Concept & Nature of Management

concept & Nature of

Management

What is Management ???

•The process of using what you have { RESOURCES }, to do what you want to do …. {GOALS}

Resources {Assets}7 categories of resources:MoneyPeopleTimeWork ProceduresMaterialsEquipmentEnergy

Goals 1. Maximum Profit Levels

2. Maintenance or growth of financial strength

3. Quality standards

4. Professional obligations

5. Societal concerns—Social Responsibility of

Business

Management is a multi-purpose organ that

manages business, managers, workers &

work

MANAGEMENT

• “Management is the art of getting things done

through and with people in formally organized

groups.”

• -

Koontz

• “Management is process involving planning,

organizing, staffing, directing, and controlling

human efforts to achieve stated objectives in

an organization.”

•“Management is simply the process of decision-

making and control over the actions of human

beings for the expressed purpose of attaining pre-

determined goals” -Stanley Vance

WHAT IS MANAGEMENT PROCESS?WHAT IS MANAGEMENT PROCESS?

• Methodology of getting things done

• Series of actions or operations

• Functions performed and sequence of

performance

• Planning, Organizing, Actuating and Controlling

MANAGEMENT

Process of Organized Activities

For achievement of enterprise goals, management plans,

organizes co-ordinates, directs and controls group efforts

Existence of Objectives

Without objectives, it becomes difficult to define the direction

where organized group activities would lead to

Relationship Among Resources

Resources include (5 M’s of management) MEN,

MATERIAL, MONEY, MACHINES, METHODS

All these resources are made available to managers who

apply their knowledge, experience and principles for

getting the desired results

Working with and through People

Working with people and getting organizational objectives

achieved through them

Decision-making

Involves selecting the most appropriate alternative solution

out of the several alternatives available

DELEGATION OF AUTHORITY

• Refers to the entrustment of responsibility

and authority to another

• And creation of accountability for

performance

• Refers to conferring of authority by one

person to another, usually a subordinate

AUTHORITYPower to command and give

ordersRight to give orders or power

to command othersOFFICIAL

•Authority of superior

which he possesses

because of his official

position and placement

in the organizational

structure.

PERSONAL•Which a person enjoys

because of his popularity,

good public relations,

excellent charismatic

personality

RESPONSIBILITY

• Obligation of a subordinate to perform the duty as

required by the superior

• Refers to such duties and activities which are assigned to

a position or to an executive

• Responsibility cannot be transferred

• When an executive delegates his authority to his

subordinate, he cannot delegate responsibility

• A manager is responsible for the performance of his

duties even though he may delegate his authority to

a subordinate for the performance of the same task

ACCOUNTABILITY

• Obligation on the part of subordinate to carry out the

responsibility by exercising authority

• Every subordinate is answerable to his superior for

the tasks assigned to him

•14 PRINCIPLES OF 14 PRINCIPLES OF MANAGEMENTMANAGEMENT

•HENRy FAyOLHENRy FAyOL

•1.1. DIVISION OF WORK DIVISION OF WORK•Specialization and specification of job

•People need specialization for effective performance

2. AUTHORITY AND 2. AUTHORITY AND RESPONSIBILITYRESPONSIBILITY

•Balance between Authority and responsibility

•If anyone is assigned any duty he must be vested with

requisite authority to carry out his responsibility.

•Personnel must know what activities they are to undertake

and what results they have to show.

•3. DISCIPLINE3. DISCIPLINE•Without discipline in the organization it is difficult to operate.

•Self- imposed- springs from within the individual

•Command-imposed- through remuneration, warning,

suspension, demotion, etc

•4. UNITY OF COMMAND4. UNITY OF COMMAND•It means an employee should receive orders from one superior

only

5. UNITY OF DIRECTION5. UNITY OF DIRECTION•There should be one plan for one unit

•Objective is important

•6. SUBORDINATION OF INDIVIDUAL 6. SUBORDINATION OF INDIVIDUAL

INTEREST TO GENERAL INTERESTINTEREST TO GENERAL INTEREST•The interest of the group should supersede that of the individual

•Common interest is above individual interest

7. REMUNERATION OF 7. REMUNERATION OF PERSONNELPERSONNEL•Remuneration and methods of payment should

be fair

•Provide maximum satisfaction to the employee

and employer

•8. CENTRALISATION8. CENTRALISATION

•Power is concentrated a certain level in the

organization.

