INTRODUCTION TO
MANAGEMENT

Objectives of the chapter
To introduce the concept and definitions of management.
Present the characteristics of management.
Understand the functions of management.
Understand the functional areas of management.
Distinguish administration and management.
Introduce the role of management.
Present the levels of management.

What is Management???

Definition:
Management is the act of getting people
together to accomplish desired goals and objectives using
available resources efficiently and effectively.

Effectiveness
Efficiency
Getting work
done through
others
Management is…

Efficiency: getting the most output from the least input
Effectiveness: completing activities so that the organization’s
goals are attained.

From the view point of economics, sociology, psychology, and
statistics management has different meanings. There are four
views of management.
(1) Management is a process.
(2) Management is a discipline.
(3) Management is a human activity.
(4) Management is a career.

COMPANY
is well managed is miss-managed
A process is defined as systematic method of handling activities.

These statements imply that management is some type of
work or set of activities, these activities sometimes performed quite
well and some times not so well. These statements imply that
management is a process involving certain functions and activities
that managers perform.

Discipline refers to the field of study having well
defined concepts and principles.
Classifying management as discipline implies that it is an accumulated body
of knowledge that can be learnt.
Management is a subject with principles and concepts.
The purpose of studying management is to learn how to apply these principles
and concepts at right circumstances at the right time to produce desired result.

Management is a human activity
If you say that “He is the best manager I have worked for” you are
referring to the people who guide, direct and thus manage organizations
Managers are responsible for seeing that work gets done in organization.

Today management is developed as a career focused on specialization.
Marketing management, finance management, personal management, Industrial
management, production management, quality management are some of the
specializations in management. Specialists are appointed at various positions of
the organizational hierarchy. Hence, management is career.
Management is a career.

CHARACTERISTICS OF MANAGEMENT
Management is a continuous process
Management is an art as well as science
Management aims at achieving predetermined objectives
Management is a factor of production
Management is decision-making
Universal application
Management is needed at all levels
Management aims at maximum profit
Dynamic
Management as a career
Management is a profession
Management is a discipline

Management is a continuous process
The process of management consists of planning, organizing,
directing and controlling the resources to ensure that resources are used to
the best advantages of the organization. A single function alone cannot
produce the desired results. Management involves continuous planning,
organizing, directing and controlling.

planning
organizing
directing
controlling
organization

Management is an art as well as science
Management is an art in the sense of possessing managing skill
by a person. Management is science because certain principles, laws are
developed which are applicable in place where group activities are
coordinated.

Management aims at achieving predetermined
objectives
All organizations have objectives that are laid down.
Every managerial activity results in achievement of these
predetermined objectives.

Management is a factor of production
An enterprise produce goods or services using resources like land,
labour, capital, machines etc.
These resources themselves cannot realize the organizations goals
The goals are achieved when these are effectively coordinated by the
entrepreneur.
In case of small enterprises an individual can do such type of job where as in
large enterprises the coordination job is done by management. Therefore,
management is a factor of production.

Management is decision-making
Decision-making is selecting the best among alternative courses.
Decision-making is an important function of a manager.
Whatever a manager does, he does it by making decisions. The
success or failure of an organization depends upon the quality of
decision. A manager must make a right decision at right time.

Universal application:
The principles and concepts of management are applicable
to every type of industry. The practice of management is different
from one organization to another according to their nature

Management is needed at all levels
The functions of management are common to all levels of
organization. The functions of planning, organizing, directing,
controlling, decision-making are performed by top level as well as lower
level supervisors.

Management aims at maximum profit
The resources are properly utilized to maximize profit. Maximizing
the profit is the economic function of a manager.

Dynamic
Management is not static. Over a period of time new principles,
concepts and techniques are developed and adopted by management.
Management is changed accordingly to the social change.

Management as a career
Today management is developed as a career focused on
specialization.
Marketing management
finance management
personal management
industrial management
production management
quality management are some of the specializations in management

Management is a profession
Management is a profession because it possesses the qualities of
a profession. The knowledge is imported and transferred. The established
principles of management are applied in practice.

