IME
Module 1
1. Definition of Management.
i. “Art of getting things done through people”- Mary Parker
Follet
ii. George R Terry defines “Management as a process
consisting of planning, organizing, actuating and controlling
performed to determine and accomplish the objectives by
the use of people and resources”.
iii. “Management is the art of getting things done through and
with people in formally organized groups”.- Koontz
iv. “Management is the art of knowing what you want to do
and then seeing that it is done in the best and cheapest
way”.- F.W Taylor
v. “Management is the accomplishment of results by the
efforts of other people”.- Lawrence
vi. Henri Fayol explains “management as a process of forecast
followed by planning, organization, command, coordination
and control of activities of others”.
2. Characteristics of Management
i. Management is a Composite Process
ii. Management is a Continuous Process
iii. Management is a Dynamic Function
iv. Balancing Effectiveness and Efficiency
v. Management is a Goal Oriented Process
vi. Management is a Group Activity
vii. Management is Intangible
viii. Management is Multidimensional
A. Management of Work
B. Management of People
C. Management of Operations
ix. Management is Pervasive
3. Nature of Management
i. It is a multidisciplinary phenomenon.
ii. Its principles are flexible, relative and not absolute.
iii. It is both science and art.
iv. It can be taken as a profession.
v. it is universal.
vi. It is an organized activity involving decision making, with
existence of objectives.
vii. It is working with the people, through establishing goals by
utilizing available resources.
4. Scope of Management
i. Production Management:
a) Designing the product
b) Location and layout of plant and building
c) Production planning
d) Material Management
e) Quality Control
f) Research and Development
ii. Marketing Management:
a) promotional activities like advertising and salesmanship to
communicate with the customers
b) Sales management
c) Market research.
iii. Financial Management:
a) Selecting the appropriate source of funds
b) Raising the required funds at the right time
c) Taxation
d) Cash flow
iv. Personnel Management:
a) manpower planning
b) recruitment and selection
c) training and development
d) Compensation and Benefits
5. Functional Areas of Management
i. Planning
ii. Organizing
iii. Staffing
iv. Directing
A. Supervision
B. Motivation
C. Leadership
D. Communications
v. Controlling
6. Management as Science
i. Management as a Science: Management is considered a
science due to its reliance on systematic methods, accurate
data, and logical reasoning to optimize operations.
ii. Scientific Principles: It follows scientific principles, such as
observation, measurement, and experimentation, to derive
effective solutions for organizational issues.
iii. Quantitative Mechanisms: Management utilizes quantitative
methods like financial data, statistical analysis, and
geometric models to ensure effective decision-making.
iv. Documentation and Records: The use of well-documented
financial and geometric records supports the scientific
nature of management by providing structured data for
analysis.
v. Scientific Research: Management incorporates research-
driven approaches, ensuring that methods and strategies
are continuously tested, refined, and validated.
vi. Contradictory Incentive Systems: Management science also
deals with complex incentive systems that may be
contradictory, requiring careful balancing to ensure overall
organizational efficiency.
vii. Adaptability and Flexibility: Management as a science
emphasizes the adaptability of organizations, allowing them
to adjust to changing market conditions and improve
performance.
viii. Operation of Non-Uniform Assignments: It involves
managing diverse tasks and roles within an organization,
even if these assignments are not uniform, using scientific
methods to streamline them.
ix. Truisms and Established Principles: Management draws on
established truths, which have been studied and tested over
time to develop a knowledge base that guides decision-
making.
x. Focus on Behavior and Calculations: The science of
management includes both the study of human behavior (as
a social science) and the calculation of metrics, including
financial, operational, and performance data.
xi. Assessment and Contextual Analysis: In management,
scientific techniques are used to assess performance against
specific contexts or regions, allowing organizations to
benchmark and improve over time.
xii. Balanced Operations: The application of science in
management ensures that operations are balanced and
efficient, optimizing both resource utilization and
organizational performance.
xiii. Critical Thinking in Management: Managers are
encouraged to engage in critical thinking when acquiring
information, ensuring that decisions are based on accurate
and comprehensive data.
