Introduction to
Management
Characteristics/Features/Nature
of Management
1. Universal and
Pervasive
• The process of management is
different from organization to
organization and place to place
but the basic principles of it are
the same. Thus, it can be said that
management
principles are universally applicabl
e.
2. Goal Oriented
• Every firm is built for a distinct
objective
• Management is an instrument to help
achieve predetermined objectives.
• The main objective of it is to
maximize productivity with optimum
use of human effort.
3. Continuous
Process
• It is a continuous process up to the
existence and functioning of the
organization.
4. Multi Dimensional
Activity
• Management of systems,
process and operations
along with the management
of people
5. Group
Activity
• The concept of management is
not relevant when there is solely
one person or titleholder.
• It defines the authority,
responsibility, and procedures to
perform specific work.
6. Dynamic
Function
• Management must be dynamic and
flexible with the changing environment of
society.
• It has to modify its styles according to time
and situation.
• This flexibility is essential for an
organization to adjust to the changing
environment of business.
7. Both a Science
and an Art
• It is a science because it is based
on some basic principles of
universal application.
• It is also an art because skill and
ability are required for performing
managerial functions.
8. A
profession
• With the development of joint-stock
companies and multinational
companies, ownership and
administration have been different.
• Management of huge organizations is
entrusted in the hands of professionals
having specific skills and knowledge.
9. Multi-
disciplinary
• Many of the principles and
techniques used in
management are borrowed
from several disciplines like
psychology, sociology,
economics, and mathematics.
FUNCTIONS OF
MANAGEMENT
Planning
• Development of vision and goals
• Development of policies
• Preparing programs and budget
• Must include all levels
Organizing
• Identify tasks to perform
• Grouping of activities
• Assignment of duties
• Delegation of authority
Staffing
• Recruit employees
• Training and Development
• Compensation (Unilever)
• Motivation (Apple/ Banks)
• Performance appraisal
• Promotion
Directing
• Supervision
• Motivation
• Leadership
• Communication
• Coordination
Controlling
• Comparing actual vs standard performance
• Analyze the reason for deviation
• Take corrective action if required
1. Division of
work
• Specialization allows the
individual to build up experience,
and to continuously improve
his/her skills.
2. Authority
• The right to issue commands,
along with which must go the
balanced responsibility for its
function.
3. Discipline
• Employees must obey, but this is
two-sided: employees will only obey
orders if management play their
part by providing good leadership.
4. Unity of Command
• Each worker should have
only one boss with no
other conflicting lines of
command.
5. Unity of
Direction
• People engaged in the same
kind of activities must have
the same objectives in a
single plan.
6. Interests
• Management must see that
the goals of the firms are
always given importance.
7. Remuneration
• Payment is an important
motivator
• There is no such thing as a
perfect system
8. Centralization and
Decentralization
• Both absolute centralization
or absolute decentralization
is not feasible.
9. Scaler Chain
• A hierarchy is necessary for unity
of direction. But lateral
communication is also important.
10. Order
• Material Order: Systematic
arrangement of things
• Social Order: Systematic
arrangement of people
11. Equity
• Everybody must be treated
with fairness, kindness and
justice.
12. Stability of tenure
• Employees work better if job
security and career progress
are assured to them.
13. Initiative
• Allowing all personnel to show their
initiative in some way is a source of
strength for the organization.
14. Esprit De’ Corps (Team Spirit)
• Management is needed to coordinate
effort, use each person’s abilities, and
reward each one’s merit without
arousing possible jealousies and
disturbing harmonious relations.
Emerging Challenges for
Management
1. Globalization
• Increased opportunity to expand globally
• More of a challenge to small businesses
• Different culture need different style of
management
2. Environmental Dynamism
• Modern companies are very
dependent on the environment
3. Workforce Diversity
4. Ethics and Social Responsibility
• In modern organizations, the line
between ethical and unethical
practices are becoming thin.
• Was Batas wrong?
5. Empowerment of Employees
• Employees demand to be
empowered today and they
should be empowered.
• But is delegating always good?
6. Technological Development
• Technology is making human
employees less important
• Small companies are facing a lot
of problem as they are unable to
have technology.
7. Innovation and Change
• Without Innovation, modern
business cannot survive
8. Quality and
Productivity
• Companies today have to maintain
quality even with high costs
9. Changing Culture
• Management must respect all
culture, ideas and ideologies
10. Changing customer
Expectations
• Customers today prefer trends
rather than tradition.
• They want innovative products.
11. Knowledge Management
• Rise of entrepreneurship has
made holding into capable
manpower very difficult.
• Knowledge today is more
important than money.