Introduction to

management
Management
Management can be defined as the process of effectively and efficiently
coordinating human, financial, and material resources to achieve
organizational goals.

Management is essential for accomplishment of goals through group

activity

Concept of management

Management as economic resource

Management as disciple

Management as a process

Management as an art of getting things done

Management as team
 2

Management as human resources

Management as an activity

a)​ Interpersonal activity

b)​ Decisional activity
c)​ Informative activity

Henri Fayol’s Principles of Management

Henri Fayol's 14 principles of management provide a framework for
effective organizational leadership. These principles, applicable across
various industries, guide managers in planning, organizing, leading, and
controlling. Key principles include division of work, authority and
responsibility, discipline, unity of command, unity of direction,
subordination of individual interest, remuneration, centralization, scalar
chain, order, equity, stability of tenure, initiative, and esprit de corps.

1.​ Division of Work: Specializing tasks among employees to increase

efficiency and productivity.
2.​ Authority and Responsibility: Managers should have the power to
give orders and the corresponding responsibility for ensuring tasks
are completed.
3.​ Discipline: Respect for rules and agreements is crucial for a
smooth-running organization.
4.​ Unity of Command: Each employee should report to only one
manager to avoid confusion and conflicting instructions.
5.​ Unity of Direction: A single plan and direction should guide all
activities within a group.
6.​ Subordination of Individual Interest to General Interest:
Organizational goals should take priority over individual desires.
 3

7.​ Remuneration: Fair and equitable compensation should motivate

employees.
8.​ Centralization: The degree to which authority is concentrated or
dispersed should be balanced.
9.​ Scalar Chain: A clear line of authority should exist from top to bottom
within the organization.

Gang plank: It helps for direct communication between employees at

the same level in different departments during emergencies,
bypassing the formal chain of command

10.​ Order: Everything and everyone should have a designated place

and purpose, promoting efficiency.
11.​ Equity: Fair and just treatment of all employees is essential for
building trust and loyalty.
12.​ Stability of Tenure: Minimizing employee turnover improves
efficiency and morale.
13.​ Initiative: Encouraging employees to come up with new ideas and
take action fosters innovation.
14.​ Esprit de Corps: Promoting teamwork and unity among employees
strengthens the organization.

Scope of management
Production management

●​ Designing product
●​ Location and layout of plant and building
●​ Determination of quality and quantity to be produced
●​ Determining the procedure for purchase and storage of raw materials
●​ Inventory control measures

Marketing management
 4

●​ Conducting research to determine the needs and preference of

customers
●​ Setting of prices of products
●​ Selecting the appropriate channels for sales / distribution

Financial management

●​ Determining financial requirements for both long term and short term
periods
●​ Selecting the appropriate source of funds
●​ Raising required funds at appropriate time
●​ Ensuring profit planning and control

Personnel management

●​ Man power planning

●​ Recruitment/selection
●​ Providing proper training and development opportunity
●​ Deciding proper remuneration
●​ Performance appraisal
●​ Promotion and transfer policies

Office management

●​ Maintaining Proper records

●​ Arrange and maintenance of effective communication system
●​ Should maintain good relation between all section of the
organization
 5

Management as art and science

Art

Management can be viewed as an art because it involves the skillful,

creative, and intuitive application of knowledge to achieve organizational
goals. Like an artist, managers use their experience, creativity, and personal
judgment to solve problems, make decisions, and motivate teams. While it
also has elements of science and a profession, the artistic aspect
highlights the personalized and adaptable nature of management in
real-world situations.

Personal Creativity and Intuition:

Managers need to develop their own unique strategies, solve problems in

creative ways, and foster a positive work environment.

Practical Application:

Management, like art, relies heavily on practical experience and the ability
to apply theoretical knowledge in real-world scenarios.

Adaptability:

Managers must be able to adapt to changing circumstances, just as an

artist adjusts their techniques based on the specific piece they are creating.

Goal-Oriented:

Just as artists work towards a finished piece, managers set objectives and
strive to achieve them, making their work goal-oriented and purposeful.

Continuous Learning and Improvement:

Like artists who hone their skills through practice, managers also learn and
improve their techniques over time through experience and learning.
 6

Individual Style and Approach:

Different managers will have different styles and approaches, just as artists
have unique styles of expression. This individual flair is a key element of
the artistic nature of management.

Science

Management is often considered a science because it utilizes systematic,

organized knowledge and principles to achieve organizational goals. Like
other sciences, management involves observation, experimentation, and
the development of theories and principles based on cause-and-effect
relationships. However, it also incorporates elements of art and a
profession, as it involves the application of knowledge and skills in a
personalized and goal-oriented way.

