Concept of Mgnt

8/7/2019 Concept of Mgnt.

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PRINCIPLES OF

MANAGEMENT

Dr. Smita Gupta


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Management

2

The attainment of organizational goals in an

effective and efficient manner through planning,

organizing, leading and controlling organizational

resources.


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Definition

Management is the art of getting things done through

and with the people in formally organized groups.

Koontz H.


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Define Organizations :

Organizations which can be defined as group of

people working together to create a surplus.

In business organizations, this surplus is profit.

In nonprofit organizations, such as charitable

organizations, it may be the satisfaction of needs.


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Features of Management :

1. Universal

2. Purposeful

3. Unifying force

4. Social process5. Multi- disciplinary

6. Continuous process

7. Intangible

8. Group activity9. System of Authority

10. Science as well as an art.


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Universal Management is needed in all types

and sizes of organizations, at all levels , in all

organizational areas, no matter where located.


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Purposeful Management exists for the

achievement of specific objectives/goals.


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Unifying force Management is the force that

unifies human as well as non-human resources

in the service of organizational goals.


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Social Process Management is done by

people, through people and for people.


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Multidisciplinary Management has received

rich contributions from various disciplines like

psychology, sociology, anthropology, economics

etc.


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Continuous Process Management is a on-

going process, so long as organized action for the

achievement of group goals.

According to Drucker, managers do not wait for thefuture, they make the future.


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Intangible Management is an unseen/invisible

force but its presence can be felt everywhere in

the form of results.


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Group Activity Management is concerned

with getting things done through people.


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System of Authority A manager is

supposed to get things done, rather than doing

things himself, by using authority.


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Features: Management is an Scienceas well an Art

Systematized Body of

Knowledge (cause andeffect, theories andprinciples)

Scientific observation

Experimentation Verifiable Principles

Universal Application

Body of Knowledge

Personalized

application of

knowledge and skills.

Practice Creativity

Science Art


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Features: Management as well as an Art

Science because it is systematized body of knowledge

(theories and principles) , universal applicability, scientific

researches in management use scientific techniques but is not

as perfect as physical sciences ( physics, chemistry etc)-

social science, inexact science.

Art because manager does use knowledge of concepts with

his personal skills and continuous practice , creativity

achieves pre-determined goals (music, dancing, painting etc)

Management is both. Aptly remarked Management is theoldest of arts and the youngest of sciences

The theory (science) and practice (art)of management go

side by side.


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Management vs Administration :

Administration is broader than management

Administration is part of management

Management & administration are same


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Administration is Broader Than Management :

Administration is the overall determination of thepolicies, the setting of major objectives and the laying

out of broad programs.

Management, on the other hand is concerned withcarrying out broad policies laid down by the

administration.

Ordway Tead, Oliver Sheldon, William Schulze etc.


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Administration is part of Management:

Administration handles the current problems thatmay arise in carrying out the policies laid down by

management. Administration is just an implementing

agency.

Management is the rule- making and rule- enforcingbody. It is more broader than administration, an all

encompassing and comprehensive term andadministration is a part of it.

Kimball and Kimball, Henry Fayol, E.F.L Brech etc.


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Management and Administration are identical:

Management & administration are synonymous; the

difference between the two terms lies mostly in their

usage in different countries or different fields of

human organizations. All organizations require planning, organization,

command, coordination and control in order to

function properly.

Drucker suggested, management is for businessenterprises while administration is applicable in

government, military, social and cultural institutions.

William Newman, Harold koontz, Earnest Dale etc.


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Difference between administration &

management :

Basis of differenceBasis of difference AdministrationAdministration ManagementManagement

11 Level in organizationLevel in organization Top levelTop level Middle & lowerMiddle & lower

22 Major focusMajor focus PolicyPolicy

formulation &formulation &objectiveobjective

determinationdetermination

Policy executionPolicy execution

for objectivefor objectiveachievementachievement

33 Nature of functionsNature of functions DeterminativeDeterminative ExecutiveExecutive

44 Scope of functionsScope of functions Broad &Broad &

conceptualconceptual

Narrow &Narrow &

operationaloperational

55 Factors affectingFactors affecting

decisionsdecisions

Mostly externalMostly external Mostly internalMostly internal

66 EmployerEmployer--employeeemployee Entrepreneurs &Entrepreneurs & EmployeesEmployees

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Concept of Mgnt