P R I N C I P L E S O F M A NAG E M E N T A N D

B U S I N E S S O RG A N I Z AT I O N
INTRODUCTION TO MANAGEMENT

ASHISH K AGRAHARI ROLL NO. 01 F. Y. M . A R C H ( C O N S T R U C T I O N M A N A G E M E N T )

“Good management is the art of making problems so interesting and their solutions so
constructive that everyone wants to get to work and deal with them.”
― Paul Hawken
In simple words, management means managing an activity.

When we talk of managing an activity, we really mean to make the activity a success. In other words, we have
in mind some goal and we decide about the ways of carrying out the activity so as to achieve the goal.

• Management may be defined in many different ways. Many eminent authors on the subject have defined
the term "management", some of these definitions are reproduced below:

According to Harold Koontz, ―Management is an art of getting things done through and with the two
people in formally organized groups. It is an art of creating an environment in which people can perform and
individuals and can co-operate towards attainment of group goals.

According to F.W. Taylor, ―Management is an art of knowing what to do, when to do and see that it is done in
the best and cheapest way.

According to Henry Fayol, - "To manage is to forecast and to plan, to organise, to command, to co-ordinate and
to control".

According to Peter F Drucker - "Management is a multi-purpose organ that manages a business and manages
managers and manages worker and work".

DEFI N AT I ON OF M A N AGEM EN T
• From the definitions quoted above, it is clear the "management" is a technique of extracting work from
others in an integrated and co-ordinated manner for realising the specific objectives through productive use
of material resources.

• Management is the sum-total of all those activities that:

(i) determine objectives, plans, policies and programmes
(ii) secure men, material, machinery cheaply
(iii) put all these resources into operations through sound organization
(iv) direct and motivate the men at work
(v) supervises and control their performance and
(iv) provide maximum prosperity and happiness for both employer
and employees and public at large

DEFI N AT I ON OF M A N AGEM EN T
 A SCIENCE OR AN ART ?
What is "Science"? What is "Art"?
Science may be described- "as a systematic body of knowledge 'Art' refers to "the way of doing specific things; it indicates how an
pertaining to an area of study and contains some general truths objective is to be achieved." Management like any other operational
explaining past events or phenomena". activity has to be an art. Most of the managerial acts have to be
The above definition contains three important characteristics of cultivated as arts of attaining mastery to secure action and results.
science. They are The above definition contains three important characteristics of art.
1. It is a systematized body of knowledge and uses scientific methods They are-
for observation 1. Art is the application of science. It is putting principle into practice.
2. Its principles are evolved on the basis of continued observation and 2. After knowing a particular art, practice is needed to reach the level
experiment and of perfection.
3. Its principles are exact and have universal applicability without any 3. It is undertaken for accomplishing an end through deliberate efforts.
limitation.

Management is both a Science as well as an Art

Management is both a science as well as an art.
The science of management provides certain general principles which can guide the managers in their professional
effort.
The art of management consists in tackling every situation in an effective manner.
As a matter of fact, neither science should be over-emphasised nor art should be discounted; the science and the art of
management go together and are both mutually interdependent and complimentary.

Management is thus a science as well as an art. It can be said that-"the art of management is as old as human history,
but the science of management is an event of the recent past."

N AT UR E OF M A N AGEM EN T
1. The purpose of management is to formulate effective organizational strategies and efficiently based on
the missions objectives and goals.

2. It is concerned with all kinds of sources i.e. Human, Financial, Material, Machines, Technology and
Technical.

3. Management functions include: Planning, Organizing, Directing, Staffing and Controlling.

4. Managers should possess varied skills in order to play a variety of roles.

5. It applies to managers at all levels in an organization.

6. It is applicable to all kinds of organization i.e. both Profit and Non-profit oriented business.

7. Management is both an Art and a Science in order to create a surplus.

8. Management needs to be a profession to achieve goals continuously with an incremental efficiency.

NEED & SCOPE OF MANAGEMENT

1. It helps in Achieving Group Goals
Management converts disorganized resources of men, machines, money etc. into useful enterprise. It arranges,
assembles, organizes and integrates the factors of production. These resources are coordinated, directed and
controlled in such a manner that enterprise work towards attainment of goals.

2. Optimum Utilization of Resources

Management utilizes all the physical and human resources productively. Management provides maximum utilization
of scarce resources by selecting its best possible alternate use in industry from out of various uses. This leads to
optimum utilization of resources and avoid wastage.

3. Reduces Costs
It gets maximum results through minimum input by proper planning and by using minimum input and getting
maximum output. Management uses physical, human and financial resources in such a manner which results in best
combination. This helps in cost reduction

4. Establishes Sound Organization

To establish sound organizational structure is one of the objective of management which is in tune with objective of
organization and for fulfillment of this, it establishes effective authority and responsibility relationship i.e. who is
accountable to whom, who can give instructions to whom, who are superiors and who are subordinates.

