Unit-1

{Introduction to Management
DEFINITION
 MANAGEMENT is the Process of getting things
done with the aim of achieving goals ‘Effectively
and Efficiently’.

PROCESS EFFECTIVELY EFFICIENTLY

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 can co-
operate towards attainment of group goals.‘
MANAGEMENT DEFINITION BY DIFFERENT
SCHOLARS
 According to George R Terry, Management is the
distinct process consisting of activities of planning,
organizing, actuating, controlling, performed to
determine and accomplish the objectives by use of
people and resources.
 Harold Koontz (1909-1984): Management is the art of
getting things done through others and with formally
organised groups.
 Mary Parker Follett. Management, she says, is the "art
of getting things done through people.“
 Frederick Winslow Taylor (March 20, 1856 – March 21,
1915): "Management is the art of knowing what you
want to do and then seeing that they do it in the best
and the cheapest may."
Characteristics Of
Management
1. Pervasive: Management is pervasive, meaning it is
found in all organizations and at all levels. It is
necessary for businesses, non-profit organizations,
government agencies, educational institutions, and
even households. For example, a small family-owned
bakery requires management to handle production,
finances, marketing, and customer service.
2. Continuous Process: Management is a continuous
process that involves a series of interconnected
activities. It includes planning, organizing, leading, and
controlling, which are ongoing and interrelated.
3. Goal-Oriented: Management is goal-oriented, aiming
to achieve specific objectives. Goals can be short-term
or long-term, and they provide direction and purpose to
an organization.
 4. Dynamic: Management is dynamic, meaning it adapts
to changes in the internal and external environment. For
instance, a retail organization needs to adapt its
marketing strategies, inventory management, and
customer service approaches based on changing
consumer trends, market competition, and technological
advancements.
 5. Universally Acceptable: Management principles and
techniques are universally applicable across different
organizations and industries. For example, the principles
of effective communication, delegation, and decision-
making are applicable in a healthcare organization, a
manufacturing company, or a government agency.
 6. Intangible: Management function cannot be
physically seen but its presence can be felt. The
presence of management can be felt by seeing the
orderliness and coordination in the working
environment. It is easier to feel the presence of
mismanagement as it leads to chaos and confusion in
the organisation.
 7. Group Activity: Management is a group activity
that involves working with and through people.
Managers need to build and lead teams, motivate
employees, and foster a positive work environment.
For example, in a construction company, project
managers work with architects, engineers,
contractors, and laborers to ensure that projects are
completed on time, within budget, and to the required
quality standards.
 Nature of
Management
 1. Management as an ART: It is called an art because managing
requires certain skills which are personal possessions of
managers.Art has the following characters -
1. Practical Knowledge
2. Creativity
3. Perfection through practice
4. Personal Skill

 2. Management as an Science: Science can be defined as a

systematic and organised body of knowledge based on logically
observed findings, facts and events. Science comprises of exact
principles which can be verified and it can establish cause and
effect relations.
 Main characteristics/features of science are:
1. Universally Accepted Principles
2. Cause& Effect Relationship
3. Experimentation & Observation
 3. Management as a Profession: A profession may
be defined as an occupation that requires specialized
knowledge and intensive academic preparations to
which entry is regulated by a representative body.
The essentials of a profession are:
 Main characteristics/features
1. Formal Education & Training
2. Social Obligations
3. Code of Conduct
FUNCTIONS OF
MANAGEMENT
1. PLANNING: Planning is the
fundamental management function.
which involves deciding beforehand,
what is to be done, when is it to be done,
how it is to be done and who is going to do
it. It is an intellectual process which lays
down an organisation’s objectives and
develops various courses of action, by
which the organisation can achieve those
objectives.
Types of plans are:
• Long Term Plan
• Short Term Plan
• Strategic Plan
• Operating Plan
• Specific Plan
• Single Use Plan
• Standing Plan
2. Organizing : Organizing involves
arranging resources, tasks, and
people to achieve the goals set
during the planning stage. This
includes creating a structure,
defining roles and responsibilities,
and establishing communication
channels within the organization.
It includes:
• Division of Work
• Grouping the Jobs and departments
a) Functional Department
b) Divisional Department
• Assignment of duties
• Establishing authority and
responsibility relationship
3. Staffing: Staffing may be defined as
the process of hiring and developing the
required personnel to fill in the various
positions in the organization. It involves
estimating the number and type of
personnel required, recruiting and
developing them, maintaining and
improving their competence and
performance.

