Q. What is Management?

Definition: Management can be defined as the process of administering and controlling the
affairs of the organization, irrespective of its nature, type, structure, and size. It is an act of
creating and maintaining such a business environment wherein the members of the organization
can work together, and achieve business objectives efficiently and effectively.

Management acts as a guide to a group of people working in the organization and

coordinating their efforts, towards the attainment of the common objective.

In other words, it is concerned with optimally using the 5M’s, i.e. men, machine,
material, money, and methods and, this is possible only when there is the proper
direction, coordination, and integration of the processes and activities, to achieve
the desired results.

Henry Fayol, "To manage is to forecast and plan, to organize, to compound, to co-
ordinate and to control."

Harold Koontz says, "Management is the art of getting things done through and
within formally organized group."

The following definitions are suggested for clarity and

simplicity:

 Management—achieving objectives through others.

 Administration—managing the details of executive
affairs.
 Leadership—influencing people to accomplish desired
objectives.
Q. What are the Characteristics of Management

 Universal: All the organizations, whether it is profit-making or not, require

management, for managing their activities. Hence it is universal in nature.
 Goal Oriented: Every organization is set up with a predetermined objective
and management helps in reaching those goals timely, and smoothly.
 Continuous Process: It is an ongoing process that tends to persist as long as
the organization exists. It is required in every sphere of the organization
whether it is production, human resource, finance, or marketing.
 Multi-dimensional: Management is not confined to the administration of
people only, but it also manages work, processes, and operations, which makes
it a multi-disciplinary activity.
 Group activity: An organization consists of various members who have
different needs, expectations, and beliefs. Every person joins the organization
with a different motive, but after becoming a part of the organization they work
for achieving the same goal. It requires supervision, teamwork, and
coordination, and in this way, management comes into the picture.
  Dynamic function: An organization exists in a business environment that has
various factors like social, political, legal, technological and economic. A slight
change in any of these factors will affect the organization’s growth and
performance. So, to overcome these changes management formulates strategies
and implements them.
 Intangible force: Management can neither be seen nor touched but one can feel
its existence, in the way the organization functions.
Precisely, all the functions, activities and processes of the organization are
interconnected to one another. And it is the task of the management to bring them
together in such a way that they help in reaching the intended result.

Q. What are the Levels of Management?

1. Top-Level Management: This is the highest level in the organizational hierarchy,

which includes Board of Directors and Chief Executives. They are responsible
for defining the objectives and formulating plans, strategies, and policies.
2. Middle-Level Management: It is the second and most important level on the
corporate ladder, as it creates a link between the top and lower-level management.
It includes departmental and division heads and managers who are responsible
for implementing and controlling plans and strategies which are formulated by the
top executives.
3. Lower-Level Management: Otherwise called functional or operational level
management. It includes first-line managers, foremen, and supervisors. As
lower-level management directly interacts with the workers, it plays a crucial role
in the organization because it helps in reducing wastage and idle time of the
workers, improving the quality and quantity of output.

The three management levels form the management hierarchy, which represents
the position and rank of executives and managers in the chart.

Q: What are the Functions of Management

 Planning: It is the first and foremost function of management, i.e. to decide

beforehand what is to be done in the future. It encompasses formulating
policies, establishing targets, scheduling actions, and so forth.
 Organizing: Once the plans are formulated, the next step is to organize the
activities and resources, as in identifying the tasks, classifying them, assigning
duties to subordinates, and allocating the resources.
 Staffing: It involves hiring personnel for carrying out various activities of the
organization. It is to ensure that the right person is appointed to the right job .
 Directing: It is the task of the manager to guide, supervise, lead and motivate
the subordinates, to ensure that they work in the right direction, so far as the
objectives of the organization are concerned.
 Controlling: The controlling function of management involves a number of
steps to be taken to make sure that the performance of the employees is as per
the plans. It involves establishing performance standards and comparing them
with the actual performance. In case of any variations, necessary steps are to be
taken for its correction.
Coordination is an important feature of management which means the integration
of the activities, processes, and operations of the organization and the
synchronization of efforts, to ensure that every element of the organization
contributes to its success.