xiv. Information Acquisition: Management as a science
involves the systematic gathering and processing of
information, which becomes the foundation for all
managerial activities and decisions.
xv. Data-Driven Decisions: Decisions in management are
increasingly based on data, ensuring that choices are made
using objective evidence rather than intuition or guesswork.
xvi. Strategic Planning: Scientific methods help in formulating
long-term strategies by analyzing trends, forecasts, and
potential risks, which leads to more informed decision-
making.
xvii. Operational Efficiency: Management aims for operational
efficiency by using scientific techniques to streamline
processes, reduce waste, and enhance productivity.
xviii. Measurement and Feedback Loops: Management relies
on precise measurements, feedback loops, and performance
assessments to ensure continual improvement and
adaptiveness.
xix. Integration of Theory and Practice: Management as a
science integrates theoretical frameworks with practical
application, ensuring that academic insights are directly
applicable to real-world business challenges.
xx. Management During Economic Crises: The scientific nature
of management is particularly evident during economic
crises, where accurate data, forecasts, and strategic
planning become essential to weather challenges and
stabilize the organization.
7. Management as Arts
i. Management as an Art: Management is considered an art
due to the use of creativity, imagination, and initiative to
achieve organizational goals and address challenges.
ii. Creativity in Management: Managers need to demonstrate
creativity and innovation when developing solutions,
strategies, and processes.
iii. Skills and Techniques: The application of specific skills and
techniques defines the art of management, combining
knowledge with action to create effective outcomes.
iv. Resource Competition: Managers must fight for resources
from competing organizations, using the right skills and
strategies to acquire what they need.
v. Value-Centric Design: Managers should design processes,
strategies, and products that provide high value to the
organization, customers, and stakeholders.
vi. Rewarding Innovation: Inventors and innovators within the
organization should be recognized and rewarded for their
contributions to improving the business.
vii. Reinventing Products: Managers are encouraged to think
creatively, purchasing existing products or services and re-
branding or re-purposing them to add more value.
viii. Combining Internal and External Products: By integrating
both internal and external resources, managers can create
greater value for the organization and its customers.
ix. Employee Retention: Successful organizations manage to
retain employees by offering a fulfilling work environment,
growth opportunities, and success in achieving business
goals.
x. Market Power and Competitiveness: Managers should work
to enhance the organization’s power and ability to compete
effectively in the market, positioning it for long-term
success.
xi. Logical Reasoning in Management: Even though
management is an art, it still requires logical reasoning and
systematic, step-by-step approaches to achieve objectives
and goals.
xii. Clear Development Policies: Effective management art
involves creating clear, attractive development policies that
guide the organization toward achieving its goals.
xiii. Resource Control: Managing and controlling the resources
necessary for success is an important aspect of
management as an art, ensuring that resources are used
efficiently and effectively.
xiv. Organizational Design: Managers must design the
structure, direction, and monitoring of activities in a logical
manner to ensure the achievement of specific goals.
xv. Motivation and Rewarding: The art of management involves
motivating employees, rewarding accomplishments, and
boosting morale to ensure effective task completion.
xvi. Balancing Economic and Cultural Activities: Management
is a blend of both economic activities (focused on profit and
efficiency) and cultural activities (focused on people,
relationships, and values), which must be balanced for
optimal results.
xvii. Universal Applicability: The principles of management as
an art are applicable in a wide variety of industries, sectors,
and organizations, with creative strategies tailored to the
specific context.
xviii. Disruption of Balance: If the balance between economic
and cultural aspects of management is disturbed, it can lead
to dysfunction, impacting the performance and
sustainability of the organization.
xix. Challenging the Market: Managers should focus on being
challenging and adaptable in the market, innovating in ways
that differentiate the organization from competitors.
xx. Comprehensive Approach: Successful management as an art
requires a holistic approach that combines creativity,
innovation, logical reasoning, and effective resource
management.
