Please Note : ACRONYMS are written in Red color

Brief Notes
Prepared by : Ms Mamta Narula

Chapter – 1 (NATURE AND SIGNIFICANCE OF MANAGEMENT)

Management is the process of getting things done with the aim of achieving goals effectively and
efficiently.
Effectiveness : means completing the right task to achieve the goal within time.
Efficiency: means completion of task using minimum resources
FUNCTIONS OF MANAGEMENT:
1. Planning - Setting objectives and targets and formulating an action plan to achive it
2. Organising - Assignment of duties, task, establishment of authority and responsibility Relationship,
allocating the resources required to perform the planned task.
3. Staffing - Finding and placing the right person at the right job at the right time.
4. Directing - Leading, influencing, motivating the staff chosen to perform the assigned task
efficiently and effectively.
5. Controlling - Ensuring/Monitoring the activities in an organisation are performed as per the plan.
FEATURES OF MANAGEMENT
My Charming Dad Is Giving Grand Party (MCD PIG2)
1. Goal oriented - works towards achieving goals
2. Group activity - unites the efforts of different individuals
3. Intangible force-cannot be seen but its presence can be felt
4. All pervasive – present in all organizations, all levels ,all departments.
5. Multidimensional –
 Management of Work -Management translates this work in terms of goals to be achieved and
assigns the means to achieve it.
 Management of People- dealing with people as an individual and as a group
 Management of Operations- managing process of converting input into the desired output
6. Continuous process - ongoing series of continuous functions ,simultaneously performed
7. Dynamic- organisation must change itself according to the needs of the environment.

MANAGEMENT OBJECTIVES
1.Organisational objectives:
 Survival:- earn enough revenue to cover costs
 Profitability:- Earning profit covers costs & risks , Incentive for business man
 Growth:- Growth indicates how well it exploits the potential opportunities.
2.Social objectives: creation of benefit for society
• Producing quality products at reasonable rates,
• Generating employment opportunities
• Environmental friendly methods of production.
3. Personal objectives:
• Meeting needs of employees
 Financial needs ( competitive salaries and perks)
 social needs ( peer recognition )
 higher level needs (personal growth and development.)
• reconcile personal goals with organisational objectives

IMPORTANCE OF MANAGEMENT
1.Helps in achieving group goals: Management is goal oriented activity. A manager achieve goals by giving
proper direction to the efforts of all individuals.
2.Management increases efficiency: to reduce costs and increase productivity through better planning,
organising, directing, staffing and controlling
3.Creates dynamic environment: individuals in an organisation genrally resist change, Management helps
people adapt to these changes
4.Helps in achieving personal objective: Management motivates and leads his team in such a manner that
individual members are able to achieve personal goals while contributing to the overall organisational
objective.
5.Helps in development of society: Management fulfills responsibilities towards society by provide good
quality products and services, creates employment opportunities, adopts new technology

LEVELS OF MANAGEMENT-
The levels of management denote a demarcation between various position in an organization on the basis
of their responsibility, authority and status. These are –

Top management - Ex- CEO, Board of directors, MD, President & chairman.
Functions:
a) Decide overall objectives of the organization. b) To make plans.and strategies
c) responsible for welfare and survival d) To coordinate different department

Middle Management - Departmental heads such as purchase manager, Operations manager, production
manager, marketing manager & plant superintendent etc. Divisional heads
Functions:
a) To implement plan and policies. b) To cooprate with other departments
c) To assign job to subordinates. d) To recruit employees for their respective departments

Lower level Management - eg- Foremen, Inspectors, supervisors etc.

Functions:
1. To arrange raw materials, tools and other facilities.
2. To ensure the performance of workers
3. To ensure safety and security of workers

NATURE OF MANAGEMENT
1. Management as an Art English Pre Board (EPB)
Art refers to skilful and personal application of existing knowledge to achieve desired results.
Features of Art Applicability to management Status of
feature
Existence of theoretical knowledge: literature and books are present
In every art, systematic and organized available on different aspects of
study material should be available management.
compulsorily to acquire theoretical
knowledge
Personalised application: The use of Every manager has his own present
basic knowledge differs from person unique style of managing things
to person and thus, art is a very and people.
personalised concept
Based on practice and creativity: Art Every manager uses his present
involves the creative practice of creativity in applying
existing theoretical knowledge. management techniques and his
skills improve with regular
application

Conclusion : Since all the features of art are present in management so it can be called an Art.

