UNIT- 1

Management is defined as an act of managing people and their work with the aim
of achieving a common goal by using the organization’s resources. It is the joint efforts
of a group of people who use their skills and knowledge in running the complete
system of the organization. It is a function, a process, a discipline, an art and much
more.
“Management is an art of getting things done through others.” Management is to
plan, organize, direct and control the resources of the organization for
accomplishment of common objectives or goals. It involves proper utilization of
resources like material, money, machinery, methods, manufacturing and marketing.
The knowledge of management theory and practice enables managers to take more
practical view about organizational and social problems and to find out their
effective solution.

According to [Link], “Management is the art of knowing what you want to

do and then seeing that it is done in the best and cheapest way.”

According to Lawrence, “Management is the accomplishment of results through the

efforts of other people.”

According to Henry Fayol, “To manage is to forecast and to plan, to organize, to

co-ordinate and to control.”

Thus, it may be concluded that management plays a vital role in improving the
standard of living of the people in the society by developing an ideal organizational
structure and making economic use of available resources.

Nature of management.-

Management has the following nature:

1. Management is goal oriented- Management is concerned with achieving specific
goals and objectives. The success of management is measured by the extent to
which the goals and objectives are achieved.
2. Management is associated with group efforts- The business comes into existence
with certain objectives which are to be achieved by a group as a whole.
Management involves getting things done by, with and through the efforts of group
members. It coordinates the activities and acts of its members towards a common
goal.
3. Management is intangible- It is an unseen force. Its presence is evident from the
result of its efforts.
4. Management involves decision making- Decision-making is an important part of
modern management. Rational or sound decision making is considered as a primary
function of management.
5. Management is an art as well a science : Management has the features of art and
also science. Like an art, it requires skills and knowledge in order to be able to
manage an organization. Also, like a science, management requires specialized
knowledge, principles and practice for being successful in its endeavors. It is
however not pure science like physics and chemistry.
6. Management is getting things done through others - A manager plans activities
and goals of the organization and gets them done through subordinates.
7. Universal Process: Management is applicable in all organizations. Without
effective management, the goals of the organisation cannot be achieved.
8. Profession: Management is a profession as managers require specialized skills
and knowledge and formal training methods in order to be appointed as a manager
in an organization.
9. Process: The management method incorporates a range of activities or services
directed towards specific goals.

Management as an art,
science and profession-
Management as an art
Art is concerned with application of skills and continuous effort for achieving
certain goals. Art involves practical knowledge, regular practice and creativity. It is
a result- oriented approach. Management has to apply skills and knowledge in
dealing with various situations in order to achieve desired goals. It is a creative art
as it involves getting things done through others by motivating them and
coordinating their efforts. Management is result oriented and has continuous
applicability. In this sense, management is an art.

Management as a science
Science is a systematized body of knowledge which establishes relationship
between cause and effect. Management is systematized body of knowledge
acquired and developed by mankind through observation and experimentation,
capable of verification. Management and its activities are, in a way, a science as it
involves the use of systematized principles and philosophies developed by
management thinkers and scientists over the years. Also, like science, management
too has universal application. Though it is not pure science like physics or
chemistry but it may be called behavioral science as it mostly deals with human
behavior.
Thus, management is both art as well as science. It may not be proper to term it as
pure science or pure art. Management principles are applied as per the
requirements of various situations. So, it is a combination of both science and art.

Management as a profession-
The profession can be described as an occupation upheld by specific education and
practice, in which entry is limited. A profession has the following features:
 The well-defined theory of knowledge: All services are based on a well-defined
form of education that can be procured through education.
 Restricted entry: The entrance to a profession is defined through an examination or
 through obtaining an educational degree. For instance, to become a chartered
accountant in India an aspirant has to clear a detailed examination regulated by the
Institute of Chartered Accountants of India (ICAI).
 Professional community: All professions are affiliated to a professional association
which controls entry, presents a certificate of training and expresses and supports a
system of government. To be qualified to study in India, lawyers have to become
members of the Bar Council which monitors and regulates their actions.

Objectives of management-
Management brings together the 5 Ms viz. Men, Material, Machines, Methods and
Money. It is a result-oriented activity which focuses on achieving the desired output.
The main objectives of management are discussed below:
1. Optimum utilization of resources- The most important objective of management is
to use various resources of the enterprise in the most economic way so as to avoid
wastages. The proper use of men, materials, machines, and money helps a business
to earn sufficient profits and to satisfy various stakeholders.
2. Growth and development of business- By proper planning, organisation and
direction etc., management leads a business to growth and development. It helps
the business in expanding profitably. It provides a sense of security to the
employers and employees.
3. Better quality goods- The aim of sound management is to produce better quality
products at minimum cost.
4. Ensuring regular supply of goods- Another objective of management is to ensure
regular supply of goods to consumers. It checks the artificial scarcity of goods in
the market, thus keeping the prices of goods within permissible limits.
5. Promotion of research and development- Management undertakes research and
development activities to take lead over its competitors and meet uncertainties.
Thus, it provides the benefits of latest research and technology to the society.
6. Minimize risk- Though the exact future cannot be predicted, yet on the basis of
previous experience and existing circumstances, management tries to prepare the
organization for future contingencies, thus minimizing the element of risk.

