UNIT-1

INTRODUCTION TO MANAGEMENT
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 that helps and directs the various efforts towards a definite purpose.
Management is the process of planning, organizing, leading, and controlling resources (human, financial,
material, and informational) efficiently and effectively to achieve organizational goals. It involves
decision-making, coordinating efforts, and utilizing available resources to optimize productivity and
success.

Definition: “Management is known exactly what you want men to do and then seeing that they
do it the best and cheapest ways”.
-F.W.Taylor
“Management is an art of getting things done through and with the people in formally organized
groups. It is an art of creating an environment in which people can perform and individuals and
can cooperate towards attainment of group goals”.
Koontz and O’Donell

Nature of Management

1. Goal-Oriented – Management aims to achieve specific objectives by aligning efforts and

resources effectively.
2. Continuous Process – It is an ongoing process that involves planning, execution, and
evaluation to adapt to changing circumstances.
3. Universal – Management principles apply to all types of organizations, including
businesses, government agencies, and nonprofits.
4. Multidisciplinary – It integrates knowledge from various fields such as economics,
psychology, sociology, and finance.
5. Dynamic and Flexible – Management adapts to changes in the internal and external
environment, including market trends, technology, and regulations.
 6. Human-Centered – It involves directing, motivating, and managing people, making it a
social and psychological process.
7. Decision-Making Process – Managers make strategic and operational decisions that
impact an organization’s performance and sustainability.
8. Requires Coordination – It ensures that different departments and employees work
harmoniously toward common objectives.

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 pre-
determined goals. For example, the goal of an enterprise is maximum consumer
satisfaction by producing quality goods and at reasonable prices. This can be achieved by
employing efficient persons and making better use of scarce resources.
2. Management integrates Human, Physical and Financial Resources: In an organization,
human beings work with non-human resources like machines. Materials, financial assets,
buildings etc. Management integrates human efforts to those resources. 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. E.g. the target of a company is maximum production. For
achieving this target various policies have to be framed but this is not the end. Marketing
and Advertising is also to be done. For this policies have to be again framed. Hence this is
an ongoing process.
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. Thus clubs, hospitals, political parties, colleges,
hospitals, and business firms all require management. Whenever more than one person is
 engaged in working for a common goal, management is necessary. Whether it is a small
business firm that may be engaged in trading or a large firm like Tata Iron & Steel,
management is required everywhere irrespective of size or type of activity.
5. Management is a Group Activity: Management is very much less concerned with
individual’s efforts. It is more concerned with groups. It involves the use of group effort to
achieve predetermined goal of management of ABC & Co. is good refers to a group of
persons managing the enterprise.

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’ where P stands for
Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for
reporting & B for Budgeting. But the most widely accepted are functions of management given
by Koontz and O’Donnel i.e. Planning, Organizing, Staffing, Directing and Controlling.

But the most widely accepted are functions of management given by Koontz and O’Donnel i.e.
Planning, Organizing, Staffing, Directing and Controlling.

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 pre-determined
goals. According to KOONTZ, “Planning is deciding in advance - what to do, when to do &
how to do. It bridges the gap from where we are & where we want to be”. A plan is a future
 course of actions. It is an exercise in problem solving & decision making. Planning is
determination of courses of action to achieve desired goals. Thus, planning is a systematic
thinking about ways & means for accomplishment of pre-determined goals. Planning is
necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is
an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

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”. To organize a business involves determining &
providing human and non-human resources to the organizational structure. 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.

Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behavior etc. The main purpose o staffing is to put right
man on right job i.e. square pegs in square holes and round pegs in round holes. 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 (estimating man power in terms of searching, choose the person and
giving the right place).
 ⮚ Recruitment, Selection & Placement.

⮚ Training & Development.

⮚ Remuneration.
⮚ Performance Appraisal.
⮚ Promotions & Transfer.

Directing
It is that part of the managerial function that actuates the organizational methods to work
efficiently for the achievement of organizational purposes. It is considered the 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 is the inert-personnel aspect of
management which deals directly with influencing, guiding, supervising, and motivating
subordinates for the achievement of organizational goals. 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 subordinates with zeal to work.
Positive, negative, monetary, and 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.

