Introduction to Management:
Meaning of Management:
Management is the process of planning, organising, directing, and controlling resources
efficiently and effectively to achieve organisational goals. In other words, it is the art of getting
things done through others.
Harold Koontz defined management as “Management is the art of getting things done
through and with people in formally organised groups.”
According to Henry Fayol “To manage is to forecast and plan, to organise, to coordinate,
and to control.”
Nature/Characteristics of Management:
Continuous and never-ending process: Management is a Process. It includes five main
functions, viz., Planning, Organising, Staffing Directing and Controlling. The manager has to
plan and organise all the activities. He had to give proper directions to his subordinates. He
also has to control all the activities. The manager has to perform these functions continuously.
Therefore, management is a continuous and never ending process.
Getting things done through people. The managers do not do the work themselves. They get
the work done through the workers. The workers should not be tricked, threatened or forced to
do the work. A favorable work environment should be created and maintained.
Multi-disciplinary in nature. Management has to get the work done through people. It has to
manage people. This is a very difficult job because different people have different emotions,
feelings, aspirations, etc., So, management uses knowledge from many different subjects such
as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is Multi-
disciplinary in nature.
A group and not an individual activity: Management is not an individual activity. It is a group
activity. It uses group efforts to achieve group objectives. It tries to satisfy the needs and wants
of a group.
Follows established principles or rules: Management follows established principles, such as
division of work, discipline, unity of command, etc. These principles help to prevent and solve
the problems in the organisation.
Situational in nature: Management makes plans, policies and decisions according to the
situation. It changes its style according to the situation. It uses different plans, policies,
decisions and styles for different situations.
Both an art and science: Management involves skills, creativity and experience to handle the
different situations. Therefore, it is an Art. Management conducts continuous research and has
an organized set of principles and theories. Thus, it is also a Science.
Management is all pervasive: Management is necessary for running a business. It is also
essential for running business, educational, charitable and religious institutions. Management
is a must for all activities, and therefore, it is all pervasive.
Management is intangible: Management is intangible, it cannot be seen and touched, but it
can be felt and realised by its results. The success or failure of management can be judged only
by its results.
Management is dynamic: Management is creative and dynamic in nature. An organisation
will survive and succeed only if it is dynamic. It must continuously bring in new and creative
ideas, techniques, etc
Functions of Management:
1. Planning: planning means deciding in advance what to do, how to do, when to do, and
who will do a particular task. Planning is the first function of management as it prepares
the organization for future challenges. Planning helps in the efficient utilisation of the
resources. It involves forecasting the future, setting goals, and determining the best
course of action to achieve those goals.
2. Organizing: Organising is the process of identifying and grouping work to be performed
in a structured way. It arranges resources (people, money, materials) and tasks in a
structured way to achieve the plan It helps in assigning roles, delegating authority, and
allocating responsibility.
3. Staffing: Staffing involves recruiting, selecting, training, and developing the right
people for the right jobs at the right time to carry out the roles and responsibilities in
the organisation. It is a continuous function. It starts with manpower planning and
ensures the availability of the required human resources at all times.
4. Directing: Directing is that function of management which involves communicating and
providing leadership to the subordinates and motivating them to achieve the
organisational objectives in the best possible way. The four major elements of directing
involves leadership, communication, motivation, and supervision.
5. Controlling: Controlling is the last but the most important function of management.
Controlling process includes setting performance standards, measuring actual
performance, and taking corrective actions if necessary. It is a process of checking
whether the plans are being adhered to or not.
Principles of Management:
Henry Fayol has suggested 14 principles of management. The principles suggested by Fayol
are discussed as follows:
1. Division of work (Specialisation): Division of work implies division of the total task in
order to lighten the total burden and promote specialisation in such a way that one person does
only one thing rather than doing everything himself. This helps to avoid the waste of time and
effort caused by changes from one work to another.
2. Parity between Authority and Responsibility: This principle states that authority and
responsibility should go side by side. A person can be accountable for certain activities only if
he has been given authority for getting the work done. Responsibility and authority should be
commensurate with each other.
