UNIT 1

INTRODUCTION TO MANAGEMENT

According to George R Terry, “management is a distinct process consisting of planning,

NATURE OF MANAGEMENT

1. MANAGEMENT IS AN ACTIVITY:
Management is a process of organized activity which is concerned with the
efficient use of resources of production. Resources include men, material and money in
the organization.
2. IT IS A PURPOSEFUL ACTIVITY:
It is concerned with the achievements of an objectivity through its functions
such as planning, organizing, staffing, directing nad controlling. Objectives may be
explicitly in the organization.
3. IT IS CONCERNED WITH THE EFFORTS OF A GROUP:
Management is concerned with the management of people and not the
direction of things. It inspires and motivates workers to put forth their efforts to the
maximum extend.
4. MANAGEMENT IS GETTING THINGS DONE:
Management is the art of getting things done through and with people in
formally organized groups. In other words a manager does not do any operating work
himself but gets it done through others.
5. IT APPLIES ECONOMIC PRINCIPLES:
Management is the art of applying the economic principle that underlies the
control of men and material in the enterprise under consideration.
6. INVOLVES DECISION MAKING:
Management involves decision making relating to various aspects of the
business. It is said that management is the decision making process and the decisions
are involved in all the functions of the management.
7. IT COORDINATES ALL ACTIVITIES AND RESOURCES:
It is concerned with the co-ordination of all the activities and resources
through its various functions to attain the stated objectives.
8. IT IS A UNIVERSAL ACTIVITY:
 Managers, irrespective of the enterprise in which they are working and their
places in the organization structure, make use of the management principles.
9. IT IS INTANGIBLE:
It is abstract and cannot be seen with the eyes. It is evidenced by the quality
of the organization and thus the results such as increased productivity and increased
morale of the subordinates etc.
10. MANAGEMENT IS BOTH A SCIENCE AND ART:
It has developed certain principles and laws which are applicable to any
group activity. It is also an art because it is concerned with the application of knowledge
for the solution of organizational problems.
11. MANAGEMENT IS A PROFESSION:
Gradually management is becoming a profession, because there are
established principles of management which are being applied in science.

SCOPE OF MANAGEMENT
1. SUBJECT MATTER OF MANAGEMENT:
It consists of various management functions such as planning, organizing,
staffing, directing, and controlling.
2. FUNCTIONAL AREAS OF MANAGEMENT:
It consists of the following functions
 FINANCIAL MANAGEMENT
It includes cost control, budgetary control, financial planning,
management accounting and standard costing etc.
 PERSONNEL MANAGEMENT
It includes aspects such as recruitment training, transfers,
promotion, retirement, industrial relation and social security etc.
 PURCHASING MANAGEMENT
It consists of purchasing raw material, maintaining of records,
material control and social security etc.
 PRODUCTION MANAGEMENT
It deals with the aspect such as production planning, quality
control and inspection, production control techniques etc.
 MARKETING MANAGEMENT
It includes marketing of goods and service, price determination,
market research, sales promotion, advertisement, publicity etc.
 OFFICE MANAGEMENT
It is concerned with office layouts, staffing, equipments of office
etc
  MAINTANANCE MANAGEMENT
It relates to the proper care and maintenance of the building,
plant and machinery etc
 TRANSPORT MANAGEMENT
It includes parking, warehousing, and transportation by rail, road,
air etc.
3. MANAGEMENT IS AN INTERDISCIPLINARY APPROACH
For the correct and effective application of the principles of
management, a study of various other subjects such as economics, sociology,
psychology, statistics etc is required.
4. Management also includes scientific methods, human relations and qualitative
techniques.

MANAGEMENT AS AN ART, SCIENCE AND PROFESSION

To decide whether management is science, art or profession, one has to comprehend the
characteristics and definitions of science, art and profession and associate them with
management definition and traits.