Significance/Importance of management.
Management plays a vital role in an organization. Its significance may be studied
as under:
i. Achieving Group Goals: Management helps in the collaboration and
coordination of individual efforts so as to accomplish individual targets
together with the group goals.
ii. Increases Efficiency: Management improves productivity by managing
resources in a reliable conceivable way in order to decrease cost upscale
potency.
iii. Smooth operation of business: Management ensures smooth operation of
business through sound planning, organization, direction and effective
control.
iv. Adjustment with change: Management ensures adaptation of the organization
and its working in all changing situations.
v. Achieving personal objectives: Management promotes leadership and
provides motivation to employees to operate effectively in order to
accomplish their personal aims while working together towards the
organizational goals.
vi. Development of Society: Management helps in the enhancement of
community by manufacturing reliable and quality goods, establishing
employment opportunities and developing innovative technologies.
Functions of management-
Management is described as a social process. It is a dynamic process consisting of
various elements and activities. These activities are common to every manager
irrespective of his level or status.
Different experts have classified functions of management.
According to Henry Fayol, “To manage is to forecast and plan, to organize, to
command, and 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 and B for Budgeting. But the most
widely accepted are functions of management given by Koontz and O’ Donnel
which are Planning, Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the functions of
management but practically these functions are overlapping in nature i.e. they are
highly inseparable. Each function blends into the other, affecting the performance
of the rest. Let us discuss the functions of management in brief.
1. Planning
Planning is the basic function of management. Planning involves determining
future courses of action to achieve desired 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 and where we want to be”.
2. Organizing
Organizing is the process of defining and grouping of activities of the entire process
and establishing the authority and responsibility relationship among them. Thus,
organization involves determining and providing 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.
3. Staffing
According to Kootz & O’Donell, staffing is filling and keeping filled, positions in the
organization structure through defining work-force requirements, appraising,
selecting, compensation and training. The main purpose of staffing is to put the
right man on the right job, i.e., square pegs in square holes and round pegs in round
holes. Staffing involves:
• Manpower Planning
• Recruitment, Selection and Placement.
• Training and Development.
• Remuneration.
• Performance Appraisal.
• Promotions and Transfer.
4. Directing
Direction is called management in action. Direction is that aspect of management
which deals directly with influencing, guiding, supervising and motivating
subordinates for the achievement of organizational goals. Direction has the following
elements:
• Supervision
• Motivation
• Leadership
• Communication
5. 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 conformity with the standards set.
Therefore, controlling has following steps:
i. Establishment of standards of performance.
ii. Measurement of actual performance.
iii. Comparison of actual performance with the standards and finding out
deviation, if any.
iv. Taking corrective action.

Management skills-

According to Robert Katz there are three primary categories:

1. Technical skills: Technical skills are the hard skills needed to meet their objectives. As
well as understanding relevant tools and software, technical skills also include
techniques and strategies required to complete projects and meet their goals.
2. Conceptual skills: This big-picture thinking is critical for managers to understand
their tasks and build an effective action plan. Managers should be able to develop ideas
and problem-solving initiatives that support their department.
3. People management skills: People are often the primary drivers of goal-oriented
action. Managers should have strong interpersonal skills to help motivate, lead, and
work well with others.

Management and Administration-

The major differences between management and administration are given below:
1. A group of persons, who are employees of the organization, is collectively known
as management. On the other hand, administration represents the owners of the
organization.
2. Management is an activity of business, generally at functional level, whereas
administration is a high-level activity.
3. While management focuses on policy implementation, policy formulation is
performed by the administration.
4. Functions of administration include legislation and determination. Conversely,
functions of management are executive and governing.
5. Administration takes all the important decisions of the organization while
management makes decisions under the boundaries set by the administration.
6. Management is a systematic way of managing people and things within the
organization. Administration is the act of administering the whole organization by
a group of people.
7. Management can be seen in profit making organizations. Conversely, the
administration is found in government and military offices, clubs, hospitals,
religious organizations and all the non-profit making enterprises.
8. Management is all about plans and actions, but the administration is concerned
with framing policies and setting objectives.
9. Management plays an executive role in the organization. Role of administration is
decisive in nature.
 10. Management focuses on managing people and their work. On the other hand,
administration focuses on making the best utilization of the organization’s valuable
resources.
Theoretically, it can be said that both are different terms, but practically, we find that
the terms are more or less same. A manager performs both administrative and
functional activities. But we can say that administration is above management.