Controlling
It implies measurement of accomplishment against the standards and correction of deviation if
any to ensure achievement of organizational goals. The purpose of controlling is to ensure that
 everything occurs in conformities with the standards. An efficient system of control helps to
predict deviations before they actually occur. According to Theo Haimann, “Controlling is the
process of checking whether or not proper progress is being made towards the objectives and
goals and acting if necessary, to correct any deviation”. 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.

Interrelationship of Managerial Functions

The interrelationship of managerial functions refers to how the core functions of management
—planning, organizing, leading, and controlling—are interconnected and dependent on each
other to achieve organizational goals. These functions do not operate in isolation but work
together as a continuous cycle.
1. Planning and Organizing
 Planning involves setting objectives, strategies, and determining the course of action.
 Organizing follows planning by structuring resources, tasks, and responsibilities to
execute the plan.
 Example: A company planning to launch a new product must organize teams, allocate
budgets, and assign roles.
2. Organizing and Leading
 Organizing ensures that the right people and resources are in place.
 Leading (or directing) motivates employees to perform their assigned tasks effectively.
 Example: A manager organizes a sales team and then leads them through motivation and
guidance to achieve targets.
3. Leading and Controlling
  Leading involves influencing and guiding employees toward achieving goals.
 Controlling ensures that performance aligns with plans and takes corrective actions if
needed.
 Example: A manager leads a production team, and through controlling, they monitor
output quality and correct inefficiencies.
4. Controlling and Planning (Feedback Loop)
 Controlling provides feedback on performance, identifying areas for improvement.
 This feedback informs future planning, creating a cycle of continuous improvement.
 Example: If sales are lower than expected, management revises its marketing strategy in
the next planning phase.
Conclusion
The managerial functions are interdependent and work as a continuous process where each
function influences the others. Effective management ensures a smooth flow from planning to
controlling, leading to organizational success.

Levels of Management
The term “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. The level of management determines a chain
of command, the amount of authority & status enjoyed by any managerial position. The levels of
management can be classified in three broad categories:

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. The role of managers at all the three
levels is discussed below:
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 it manages goals and policies for an enterprise. It 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 contact with the outside world.
⮚ It provides guidance and direction.
⮚ The top management is also responsible to the shareholders for the performance of the
enterprise.

Middle Level of Management

The branch managers and departmental managers constitute the middle level. They are
responsible to the top management for the functioning of their department. They devote more
time to organizational and directional functions. In small organizations, there is only one layer of
middle-level of management but in big enterprises, there may be senior and junior middle-level
management. Their role can be emphasized as -

⮚ They execute the plans of the organization by 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 are responsible for coordinating the activities within the division or department.
⮚ It also sends important reports and other important data 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. According to R.C. Davis,
“Supervisory management refers to those executives whose work has to be largely with personal
oversight and direction of operative employees”. In other words, 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 relations in the organization.
⮚ They communicate workers' problems, suggestions, and recommendatory appeals, etc to
the higher level and higher level goals and objectives to the workers.
⮚ They help to solve the grievances of the workers.
⮚ They supervise & guide the sub-ordinates.
⮚ They are responsible for providing training to the workers.
⮚ They arrange necessary materials, machines, tools etc for getting 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.
Skills and Roles of Management
Managerial Skills
To effectively perform their duties, managers require a combination of technical, human, and conceptual
skills. These skills vary in importance based on the level of management (top, middle, or lower level).
A. Types of Managerial Skills
1. Technical Skills
o The ability to use specific knowledge, techniques, and tools related to a particular field
(e.g., accounting, engineering, marketing).
o More important for lower-level managers who directly supervise operational tasks.
2. Human (Interpersonal) Skills
o The ability to work effectively with individuals and teams, including communication,
motivation, and conflict resolution.
o Critical for all levels of management, especially middle managers who act as a bridge
between top and lower levels.
3. Conceptual Skills
o The ability to understand complex situations, analyze problems, and develop strategies.
o Essential for top-level managers who make strategic decisions and long-term plans.

Managerial Roles (According to Henry Mintzberg)

Management roles define the various responsibilities managers perform in an organization. These roles
are categorized into three main groups:
A. Interpersonal Roles (Dealing with People)
1. Figurehead – Represents the organization in formal and ceremonial duties.
2. Leader – Motivates, guides, and develops employees.
3. Liaison – Builds relationships with internal and external stakeholders.