2.Management as a science (PSU)

Science is a systematised body of knowledge that explains certain general truths or the operation of
general laws.
 Features of Science Applicability to management Status of
feature
Systematised body of Management has a systematised present
knowledge:: Its principles are bodyof knowledge. It has its own
based on a cause and effect theory and principles that have
relationship. developed over a period of time.
Principles based on The principles of management have Partially
experimentation: been developed on the basis of present
Scientific principles are first repeated experimentation and
developed through observation observation in different types of
and then tested through repeated organisations.
experimentation However, since management deals
with human beings and human
behaviour, the outcomes of these
experiments are not capable of being
accurately predicted or replicated.
Universal validity: Scientific Since the principles of management Partially
principles have universal validity are not as exact as the principles of present
and application science, their application and use is
not universal. They have to be
modified according to a given
situation.

Conclusion : Management satisfies some of the features of science but not all so it is an inexact science

3.Management as Profession (SEW Red Pants)

Profession means an occupation for which specialized knowledge and skills are required and entry is
restricted
Features of Profession Applicability to management Status of
feature
Well-defined body of knowledge: This knowledge can be acquired present
All professions are based on a well- at different colleges and
defined body of knowledge that can professional institutes and
be acquired through instruction. through a number of books
and journals.
Restricted entry: The entry to a Anyone can be called a Partially
profession is restricted through an manager irrespective of the present
examination or through acquiring an Educational qualifications
educational degree. possessed.
But professional knowledge and
training is considered to be a
desirable
Professional association: All There are several associations Partially
professions are affiliated to a of practicing managers in India, present
professional association which like the AIMA (All India
regulates entry, grants certificate of Management Association) that
practice and formulates and enforces a has laid down a code of conduct
code of conduct.. to regulate the activities of their
members.
However, no compulsion for
managers to be members of
such an association
 Ethical code of conduct: All AIMA has also framed code of Partially
professions are bound by a code of conduct for the managers but present
conduct which guides the behaviour there is no legal backing for this
of its members. code.
Service motive: The basic motive of a The basic purpose of management Partially
profession is to serve their client’s is profit maximisation but it also present
interests by rendering dedicated and serves society by providing good
committed service. quality products at reasonable
prices.
Conclusion: On the basis of above discussion we find that management fulfils some of the features of
profession. Therefore it can be regarded as profession. But not full-fledged professions

COORDINATION
The process by which a manager synchronises the activities of different departments is known as
coordination.
FEATURES OF COORDINATION:
1. Integrates Group Effort: unifies unrelated or diverse interests into purposeful work activity
2. Ensures unity of action: It acts as the binding force between departments and ensures that all
action is aimed at achieving the goals of the organisation.
3. It is a Continuous Process : begins at the planning stage and continues till controlling
4. It is responsibility of every manager : Whether working at Top , Middle or Lower level
5. All Pervasive : present at all levels ,all departments
6. Delibrate function : A manager has to coordinate the efforts of different people in a conscious and
deliberate manner.
Cooperation without coordination – wasted effort
Coordination without cooperation- dissatisfaction among employees

IMPORTANCE OF COORDINATION
1. Growth in size: each individual having his own needs, objectives, Co-ordination brings harmony
between individual goals and organisational goals
2. Functional differentiation: each department has its own objectives, Co-ordination brings
harmony between departmental goals and organisational goals
3. Specialisation: Each department is headed by specialits , they do not take suggestions from others
,so conflict ,coordination is required to reconcile the differences in interest or opinion of the
specialists.

COORDINATION IS ESSENCE OF MANAGEMENT

Coordination is present at all levels and it is not a seaprate function but part of all functions of an
organisation.
1. Coordination in planning : Organisation objective & departmental objectives
2. Coordination in Organising : Authority, responsibility and Accountability
3. Coordination in staffing : Skills of employees and jobs assigned to them
4. Coordination in directing: orders, instructions, guidelines and suggestions
5. Coordination in controlling - Standards fixed and actual performance