operations: Operations are the activities of an
organisation’s production cycle, like purchasing inputs, converting them
into semi-finished goods, and finished goods. Simply put, Management of
operations consists of a mix of Management of Work and Management of
People, and decides what work has to be done, how it has to be done, and
who will do it.
5. Dynamic Function: There are different internal and external factors that affect
the working of an organisation. An organisation has to change and adapt itself on
the basis of changing environment to accomplish the organisational goals and
objectives. Hence, management is a dynamic function.
6. Management is a Group Activity: Management involves a group of people
performing managerial activities. The functions of management can be executed
only when every individual performs his/her role their respective status and
department. And as the result of management affects every individual and every
department of an organisation, it always refers to a group effort.
7. Management is an Intangible Force: Management is a function that cannot
be physically seen but its presence can be felt by watching the orderliness and
coordination in work environment and happy faces of the employees when the
task is completed.

FUNCTIONS OF MANAGEMENT
Planning:
• Involves setting objectives and determining the best course of action to
achieve them. Planning is about forecasting future conditions, analysing
various alternatives, and choosing the most appropriate path for reaching
organizational goals. This function sets the foundation for all other
management activities.
Organizing:
• Focuses on arranging resources (human, financial, physical, and
informational) in an efficient way to achieve the planned goals. It includes
defining roles, responsibilities, and the hierarchy within the organization.
Proper organizing ensures that resources are allocated effectively and that
the organizational structure supports the achievement of objectives.
Leading:
• Involves motivating, directing, and otherwise influencing people to work
hard to achieve the organization’s goals. Leadership is about guiding
employees, resolving conflicts, communicating effectively, and fostering a
positive work environment. This function is crucial for ensuring that the
team stays motivated and aligned with the organization’s goals.
Controlling:
 • The process of monitoring and evaluating the progress towards the
organization's goals. Controlling involves setting performance standards,
measuring actual performance, and taking corrective actions if necessary.
This function ensures that the organization stays on course and makes
necessary adjustments to achieve its objectives.
Staffing:
• Involves recruiting, selecting, training, and developing the employees
required to fulfil the organization’s objectives. Staffing ensures that the
organization has the right people in the right roles, with the appropriate skills
and competencies. It also includes managing employee performance and
providing opportunities for growth and development.
 SIGNIFICANCE OF MANAGEMENT
The management process is a series of continuous functions of arranging,
organising, directing, and assembling performed by managers. Management
increases cooperation and coordination among the workers in an organisation.
Significance of management are:

• Optimum utilisation of resources: Management arranges and utilises

physical and manual resource productivity by selecting the best alternative
use in industry from various benefits, leading to maximum utilisation of
limited resources. Management uses skills, professions, knowledge, and
services at an adequate level to avoid the wastage of resources.

• Management helps achieve goals: It provides direction to the individuals

working in the group by motivating team spirit to achieve goals.
Management arranges production and resources and organises them in a
goal-oriented method to achieve the goals. So, management and leadership
are managing and containing the factors that save cost, effort, and time.

• Reduces cost: Management helps get maximum profit with minimum input
through planning. It uses physical, financial, and manual resources
efficiently that provides the best results, and using this manner also helps in
cost reduction.

• Establishes equilibrium: Management helps the organisation survive in a

changing environment. The initial coordination of the organisation should
keep changing with the change in the external environment. Management
helps the organisation adapt to changes in both demands in the market and
changes in the needs of society. Management establishes equilibrium and is
irresponsible for the growth and survival of the organisation.

• Essential prosperity of society: Efficient management means better

economical production, which implies help in increasing the welfare of
people. A difficult task can be completed without any wastage of resources
with the help of good management. Management increases profit potential,
ultimately leading to profitable business and society.
 EVOLUTION OF MANAGEMENT THOUGHTS

This history of management is also known as Evolution of Management Thought or

Bateman and Snell have called it “Revolution of Management.
• If we look back in the history, around 1100 B.C. the Chinese practiced the four
management functions – planning, organizing, leading and controlling.
• Between 350 B.C. and 400 B.C., the Greeks recognized management as a separate art
and advocated a scientific approach to work.
• Before the birth of Christ, the romans decentralized the management of their huge
empire and many such development had taken place in those days.
Two historical management concepts
There are two important concepts required to be understood as a part of early management
concepts in history. They are: Division of labour and Economies of scale.
• Division of labour means divide the jobs into small part and do it as a repetitive activity.
This can give lots of economic advantage for the organization. This concept was argued
by Adam Smith in his book The Wealth of Nations in 1776.
• Economies of scale means when total volume of production increases, average cost of
a product reduces. This concept came in picture at the time of industrial revolution,
where industrial revolution means - advent of machine power, mass production and
efficient transportation.
Evolution of Management Thought - Introduction
There is a long history behind the evolution of management thought. Management is
considered as the significant feature of economic life of mankind throughout ages.
Management thought is regarded as an evolutionary concept.
Management thought has its origin in ancient times. It is developed along with other socio-
economic development & Modern management is based on the strong foundation laid down
by the management thinkers from the past events.

What Does Management Thought Means?

Management thought refers to the theory that guides management of people in the
organization. Initially management theories were developed out of the practical experience
of the managers in the industrial organization. Later, managers borrowed ideas from several
other fields of study like science, sociology, anthropology, etc.
The Concept of Evolution of Management Thought
To understand the entire concept of evolution of the management thought, the topic is divided
into 4 major stages, which are as follows:
• Pre-scientific management period
• Classical theory
• Neo-classical theory (or behaviour approach)
• Bureaucratic Model of Max Weber