B. Informational Roles (Handling Information)

4. Monitor – Gathers relevant information for decision-making.
5. Disseminator – Shares important information with subordinates and colleagues.
6. Spokesperson – Represents the organization by communicating with external stakeholders.

C. Decisional Roles (Making Decisions)

7. Entrepreneur – Initiates change and innovation to improve the organization.
 8. Disturbance Handler – Resolves conflicts and manages crises.
9. Resource Allocator – Distributes resources effectively (budget, personnel, equipment).
10. Negotiator – Engages in negotiations with employees, suppliers, and other stakeholders.

Conclusion
Managers require a blend of technical, human, and conceptual skills to perform their duties efficiently.
They also play various roles, including interpersonal, informational, and decisional functions, to ensure
smooth operations and organizational success.

Scope of Management

The scope of management refers to the areas and functions where management principles and
practices are applied. Management is required in every type of organization, from businesses to
non-profits, and in every sector, including education, healthcare, and government.

A. Functional Scope (Areas of Management)

1. Planning – Setting goals, formulating strategies, and deciding actions to achieve

objectives.
2. Organizing – Allocating resources, defining roles, and establishing structures for
efficient workflow.
3. Staffing – Hiring, training, and managing employees to ensure a skilled workforce.
4. Directing – Leading, motivating, and communicating with employees to ensure effective
performance.
5. Controlling – Monitoring progress, evaluating performance, and taking corrective
actions.

B. Industrial Scope (Application of Management in Different Sectors)

1. Business Management – Ensuring efficiency in operations, sales, marketing, finance, and

HR.
2. Financial Management – Managing financial resources, budgeting, and investment
decisions.
3. Marketing Management – Planning, promoting, and selling products or services.
 4. Human Resource Management – Handling recruitment, training, and employee
relations.
5. Operations Management – Managing production, logistics, and supply chains.
6. Healthcare Management – Managing hospitals, clinics, and medical facilities.
7. Educational Management – Administering schools, colleges, and universities.
8. Government and Public Administration – Implementing policies, managing public
services.

Importance of Management
1. Achieves Organizational Goals

✅ Management sets objectives, develops strategies, and ensures that employees work toward
common goals.
✅ Example: A company like Apple effectively manages innovation and production to maintain
its leadership in the tech industry.

2. Increases Efficiency and Productivity

✅ Management optimizes resources (human, financial, and material) to reduce costs and improve
productivity.
✅ Example: Toyota uses lean management techniques to minimize waste and maximize
production efficiency.

3. Ensures Adaptability and Innovation

✅ In a changing business environment, management helps organizations adapt to new

technologies, market trends, and competition.
✅ Example: Netflix transitioned from DVD rentals to streaming services through effective
management decisions.

4. Improves Employee Performance and Motivation

✅ Good management fosters teamwork, provides incentives, and ensures a positive work culture.
✅ Example: Google’s management practices encourage creativity and employee satisfaction
through a flexible work environment.

5. Facilitates Effective Decision-Making

✅ Managers analyze data, assess risks, and make informed decisions that benefit the
organization.
✅ Example: Amazon’s strategic decision to invest in AI and automation has enhanced its
logistics and customer experience.
6. Contributes to Economic Growth

✅ Well-managed organizations create jobs, generate wealth, and boost national economies.
✅ Example: The management of multinational companies like Tesla contributes to global
economic development.

7. Maintains Stability in Organizations

✅ Management ensures smooth operations, reduces conflicts, and maintains discipline.

✅ Example: Crisis management strategies helped companies navigate financial recessions and
pandemics.

8. Enhances Customer Satisfaction

✅ Effective management ensures high-quality products and services, leading to customer loyalty.
✅ Example: Starbucks maintains high customer service standards by training employees
effectively.

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION

The difference between Management and Administration lies in their scope, focus, and responsibilities.
The difference between Management and Administration is crucial in understanding how organizations
function. While both are interconnected, they serve distinct roles in decision-making, execution, and
organizational structure. Below is a detailed comparison of Management and Administration based on
various factors:
1. Definition:
 Management: The process of planning, organizing, directing, and controlling an organization's
resources (human, financial, and material) to achieve set objectives.
 Administration: The process of formulating policies, setting objectives, and making high-level
decisions for an organization.
Key Difference:
 Management is focused on execution and operational efficiency.
 Administration is focused on decision-making, goal-setting, and policy formulation.
2. Focus:
 Management: Concerned with implementation—ensuring that plans and policies are executed
efficiently.
 Administration: Focuses on decision-making and policy formulation—determining the
organization’s long-term goals.
3. Levels in the Organization:
 Management: Mid-level and lower-level (e.g., managers, supervisors, team leaders).
  Administration: Top-level (e.g., executives, directors, board members, government officials).