Management is a discipline
The purpose of studying management is to learn how to apply
these principles and concepts at right circumstances, at the right time to
produce desired result.

scope of management
The scope of management is very wide but can be combined into three
distinct areas.
I. An economic resource
II. A system of authority

Management as an Economic Resource
In modern organizations, the effective use of five M’s of
management depends to a great extent on the quality of management .
Money
Materials
Manpower
Machinery &
Methods

Management as a system of authority
Management is the rule making and rule enforcing body.
It Is bound together by a web of relationships between superiors and
subordinates.
People are bound by authority relationship rather than any kind of
relationship. It basically means that manager working at top levels
enjoy more authority than people working at lower levels

For example in an engineering college
Top Level management
Board of Directors,
Principal..
Middle Level management HOD’s of various
Branches
Lower Level management Lecturers, Assistant
Professors, Professors

Functional Areas of Management
Forecasting
Planning
Organizing
Staffing
Directing and motivating
Controlling
Co-ordinating
Communication
Leadership
Decision Making

Forecasting
Forecasting is nothing but the estimation of future events.
For a business organization forecasting is done with respect to its
future sales since majority of the activities depend upon it.
Forecasting involves not only estimation of quantity of future
sales but also as to when it should be available, where it should be
available and what quality level.

Planning
After forecasting the future sales demand, it is now time to plan.
“Planning is nothing but thinking before doing”
In a business organization planning is all about deciding
what, where, when, why, who, and how each activity should
be done.

Organizing
When planning is done, the next step is to arrange money, materials,
machinery, men etc
Determining all activities required to achieve company objectives.
Division or grouping of all these activities.
Selecting people for particular jobs and defining their responsibilities.
Giving people enough authority to carry out their responsibility.

staffing
In order to run the organization people are required. Staffing
means filling up the positions in the organization by appointing
competent and qualified persons for jobs. Staffing involves
Recruitment
selection
placement
Training
developing system for salary structure
evaluating employee performance

Directing
After getting recruited to the company, the employees need
direction from their bosses.
Directing involves guiding and supervising the subordinates in
their activities.
Directing does not mean only giving orders but also involves
motivating and helping the subordinates in their work.

controlling
After giving direction and motivation to employees, it is
necessary to control their work. This is essential in order to ensure that
every activity is carried out according to the plan
Controlling means:
Setting standards
Measuring actual performance
Taking corrective action if necessary
Examinations are required on a periodic basis to ensure that all things are
proceeding as per plan.

Co-ordinating
Organization
Different
departments
Different level of
management
Sub-Ordinates Individual effort of all
workers

Co-ordinating can be achieved with the help of
following tools
1. Clear cut objectives
2. Clear cut authority and responsibility for every sub-ordinates
3. Effective communication between the executive and his
subordinates, supervisors and workers
4. Good human relationship of managers with their subordinates
5. Co-operation among the subordinates and between the executive
and subordinates

Communication
Communication is the process by which instructions are
transmitted, received and understood by people working in the
organizations.
Good communication system avoids the confusion,
misunderstanding and any kind of communication gap.

Leadership

Decision making
A decision is defined as a course of action chosen from available
alternatives for the purpose of a desired result.

The following are considered as stages in effective
decision making
•Define the problem
•Grade the objectives and identify the problem environment
•Identify all alternatives
•Select criteria in order to evaluate alternatives
•Select the best alternative and implement and decision
•Obtain feedback

Management as a science, art or
profession
The question whether a management is a science or art or a
profession is an ongoing debate.
Management has a characteristic of both science and art and at
the same time it is increasingly becoming a profession.

Management as a science
Properties of science
•Systematic body of knowledge
•Scientific inquiry and observation
•Experimentation
•Universal truth

Systematic body of knowledge
Science as a knowledge is based on certain principles that are
obtained through the process of observation, experimentation and
verification.
Science is derived from the cause and effect relationship between
different variables.
Science as a knowledge helps in explaining past and predicting
future events.

Scientific inquiry and observation
• Scientific inquiry is unaffected by personal likes and
dislikes.
• When we say that acceleration due to gravity is 9.81
m/sec2, we are not expressing the opinion of one
person. This is scientifically verifiable.

Experimentation
Scientific principles are derived after repeated observation and
experiments.
The result of each experiment can be verified and results
predicted in a definite way.

Universal truth
Scientific principles represent basic truth and are developed after
a series of experiments. They can be applied in all situations and at all
times.