8. Management as Profession
A profession is typically an occupation based on specialized
knowledge and training, aimed at providing skilled services or
advice for a fee or salary, as per Carr-Saunders’ definition.
i. Management is often seen as an emerging profession. It
fulfills certain criteria of a profession but is not yet fully
recognized as one.
ii. Professionals in any field are expected to possess deep
theoretical knowledge. In management, this includes
understanding business concepts, leadership, economics,
and strategic planning.
iii. While management requires significant academic
qualifications (e.g., MBA, management degrees), it lacks
standardized professional certification, unlike professions
such as law or medicine.
iv. Unlike other professions, management lacks a universally
recognized and regulated body that sets standards, controls
membership, or oversees professional conduct.
v. In most established professions, individuals must pass
specific examinations to demonstrate competence. In
management, however, this formalized, standardized
testing is less rigid and largely based on practical
experience.
vi. Managers are often required to undergo specific training,
but the duration and quality of this training vary significantly
between institutions and regions, unlike established
professions with structured pathways.
vii. Unlike professions like law or medicine, there is no formal
licensing requirement for managers, nor is there a
standardized certification process to ensure competence.
viii. Managers do exercise significant autonomy in decision-
making, much like other professionals, but often face more
oversight from stakeholders (shareholders, boards of
directors).
ix. Although management bodies like AIMA provide ethical
guidelines, there is no universally enforced code of conduct
for managers, unlike professions like medicine or law, where
ethical standards are rigorously maintained.
x. Established professions are self-regulating, with peers in the
field overseeing standards and ethical conduct.
Management, however, lacks a comprehensive, self-
regulated framework, relying instead on organizational
policies.
xi. Management, particularly in for-profit organizations, often
focuses more on profit maximization rather than public
service or altruistic goals, contrasting with professions like
healthcare and education, which have a more direct focus
on societal welfare.
xii. Like other professions, management knowledge and skills
are transferable across organizations and industries.
However, the level of mobility is more based on
performance and experience than certification or
credentials.
xiii. Successful managers can achieve high status and financial
rewards, though this depends more on the individual’s
performance, industry, and organization, rather than a
universal professional standard.
xiv. Management knowledge can be indeterminate and based
on experience, as many managerial skills are learned
through practice rather than theoretical rules, which
differentiates it from more established professions with
codified knowledge.
xv. The goal of management is typically to maximize profits for
organizations, whereas professions like medicine or law
often prioritize the welfare of clients or patients, creating a
distinction in the professional ethos.
9. Difference between Management and Administration on the
basis of Functions
10. Difference between Management and Administration on
the basis of Usage
11. Role of Manager
i. Interpersonal Role
A. Figurehead
B. Leader
C. Liaison
ii. Informational Role
A. Monitor
B. Disseminator
C. Spokesman
iii. Decision Role
A. Entrepreneur
B. Disturbance Handler
C. Resource Allocator
D. Negotiator
12. Levels of Management
i. Top Management
A. Determines objectives and policies.
B. Designs the basic operating and financial structure of an
organization.
C. Provides guidance and direction.
D. Lays down standards of performance.
E. Maintains good public relations.
ii. Middle Management
A. Interprets and explains the policies framed by the top.
B. Issues detailed instructions.
C. Participates in operating decisions.
D. Trains other managers.
iii. Lower Management
A. Plans day-to-day operations.
B. Assigns jobs to workers.
C. Provides supervision and control over work.
D. Arranges material tools and equipment.
E. Maintains discipline.
13. Principles of Management
i. Authority
ii. Centralisation
iii. Discipline
iv. Division of labour
v. Equity
vi. Esprit de corps
vii. Initiative
viii. Order
ix. Remuneration
x. Scalar chain
xi. Stability of personnel
xii. Subordination of each interest
xiii. Unity of command
xiv. Unity of direction
14. Explain the Managerial Skills
i. Conceptual Skills
ii. Communication Skills
iii. Design skil
iv. Effectiveness Skills
v. Human skills
vi. Interpersonal Skills
vii. Technical skills
15. Explain the early classic approaches of Management
i. Scientific Management
ii. Administrative Management
iii. Bureaucracy
16. Explain the Neo Classical Approaches of Management
i. The human relations Movement
ii. Behavioral Approach
17. Explain the Modern Approaches of Management
i. Quantitative Approach
ii. Systems Approach
iii. Contingency Approach