Management is a universal phenomenon. It is a very popular and widely used term.

All organizations -
business, political, cultural or social are involved in management because it is the management
which helps and directs the various efforts towards a definite purpose.
According to F.W Taylor
“Management is knowing exactly what you want men to do and then seeing that they do it the best and
cheapest ways”.
According to Koontz and O’Donnell
“Management is an art of getting things done through and with the people in formally organized groups.
Nature of Management
The study and application of management techniques in managing the affairs of the organization
have changed its nature over the period of time.
1. Multidisciplinary- Management is basically multidisciplinary. This implies that, although
management has been developed as a separate discipline.
2. Dynamic nature of principle- Based on integration and supported by practical evidences,
management has formed certain principles. However, these principles are flexible in nature and
change with the changes in the environment in which an organization exists.
3. Relative, not absolute principles- Management principles are relative, not absolute, and they
should be applied according to the need of the organization.
4. Management - Science or Art- There is a controversy whether management is science or art.
However, management is both a science and art.
5. Management as profession: Management has been regarded as profession by many while many
have suggested that it has not achieved the status of a profession.
Characteristics of Management
Management is an activity concerned with guiding human and physical resources such that
organizational goals can be achieved. Nature of management can be highlighted as:
1. Management is Goal-Oriented: The success of any management activity is assessed by its
achievement of the predetermined goals or objective. Management is a purposeful activity. It is a
tool which helps use of human & physical resources to fulfill the predetermined goals.
2. Management integrates Human, Physical and Financial Resources: In an organization,
human beings work with non-human resources like machines. It brings harmony among the
human, physical and financial resources.
3. Management is Continuous: Management is an ongoing process. It involves continuous
handling of problems and issues. It is concerned with identifying the problem and taking
appropriate steps to solve it.
4. Management is all Pervasive: Management is required in all types of organizations whether
it is political, social, cultural or business because it helps and directs various efforts towards
a definite purpose.
5. Management is a Group Activity: Management is very much less concerned with individual’s
efforts. It is more concerned with groups.
FUNCTIONS OF MANAGEMENT
  According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, &
to control.
 Whereas Luther Gullick has given a keyword ‟POSDCORB‟ Planning, Organizing, Staffing,
Directing, Co-ordination, Reporting & Budgeting.
 Most widely accepted are functions of management given by KOONTZ and O‟DONNEL i.e.
Planning, Organizing, Staffing, Directing and Controlling.

1. Planning- It is the basic function of management. It deals with chalking out a future course
of action & deciding in advance the most appropriate course of actions for achievement of
predetermined.
According to KOONTZ, “Planning is deciding in advance - what to do, when to do
& how to do.
2. Organizing- It is the process of bringing together physical, financial and human resources
and developing productive relationship amongst them for achievement of organizational
goals.
According to Henry Fayol, “To organize a business is to provide it with everything
useful or its functioning i.e. raw material, tools, capital and personnel‟s”.
Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

3. Staffing- It is the function of manning the organization structure and keeping it manned. The
main purpose o staffing is to put right man on right job. According to Kootz & O‟Donell,
“Managerial function of staffing involves manning the organization structure through proper
and effective selection, appraisal & development of personnel to fill the roles designed un the
structure”. Staffing involves.
 Manpower Planning
 Recruitment, Selection & Placement.
 Training & Development.
 Remuneration.
 Performance Appraisal.
 Promotions & Transfer.

4. Directing- It is that part of managerial function which actuates the organizational methods to
work efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and
staffing are the mere preparations for doing the work. Direction has
following elements:
 Supervision
 Motivation
 Leadership
  Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the

act of watching & directing work & workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal
to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.
Leadership- may be defined as a process by which manager guides and influences
the work of subordinates in desired direction.
Communications- is the process of passing information, experience, opinion etc
from one person to another. It is a bridge of understanding.

5. Controlling- It implies measurement of accomplishment against the standards and correction

of deviation if any to ensure achievement of organizational goals. According to Koontz &
O‟Donell “Controlling is the measurement & correction of performance activities of
subordinates in order to make sure that the enterprise objectives and plans desired to obtain
them as being accomplished. Therefore controlling has
following steps:
 Establishment of standard performance.
 Measurement of actual performance.
 Comparison of actual performance with the standards and finding out deviation if
any.
 Corrective action.

Levels of Management‟ refers to a line of demarcation between various managerial positions in an

organization. The number of levels in management increases when the size of the business and
work force increases and vice versa.
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
Managers at all these levels perform different functions
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 it manages goals and policies for an enterprise. It devotes more time on
planning and coordinating functions.
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.
Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of supervisors,
foreman, section officers, superintendent etc.
Taylor’s Scientific Management:
The utility of scientific methods to management was first introduced by F.W.Taylor
Definition: Scientific management may be defined as the “Art of knowing exactly what is to be done and
the best way of doing it”.
Principles of Scientific Management: Taylor through his principles of scientific management initiated a
system in which there would be an effective and fruitful coordination and cooperation between
the management and the workers.
Principles of Scientific Management
1. Development of Science for each part of men’s job (replacement of rule
2. Scientific Selection, Training & Development of Workers
3. Co-operation between Management & workers or Harmony not discord
4. Division of Responsibility.
5. Mental Revolution
6. Maximum Prosperity for Employer & Employees.
Administrative Management Theory (Henry Fayol and Others): Henry Fayol is called as father of
Modern Management He established the pattern of management and the pyramidal form of
organization. He pointed out that technical ability is more dominating on the lower level of
management managerial ability is more important on the higher level of management.
There are 14 Principles of Management described by Henry Fayol.
1. Division of work
He recommended that work of all kinds must be divided & subdivided and allotted to
various persons according to their expertise in a particular area.

2. Authority & Responsibility

Authority refers to the right of superiors to get exactness from their sub-ordinates
whereas responsibility means obligation for the performance of the job assigned.

3. Discipline
According to Fayol, “Discipline means sincerity, obedience, respect of authority &
observance of rules and regulations of the enterprise”.

4. Unity of Command
A sub-ordinate should receive orders and be accountable to one and only one boss at a
time. In other words, a sub-ordinate should not receive instructions from more than one
person because.

- It undermines authority
- Weakens discipline
- Divides loyalty
- Creates confusion
 - Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
5. Unity of Direction
Fayol advocates one head one plan which means that there should be one plan for a group
of activities having similar objectives.

6. Sub-Ordination of Individual Interest to General Interest

7. Remuneration
The quantum and method of remuneration to be paid to the workers should be fair,
reasonable, satisfactory & rewarding of the efforts.

8. Centralization & De-Centralization

Centralization means concentration of authority at the top level. In other words,
centralization is a situation in which top management retains most of the decision
making authority.
Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.

9. Scalar Chain
Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate authority
to the lowest”
A Gang Plank is a temporary arrangement between two different points to facilitate
quick & easy communication.

10. Order
This principle is concerned with proper & systematic arrangement of things and people.

Material order- There should be safe, appropriate and specific place for every article
and every place to be effectively used for specific activity and commodity.
Social order- Selection and appointment of most suitable person on the suitable job.

11. Equity
Equity means combination of fairness, kindness & justice.

12. Stability of Tenure

Fayol emphasized that employees should not be moved frequently from one job position
to another i.e. the period of service in a job should be fixed.

13. Initiative
Workers should be encouraged to take initiative in the work assigned to them.

14. Espirit De’ Corps

It refers to team spirit i.e. harmony in the work groups and mutual understanding among
the members.
Motivation is the word derived from the word ‟motive‟ which means needs, desires, wants or drives
within the individuals.
 success
 recognition
 job-satisfaction
 team work