levels of management-

Most organizations have three management levels- Top-level management, Middle-

level management and Lower-level management. The managers of these three levels
are classified in a hierarchy of authority and perform different tasks. The three levels of
management, which are common in every corporation, are discussed below.
1. Top-level Management
Top-level Management consists of the decision-makers in an organization. Every
member of this level is responsible for the direction and growth of the company.
Sound top-level management basically defines the success and future of a
company. Some of the top-level designations are –
• Chief Executive Officer
• Chief Marketing Officer
• Chief Sales Officer
• Chief Technology Officer
• President
• Managing Director
• Vice-president
• Chief Operating Officer
The functions that these executives perform within an organization are–
i. Top-level management is responsible for making plans and strategies for the
business. They formulate the company’s vision and mission, which helps every
employee and the customers understand the fundamentals of every business.
ii. They design the functions and responsibilities of middle-level management.
They assign tasks and set goals for employees.
iii. Top-level management drafts the policy of the company.
iv. They are solely responsible for the survival and growth of the organization as a
whole.
2. Middle-level Management
Middle-level management consists of the heads of various departments in an
organization. These executives act as a bridge of communication between top-level
management and the lower level of management. They manage most of the
executions and micro-management within an organization.
Some designations and titles of mid-level management executives are –
• Marketing Manager
• Purchase Head
• Sales Manager
• Operations Manager
 • Branch Manager
• Finance Manager
The basic functions and responsibilities of middle-level executives are:
i. To communicate the policies and the mission set by top-level management and
maintain a healthy work environment.
ii. To micro-manage the tasks performed by every member of the lower-level
management coordinate between teams.
iii. They are responsible for the performance of lower-level executives by
motivating and encouraging them.
iv. Middle-level management handles all the recruitments and allocations within a
team.
3. Operational/Lower-level Management
Operational level management is responsible for managing the coordination
between the operative workforce and middle-level management. They micro-
manage specific tasks assigned to operative workers and manage teams.
Operational level management has very few decision making powers and generally
execute orders received from the middle-level management.
Some of the standard designations of operational level management executives are-
• Supervisor
• Foreman
• Clerk
• Junior Managers
• Inspectors
• Sub-department executives
The role of operational level managers is also crucial in the success of an
organization but the difference is that they do not make critical decisions, and their
efficiency and performance depend on middle-level management. Some of the
essential functions of operational level management are –
i. To communicate the challenges and grievances of operative workers.
ii. They are responsible for training the workers and managing their progress.
iii. They are responsible for maintaining healthy working conditions for workers and
improving their efficiency.
iv. They ensure optimum utilization of company resources.
v. They help the middle-level management in assessing employee performance.
These management levels help define authority and responsibilities within an
organization. Every successful company is built on the hard work of executives and
employees of these three levels, as a whole.

Management Skills-
Management skills can be defined as certain attributes or abilities that an
executive should possess in order to fulfil specific tasks in an organization.
They include the capacity to perform executive duties in an organization while
avoiding crisis situations and promptly solving problems when they occur.

Management skills can be developed through learning and practical experience

as a manager. The skills help the manager to relate with their fellow co-workers
and know how to deal well with their subordinates, which allows for the easy
flow of activities in the organization.
Types of Management Skills

According to American social and organizational psychologist Robert Katz, the

three basic types of management skills include:

1. Technical Skills

Technical skills involve skills that give the managers the ability and the
knowledge to use a variety of techniques to achieve their objectives. These
skills not only involve operating machines and software, production tools, and
pieces of equipment but also the skills needed to boost sales, design different
types of products and services, and market the services and the products.

2. Conceptual Skills

These involve the skills managers present in terms of the knowledge and ability
for abstract thinking and formulating ideas. The manager is able to see an
entire concept, analyze and diagnose a problem, and find creative solutions.
This helps the manager to effectively predict hurdles their department or the
business as a whole may face.
3. Human or Interpersonal Skills

The human or the interpersonal skills are the skills that present the managers’
ability to interact, work or relate effectively with people. These skills enable the
managers to make use of human potential in the company and motivate the
employees for better results.

Roles of a Manager-
Managerial roles are behaviours adopted to perform various management functions, like leading and
planning, organizing, strategizing, and solving problems. Within an organization, managers of different
levels have different responsibilities that may overlap.
Henry Mintzberg classified managerial roles based on their purpose. He developed 10 managerial roles and
divided them in 3 categories, grouping the roles that share similar features. Some of these features can be
applied to two or more roles at the same time.

