MANAGEMENT

MEANING: _

Classical Management is a distinct process consisting of

Concept planning, organising, activating and controlling
performed to determine and accomplish stated
objectives by the use of human beings and other
resources.

Productivity Management is the art of securing maximum

Concept output with the minimum efforts so as to secure
maximum prosperity and happiness for employers
and employees and give the public the best
possible service.

Human Management is the art of getting things done

Relation through and with people in formally organised
Concept or groups.
Neoclassical
Concept:

Integration Management is defined as the process of planning,

Concept or organising, actuating and controlling an
Modern organisation’s operations in order to achieve
Management coordination of the human and material resources
essential in the effective and efficient attainment
of objectives.

Management As an activity, management means the art of

as an getting things done through the efforts of other
Activity people. As an activity, management guides,
directs, regulates and integrates human efforts
towards the achievement of certain common goals.
It integrates the inputs of men, money, material,
machinery and methods and makes a productive
enterprise out of them. These are called 5 M’s of
Management.

Implications

Interpersonal Activity: Management is an

interpersonal activity because in order to get
things done, a manager has to interact with other
persons.

Group Activity: Management is a group activity

since a manager coordinates the efforts of a group
of people working in the organisation.

Goal Oriented Activity: Management is a goal

oriented activity in the sense that a manager
seeks to achieve some common goals of the
organisation.
 Decisional Activity: Management is a decisional
activity because managers take decisions to
manage the organisation.

Management As a group, management refers to all those

as a Group persons who perform the task of managing an
organisation. It is a collective noun consisting of
Board of Directors, Chief Executive, Head of
Departments, Branch Managers,
Superintendent, Supervisors etc forming an
organisational hierarchy. It has a network of
superior- subordinate relationships.
Management is a rule making and rule enforcing
body. It constitutes a hierarchy of authority
because managers at different levels posses
varying degrees of authority.

Management As a discipline, management implies a specialised

as a branch of knowledge 1 which involves the study of
Discipline principles and practices of administration 2. It
refers to the systematised body of knowledge 3 and
a separate field of study 4. Management as a
discipline comprises several specialised functional
areas such as, financial management, marketing
management5 personnel or human resource
management, production management etc.

Management Management is considered as a Process because it

as a Process consists of a series of interrelated functions which
are performed systematically in an orderly manner
and proper sequence. The management process
consists of planning, organising, directing,
staffing, coordination, controlling, reporting and
budgeting functions (PODSCORB).

Implications

Integrated Process:
 Management is an integrated process because it
brings together human, physical and financial
resources. It also integrates men with material,
machinery, method, money and markets to
achieve predetermined goal.

Continuous Process:
All the functions of management are performed
continuously to achieve the goal of the
organisation.

Iterative Process:
Management is an iterative process as all
managerial functions are contained within each
other. For example, when a manager performs
staffing, at the same time he needs to plan the
requirement of manpower.

Social Process:
Management is a social process as managers work
with and through people who are belonging from
the society.

Universal Process:
Management is universal because it is required in
all types of organisation irrespective of their
nature and size.

MANAGEMENT

Characteristics Of Management

[Link] Oriented Management aims to achieve economic and

social objectives. The success of management
is measured by the fulfillment of desired
goals.
[Link] Management is all-pervading. It is required
in all types of organisations - big or small,
business or non business and at all the levels
of authority – top, middle or low.

[Link] Activity Management is concerned with the efforts of

a group of people. It emphasizes on teamwork
and group efforts.

[Link] of There is a chain of authority- responsibility

Authority relationship among people working at
different levels of the organisation.

[Link] Process Management involves getting things done

with and through people to achieve the
desired results by coordinating the efforts of
human beings.

[Link] Management is performed continuously so as

Function to mould the policies and practices of the
organisation according to changes in its
environment.

[Link] and Science Management is a science because it contains

both certain universally valid principles which are
based on observations and experiment. It is
an art as it requires personal skill and
innovativeness of the managers.