Administration: Administration is a process performing all collective effort, be it

public or private, civil or military, large scale otherwise, and in that of universal
nature it is a corporate effort, directed towards the realization of a consciously laid
down objective(s).

Q: What is the difference between management and administration?

There are many factors according to which administration can be distinguished

from management. These are as follows:

Management Administration
Nature of It puts into action the policies It is concerned with the
work and plans laid down by the determination of the objectives
administration and major policies of an
organization.
Type of It is an executive function. It is a determinative function
function
Scope It takes decisions within the It takes major decisions of an
framework set by the enterprise as a whole
administration
Level of It is a middle-level activity. It is a top-level activity
authority
Nature of It is a group of managerial It consists of owners who invest
status personnel who use their capital in and receive profits
specialized knowledge to fulfill from an enterprise
 the objectives of an enterprise.
Nature of It is used in business enterprises It is popular with government,
usage military, educational, and
religious organizations.
Decision Its decisions are influenced by Its decisions are influenced by
making the values, opinions, and beliefs public opinion, government
of the managers policies, social, and religious
factors
Main Motivating and controlling Planning and organizing
functions functions are involved in it functions are involved in it
Abilities It requires technical activities It needs administrative rather
than technical abilities

Q. What are the Characteristics of an Effective Manager?

1. Leadership
In order to be an effective manager, you need to be able to lead your employees in
an efficient manner. A lot of responsibility comes with being a manager, and being
able to lead a team is required.

2. Experience
If you don’t have experience working in a professional environment and leading a
team, it will be hard to step up as a manager. A great way to gain experience in a
management role is to volunteer, either within your field or with a nonprofit. Ask
to help manage and produce events, whether it’s raising money for an organization
or organizing an event.

3. Communication
Being able to communicate with your team is required when being an effective
manager. This not only means communicating job responsibilities and
expectations, it means listening to your team and working with them to produce
results within their position.

4. Knowledge
Experience as a manager is a must but so is knowledge. There are many different
degrees offered for managers, including a bachelor’s degree in business or
a master’s degree in leadership or project management. You can also get
a certificate in project management, entrepreneurship, ethics, or human resource
management.
5. Organization
If you aren’t organized in your position, there’s a good chance that the employees
you manage won’t be either. There are many resources online that can inspire you
to get organized. You can also buy a personal planner or download an app on your
phone that can remind you of meetings, tasks you need to complete every day, etc.

6. Time Management

Another key factor in being a successful manager is time management. If

you’re late every day, your employees might think it’s acceptable to also be

late. Time management is also important when it comes to prioritizing your

day, making sure you have time to communicate with your employees, and

accomplishing goals throughout the week.

7. Reliability

A manager that is leading a team has to be reliable. This means being available for
your employees, getting things done that you said you would, and supporting your
team however needed.

8. Delegation

If you don’t know how to delegate projects and tasks, your role as a manager will
be a lot more difficult. Don’t be afraid to ask your employees to help complete a
task. You might think it’s easier to do everything yourself, but this will add more
time to your already busy schedule, and you won’t be allowing your employees to
do what they were hired to do.

9. Confidence
To be an effective manager, you need to be confident in your abilities, experience,
and decisions. This doesn’t mean you have to be arrogant or feel that you’re better
than your employees. But you’re in a management role for a reason, so be proud
and be an inspiration to your team.

10. Respect for Employees

If you don’t respect your employees, there will definitely be tension in your
workplace. Be cognizant of their time and abilities, be able to listen and
communicate with them, and be a resource of knowledge and guidance.

Q. Five Qualities of Good Management

Managers not only supervise employees but must make important decisions that
directly affect the company. Employers desiring to hire managers must understand
the qualities that make up good management. Understanding these characteristics
allows companies to make good hiring decisions and helps managers understand
what is required of them.

