INTRODUCTION

Concept, nature, process and significance of management; Managerial roles and Skills;
Development of management through; Classical and neo - classical systems; Contingency
approaches: - Robert Owen, Taylor Fayol and Elton Mayo

MANAGEMENT DEFINITIONS OF MANAGEMENT

• Management is an art of getting things done though people – Mary Parker Follet • To
manage is to forecast and plan, to organize, to command, to co-ordinate and to Control –
Henry Fayol

• Management is the art of knowing exactly what you want your men to do and then
seeing that they do it in the best and the cheapest way. – F.W Taylor

• Management is the creation and maintenance of an internal environment in an enterprise

where individuals working in groups can perform efficiently and effectively towards the
attainment of group goals, it is an art of getting the work done through and with people in
formally organized groups – Koontz and O Donnel

NATURE OF MANAGEMENT

1. It is a Universal Activity: Management is relevant in every sphere of activity. It is

relevant in army, government, private household work etc. the work can be done in a
more systematic manner with the application of the techniques of management. The
material and human resources can be effectively handled and the goal can be attained
with maximum efficiently.

2. It is goal oriented: Management focuses attention on the attainment of specific

objectives. For Ex. a business may aim for a particular level of sales. This can be
achieved by proper forecast of sales by planning production by fixing the targets.

3. It is an Intellectual activity: the practice of management requires application of mind

and intelligence. Every work needs to be properly planned and Execute work has to be
assigned to different Individuals and responsible have to be fixed on them. Ex. in a
manufacturing unit production finance and marketing are the important activities 2
performed. It has to work in proper co-ordination with the other departments. Then only
objectives of the firm can be achieved.

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4. It is a process: it is process consisting of various stages/ functions. Planning is the
starting point of management and control is its last stage.

5. Management is both art and science: the practice of science needs knowledge of theory
and formulae. But the practice of art requires skill management is social science. It
focuses attention on the behavior of individuals and groups. The theoretical knowledge
may not help always that time they require skill. Ex if the workers in a factory demand
more pay and threaten to go on strike if their demand is not considered. Here the skill of
the manager will help to avert the strike then it’s theoretical.

6. It is a social process: management deals with the behavior of individuals and groups. In
a work place individuals work as a team. The behavior of an individual is bound to be
different while he is part of a group Eg.: an individual worker may be forced to join a
strike program because of the union.

7. It is an on going activity: it is a continuous process planning, organizing etc have

unlimited use. Management will exist as long as there are human activities.

8. It is intangible: it is invisible cannot be seen. But it can be felt.

9. Management is a Profession: like medical, law and engineering, management has also
come to be recognized as a profession.

IMPORTANCE OF MANAGEMENT:

1. Achievement of Group Goals: Management enables an enterprise to achieve its desired

objectives through proper planning and control. It decides what should be done and how.
It lays down the long term and short term goals keeping in mind the resources of the
enterprise.

2. Optimum utilization of resources: Materials, machines and money are the physical
factors of production. The efficient use of these resources depends upon the efficiency
and motivation of workers. Management makes the workers efficient and motivate
through training, supervision and inspiring leadership. Managers guide and motivate
workers towards best performance 3

3. Fulfillment of social obligations: Sound management monitors the environment of

business and makes necessary changes in business policies and practices. So as to keep
the customers and workers satisfied.

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4. Stability of Management it ensures the survival of an organization in a fast changing
environment. It coordinates the activities of different departments in an organization and
monitors team spirit amongst the personnel.

5. Human development Management improves the personality and caliber of people to

raise their efficiency and productivity. A good manager serves as a friend and guide to his
subordinates. He provides vision and confidence.

6. Meets the challenge of change Managers maintain a dynamic equilibrium b/w and
enterprise and its development through innovation and creativity.

7. Integrate various interests: Each person has his own interests. These interests are
different in nature. Management takes steps to integrate various interests to achieve the
objectives of an organization

8. Coordination and team spirit: All the activities of business are grouped into department
wise; management coordinates the activities of different departments and establishes team
spirit to achieve the objectives.

FUNCTIONS OF MANAGEMENT / MANAGEMENT PROCESS / POSDCORB

1. Planning: Planning means forecasting or predicting the future activity in a specific

manner or structure. It is the basic function and essential for all the organization.