[Link] Entity Management is a distinct process performed

to determine and accomplish stated
objectives by the use of human beings and
other resources.

[Link] Management is an invisible force. It can be

felt in the form of results but cannot be seen.

[Link] Management is a unifying force as it

Force coordinates individual efforts into a team.
 Managers reconcile goals and activities so
that the total results are more than the sum
of individual contributions.

[Link]- Management requires the knowledge of

disciplinary several disciplines like economics, sociology,
psychology, anthropology etc. which are
applied to secure the desired results.

[Link] Management activates all other resources and

makes them productive.

Objectives of Management

[Link] and Management must ensure that the business

Development / organisations and sufficient profits for growth
Prosperity and development.

[Link] goods The aim of good management has always been

at Fair Prices to produce better quality products at the
minimum cost.

[Link] Management should aim at improving the

Performance / performance of each and every factor of
image production by making them to perform well.

[Link] Management should work for its people as to

of People ensure success. Well motivated people perform
in a better way in achieving the goals.

[Link] Management maintains discipline and boost

and Morale the morale of the employees by giving them
authority and responsibility.
6. Change and Management undertakes research and
Innovation development to take lead over its competitors
and meet uncertainties of the future.

[Link] Management must ensure that the right

Decision decisions are taken at the right time for the
success of the business.

[Link] Management aims to improve the image,

goodwill and credit worthiness of the
organisation.

NATURE OF MANAGEMENT

Management as a Science: Science means a systematic

body of knowledge which can be activated through
observation and experiment. There are some
similarities between management and science which are
discussed below.

[Link] Management is a systematic body of

body of knowledge in the form of basic principles
knowledge and concepts.
[Link] Management principles have been build
and up through continuous observation and
experiments experiments. The principles of
management make use of scientific
methods of observation and analysis.
[Link] and There is a cause and effect relationship
effect between various factors. The principle of
relationship division of work is applied due to
specialisation of job which helps to
produce the maximum output with
minimum possible cost.
[Link] Scientific principles represent basic
validity of truths. Fundamental principles of
principles
 management are universally valid and
applicable.

Management as an Art: Art means the practical

application of knowledge and skill to achieve the desired
results. Management has the following similarities with
art.

[Link] Art involves application of theoretical

knowledge knowledge. Management is the art of getting
things done through people to accomplish the
desired results.

[Link] Every manager has his own style of working.

skill He/ she tackles various problems on the basis
of his own thinking and understanding of the
situation.

[Link] Management is creative in the sense that it

converts inputs into outputs. It aims to attain
maximum productivity and profitability at the
lowest cost.
[Link] Art requires continuous practice to gain
through mastery. Management also involves regular
practice practice.

Management as a Profession: Profession means a vocation

requiring specialised knowledge, practical training, service
motive and code of conduct. Management has the following
similarities with profession.

[Link] Management has a well defined body of

body of specialised knowledge which is transferable.
knowledge
[Link] There are specialised management Institutions
education and which provide education and training in
training management. After completing education and
training, students get jobs as managers.
[Link] Like other professionals, managers are
motive expected to serve the society rather than
simply earning profit for the owners.
[Link] Every profession is regulated by a legally
body recognised body like for Chartered
Accountants - Institute of Chartered
Accountants of India, for lawyers - Bar
Council of India. Similarly managers also have
their associations like All India Management
Association.
[Link] of Managers have a code of conduct like any
conduct other professionals. They are also guided by
some behavioral norms.

Importances of Management
[Link] Management creates coordination and team
of group spirit in the group. Managers also inspire the
objectives members of the group to make their best
contributions towards the achievement of
common objectives.

[Link] Management brings together human and

utilisation of material resources in the right proportion. Man,
Resources money, materials and machinery may prove
ineffective without sound management.

[Link] Management improves efficiency and reduces

of Cost cost through better planning, sound
organisation and effective control by eliminating
wastage and minimising cost. Management
enables an enterprise to face cut throat
competition.