Systematic Body of Knowledge:

Management relies on a structured body of knowledge, including principles,

theories, and concepts that have been developed and refined over time.

Universal Applicability:

Some management principles are widely accepted and can be applied in

various situations and contexts, similar to scientific principles that hold
true across different settings.

Observation and Experimentation:

Management, like science, involves observation and experimentation to

understand organizational behavior and develop effective strategies.
Managers analyze data, conduct studies, and test different approaches to
improve performance.

Cause and Effect Relationships:

 7

Management principles often establish cause-and-effect relationships. For

example, increased employee motivation (cause) can lead to higher
productivity (effect).

However, management also has characteristics of an art and a profession:

Personalized Application:

Managers use their knowledge and skills in unique and personalized ways,
adapting their approaches based on the specific context and the individuals
involved.

Creativity and Intuition:

Management often requires creativity, intuition, and the ability to adapt to

unforeseen circumstances, which are hallmarks of artistic endeavors.

Goal-Oriented:

Like art, management is goal-oriented, striving to achieve specific

objectives and outcomes.

Continuous Improvement:

Through practice and experience, managers refine their skills and

approaches, becoming more effective over time, similar to how artists
perfect their craft.

Management as profession
Management as a profession means that it has some characteristics of a
profession, but it doesn't fully meet all the criteria to be considered a
full-fledged profession like medicine or law. While management has a
well-defined body of knowledge and some ethical considerations, it lacks
 8

strict restrictions on entry and a mandatory professional association with

regulatory power.

Characteristics of Management as a Profession:

Well-defined Body of Knowledge:

Management has a systematic body of knowledge with principles and

theories that are taught in educational institutions.

Formal Education and Training:

Management education and training programs are widely available, though

not mandatory.

Service Motive:

Managers are expected to act in the best interests of their organizations

and stakeholders, which includes ethical considerations and social
responsibility.

Professional Associations:

Organizations like the All India Management Association (AIMA) exist, but
their role is not as regulated or mandatory as in other professions.

Why Management is NOT a Full-Fledged Profession:

No Restricted Entry:

Unlike professions like medicine, where a specific degree (like MBBS) is

required, there's no legal restriction on who can become a manager.
Anyone can be a manager regardless of educational background.

No Compulsory Professional Association:

 9

While professional associations exist, membership is not mandatory for

managers, and these associations lack the authority to regulate all
managers.

Management process
The management process refers to the series of functions managers
perform to achieve organizational goals. These functions, often called the
"process of management," include planning, organizing, staffing, directing,
and controlling.

Planning:

This involves setting objectives, defining strategies, and making decisions

about future actions. It's about deciding in advance what needs to be done
to achieve goals.

Organizing:

This function focuses on arranging resources and assigning tasks to

implement the plans. It includes establishing authority and responsibility
relationships within the organization.

Staffing:

Staffing involves recruiting, selecting, training, and developing employees to

fill the roles needed for the organization's operations.

Directing:

This function is about leading, motivating, and guiding employees to work

towards organizational goals. It includes communication, supervision, and
motivation techniques.

Controlling:
 10

This function involves monitoring performance, comparing it with

established standards, and taking corrective actions if necessary. It
ensures that the organization is on track to achieve its objectives.

Theories Of Management
Administrative management - Henri Fayol

Henri Fayol's Administrative Management Theory focuses on the principles

and functions of management, emphasizing that management is a
universal process applicable to all organizations

Theory of scientific management - Taylor

Frederick Winslow Taylor's scientific management theory, also known as

Taylorism, aimed to improve economic efficiency, especially labor
productivity, by analyzing and optimizing work processes

Bureaucratic management - Max Weber

Max Weber's bureaucratic management theory posits that efficient

organizational management relies on a strict hierarchy, clear rules and
procedures, and impersonal relationships among employees. This system,
according to Weber, promotes order, control, and maximum efficiency.

Behavioral management - Elton Mayo

Elton Mayo's behavioral management theory, also known as the human

relations theory, emphasizes that social and psychological factors
significantly influence employee motivation and productivity. This theory,
stemming from the Hawthorne Studies, highlights the importance of
treating employees as individuals with social and emotional needs, rather
than just economic units.
 11

Functions of management
According to Luther Gulick, the functions of management can be
summarized using the acronym POSDCORB. This acronym represents the
core activities a manager undertakes: Planning, Organizing, Staffing,
Directing, Coordinating, Reporting, and Budgeting.