2. Introduction to
Management
Management is the
art of maximizing
efficiency, as a social
process, a method of
getting things done
through others a
plan of action and its
direction by a co-
operative group
moving towards a
common goal.
Nature of
Management
The nature of
management
involves organizing
people in groups
and managing them
Scope of
Management
Clearly defined
responsibilities,
concepts, theories
and principles
related to
managerial functions
define the scope of
management
Functions of
Management
Management is a
discipline that
consists of a set of
five general
functions: planning,
organizing, staffing,
leading and
controlling.
Fundamentals of Management
Introduction-Part-I
Course objective
To able to understand basic
concepts of Management
3. When human being started group
activities for the attainment of same
common objectives whenever a group is
formed and a group activity is organized
to achieve certain common objectives
management is needed to direct, co-
ordinate and integrate the individual
activities of a group and secure teams
work to accomplish organizational
objectives.
The objectives of all business are attained
by utilizing the scare resources like men,
materials, machines, money etc.
In process of management, a manager
uses human skills, material resources
and scientific methods to perform all
the activities leading to the
achievement of goals.
Introduction to Management
4. Definition:
"Management is an art
of knowing what is to
be done and seeing
that it is done in the
best possible manner."
(Planning and
controlling)
F.W. Taylor (father of
scientific management)
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5. "Management is to forecast, to plan,
to organize, to command, to
coordinate and control activities of
others.“
Henri Fayol (father of modern
management)
"Management is that process by
which managers create, direct,
maintain and operate purposive
organisation through systematic,
coordinated and cooperative
human efforts."
McFarland
"Management is the process by
which co-operative group
directs actions towards
common goals."
Joseph Massie
.
"Management is a responsible
person's or group’s thinking
processes and administrative
processes directed at
achieving the purpose, needs,
aspirations and objectives of
an organization, project or
task through people.
Definitions-
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6. Multidisciplinary
Dynamic nature of principle
Relative, not absolute principles
Management as a Science or Art
Nature of Management
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7. Economics
Statistics
operations research
Sociology
psychology
Multidisciplinary
Management is basically
multidisciplinary. This implies that,
although management has been
developed as a separate discipline,
it draws knowledge and concepts
from various disciplines. It draws
freely ideas and concepts from such
disciplines as psychology, sociology,
anthropology, economics, ecology,
statistics, operations research, etc.
Management integrates the ideas
and concepts taken from these
disciplines and present newer
concepts which can be put into
practice for managing the
organization.
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8. Dynamic nature of principle
Based on integration and supported by practical
evidences, management has formed certain
principles. However, these principles are flexible in
nature and change with the changes in the
environment in which an organization exists.
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9. Relative, not absolute principles
Management principle are relative, not
absolute, and they should be applied according
to the need of the organization. Each
organization may be different from others. The
difference may exist because of time, place,
socio-cultural factors, etc.
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10. MANAGEMENT
Management as a Science or Art
There is a controversy whether
management is science or art. However,
management is both a science and art.
Management as profession
Management has been regarded as
profession by many while many have
suggested that it has not achieved the status
of a profession.
11. Marketing Management
Production Management
Office Management
Personnel Management
Financial Management
Planning
Organization
Staffing
Directing
Coordinating, and
Controlling
Scope of Management
We can divide its scope into two
sections for better understanding.
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12. Marketing Management:
Marketing is a sum total of physical activities which are involved
in the transfer of goods and services and which provide for their
physical distribution. Marketing management refers to the
planning, organizing, directing and controlling the activities of the
persons working in the market division of a business enterprise
with the aim of achieving the organization objectives.
It can be regarded as a process of identifying and assessing the
consumer needs with a view to first converting them into products
or services and then involving the same to the final consumer or
user so as to satisfy their wants with a stress on profitability that
ensures the optimum use of the resources available to the
enterprise. Market analysis, marketing policy, brand name,
pricing, channels of distribution, sales promotion, sale-mix, after
sales service, market research, etc. are the problems of marketing
management.
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13. Production Management
Production means creation of utilities. This creation of utilities
takes place when raw materials are converted into finished
products. Production management, then, is that branch of
management ‘which by scientific planning and regulation sets
into motion that part of enterprise to which has been
entrusted the task of actual translation of raw material into
finished product.