1. Appreciation of Employees
Companies with good management teams understand the importance of respecting
and appreciating their employees. Appreciation can come in many forms, such
as saying thank you, monetary bonuses, paid time off, and other valuable rewards.
When managers appreciate their employees, it results in a boost in employee
morale. Satisfied employees value their jobs, are rarely absent from work, and
perform their duties with enthusiasm. Completing employee evaluations and
rewarding employees based on their performances is another way management can
show their appreciation.
2. Provide Necessary Resources
Good management provides employees with the resources necessary to
accomplish their tasks. Employees can suffer from a lack of motivation when
they are asked to complete duties and meet goals without receiving the proper
resources. Companies with good management properly train their employees in the
latest technology, ethical issues and teamwork. Good organizational management
believes in equipping their employees with the necessary skills and knowledge
needed to grow and maintain success for the business.
3. Being Generous with Knowledge
Management must possess the necessary knowledge to effectively compete in
their industry. Knowledge managers possess comes from the ability to learn
relevant information. Therefore, managers must stay current on issues regarding
their industry and organization. Managers must also be generous in sharing their
knowledge with employees and other managers.
4. Listens and Makes Good Decisions
Managers should take time to listen to their employees. At times, management
is willing to listen to the suggestions of valuable employees, but can brush off
employee complaints. Effective managers understand the importance of listening
to its employees. One reason is that it causes employees to feel as if their opinion is
valued. Another reason is that management can consider employee suggestions,
concerns and complaints when making decisions. The decisions made within an
organization should benefit the company and its employees.
5. Lead Employees and Delegate Tasks
Good management knows how to develop employees by focusing on their
strengths. In most cases, employees need to hear what they are doing right instead
of constantly hearing what they are doing wrong or their weak areas.
Also, an organization with good managers employs professionals who know how
to delegate tasks to subordinates. Successful organizations utilize teams and
individual contributions. A manager that delegates duties to employees shows that
workers are perceived as responsible and capable of fulfilling duties. Delegation
also allows managers to focus on more pressing issues that require a greater
expertise than what employees possess.
MANAGERIAL SKILLS
A skill is an individual's ability to translate knowledge into action. Hence, it is manifested in an
individual's performance. Skill is not necessarily inborn. It can be developed through practice
and through relating learning to one's own personal experience and background. In order to be
able to successfully discharge his role, a manager should possess three major skills. These are
conceptual skills, human relations skills, and technical skills.
Conceptual skill deals with ideas, technical skill with things, and human skill with people.
While both conceptual and technical skills are needed for good decision-making, human skills is
necessary for a good leader. Conceptual skill refers to the ability of a manager to take a broad
and farsighted view of the organization and its future, his ability to think in the abstract, his
ability to analyze the forces working in a situation, his creative and innovative ability, and his
ability to assess the environment and the changes taking place in it. In short, it is his ability to
conceptualize the environment, the organization, and his own job, so that he can set appropriate
goals for his organization, himself, and for his team. This skill seems to increase in importance
as a manager moves up to higher positions of responsibility in the organization.
Technical skill is the manager's understanding of the nature of the job that people under him
have to perform. It refers to a person's knowledge and 30 proficiency in any type of process or
technique. In a production department, this would mean an understanding of the technicalities of
the process of production. Whereas this type of skill and competence seems to be more important
at the lower levels of management, its relative importance as a part of the managerial role
diminishes as the manager moves to higher positions. In higher functional positions, such as the
position of a marketing manager or production manager, the conceptual component, related to
these functional areas becomes more important and the technical component becomes less
important.
Human relations skill is the ability to interact effectively with people at all levels. This skill
develops in the manager sufficient ability (a) to recognize the feelings and sentiments of others;
(b) to judge the possible actions to, and outcomes of various courses of action he may undertake;
and (c) to examine his own concepts and values which may enable him to develop more useful
attitudes about himself. This type of skill remains consistently important for managers at all
levels.
Table-2 gives an idea about the required change in the skill mix of a manager with the change in
his level. At the top level, technical skill becomes the least important. That is why people at the
top shift with great ease from one industry to another without an apparent fall in their efficiency.
Their human and conceptual skills seem to make up for their unfamiliarity with the new job's
technical aspects. Tables-2: Skill mix of different management levels:
 Top Management: Conceptual Skills
Middle Management: Human Relations Skills
Low Management: Technical Skills