Management as an Art:
Art is the experienced and personal utilization of subsisting information to accomplish solicited
outcomes. It can be procured via education, research and practice. As art is involved with the
personal utilization of data some kind of inventiveness and creativity is needed to follow the
fundamental systems acquired. The essential characteristics of art are as follows:

 The presence of theoretical knowledge: Art assumes the presence of specific academic
knowledge. Specialists in their particular fields have obtained specific elementary
postulates which are appropriate to a specific sort of art. For instance, the literature on
public speaking, acting or music, dancing is publicly acknowledged.
 Personalised application: The application of this primary information differs from
person to person. Art, hence, is a highly personalised notion.
 Based on custom and creativity: Art is practical. Art includes the creative practice of
subsisting intellectual knowledge. We know that music is based on 7 notes. However,
what makes the style of a musician different or distinctive is his performance of these
notes in an artistic way that is uniquely his own solution.

Management as a Science:
Science is an organised collection of knowledge that emphasises definite universal truths or the
action of comprehensive laws. The central characteristics of science are as follows:
  The organised body of knowledge: Science is a precise entity of knowledge. Its systems
are based on a purpose and consequence association.
 Universal validity: Scientific conventions have global genuineness and application.
 Systems based on experimentation: Scientific conventions are originally formed via
research and then tested via repeated trial and error under the regulated situations.

Management as a Profession:
The profession can be described as an occupation upheld by specific education and practice, in
which entry is limited. A profession has the following features:

 The well-defined theory of knowledge: All services are based on a well-defined form of
education that can be procured through education.
 Restricted entry: The entrance to a profession is defined through an examination or
through obtaining an educational degree. For instance, to become a chartered
accountant in India an aspirant has to clear a detailed examination regulated by the
Institute of Chartered Accountants of India (ICAI).
 Professional community: All professions are affiliated to a professional association
which controls entry, presents a certificate of training and expresses and supports a
system of government. To be qualified to study in India, lawyers have to become
members of the Bar Council which monitors and regulates their actions.

PRINCIPLES OF MANAGEMENT

The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work-
Henri believed that segregating work in the workforce amongst the worker will enhance the
quality of the product. Similarly, he also concluded that the division of work improves the
productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for
both the managerial as well as a technical work level.
2. Authority and Responsibility-
These are the two key aspects of management. Authority facilitates the management to work
efficiently, and responsibility makes them responsible for the work done under their guidance
or leadership.
3. Discipline-
Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy
and comprehensive. Employees good behaviour also helps them smoothly build and progress in
their professional careers.
4. Unity of Command-
This means an employee should have only one boss and follow his command. If an employee
has to follow more than one boss, there begins a conflict of interest and can create confusion.
5. Unity of Direction-
Whoever is engaged in the same activity should have a unified goal. This means all the person
working in a company should have one goal and motive which will make the work easier and
achieve the set goal easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly towards the interest of a company rather than
personal interest. Be subordinate to the purposes of an organization. This refers to the whole
chain of command in a company.
7. Remuneration-
This plays an important role in motivating the workers of a company. Remuneration can be
monetary or non-monetary. However, it should be according to an individual’s efforts they have
made.
8. Centralization-
In any company, the management or any authority responsible for the decision-making process
should be neutral. However, this depends on the size of an organization. Henri Fayol stressed
on the point that there should be a balance between the hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the hierarchy steps should be from the top to the lowest.
This is necessary so that every employee knows their immediate senior also they should be able
to contact any, if needed.
10. Order-
A company should maintain a well-defined work order to have a favourable work culture. The
positive atmosphere in the workplace will boost more positive productivity.
11. Equity-
All employees should be treated equally and respectfully. It’s the responsibility of a manager
that no employees face discrimination.
12. Stability-
An employee delivers the best if they feel secure in their job. It is the duty of the management
to offer job security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives in an
organization. It will help them to increase their interest and make then worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be supportive of
each other regularly. Developing trust and mutual understanding will lead to a positive
outcome and work environment.
This 14 principles of management are used to manage an organization and are beneficial for
prediction, planning, decision-making, organization and process management, control and
coordination.