I M PORTA N CE OF M A N AGEM EN T
5. Establishes Equilibrium
It enables the organization to survive in changing environment. It adapts organization to changing demand of market
changing needs of societies. It is responsible for growth and survival of organization.

6. Essentials for Prosperity of Society

Efficient management leads to better economical production which helps in turn to increase the welfare of people..
It improves standard of living, increases the profit which is beneficial to business and society will get maximum
output at minimum cost by creating employment opportunities which generate income.

I M PORTA N CE OF M A N AGEM EN T
• Management comprises of different stages. These stages in the
process are known as the functions of management.

1. Planning
• Planning is the most fundamental and the most pervasive
of all management functions.
• If people working in groups have to perform effectively, they
should know in advance what is to be done, what activities they
have to perform in order to do what is to be done, and when it is
to be done.
• Planning is concerned with 'what', 'how, and 'when' of
performance. It is deciding in the present about the future
objectives and the courses of action for their achievement.

It thus involves:
(a) determination of long and short-range objectives;
(b) development of strategies and courses of actions to be
followed for the achievement of these objectives; and
(c) formulation of policies, procedures, and rules, etc., for the
implementation of strategies, and plans.

FUNCTIONS OF MANAGEMENT
2. Organizing
Organizing involves
• identification of activities required for the achievement of enterprise objectives and
implementation of plans;
• grouping of activities into jobs;
• assignment of these jobs and activities to departments and individuals;
• delegation of responsibility and authority for performance, and
• provision for vertical and horizontal coordination of activities.

3. Staffing
Staffing involves
• Manpower planning involving determination of the number
and the kind of personnel required.
• Recruitment for attracting adequate number of potential employees to seek
jobs in the enterprise.
• Selection of the most suitable persons for the jobs under consideration.
• Placement, induction and orientation.
• Transfers, promotions, termination and layoff.
• Training and development of employees.

FUNCTIONS OF MANAGEMENT
4. Directing
Directing is the function of leading the employees to perform efficiently, and contribute their
optimum to the achievement of organizational objectives.
Directing involves the following:
• Communication
• Motivation
• Leadership

5. Controlling
Controlling is the function of ensuring that the divisional, departmental, sectional
and individual performances are consistent with the predetermined objectives
and goals. Deviations from objectives and plans have to be identified and
investigated, and correction action taken accordingly.
Controlling involves
• Measurement of performance against predetermined goals.
• Identification of deviations from these goals.
• Corrective action to rectify deviations.

FUNCTIONS OF MANAGEMENT
 According to American social and organizational psychologist Robert
Management skills can be defined as
Katz, the three basic types of management skills include:
certain attributes or abilities that an
executive should possess in order to fulfill
1. Technical Skills
specific tasks in an organization.
Technical skills involve skills that give the managers the ability and the
knowledge to use a variety of techniques to achieve their objectives.
They include the capacity to perform
These skills not only involve operating machines and software,
executive duties in an organization while
production tools, and pieces of equipment but also the skills needed to
avoiding crisis situations and promptly
boost sales, design different types of products and services, and market
solving problems when they occur.
the services and the products.

2. Conceptual Skills
These involve the skills managers present in terms of the knowledge and
ability for abstract thinking and formulating ideas. The manager is able
to see an entire concept, analyze and diagnose a problem, and find
creative solutions.

3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the
managers’ ability to interact, work or relate effectively with people.
These skills enable the managers to make use of human potential in the
company and motivate the employees for better results.

MANAGEMENT SKILLS
 Top
More Conceptual Skills Level
Manager

Middle
More Human Skills Level
Manager

Lower
More Technical Skills Level
Manager

SKILLS LEVELS OF MANAGEMENT

MANAGEMENT SKILLS
1. Planning
Planning is a vital aspect within an organization. Planning is one’s ability to organize activities in line with set guidelines while still
remaining within the limits of the available resources such as time, money, and labor.

2. Communication
Possessing great communication skills can determine how well information is shared throughout a team, ensuring that the group acts as a
unified workforce. How well a manager communicates with the rest of his team also determines how well outlined procedures can be
followed, how well the tasks and activities can be completed, and thus, how successful an organization will be.

3. Decision-making
Making proper and right decisions results in the success of the organization, while poor or bad decisions may lead to failure or poor
performance.

4. Delegation
Delegation is another key management skill. Delegation is the act of passing on work-related tasks and/or authorities to other employees
or subordinates.

5. Problem-solving
Problem-solving in management involves identifying a certain problem or situation and then finding the best way to
handle the problem and get the best solution.

6. Motivating
Motivation helps bring forth a desired behavior or response from the employees or certain stakeholders.
MANAGEMENT SKILLS EXAMPLES
“Management is, above all, a practice where art, science, and craft meet”
― Henry Mintzberg

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