It is a very important field of management ,’for every
production activity which has not been hammered on the
anvil of effective planning and regulation will not reach the
goal, it will not meet the customers and ultimately will force a
business enterprise to close its doors of activities which will
give birth to so many social evils.
Plant location and layout, production policy, type of
production, plant facilities, material handling, production
planning and control, repair and maintenance, research and
development, simplification and standardization, quality
control and value analysis, etc., are the main problems
involved in production management.
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14. The concept of management when applied to
office is called ‘office management’. Office
management is the technique of planning,
coordinating and controlling office activities
with a view to achieve common business
objectives.
One of the functions of management is to
organize the office work in such a way that it
helps the management in attaining its goals. It
works as a service department for other
departments.
Office Management
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15. Personnel / Human Resource Management
covers the various aspects relating to the
employees of the organisation such as
recruitment, training, transfers, promotions,
retirement, terminations, remuneration,
labour welfare and social security, industrial
relations etc.
Human Resource Management
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16. Financial Management
Finance is viewed as one of the most important factors in
every enterprise. Financial management is concerned
with the managerial activities pertaining to the
procurement and utilization of funds or finance for
business purposes.
The main functions of financial management include:
Estimation of capital requirements;
Ensuring a fair return to investors;
Determining the suitable sources of funds;
Laying down the optimum and suitable capital Structure
for the enterprise:
Co-coordinating the operations of various departments;
Preparation, analysis and interpretation of financial
statements;
Laying down a proper dividend policy; and
Negotiating for outside financing.
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17. Functions of Management
Management has been described as a social process involving
responsibility for economical and effective planning & regulation
of operation of an enterprise in the fulfilment of given purposes.
It is a dynamic process consisting of various elements and
activities.
These activities are different from operative functions like
marketing, finance, purchase etc. Rather these activities are
common to each and every manger irrespective of his level or
status.
1
2
3
4
5
Planning
Organizing
Staffing
Directing
Controlling
According to Henry Fayol, “To manage is to forecast and plan, to
organize, to command, & to control”. Whereas Luther Gullick has
given a keyword ’POSDCORB’ where P stands for Planning, O for
Organizing, S for Staffing, D for Directing, Co for Co- ordination, R for
reporting & B for Budgeting.
But the most widely accepted are functions of management given by
KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing
and Controlling.
18. Planning
It is the basic function of management. It deals with chalking out
a future course of action & deciding in advance the most
appropriate course of actions for achievement of pre-
determined goals.
According to KOONTZ, “Planning is deciding in advance - what to
do, when to do & how to do. It bridges the gap from where we
are & where we want to be”.
A plan is a future course of actions. It is an exercise in problem
solving & decision making. Planning is determination of courses
of action to achieve desired goals. Thus, planning is a systematic
thinking about ways & means for accomplishment of pre-
determined goals. Planning is necessary to ensure proper
utilization of human & non-human resources. It is all pervasive, it
is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.
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19. Organizing
It is the process of bringing together physical, financial and
human resources and developing productive relationship
amongst them for achievement of organizational goals.
According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e. raw
material, tools, capital and personnel’s”.
To organize a business involves determining & providing
human and non-human resources to the organizational
structure.
Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
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20. Staffing
It is the function of manning the organization structure and
keeping it manned. Staffing has assumed greater
importance in the recent years due to advancement of
technology, increase in size of business, complexity of
human behaviour etc. The main purpose of staffing is to put
right man on right job.
According to Koontz & O’Donnell, “Managerial function of
staffing involves manning the organization structure
through proper and effective selection, appraisal &
development of personnel to fill the roles designed on the
structure”.
Staffing involves:
Manpower Planning (estimating man power in terms of
searching, choose the person and giving the right place).
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer.
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21. Directing
It is that part of managerial function which actuates the
organizational methods to work efficiently for achievement of
organizational purposes
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:
Motivation
Leadership
Communication
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22. Controlling
It implies measurement of accomplishment against the
standards and correction of deviation if any to ensure
achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in
conformities with the standards.
According to Koontz & O’Donnell “Controlling is the
measurement & correction of performance activities of
subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being
accomplished”.
Therefore 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.
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