[Link] and With sound management, an enterprise can

Growth meet the threats and take advantage of the
opportunities. In this way, management ensures
the continuity and growth of business.

[Link] Management helps to raise the standard of living

standard of of the people by providing good quality products
living and services at the lowest possible cost.

[Link] of By setting up new enterprises and expanding

Employment existing business enterprises, managers create
jobs for the people. Managers also create such
an environment that people working in the
enterprises can get job satisfaction and
happiness.

[Link] The development of a country largely depends on

of the Nation the quality of the management of its resources.
Capital investment and import of technical
know- how can not lead to economic growth
 unless wealth producing resources are managed
efficiently.

PRINCIPLES OF MANAGEMENT

A principle means a fundamental statement of basic truth

that provides a guide to thought and action. Principles of
management are fundamental truths that explain the
relationship between two or more variables under a
given situation. Management principles provide guidelines
for managerial decision making and action.

Nature/ Characteristics of Principles of Management

[Link]: The principles of management can be applied in

different types of organisations like business,
government, hospital, army, university etc. These
are also used by managers in different
organisations and at different levels of authority.

[Link]/ Principles of management are not rigid but

Flexibility: flexible and dynamic in nature. These principles
can be modified to adjust different situations and
all kinds of changes in the business environment.

3. Influencing Management is a social science and it deals with

Human human behaviour which is complex and cannot
Behaviour: be tested under controlled laboratory condition.
Management principles are directed towards
influencing human behaviour for getting the best
possible results.
4. Contingent: The principles of management are relative and
not absolute. These principles should be applied
carefully according to organisational needs and
prevalent situations.
[Link] and Principles of management indicate cause and
Effect effect relationship between two or more variables.
Relationship: These principles are used to solve different
managerial problems with the help of
observations, analysis and experience.

6. Equal All the principles of management are equally

importance: important. These principles may be used with
equal efficiency by the managers at different
levels of authority.

Need / Importances of Principles of Management:

[Link] Increase Principles of management help to improve

Efficiency managerial efficiency. These principles enable
managers to solve problems in a methodical way
without wasting time and effort in trial and error.
Management principles help to improve the art of
management by suggesting how things should be
done to get the best results.

[Link] Crystallize Knowledge and understanding of the principles

the true Nature and concepts of management makes it easier to
of Management describe and analyse the true nature of
management. Fundamental principles and basic
concepts have helped to develop the science of
management.

[Link] Train Principles of management provides a conceptual

Managers framework for scientific and systematic training
and development of managers. Formal methods of
training managers in Institutes and Universities
 are possible only when their fundamental
principles and concepts.

[Link] improve Management principles provide new ideas, vision

Research and imagination for conducting research studies
in management. Principles have served as the
basis for further research and growth in
management.

[Link] Attain Principles of management enable managers to

Social Goals make optimum use of human and material
resources. Efficient use of resources help to
improve the quality of life and progress of the
society. Management principles help in achieving
cooperation among people to achieve the desired
results.

[Link] Clarify Principles of management make the thinking of

Thinking managers clear and systematic. A new manager
can understand the nature of management with
the help of this principles.

[Link] Spread Principles of management are useful in spreading

Knowledge managerial knowledge through teaching.
Management education and management
protection have made rapid progress due to
management principles.

[Link] evaluate Principles of management prescribes what one

managerial should do to manage things in a given situation.
behaviour These principles attempt to prescribe and
evaluate the behaviour of managers.
 TAYLOR’S PRINCIPLES OF SCIENTIFIC MANAGEMENT
Frederick Winslow Taylor, an American, was the first
management expert to suggest the use of scientific methods or
measurement and study for solving managerial problems. So
he is known as the “father of scientific management”. The
basic principles of scientific management as prescribed by
Taylor are as follows:

[Link] not Each and every job and the method of doing it
Rule of Thumb: should be based on scientific study and analysis
rather than on trial and error.
[Link] not There should be healthy cooperation between
Discord: employer and employees. Taylor advocated a
complete mental resolution on the part of both
management and workers.
3. Maximum not Taylor suggested that the best way to resolve
Restricted the conflict between management and workers
Output: is to increase the size of surplus and improve
productivity so that each side can have a larger
share.

