MP

1. NATURE AND FUNCTIONS OF
MANAGEMENT
Chapter-1

2. IMPORTANCE OF MANAGEMENT
• Management is a critical element in the
economic growth of a country.
• Management is essential in all organized efforts,
be it a business activity or any other activity
• Management is the dynamic, life-giving element
in every organization.

3. DEFINITION OF MANAGEMENT
• “art of getting things done through people.
• Management is a process “consisting of
planning, organizing, actuating and controlling,
performed to determine and accomplish the
objectives by the use of people and resources.”

4. Who is a Manager ?
• A manager is one who contributes to the
organization’s goals indirectly by directing the
efforts of others—not by performing the task
himself.

5. MANAGEMENT FUNCTIONS OR THE
PROCESS OF MANAGEMENT
• POSDCORB
Planning , Organizing, Staffing, Directing,
Coordinating, Reporting , Budgeting
• Planning , Organizing , Directing Controlling

6. Planning
• Planning is the function that determines in
advance what should be done.
• Deciding the business objectives
• Methods of attaining those objectives.
• What , How , Where and Who
• Planning is a function which is performed by
managers at all levels—top, middle and
supervisory.

7. Organizing
• It is the process of delegating Authority and
Responsibility
• Human organization and the material
organization.
• Staffing involves the selection and training of
future managers

8. Directing
• A process in which the managers instruct, guide
and oversee the performance of the workers to
achieve predetermined goals
• Sub-functions—communication, leadership and
motivation.

9. Controlling
• It is a process of comparing the Actual
performance with the Standard Performance
and taking corrective steps.
1. Establishing standards of performance
2. Measuring current performance and
comparing it against the established standards
3. Taking action to correct any performance that
does not meet those standards

10. LEVELS OF MANAGEMENT
• Top Level Management
• Middle Level Management
• Bottom Level Management

11. Levels of Management

12. Managerial Roles M.I.M.P

13. Managerial Skills

14. Managerial effectiveness
• According to Peter Drucker, a manager’s performance
can be measured in terms of two concepts: efficiency and
effectiveness.
• Efficiency is the ability of a manager to do something
correctly, i.e., at the lowest possible cost or cost
acceptable to the competitive environment.
• Effectiveness, on the other hand, is the ability of a
manager to do correct things, i.e., achieve high levels of
value.

15. Management and Administration

16. Management—a science or an art?
• Management as a Science:
▫ methods of inquiry are systematic and empirical;
▫ information can be ordered and analysed; and
▫ results are cumulative and communicable.
• The attempt to gain knowledge must be without taint of
personal or other prejudgement.

17. • Management as an Art:
▫ Whereas under “science” one normally learns the “why” of a
phenomenon, under “art” one learns the “how” of it.
▫ Management is the art of getting things done through
others in dynamic and mostly non-repetitive situations.
Management—a science or an art?

18. Management—a profession?
• Existence of an organised and systematic knowledge
• Formalised methods of acquiring training and
experience
• Existence of an association with professionalisation
as its goal
• Existence of an ethical code to regulate the
behaviour of the members of the profession
• Charging of fees based on service, but with due
regard for the priority of service over the desire for
monetary reward

19. Management of International
Business
• Conceptual, Human Relations and Technical Skills
• Ability to Evaluate Host Country Risk
• Ability to Manage Country Risk
• Ability to Exert Pressure on Home Government
• Ability to Obtain Legitimacy
• Knowledge of Legal Environment
• Familiarity with the Host Country’s Culture
• Familiarity with International Monetary System and
International Accounting
• Knowledge of Human Capital Available in the Host
Country