Staffing involves:
• Recruitment
• Selection & Placement.
• Incentives.
• Promotions & Transfer.
4. DIRECTING is said to be a process in
which the managers instruct, guide and
oversee the performance of the workers to
achieve predetermined goals.
Direction is that inert-personnel aspect of
management which deals directly with
influencing, guiding, supervising, motivating
sub-ordinate for the achievement of
organizational goals.

Direction has following elements:

• Leadership
• Motivation
• Communication
5. Controlling
Controlling involves monitoring performance, comparing it
to established standards, and taking corrective actions if
necessary. It ensures that the organization is on track to
achieve its goals and that deviations are identified and
addressed.
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”.

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.
Objective

1. Getting Maximum Results with Minimum

Efforts
2. Increasing the Efficiency of factors of
Production
3. Maximum Prosperity for Employer &
Employees
4. Human betterment & Social Justice
5. To maximize profits
6. Maintaining discipline and moral
7. Identify talent
Levels of management

 The term Levels of Management refers to the line of

division that exists between various managerial
positions in an organization. As the size of the
company and workforce increases, the number
of levels in management increases along with it, and
vice versa. The different Levels of Management can
determine the chain of command within an
organization, as well as the amount of authority and
typically decision-making influence accrued by all
managerial positions.
 Administrative, Managerial, or Top Level of
Management organization’s board of directors
and the chief executive or managing director
 Laying down the objectives and broad policies of the
business enterprise.
 Issuing necessary instructions for the preparation of
department-specific budgets, schedules, procedures, etc.
 Preparing strategic plans and policies for the organization.
 Appointing the executives for middle-level management, i.e.
departmental managers
 Establishing controls of all organizational departments.
 Since it consists of the Board of Directors, the top
management level is also responsible for communicating
with the outside world and is held accountable towards an
organization’s shareholders for the performance of the
enterprise.
 Providing overall guidance, direction, and encouraging
harmony and collaboration.
Executive or Middle Level of Management
branch and departmental managers

The roles and responsibilities of the middle level of

management can be summarized as follows:

 Executing the plans of the organization in accordance with the

policies and directives laid out by the top management level.
 Forming plans for the sub-units of the organization that they
supervise.
 Participating in the hiring and training processes of lower-level
management.
 Interpreting and explaining the policies from top-level
management to lower-level management.
 Sending reports and data to top management in a timely and
efficient manner.
 Evaluating the performance of junior managers.
 Inspiring lower level managers towards improving their
performance.
 Supervisory, Operative, or Lower Level of
Management
supervisors, foremen, section officers,
superintendents
The roles and responsibilities of the lower level of
management can be summarized as follows:
 Assigning jobs and tasks to various workers.
 Guiding and instructing workers in day-to-day activities.
 Overseeing both the quality and quantity of production.
 Maintaining good relations within lower levels of the
organization.
 Acting as mediators by communicating the problems, suggestions,
and recommendatory appeals, etc. of workers to the higher level
of management
 Taking part in the hiring and training processes of their workers.
 Preparing periodical reports regarding the performance of the
workers.
 Upholding discipline, decorum, and harmony within the
workplace.
 Improving the enterprise’s image as a whole, due to their direct
contact with the workers.
Modern operational management
Theory:
(Henry Fayol 14 principles)
 1. Division of work
 Division of work, also known as division of labour, involves
dividing a job into individual tasks. To increase efficiency, the
division of work distributes different tasks among members
of a team. These task are divided on the basis of
Specialization, Knowledge, Skills, Experience etc.
 2. Authority and Responsibility:
 Authority and responsibility are two interrelated terms in
management.
 While authority is power and right inherent in a managerial
position through which a manager commands his
subordinates, where responsibility is the obligation fulfilled
by the subordinates.3.
 3. Discipline:
 Discipline refers to the obedience to the rules and
regulations of the organization. Discipline requires good
supervision at all levels of management. According to Fayol,
good supervision at all levels, clear and fair rules, and a
built-in system of penalties will help to maintain discipline. It
is a must for all levels of management.
 For example, employees must be disciplined to work
effectively and efficiently to meet their promises of bonuses,
increments, and promotions. Its smoothness systemizes the
functioning of an organization by providing better relations
between management and employees.