4. Division of Taylor suggested separation of planning from

Work and operational work. Management should concentrate
Responsibility: on planning the job of workers and workers should
concentrate on performance of work.

5. Scientific Workers should be selected and trained keeping

Selection, in view the job requirement. Each and every
Training and workers should be encouraged to develop his
Development of full potential.
workers:
Extra:
6. Standardization: The tools, equipments, work methods and
working conditions must be standardized so as to improve efficiency
and quality.
7. Mental Resolution: Taylor suggested a basic change in attitudes
on the part of both employers and employees. They should consider
themselves as partners in the organisation.

HENRY FAYOL’S PRINCIPLES OF MANAGEMENT

Henry Fayol was a French Industrialist and developed a general
theory of management. Henri Fayol suggested the 14 principles
of management which are given below.

[Link] of Work Division of work means division of the

total task into compact jobs and
allocating this compact jobs to different
persons according to their specialisation
so that an employee can concentrate on
only one type of work. It helps to improve
efficiency by avoiding wastage of time and
 effort caused by change from one type of
work to another.

[Link] and Authority is the right to assign task and

Responsibility get it done from others and responsibility
is the obligation to perform the assigned
task. Fayol has suggested that there
should be a parity between authority and
responsibility . Authority and
responsibility are coexistent and they
must go hand in hand.

[Link] Discipline employees obedience, respect

of authority and observance of the
established rules and regulations. Fayol
has suggested good supervision at all
levels cleared and fair rules and built-in
system of penalties will help to maintain
discipline.

Violation of it .... refer the text book

[Link] of Command According to this principle, an employee
should receive orders from one superior
only and be accountable to him. No
person can serve several masters at the
same time. According to Fayol, dual
command will undermine authority
weaken discipline.

Violation of it ... refer the text book

[Link] of Direction There should be one head and one plan
for a group of activities having the same
objective. Each group of activities with
the same objective must have one plan of
action and must be under the control of
one superior.

DIFFERENCES between UOC & UOD –

Refer the Question Bank after the
chapter in the text book.
[Link] of The interests or goals of the organisation
Individual Interest to must prevail upon the personal interests
General Interest of individuals. In order to achieve
supremacy of group or common interests,
managers must be firm but reasonable in
dealing with subordinates. In order to
achieve subordination of individual
interest to common interest it is
necessary that employees are honest
sincere and loyal.

[Link] The remuneration payable to workers

must be fair, reasonable and satisfactory
both to the employees and the employer.

[Link] between 8. According to Fayol, everything that

Centralisation & increases the importance of subordinates
decentralisation role is decentralisation and everything
that reduces it is centralisation. There
should be a proper balance between
centralisation and decentralization.

9. Scalar Chain Chain of superior ranging from the

ultimate authority to the lowest rank.
The prescribed chain of command should
be followed and communication should
flow through the established chain of
command.
Exception In order to facilitate quick
communication between two links in the
chain, the rule of scalar chain can be
violated which is known as gangplank.

[Link] According to Fayol, there must be

material and social order in every
enterprise. Material order means a
proper place for everything and
everything in its right place. Social order
means a place for everyone and everyone
in its right place.
 Violation - Refer the text book

[Link] Management should treat the employees

with justice and kindness. There should
not be any discrimination, nepotism and
favouritism between them.

Violation - Refer the text book

[Link] of Tenure A reasonable security of service to be
provided to all employees. Unnecessary
labour turnover or change of personal
increases cost of selection and training
and spoils the image of the firm.

Violation - refer the text book.