•It depends on the nature and size of the organization.

9. SCALOR CHAIN9. SCALOR CHAIN•Communication can be established through proper channel.

•Scalar chain was a very time consuming process.

•Henri Fayol suggested gang plank policy according to which

there was a provision of lateral communication.

•10. ORDER 10. ORDER •Right person at the right job and right place for material,

machine and stock.

•Meaning right thing in the right place.

11. EQUITY11. EQUITY•Every manager should be unbiased towards the officials.

•Personal liking and disliking should not be involved.

•12. STABILITY OF TENURE12. STABILITY OF TENURE•Tenure and term of appointment should be stable.

•There should be reasonable security of job.

•

13. INITIATIVE13. INITIATIVE•Within the limits of authority and discipline the manager should

encourage their employees to take initiative for establishing

team work in the organization.

•14. 14. ESPRIT DE CORPSESPRIT DE CORPS

•Union is strength

FUNCTIONS OF MANAGEMENT

‘PODSCORB’LUTHER GULLICK

P –PLANNINGO –ORGANISINGD –DIRECTINGS –STAFFING

CO –COORDINATINGR –REPORTINGB –BUDGETING

The Management process…..

Levels of Management

Non Management Employees

Traits of a managerBest Traits Fair/just in decisions Trusting/trusted at the same time

Caring & analytical in thought Empowering & capable/responsible Always punctual

Worst Traits Deceitful Dishonest Shows favouritism Lazy Unorganized

MAIN AND SUBSIDIARY FUNCTIONS MAIN AND SUBSIDIARY FUNCTIONS OF MANAGEMENTOF MANAGEMENT

MAIN FUNCTIONS SUBSIDIARY FUNCTIONSPLANNINGPLANNING COMMUNICATIONCOMMUNICATIONORGANISINGORGANISING DECISION-MAKINGDECISION-MAKINGSTAFFINGSTAFFING INNOVATIONINNOVATIONDIRECTIONDIRECTIONCO-ORDINATIONCO-ORDINATIONMOTIVATION MOTIVATION CONTROLCONTROL

PLANNINGPLANNING• Planning is deciding in advance what to do, when and

how to do it

• It is the blue-print for future action

• Determination of objectives and goals of the organization

and laying down specific targets

• Planning is deciding in the present what to do in future

ORGANISINGORGANISING• It is a structure involving a large number of people

engaging themselves in a multiplicity of tasks

• Systematic and rational relationship with authority and

responsibility between individuals and groups

• It involves dividing the entire work into manageable units—

departmentation, delegation, decentralization, and span of

control

STAFFING•The process of recruitment, selection, training &

development, placing, evaluating and developing people

can be called staffing

DIRECTIONDIRECTION

•Making decisions and giving them in the form of orders and

providing effective leadership

CO-ORDINATIONCO-ORDINATION

Inter-relating various activities of the organization

MOTIVATIONMOTIVATION

• A psychological technique of executing the plans and

policies through the efforts of others.

• It is through motivation that the manager inspires the

subordinates to do what he wants them to do.

CONTROLCONTROL

• Controlling function brings to light the deviations, and

assists management to correcting those deviations.

• It involves the process of visualizing whether the activities

have been or are being performed in the same way as

contained in the plans, because any deviations will result in

inefficiency in the organization.

COMMUNICATIONCOMMUNICATION• The exchange of facts, ideas, opinions or emotions by two or

more persons is known as communication

• Constant communication with personnel helps management to

remain informed of their problems, difficulties and grievances

DECISION MAKING• The Selection from Among Alternatives of a Course of

Action

• “Management means Decision-making”—Moore

INNOVATION• Relates to research and development

• All big business houses have started research and

development departments to keep pace with modern

technique and up-to-date demand

•IS MANAGEMENT

AN ART OR SCIENCE ?