CHAPTER ONE Fundamentals of Management 1.1. Definitions of Management There is no single, comprehensive and universally accepted definition of management. This holds true due to the following major reasons among others: Different scholars view management from different perspectives It has many areas of applications. It is applied in profit, not for profit, private, government, social and business organizations. Management as a discipline is recent in origin and hence there are a number of theories being added to the field. It is so broad that it is difficult to encompass all its aspects in a single definition. It has undergone changes because of the developments in behavioral science and quantitative techniques. There are different approaches to management, definitions change as the environment changes. The environment of an organization changes due to changes in the political, social, economic, ethical and other factors. The following are among the most widely accepted definitions of management: Management is … the organ of society speciﬁcally charged with making resources productive - Peter Drucker Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims - Koontz and Weihrich. Management is a distinct process consisting of activities of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources - Terry and Franklin. The work involved in combining and directing the use of resources to achieve particular purposes is called management - David R. Hampton. Management is the process of planning, organizing, leading and controlling the work of the organization members and of using all available organizational resources to reach stated organizational goals - Stoner, Freeman and Gilbert. Management is the art of getting things done through people effectively and efficiently - Mary Parker Follett. Effectiveness/Quality: is a way that produces a desired result. Efficiency/Related to minimum Cost: is being capable of achieving the desired result with the minimum use of resources, time and effort. 1.2. Significance of Management 1) Encourages Initiative: Management encourages initiative. Initiative means to do the right thing at the right time without being told or influenced by the superior. The employees should be encouraged to make their own plans and also to implement these plans. Initiative gives satisfaction to employees and success to organization. 2) Encourages Innovation: Management also encourages innovation in the organization. Innovation brings new ideas, new technology, new methods, new products, new services, etc. This makes the organization more competitive and efficient. 3) Facilitates Growth and Expansion: Management makes optimum utilization of available resources. It reduces wastage and increase efficiency.