4. Functions:
 Management: Involves planning, organizing, staffing, directing, and controlling operations.
 Administration: Involves policy-making, goal-setting, and overall strategic planning.
5. Decision-Making:
 Management: Takes operational decisions (short-term, practical execution).
 Administration: Takes strategic decisions (long-term, organization-wide impact).
Example:
 In a company, managers ensure that employees meet sales targets, improve efficiency, and
follow guidelines, while the administrators (CEO, board members) set policies, define company
vision, and make key business decisions.
 In a school, teachers and principals handle day-to-day management, while the education board or
government officials set policies and long-term educational goals.
6. Key Difference in Approach:
 Management: Works within the policies set by administration.
 Administration: Creates policies that management follows.

Conclusion:
Management is about execution, while administration is about formulation and decision-making. Both
are crucial for an organization's success, but administration sets the direction and management ensures it
is followed.

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION

1. Definition
 Management: Management is the process of planning, organizing, leading, and controlling
resources (such as human, financial, and material) to achieve specific objectives efficiently and
effectively. It involves implementing policies and strategies set by the administration.
 Administration: Administration is concerned with setting long-term policies, objectives, and
strategies. It involves high-level decision-making and determining the overall direction of an
organization.
Key Difference:
 Management is focused on execution and operational efficiency.
 Administration is focused on decision-making, goal-setting, and policy formulation.
2. Scope & Functionality
Factor Management Administration
Deals with managing work and employees Deals with setting policies, laws, and
Scope
to achieve set goals. regulations for the organization.
Execution of policies, achieving efficiency Defining policies, making high-level
Focus
in operations. decisions.
Decision- Tactical (short-term) decisions for daily Strategic (long-term) decisions affecting the
Making operations. entire organization.
Responsible for getting things done as per Responsible for setting the vision and
Responsibility
administration’s guidelines. mission of the organization.

Example:
 In a business, management ensures that employees perform their duties efficiently to meet
production goals, whereas administration (CEO, board members) decides the company's
expansion strategy and policies.
 In a university, management includes the principal, deans, and faculty who implement policies,
while administration refers to the governing body that sets educational policies and regulations.

3. Levels in the Organization

Factor Management Administration
Middle-level and lower-level
Top-level executives (e.g., Board of
Hierarchy executives (e.g., Managers,
Directors, CEO, Government Officials).
Supervisors).
Policy Creation vs. Implements policies set by Creates policies and frameworks for
Implementation administration. management to follow.
Example:
 A hospital administrator (top-level) decides which medical facilities to expand, while the
hospital manager ensures doctors and nurses operate efficiently.

4. Nature of Work
Factor Management Administration
Work Concerned with day-to-day operations and Concerned with setting policies, regulations,
Factor Management Administration
Nature managing staff. and business direction.
Skills Technical and leadership skills (problem- Analytical and strategic skills (policy-
Required solving, communication, team management). making, financial planning, governance).

5. Decision-Making & Execution

Factor Management Administration
Takes operational and tactical decisions
Takes strategic decisions (e.g., entering a
Type of Decisions (e.g., how to improve employee
new market or launching a new product).
productivity).
Implementation vs. Implements plans made by the Plans and makes decisions for the
Planning administration. organization’s future.
Example:
 In a school, management (principal, teachers) ensures students follow curriculum schedules,
while the administration (education board) decides on new subjects or changes in the syllabus.

6. Influence & Authority

Factor Management Administration
Power & Controls employees and supervises Controls overall policies and decision-
Control operations. making.
Reporting Reports to administration for policy Reports to stakeholders, shareholders, or
Structure approvals and guidance. government bodies.

7. Key Differences in Perspective

Perspective Management Administration
Management is primarily profit-
Profit-Oriented vs. Administration is policy-driven, focusing
driven and ensures business goals are
Policy-Oriented on broader institutional or legal compliance.
met.
More flexible and adaptable to
Flexibility More rigid as it involves legal and
change.