According to Mintzberg’s typology, managerial roles fall into three basic categories:

Interpersonal roles. This category includes the roles which concern interactions with people working inside
and outside the organization. Basically, the majority of managers’ time is spent on interpersonal
communication through which things get done.
The managerial roles in this category are figurehead, leader, and liaison.
Informational roles. The informational category involves creating, receiving, or sharing information with
coworkers. The manager collects information from sources both inside and outside the organization,
processes it, and delivers it to those who need it.
The managerial roles in this category are monitor, disseminator, and spokesperson.

Decisional roles. Interpersonal roles are about dealing with people, and informational ones are about dealing
with knowledge. Decisional roles are about action. By communicating with people and using information,
managers make decisions that lead the organization to its goals.
The managerial roles in this category are entrepreneur, disturbance-handler, resource- allocator, and
negotiator.
Mintzberg's 10 managerial roles explained

Figurehead
This role requires performing social, ceremonial, and legal responsibilities. The Figurehead represents the
organization, as well as motivates the team to achieve goals. For people, this managerial role is a source of
power and authority.
Examples:
 Managers in the figurehead role attend social event where they promote their company.
 Greeting a potential business client and giving a tour.

Leader
The leader role is the most pivotal as it shows to which extent a manager’s potential is realized. Managers
are in charge of their people's performance, which may mean leading a team, a department, or an entire
organization.
The responsibilities include hiring and training (direct leadership) and encouragement of employees (indirect
leadership). Leaders influence and motivate people, giving them a sense of purpose to reach organizational
goals.
Example:
 A manager sets a goal for the team and communicates his expectations, making sure that people
understand them. He monitors their progress and provides feedback and resources if needed.

Liaison
Managers in the liaison role develop and maintain internal and external relationships. They are a connection
link that bridges the gap between employees of different levels to ensure work is done smoothly. Liaisons
transfer knowledge through different members of the organization, up and down the chain of command, and
can also involve their business contacts from outside the company.
Examples:
 A manager coordinates with people inside the company, as well as coordinating work between the
company’s units.
 A manager coordinates with people outside the organization, such as buyers, suppliers, and strategic
partners.
 Manager-client-employee interaction. A manager communicates with a client to see what the client's
needs are, providing this information to the employees after the fact.

Disseminator
Receiving information from various sources, a manager in the disseminator role is responsible for sharing it
with those who may need it. This can be done in both verbal and written forms.
A manager can pass on information directly to the appropriate person, or pass it on between subordinates if
they lack contact. The information can concern the organization's direction or strategy, as well as specific
technical issues.
Examples:
 A one-on-one conversation between a manager and an employee where a certain issue is discussed.
 Developing a proposal for a new product design, submitting it to upper management for approval,
and providing it to the employees so that they can get familiarized with it.

Spokesperson
Managers in a spokesperson role speak for their organization, defending the company's interests.
Their responsibility is to make the organization look good in the eyes of potential or new clients and
the general public.
Examples:
 A manager attends the annual shareholders’ meeting, informing the attendees about the results her
team has achieved this year and presenting statistics.
 A manager speaks on behalf of the company at a conference.
 Division leaders talk to other division leaders, informing them about strategies and resource
requirements.

Entrepreneur
In the entrepreneur role, a manager organizes and runs business processes. This role develops and
implements new ideas or strategies, which often means coming up with innovative solutions.
Entrepreneurs create conditions for change since innovation and change are needed for a company to
stay competitive. Besides, they make sure a company adopts new products and processes pioneered
by others or change the organizational structure.
Examples:
 A manager decides to use social media to increase sales.
 A manager reorganizes a weak department, or uses mergers or acquisitions.

Disturbance handler
A manager solves issues as they arise – like sales that grow too slowly, a client breaking a contract,
or valuable employees leaving. The task of the manager in the disturbance handler role is to fix the
problem, maintaining productivity.
Example:
 When two members of a team have a conflict, it’s the manager’s responsibility to help them resolve
it.

Resource Allocator
The resource allocator role requires a manager to determine how and where to apply organizational
resources. By resources we mean equipment, staff, funding, facilities, and time. Typically, the
resources an organization has are limited, so it takes some effort to decide how to best allocate them.
Example:
 A manager divides funding between the departments of his organization, based on their current and
future needs.
 A marketing manager divides funding between media advertising and promotions.
 A resource manager distributes project workload across people.

Negotiator
Managers participate in negotiations, trying to reach their goals. This managerial role includes
negotiating with external parties, where they represent the interests of their organizations, as well as
negotiating with internal parties, such as other departments or team members.
The better negotiation skills managers have, the higher their chances to come to an agreement with
customers, better organize the work process, and gain access to more resources.
Examples:
 A manager negotiates pricing, delivery, and design with customers.
 A manager negotiates over access to capital and personnel with seniors.