MANAGEMENT

• Management : Management is a process of

designing and maintaining an environment in
which individuals, working together in groups,
accomplish their aims effectively and
efficiently.
• It implies—
– Management is process of carrying out the
essential functions of planning organizing, staffing,
leading and controlling.
– Management applies to every kind of
organization, whether it is government, profit
making or non profit making organizations
• - it applies to managers at all levels in the
organization
• The aim of all managers is the same to create
surplus
• Managing is concerned with productivity this
implies effectiveness and efficiency
• Management can be defined as a dynamic process
that helps to get things done, through and with the
efforts of people.
• management as a process helps in optimizing
scarce resources (all the inputs to achieve the
intended goals and objectives of the organization).
• The art of getting things done through others or
• CHARACTERISTICS OF MANAGEMENT –
• Management is organized activities
• Management is aligned with organizational objectives
• Management optimizes constraining resources
• Management works with and through people
• Management is decision making:
• Management is a science as well as an art
• Management is universal
• Management is intangible
• Management is an interdisciplinary approach
• Management is a social process
• Management principles are relative and not absolute
• Management is a system of authority
• Significance of Management
• Management is important due to the following
reasons: „
• It optimizes use of scarce resources. „
• It ensures effective leadership and motivation. „
• It promotes harmony among industrial relations. „
• It facilitates the achievement of goals. „ It facilitates
change and growth. „
• It enhances the quality of life. „
• It improves productivity. „ It contributes to
organizational competitiveness. „
• It develops professionalism.
• „ It contributes to organizational growth
• Functions of Management:
• The process of management can be better understood by breaking it
down into the five basic functions of a manager—
• Planning - Planning is deciding in advance what is to be done, how it is to
be done, and when it is to be done. It involves projecting the future
course of action for the business as a whole and also for different
sections within it
• Organizing - It may be conceived of as the structuring of functions and
duties to be performed by a group of people for the purpose of attaining
enterprise objectives.
• Staffing - The staffing process, therefore, provides an organization with
an adequate number of competent and qualified personnel at all levels in
the enterprise.
• Leading - This function involves making the employees integrate their
individual efforts with the interests and objectives of the enterprise. It
calls for properly motivating, communicating with, and leading the
subordinates
• Controlling - control involves compelling events to conform to plans.
• According Luther L Gullick functions of
Management are named as “POSDCORB”
• P – Planning
• O – Organizing
• S – Staffing
• D – Directing
• CO – Coordinating
• R – Reporting
• B – Budgeting
• Scientific management:
• Scientific management is a classical approach
that emphasizes the scientific study of work
methods to improve efficiency of workers.
Among all the contributors to this school of
thought, the contribution of Taylor is thought
to be the most important. Regarded as the
father of scientific management, Taylor
developed specific principles for this field in
1911
• Taylor Principles of Scientific Management:
• Main features: Separation of planning and doing
• Functional foremanship
• Job analysis
• Standardization
• Scientific selection and training of worker
• Financial incentives
• Economy
• Mental revolution
• Principles of Scientific Management
• Replacing rules of thumb with science
• Harmony in group actions
• Cooperation
• maximum output
• Development of workers
• After detailing all these activities, Fayol primarily focused
on the managerial activities and outlined 14 principles to
achieve efficiency. These Fayol 14 principles are as
follows:
1. Division of labour: If people are specialized at their work, they
can perform their task better. This principle recommends grouping
of people as per their area of specialization. The modern
assembly line concept is an outcome of division of labour.
2. Authority: Managers must have authority to get things done. Yet,
formal authority alone may not help to compel obedience from
subordinates; managers must have the expertise to exert personal
authority.
3. Discipline: People working in an organization need to comply with
rules and agreements that govern the organization. Without
discipline, results cannot be achieved. Strong discipline and
leadership are inter-connected and these can together create an
environment of positive work culture.
4. Unity of command: Members in an organization must receive
instructions from only one person. Confl ict will arise when one
receives orders and instructions from multiple managers. Therefore,
the reporting relationship of one subordinate should be with one
superior.