13. Initiative Employees at all levels should be
encouraged to think out and execute the
assigned task in a better way.
Subordinates should be inspired and
motivated to suggest improvements in the
formulation and implementation of plans.

[Link] de corps There must be team spirit, group efforts

and cooperation among the members of
an organisation. Unity of strength and
the strength of an enterprise lies in the
corporation and harmony in individual
efforts.
DIFFERENCES BETWEEN TAYLOR’S AND FAYOL’S PRINCIPLES
OF MANAGEMENT

Basis [Link]'s Principles Henri Fayol's

Principles
[Link] It focuses on increasing It focuses in
the overall productivity improving the overall
of the organisation. administration of the
organisation.
[Link] It is based on Scientific It is based on the
Management. General theory of
Administration.
[Link] It gives more emphasis It gives more
on the low level/ emphasis on the Top
shopfloor level of level of management.
management.
[Link] It applies to specialised It is universally
organisations only. applicable.
[Link] of These are formed on the These are based on
Formation basis of observation and personal experience..
experimentation.
[Link] The principles are These principles are
Production and Managerial functions
Engineering oriented. oriented.
[Link] of It follows Differential It follows sharing of
wage payment payment system. profit with managers.
[Link] It follows Engineer's It follows Manager's
approach. approach.
[Link] Taylor was a scientist Fayol was a
and known as the “father practitioner and
of scientific known as the “father
management”. of general
administration”.
 PLANNING
Meaning: Planning is a primary function of management which
involves a mental exercise to predict the future course of action on
the basis of past and present information to achieve the desired
results and the goal of the organisation.

Characteristics

[Link] oriented Planning seeks to achieve certain objectives and all

plans are linked with the goals of the organisation.

[Link] Planning is essentially looking ahead and preparing

oriented the future course of action.

[Link] Planning is a mental exercise involving creative

process thinking and imagination.

[Link] Planning is the primary function of management as it

function serves as the basis for all other functions of
management.

[Link] Planning is required in all types of organisations and

at all levels of management.

[Link] Planning is an ongoing process and a never ending

process exercise.

[Link] Planning is essentially the process of choosing from

choice among alternative courses of action.

[Link] at Sound planning leads to accomplishment of desired

efficiency objectives at the minimum possible cost.

Steps in Planning process

[Link] The first step in planning is to define and describe
objectives clearly the objectives of the organisation as a whole and
of each of its individual departments.

[Link] Once the objectives to be achieved are set, the next step
the planning involves established of the premises or examinations
premises about the future planning premises provide the
environment or boundary within which plans will be
executed.

[Link] Now it becomes necessary to discover the various

alternative courses of action which may be used to achieve the
courses of established objectives.
action
[Link] The various alternatives are evaluated and compared in
alternatives terms of their expected cost and benefit and the best
and choosing alternative is selected.
the best
alternative
[Link] The detail or derivative plans referred to the policies,
derivative procedures, rules, programs, schedules, budget etc.
plans
[Link] Successful implementation of plans requires the
cooperation understanding and wholehearted cooperation of all the
members of the organisation.

[Link]-up Existing plans are reviewed at periodic intervals to

actions ensure their relevance and effectiveness.

Importances/Significances/Advantages of Planning

[Link] Planning helps in achieving the objectives of the

attention on organisation by directing resources and efforts
objectives towards the common objectives.
[Link] When goals are clearly defined actions become
Activities meaningful. Managers and employees know how
Meaningful their activities relate to the goals of the
organisation. They understand the importance of
their activities and relationship between different
activities.

[Link] Order Planning ensures clarity in thought and action. It

in place of avoids aimless and ad hoc actions. It provides
chaos systematic and orderly efforts towards the goals.

[Link] Planning enables the enterprises to predict future

Risk of events and prepare to face the unexpected events.
Uncertainty In the process of planning managers look ahead,
anticipate change, consider the impact of change
and develop appropriate responses.