3. Discipline: Discipline means obedience, respect of authority and observance of the
established rules. In the words of Fayol “discipline is in essence obedience, application, energy,
behaviour and outward marks of respect observed in accordance with the standing agreements
between the firm and its employees.”
4. Unity of Command: This principle states that one person should receive orders from
only one superior, in other words, one person should be accountable to only one boss. If one
person is under more than one boss then there can be contradictory orders and the subordinate
fails to understand whose orders are to be followed.
5. Unity of Direction: The principle of unity of direction implies that there should be “one
head and one plan for a group of activities having the same objective.” In other words, each
group of activities having the same objectives must have one plan of action and must be under
the control of one manager or superior.
6. Subordination of Individual Interest to General Interest: It is an essential function of
management to make people realise the objectives of the group and direct their efforts towards
the achievement of these objectives. The interest of the group must always prevail over
individual interest. This principle implies harmony of personal interest and general interest in
order to serve the enterprise as a whole.
7. Fair Remuneration to Workers: Fayol was of the view that the remuneration paid to the
workers should always be just and fair and should afford maximum satisfaction to both
employees and the employer. The management must ensure fair rewards for the work and
decide the most equitable method of calculating wages.
8. Effective Centralisation: Centralisation means concentration of authority in the hands
of few, i.e., top management. Everything which goes to increase the importance of
subordinate’s role is decentralisation and everything which goes to reduce it is centralisation.
Fayol was of the opinion that centralisation and decentralisation is a simple question of
proportion and that finding the optimum degree should be decided keeping in view the
circumstances of the particular case.
9. Scalar Chain: Scalar chain refers to the chain of superiors ranging from the ultimate
authority to the lowest ranks. Fayol felt that a hierarchic chain called the scalar chain is
necessary to ensure unity of command and effective communication. Communication should
follow through the established chain of command.
10. Order: The principle of order implies right man in the right job and right material in the
right place. Fayol was of the opinion that there must be material and social order in an
enterprise. Material order means “a proper place for everything and everything in its right
place.” In the same manner, social order implies “a place for everyone and everyone in his
appointed place.”
11. Equity: Equity means justice and kindliness Fayol was of the opinion that to encourage
workers to fulfil their duties with devotion and loyalty, management should deal with
employees with equity-based on kindness and justice. There should neither be nepotism nor
favouritism and all should be given just and fair treatment.
12. Stability in the tenure of personnel: Stability in the tenure of personnel is very essential
because it takes time to get used to a job. Fayol was of the view that instability of tenure of
personnel is both the cause and effect of bad management. A very high rate of labour turnover
or change of personnel increases costs of selection and training and creates a bad name for the
organisation.
13. Initiative: Initiative implies the power of thinking out a plan and ensuring its successful
implementation. The manager should encourage or inspire the confidence of his subordinates
so that they show initiative. Initiative is a powerful motivation of human behaviour and a source
of strength for the organisation.
14. Esprit de corps: This principle implies that there should be co-operation and team-work
among the members of an organisation. Esprit de corps means the spirit of loyalty and devotion
to the group to which one belongs. The manager must always make a constant effort to ensure
harmony, cohesiveness and esprit de corps among his subordinates to ensure unity and high
morale which is very essential for the success of an enterprise.
Distinction between Administration and Management:
Basis of Difference Administration Management
Nature of work It is primarily concerned with It is a doing function. It involves
the determination of objectives the implementation of plans and
and policies. It is a thinking policies.
function.
Scope Its scope is wider than It takes the decision within the
management. framework of administration.
Level of Authority It is a top management function. It is a lower-level management
function.
Status It consists of the owners of an It consists of managerial
enterprise. personnel with specialised
knowledge who may be the
employees.
Nature of Organisation Generally, it is used in It is used mainly in business
nonbusiness institutions like firms which have economic
government, military, motives.
educational, and religious
organisations.
Influence Its decisions are generally Its decisions are influenced by
influenced by external factors internal factors such as values,
such as social, political, legal, beliefs, and opinions.
etc.