5. Unity of direction: All operations in an organization need to be
directed towards one objective. Without this, achievement of goals
cannot be ensured.
6. Subordination of individual interest to the common good: The
interests of an individual employee should not take precedence over
the interests of the organization as a whole.
7. Remuneration: It should be fair to both employees and employers.
8. Centralization: Centralization reduces the role of the subordinates in
decision making, while decentralization enhances it. Managers should
retain responsibility through centralization but at the same time give
their subordinates enough authority to do their jobs properly.
9. Hierarchy: There should be a line of authority, illustrated in the form of
an organization chart clearly showing the structure of authority from
the top management to employees down the line.
10. Order: People and materials should be in the right place at
the right time. Job allocation to people should be made in a
way that suits them.
11. Equity: Managers should be fair to their subordinates.
12. Stability of staff: Employee turnover should be less to ensure
efficiency of an organization.
13. Initiative: Subordinates should have the freedom to conceive
new ideas and do their task, even though they may commit
mistakes.
14. Esprit de corps: Team spirit should be promoted to develop a
culture of unity in the organization. Use of verbal
communication instead of formal written communication,
wherever possible, may help in developing the team spirit in
an organization
• Social responsibility of Management:
• Social responsibility of a business is also viewed as
conducting its operations in a free and fair manner
by discharging its commitment towards different
segments of its operational environment such as
• Responsibility towards shareholders
• Responsibility towards consumers
• Responsibility towards employees
• Responsibility towards creditors
• Responsibility towards government
• responsibility towards competitors
• Responsibility towards general public
• PLANNING
• Planning involves selecting missions and objectives
and the actions to achieve them it ends with
decision making choosing best alternative from
the available future courses of actions.
• Planning involves deciding the future course of
action in advance
• Planning: Planning is the first function of
management. It is deciding in advance what is to
be done, how it is to be done, and when it is to be
done. It involves projecting the future course of
action for the business as a whole and also for
different sections within it
• Planning helps the manager to understand in advance the
future activities that need to be performed to achieve the
desired results for the organization as a whole and also for
each department.
• Effective planning requires not only assessing the future, but
also making adequate provision to face the future.
• From this perspective, planning is a rational approach to the
future
• Through planning, managers can minimize the risk of
decisional errors
• Importance of Planning:
• Since planning is one of the primary functions of
management, it provides the framework within which
organizing, staffing, directing, and controlling are undertaken
Planning clarifies the objectives of the organization
• Planning economizes operations
• Planning precedes control
• Planning provides for the future
• Planning increases the efficiency of all managerial functions
Limitations of Planning:
Planning premises may be wrong
Rapidity of change
Time and cost constraints
Planning may limit new ideas
Capital investment constraint
Lack of control over external factors
• Types of Plans:
• Objectives-Objectives are the operational definitions of goals.
They describe what organizations hope to accomplish in
specific measurable terms within a given time frame.
• Policies-A policy is a predetermined and established guideline
aimed towards the attainment of accepted goals and
objectives
• Procedures-activities involved in the planning
• Programs-A programme consists of the entire broad course of
action governing employees at all levels (including
management) in an organization.
• Budgets-Budgeting is the formulation of plans for a given
future period in numerical terms
• Strategies-Strategy is the long-term direction and scope of an
organization, matching its resources to its changing
environment and in particular its markets, customers, or
clients, to meet stakeholders’ expectations.
• Steps in planning:
• Being aware of opportunity
• Setting objectives or goals
• Considering planning premises
• Identifying alternatives
• Comparing alternatives in light of goals sought
• Choosing an alternatives
• Formulating supporting plan
• Numberising plans by making budgets
• DECISION MAKING
• Decision making is the process to select a course of
action from a number of alternatives. Like planning,
decision making is all-pervasive. Also, much like
forecasting, decision making is an important part of
planning.
• „ Diagnosing, defining, and identifying the source of the
problem „
• Information gathering and analysis of the facts required
to solve the problem „
• Developing and evaluating alternative solutions to the
problem „
• Choosing the best decision alternatives „
• Communicating the decisions
• „ Implementing the decisions