[Link] Planning involves selection of the best possible

Economy of course of action. It helps to eliminate all types of
Operations waste and to achieve optimum utilisation of
available resources.

[Link] Planning provides the standards against which the

Basis for actual performance can be measured and
Control evaluated. A comparison of performance with the
planned results helps to identify the deviations and
to take corrective steps to make the events
confirm to plans.

[Link] Sound planning encourages creative thinking.

Innovation Managers get the opportunity to develop new ideas
and creativity and apply these ideas in creating new products and
services which helps to grow and expand the
business.

[Link] Decision making involves searching for various

decision alternative courses of action, evaluating them and
making selecting the best course of action. Without
planning, decisions may become ad hoc.
[Link] in Planned targets and programmes serve as the basis
coordination of harmonizing the efforts of different
departments, sections and individuals. Cooperation
and coordination between departments become
easy because people at all levels are involved in
planning.

[Link] the Planning bridges the gap between where we are at

gap between present and where we want to go in future.
present and
future

Limitations of Planning

[Link] Planning is an expensive process. Money, time and

Process effort had to, be spent in forecasting, collection of
information evaluation of alternatives etc.
Services of experts may be necessary to select the
best and most economical course of action for the
enterprise.

[Link] Considerable time is required for collection,

Consuming analysis and interpretation of information for
planning. Therefore, planning is not practicable
during emergencies and crisis when on the spot
decisions are necessary.

[Link] Once plans are formulated, people tend to strictly

adhere to them irrespective of changes in the
environment. Employees become more concerned
with observing the programmes and procedures
rather than achieving the goals.
[Link] of Planning is based on forecasts which are
Accuracy estimates about the future. When the forecasts
are inaccurate, plans become misleading. Yhe
degree of accuracy increases as the plan period
increases.

[Link] Sense Detailed planning may create a feeling among

of Security employees that everything has been taken care of.
They may fail to improve performance and may
confine themselves to fulfilling the requirements
of plans.

[Link] People get accustomed to attitudes, beliefs and

Barrier traditions and they resist change in established
practices and behaviour. Resistance to change is a
commonly experienced phenomenon in the
business world. Planning often implies changes
which the executives would like to ignore, hoping
they would not materialise.

[Link] Changes in technology, changes in government

Limitations policies, legislative enactments, industrial unrest
in the country etc are important external
limitations on planning.

[Link] Particular individuals and groups may use planning

Elements to serve their own interest. They try to influence
goal setting and formulation of plans to suit their
human interest, ignoring the larger interest of the
organisation.
 TYPES OF PLAN
1. OBJECTIVE Objectives are goals established to guide the
efforts of the company and each of its
components. A business enterprise has multiple
objectives like survival, profits, growth, service to
society etc.
2. POLICY A policy is a general statement or standing plan
that guides decision making. Policies define the
boundaries within which decisions can be made
and they direct decisions towards the
accomplishment of objectives.
3. PROCEDURE A procedure is a chronological sequence of steps
to be taken. It spells out a series of steps
arranged in some predetermined best order.
Procedures are designed to execute policies and
achieve objectives.

4. METHOD Methods are formalised and standardized ways

of accomplishing repetitive and routine jobs.
Methods provide detailed and specific guidance
for day to day action.

5. RULE Rules are specific statements of what should or

should not be done in specific situations. Rules
indicate limits of acceptable behaviour to the
members of an organisation.

6. BUDGET A budget is a plan of action or blueprint

designed to achieve a specific goal. It states
expected results of a given future period in
numerical terms ie, in terms of time, money or
physical units.

7. PROGRAM A program is a comprehensive plan designed to

implement the policies and accomplish a specific
objective. It is a combination of goals, policies,
task assignments etc.
8. Strategy
 A comprehensive and integrated plan which
indicates the desired future of the organisation.

Portion highlighted by yellow can be ignored.

Levels of management - meaning and functions,

Types of plan - features of each .. will send the scanned pic of the
text book in a separate file.