Properties of Management
•Systematic body of language
•Management is a social science
•Management is not an exact science
•Manager Vs scientist
•Scientific management

Systematic body of language
Management as a knowledge is also based on certain principles
and many of these principles have been established through the process
of observation, experimentation and verification.
Certain management tools can also be used to explain past events
and predict future events, though not as scientific principles.

Management is a social science
Management is a social science because it basically deals with
human behavior, which is unpredictable and cannot be tested in
laboratories.
As a result, not all principles of management can be accepted as
absolute truth. Management , at best can be called as soft science.

Management is not an exact science
Management is not an exact science like physics, chemistry or
biology. It does not offer absolute principles but only flexible guidelines
which help in solving problem.
Management can never be an exact science because in business,
condition changes continually.

Manager Vs scientist
A scientist takes decisions based on the results of his
experiments while a manager has to experiment his decision and wait
for the result.

Scientific management
Many pioneers of management such as F W Taylor, Henri Fayol,
Mary Parker etc. have developed several principles in management with
structured and logical thinking, which came to be known as ‘scientific
management’.
Management has become more and more scientific over the years
replacing thumb rules and traditional methods.

Management as an ART

Properties of art Vs management as an art
•Use of knowledge
•Creativity
•Personal touch
•Constant practice

Use of knowledge
Art can be considered as application of knowledge and personal skills to
achieve results.
Art can also use the knowledge of principles offered by science.
Example: an architect has to combine his knowledge as well as artistic
skills to achieve his objectives

Creativity
Art is meant to be creative. But knowledge can teach an artist to
do things creatively and skillfully.
Management is also creative like any art. It combines human and
non-human resources in a useful way so as to achieve results

Personal touch
In Art, there is a personal touch. Different artists produces different
works although they belong to same school of art. Like wise
management is also a personalized activity.
every manager has his own way of managing things and people,
based on his knowledge and experience.

Constant practice
Artists perfect their art by practice. They become mature over
many years of constant practice. They learn from their mistakes.
Like wise managers also have to develop their skills by constant
practice. Managers can tackle difficult problems with confidence only
with the experience of having applied management principles over a
period of time.

DIFFERENT LEVELS OF MANAGEMENT
TOP
Middle
Low level
Board of Directors, Chairman, Chief
Executive
Department Heads,
Divisional Heads, Section
Heads
Senior
Supervisor,
Supervisors

Top level management
Top level management determines goals and objectives. It
performs overall planning, organizing, staffing, directing and controlling.
It integrates organization with environment, balances the interest groups
and is responsible for overall results.

Middle management
Middle management stands between top management and
supervisory management level. Middle level management establishes
programs for department and carries out functions for achieving specific
goals.
The other functions of middle level management are training and
development of employees, integrating various parts of the department

Lower level management
Lower level management is concerned with efficiency in using
resources of the organization. A supervisor is an executor of policies
and procedures making a series of decisions with well-defined and
specified premises.

Management and Administration
Basically there are Three views
•Administration is broader than management
•Management is Broader than Administration
•Management and Administration are unique

Administration is broader than management
Administrator think while manager act. Administration, according to
them, is a higher level activity than management.

It is a process of determining the objectives
To be achieved.
It is always down the policies and
principles
It prepares the frame work under which
One has to work
It provides direction, guidance and
leadership
& brings in source
It comes first and provides guidelines to the
management and organization
Administration Management
It is process of planning the work as
per the objectives laid down by the
administration
It executes the policies and
programs
It supervises and controls the
execution of assigned work
It co-ordinates all the resources
and activities
It is the second and it drives
strength & freedom from
administration to plan and execute
the work

Management is broader than Administration
Management is wider concept than administration. This is echoed by
thinkers like Henry, Brech etc.
They are of the opinions that Management is role making, rule enforcing,
all encompassing body while administration implements and carries out
the policies of the management

Management and Administration are identical
Some authors like Harold, William. They claim that there
are hardly any distinction between the two terms. They are of the
view that both administration and management do the same
functions such as planning, organizing, commanding, co-ordinating
and controlling

Roles of Management (Manager)
1. Interpersonal Role
•Figure Head
•Leader
•Liaison
2. Informational Role
•Monitor
•Disseminators
•Spokesman
Decisional Roles
•Entrepreneur
•Disturbance Handler
•Resource allocator
•Negotiator

Interpersonal Role
Figure Head: in this role, a manager is seen as a person representing the
organization in formal matters, serving as a symbol of the organization.
He may have to receive top dignitaries, attend meeting, preside over
functions.
Leader: Here he is busy encouraging and motivating and motivating his
employees. He takes initiative, delegates, directs, and communicates his
Views.
Liaison: in this role, he connects the outside world to the inside world.
He interacts with people outside the organization and develops external
links.