Role Performed by Managers

1. Interpersonal Roles
Figurehead: In this role, every manager has to perform some duties of a ceremonial nature, such as
greeting the touring dignitaries, attending the wedding of an employee, taking an important customer to
lunch, and so on.
Leader: As a leader, every manager must motivate and encourage his employees. He must also try to
reconcile their individual needs with the goals of the organization.
Liaison: In this role of liaison, every manager must cultivate contacts outside his vertical chain of
command to collect information useful for his organization.
2. Informational Roles
Monitor: As a monitor, the manager has to perpetually scan his environment for information,
interrogate his liaison contacts and his subordinates, and receive unsolicited information, much of it as a
result of the network of personal contacts he has developed. Disseminator: In the role of a disseminator,
the manager passes some of his privileged information directly to his subordinates who would otherwise
have no access to it.
Spokesman: In this role, the manager informs and satisfies various groups and people who influence his
organization. Thus, he advises shareholders about financial performance, assures consumer groups that
the organization is fulfilling its social responsibilities, and satisfies government that the origination is
abiding by the law.
3. Decisional Roles
Entrepreneur: In this role, the manager constantly looks out for new ideas and seeks to improve his unit
by adapting it to changing conditions in the environment.
Disturbance Handler: In this role, the manager has to work as a firefighter. He must seek solutions to
various unanticipated problems – a strike may loom large a major customer may go bankrupt; a supplier
may renege on his contract, and so on.
Resource Allocator: In this role, the manager must divide work and delegate authority among his
subordinates. He must decide who will get what.
Negotiator: The manager has to spend considerable time in negotiations. Thus, the chairman of a
company may negotiate with the union leaders on a new strike issue, the foreman may negotiate with
the workers on a grievance problem, and so on. In addition, managers in any organization work with
each other to establish the organization’s long-range goals and plan how to achieve them. They also
work together to provide one another with the accurate information needed to perform tasks. Thus,
managers act as channels of communication with the organization.

SIGNIFICANCE OF MANAGEMENT:
Management is concerned with acquiring maximum prosperity with a minimum effort. Management is
essential wherever group efforts are required to be directed towards the achievement of common goals.
In this management-conscious age, the significance of management can hardly be overemphasized. It is
said that, anything minus management amounts to nothing. Koontz and O' Donnel have rightly observed
"there is no more important area of human activity than management since its task is that of getting
things done through others." The significance of management in business activities is relatively greater.
The inputs of labour, capital, and raw material never become productive without the catalyst of
management. It is now widely recognized that management is an important factor in the growth of any
country. The following points further highlight the significance of management:
1. Achievements of group goals: Management makes group efforts more effective. The group as a
whole cannot realize its objectives unless and until there is mutual cooperation and coordination among
the members of the group. Management creates teamwork and team spirit in an organization by
developing a sound organizational structure. It brings the human and material resources 44 together
and motivates the people the achievement the goals of the organization.
2. Optimum utilization of resources: Management always concentrates on achieving the objectives of
the enterprise. The available resources of production are put to use in such a way that all sorts of
wastage and inefficiencies are reduced to a minimum. Workers are motivated to put in their best
performance by inspiring leadership. Managers create and maintain an environment conducive to the
highest efficiency and performance. Through the optimum use of available resources, management
accelerates the process of economic growth.
3. Minimization of cost: In the modern era of intense competition, every business enterprise must
minimize the cost of production and distribution. Only those concerns can survive in the market, which
can produce goods of better quality at the minimum cost. A study of the principles of management helps
in knowing certain techniques used for reducing costs. These techniques are production control,
budgetary control, cost control, financial control, material control, etc.
4. Change and growth: A business enterprise operates in a constantly changing environment. Changes in
business environment create uncertainties and risk and also produce opportunities for growth. An
enterprise has to change and adjust itself in the ever-changing environment. Sound management molds
not only the enterprise but also alters the environment itself to ensure the success of the business.
Many of the giant business corporations of today had a humble beginning and grew continuously
through effective management.
5. Efficient and smooth running of the business: Management ensures efficient and smooth running of
the business, through better planning, sound organization, and effective control of the various factors of
production.
6. Higher profits: Profits can be enhanced in any enterprise either by increasing the sales revenue or
reducing costs. Increasing the sales revenue is beyond the control of an enterprise. Management by
decreasing costs increases its profits and thus provides opportunities for future growth and
development.
7. Provide innovation: Management gives new ideas, imagination, and visions to an enterprise.
8. Social benefits: Management is useful not only to the business firms but to society as a whole. It
improves the standard of living of the people through higher production and more efficient use of scarce
resources. By establishing cordial relations between different social groups, management promotes
peace and prosperity in society.
9. Useful for developing countries: Management has to play a more important role in developing
countries, like India. In such countries, productivity is low and resources are limited. It has been rightly
observed, "There are no under-developed countries. They are only under-managed ones".
10. Sound organization structure: Management establishes proper organization structure and avoids
conflict between the superiors and subordinates. This helps in the development of the spirit of
cooperation and mutual understanding, and a congenial environment is provided in the organization.