2. Organizing: It is collection or joining of all the resources available within the

organization and outside, in order to achieve the organizational goal with efficiency.

3. Staffing: It involves appointing the right man for the right job at the right time. The
management is to analyze the human resource, see if he is suitable for the job and
accordingly allocate the work in the organization.

4. Directing: It is showing the correct path or correct way to achieve the organizational
goal within the stipulated time.

5. Controlling: Controlling as a function involves regulating the person or examining the

person whether he is working in the right way or not. In order to achieve the common
goal as efficient as possible.

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6. Coordinating: It is a type of support function. It involves accumulating the work to
achieve the task.

7. Budgeting: It means allocation of the resources. It involves financial planning for the
future activities.

8. Reporting: It is a statement showing the various activities to the top management. It

shows the status of the work done.

LEVELS OF MANAGEMENT

A) Top Level Management:

The top level management derives its powers and authority directly from the owners
of the enterprise. They are Board of Directors, Chairman, Managing Directors, COO,
CEO etc.

FUNCTIONS:
1. They are setting out the fundamental objectives of the enterprises.
2. They frame major policies for the business.
3. They design the strategies for the attainment of organizational objectives.
4. They appoint key managerial personnel for the middle management.
5. Develop master plans in areas of finance, human resource, technology, marketing
and other functions of organization.
6. To represent the business outside, particularly in discussing business problems with
the Government trade association and so on.

B) Middle Level Management:

They are departmental managers (Head of Department) like Production managers,
Marketing managers, Personnel managers, Finance manager, Regional manager and
other managers.

FUNCTIONS:
1. They play the role of a linking pin between top level management and the lower
level management.
2. They explain the objectives, strategies, policies laid down by the top level
management to the low level management.

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 3. Communicates the problems, suggestions and view points of the lower
management to the top management.
4. They prepare the departmental plans.
5. They submit reports on the performance at various departments to the top
management.
6. They offer suggestions and recommendations to the top management for the
betterment of overall management of the enterprise.

C) Lower Level of Management:

It is called as operating level management or supervisory level. This is the level
where actual operational work for the enterprise in the areas of production, finance,
marketing, personnel, etc is performed by workers. This level of management consists
of manger like supervisors, the foreman, the sales officers the accountants the
sectional officers.

FUNCTIONS:
1. They do day to day operational planning in view of the instructions given by the
middle level management.
2. They provide necessary instructions to operators for the best performance of their
assigned jobs.
3. They supervise the work of operators to ensure that their performance is in
accordance with the standards laid down in plans.
4. They submit reports on the performance of operating staffs to the middle
management.
5. They operate as a channel of communication between the middle management and
the operators.
6. The problems, suggestions and recommendations of operators are informed by
them to the middle management.
SKILLS OF MANAGEMENT
1. Technical Skills
2. Human Skills
3. Conceptual Skills
➢ Technical Skills: Technical skill is an imperative skill for managers at the lower
level of management. These people who guide and supervise work of operators under
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their subordination. E.g. Production manager must know the type of raw materials to
be used, the proportion the production process and the knowledge of handling the
various m/c.

➢ Human skills: The ability to tactfully deal with human beings and mould their
behavior at work in the desired manner to help attain the common objectives of the
enterprises most 6 effectively and efficiently. It requires an understanding of human
behavior and it is necessary for motivating people.

➢ Conceptual Skills: It is concerned with concepts or ideas. Conceptual means ability

to view the enterprise as whole in totality. To analyze the implications of relevant
external environmental factors economic, social, political, technological etc. for the
successful functioning of the enterprise.

CHARACTERISTICS OF QUALITY MANAGERS

Manager is a person who has the ability or strength to coordinate, motivate and guide
all the personnel working under him so as to make sure they attain the organizational
goal in the most efficient manner possible.
The Qualities of a Good manager ;
1. Good Education
2. Technical Knowledge
3. Personality
4. Communication skills
5. Honesty
6. Positive thinking
7. Control Management
8. Motivation
9. Guide
10. Leadership qualities
11. Coordinate
12. Decision making (planning, forecasting)
13. Innovative
14. Good analysis
15. Risk taking
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