Informational Role
Monitor: as a monitor, a manager request and receives
information from various sources on matters concerning his
organization. He keeps all channels of information open.
Disseminators: here a manager transmitting information within the
organization. It might be transmitting policy instruction from top
management to lower unit or taking suggestion and opinions from
lower unit and informing top management

Spokesman: this is about transmitting information to people outside
the organizations. It is the manager who has to talk on behalf of his
organization to concerned people such as share holders, government
bodies, press, media, police etc.

Decisional Roles
Entrepreneur: as an entrepreneur, a manager initiates projects to
improve the organization, encourages new ideas and innovations, brings
changes and manages it.
Disturbance Handler: Manager has to handle all kinds of disturbances
that occur within the organization. He also has to find solutions to
unanticipated problems such as worker strikes, Major accidents etc.

Resource allocator: how all the resources of an organization get
disturbed among various divisions or employees, is something that a
manager decides. He is the one who allocates resources to particular
areas in the best interests of the organization.
Negotiator: He may have to negotiate with politicians, labors officials,
clients, suppliers, customers etc.

Important questions
1. Define management. Write various characteristics of management and
explain them briefly.
2. What are the functions of management and explain in brief.
3. Explain different levels of management
4. What is scientific management? Explain
5. Explain different role of management

DEVELOPMENT THOUGHT OF
MANAGEMENT

• The period between 1700 and 1850 highlights the industrial
revolution and the writings of the classical economists.
• Importance of direction as a managerial function
• Several economists during this period explained in their
writings the concepts and functions of management.
• Example:
▫ Adam smith: explained the concept and consequences of division of
labors. Similarly the other concepts like directing, controlling,
planning etc.

The evaluation of management thought can be
studied in three parts
• Early classical approach
▫ Scientific management
▫ Administrative management
▫ Bureaucracy
• Neo-classical approach
▫ Human relations movement
▫ Behavioral management
• Modern Approaches
▫ Quantitative approach
▫ System approach
▫ Contingency

Early classical approach
• Scientific management:
 Frederick Winslow Taylor is considered to be the father of
scientific management.
 He exerted great influence on the development of management
thought through his experiments and writings.
 During his span, he conducted many experiments in three
companies:
▫ Midvale steel
▫ Simonds Rolling Machine
▫ Bethleheme steel

While serving as a chief engineer of Midvale steel company , Taylor
made several important contribution which are classified under
scientific management
1. Time and Motion Study: Taylor is a Machinist himself.
• Time, Job, Input, Output.
• Time and Motion study
• Replaced the thumb rule found the best way of doing job

2. Differential payment
• Linked incentive with production
• Taylor thought that the attraction of high piece rate would motivate
workers to increase production.
3. Drastic Reorganization of supervision
•Separation of planning and doing
•Functional foremanship
The workers himself used to select his tools and decided the order in
which the operations were to be performed.
The foreman simply told the worker what jobs to perform, not how to do
them.

4. Scientific recruitment and training:
•Taylor emphasized the need for scientific selection and development of
the worker
•He said the management should develop and train every worker.
5. Intimate Friendly Cooperation between the management and
workers:
“ a complete mental revolution”

Administrative management
• Division of work:
division of work in the management process produces
more and better work with the same effort.
• Authority and responsibility: a management consists of
getting the work done through others.
• Discipline: is the absolutely essential for the smooth
running of business.
• Unity of direction: there should complete identity between
individual and organization.

• Bureaucracy:
Max weber is known as Father of Bureaucracy.
1910 he made a study of different types of business and
government organization and distinguished 3 basic
types of administration in them:
• Leader-oriented
• Tradition Oriented
• Bureaucratic

• Neo-Classical approach
1. The human Relation Movement:
2. Behavioral approaches:
improved and matured version of human relation
approach to management.

Modern Approaches:
• Quantitative approach
• System approach
• Contingency approach