1. Division of Work:
Specialization allows the individual to build up experience, and to continuously improve his
skills. Thereby he can be more productive.
2. Principle of Authority and Responsibility:
Authority means power to take decisions. Responsibility means obligation to complete the job
assigned.
3. PRINCIPLE OF DISCIPLINE:
General rules and regulations for systematic working in an organization.
4. Principle of unity of command:
Employees should receive orders from one boss only.
5. Unity of direction:
All the efforts of the members and employees of the organization must be directed to one
direction which is the achievement of the common goal.
6. Subordination of individual interest to general interest:
Subordination of individual interest to general interest the interest of the organization must
supersede the interest of the individuals.
7. Principle of remuneration of persons:
Employees must be paid fairly or adequately to give them maximum satisfaction
8. Principle of centralization and decentralization:
Centralization refers to the concentration of power in a few hands. Decentralization means even
distribution of power at every level
9. Principle of scalar chain:
Means line of authority or chain of superiors from highest to lowest rank
10. Principle of Order:
Principle of Order It refers to the orderly arrangement of men and materials a fixed place for
everything and everyone in the organization
11. Principle of Equity:
Principle of Equity Fair and just treatment to employees.
12. Stability of tenure of personnel:
Stability of tenure of personnel No Frequent termination or transfer.
13. Principle of Initiative:
Principle of Initiative Employees must be given the opportunity to take some initiative in making
and executing a plan.
14. Principle of spirit De Corps:
The principle of Esprit De Corps Means union is strength.

Scientific Management

■ Scientific Management is one of the earlier classical school of thought.

■ Propounded by F W Taylor.
■ Scientific management refers to the application of science to management.
Definition
“Scientific management means knowing exactly what you want men to do and seeing that they do
it in the best and the cheapest way.”

Principles of Scientific Management

■ Science not Rule of Thumb:
Scientific investigation should be used for taking managerial decision rather than basing
decision on opinion or rule of thumb.
■ Harmony, Not Discord:
• Under factory system manager serve as link between owner and workers.
• Exist a possibility of class conflict between managers and workers.
• Taylor emphasized complete harmony between management and worker.
■ Co-operation, Not Individualism:
• Complete co-operation between labour and management to achieve the best possible result.
• Taylor believed that the basic interest of workers and management is the same.
• Extension of principle Harmony, not discord.
• Equal division of work and responsibility.
 ■ Development of each and every person to his/her greatest efficiency and prosperity:
• Scientific management stood for worker development.
• Right men should be engaged in the right job.
• Worker should be provided with training.
• Worker should be scientifically selected.