4. Unity of Command:
 According to this principle, each subordinate should receive

orders and be accountable to only the superior. No person

can serve several masters at the same time. If an employee
gets orders from two superiors at the same time, then the
principle of unity of command is violated, and he will find it
very difficult to decide who he has to obey first. So, to avoid
confusion, employees should receive an order from one
superior.
 For example, there is a salesperson who is asked to clinch a

deal with a buyer and he is allowed to give a 12% discount

by the marketing manager. But the finance department tells
him not to offer more than a 6% discount. In this case, there
is no unity of command, which will lead to confusion and
delay.
5. Unity of Direction:

 The unity of direction principle states that all employees

who work on the same task have the same objective. This
means all the people working in a company should have
one goal and motive which will make the work easier and
achieve the set goal easily. The related activities should be
put under one group and there should be one plan of
action and they all should be under the control of one
particular manager

 For example, if an organization has four departments for

different activities, then each department must be
directed by one superior, and its employees should give
their whole efforts to achieving the plan of the
organization. Each division should
have its in charge, plans, and execution resources.
6. Subordination of Individual Interests to General
Interests:
 According to this principle, the interest of the
organization as a whole must prevail over the interest
of the individual. It must be the interest of the
organization that should be placed above the interest
of employees.
 For example, there is a company that wants
maximum output from its employees by providing less
salaries. There are employees on the other hand who
want to get the maximum salary while working the
least. In both situations, the interests of the company
will replace the interest of any one individual. As the
interests of the workers and stakeholders are more
important than the interests of any one person.
7. Remuneration of Personnel

Remuneration is the reward paid to the employees for

their contribution. Employees should be paid fair
remuneration according to their contributions. Most
employees attract to the organization and give the
best performance which has a good practice in the
remuneration system and has extremely satisfied
employees. For a good remuneration policy in the
organization, there should be a fixed basic wage
besides it, there should be a good provision of
monetary and non-monetary incentives (financial and
non-financial incentives).
8. Centralization and Decentralization
 Centralization refers to the decision-making authority

only from top-level management. In a centralized

organization, few hands have the decision-making
authority. Where decentralization refers to the
decision-making from all over the organization, that
means the view of bottom-level employers, employees
are also gets involved in decision-making.
 Maintaining centralization or decentralization in the

organizations depends upon the nature and size of the

organizations and also the knowledge and capabilities
of subordinates.
 There is almost no fully centralized or decentralized

organization, so Henri Fayol suggests there must be a

balance between centralization and decentralization of
any organization.
9. Scalar Chain: The scalar chain is important for
systematic and orderly communication in an
organization. All information is communicated through
successive chains either from top to bottom or from
bottom to top.
 It is a must-follow rule in the organization. According

to Fayol, the scalar chain should be strictly followed

except in an emergency so he introduced Gang Plank.

10 Order
 This principle of management is concerned with the

systematic arrangement of material and social order.

In his principles of management, Fayol classified
orders into two types first are material order and the
second is social order.
 Material order is concerned with the proper placement

of materials, machines, and other physical things.

Where social order is concerned with the placement of
the right person in the right job.
 11. Equity
 This principle incorporates kindness, justice and
fairness. Fair and equal treatment for employees is an
important responsibility for management. Employers
are responsible for ensuring that no employee receives
preferential treatment or experiences discrimination.
As a result, employees become loyal and dedicated to
an organisation.

 12. Stability of tenure

 According to this principle, employment stability
occurs when an employee feels they are in a secure
position. Job insecurity can reduce employee morale,
which may affect the quality of work. It is necessary
for companies to reduce staff turnover and role
changes to maximise efficiency. It is also essential that
managers allow employees enough time to adjust to
new roles and learn how to complete tasks effectively.
 13. nitiative
 Employees must feel free to make their own plan and execute
it. Employees want to fulfill their responsibility for their own
risk and knowledge. The manager should encourage the
initiative of the employees.
 Freedom provides a sense of self-motivation among the
employees and makes them more loyal and dedicated to the
organization, eventually leading to the productivity of the
organization which helps to sustain in the long run.

 14. Esprit De Corps

 The last of our fourteen principles of management is esprit
de corps. Esprit de corps means “Union is Strength” or
“Team Spirit”. There must be team spirit and coordination
among the employees in the organization.
 Unity is a strength and the strength of an enterprise depends
upon harmony and mutual understanding among employees.
Thus, a manager has to take the necessary steps to promote
team spirit and develop a feeling of harmony in each other.