Intro to mgt

MANU H NATESH MBA, M.Com. BMSEAC
E-mail: manu@bmsec.ac.in

Definitions:
According to Harold Koontz,
"Management is the art of getting things done through and with people in formally
organized groups.“
According to Henri Fayol,
"To manage is to forecast and to plan, to organise, to command, to co-ordinate and to
control.“
According to Peter Drucker,
"Management is a multi-purpose organ that manages business and manages
managers and manages workers and work."

Meaning:
• Management is an
individual or a group of
individuals that accept
responsibilities to run
an organization. They
Plan, Organize, Direct
and Control all the
essential activities of
the organization

Features of management

The nature, main characteristics or features of management:

1. Continuous and never ending process
Management is a Process. It includes four main functions, viz., Planning, Organizing, Directing and Controlling.
The manager has to Plan and Organize 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.
2. 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 treated like slaves. They should not be tricked, threatened or forced to do the work. A favourable
work environment should be created and maintained.
3. Result oriented science and art
Management is result oriented because it gives a lot of importance to "Results". Examples of Results like,
increase in market share, increase in profits, etc. Management always wants to get the best results at all times.
4. Multidisciplinary 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. Similarly, the same person may
have different emotions at different times. So, management is a very complex job. Therefore, management
uses knowledge from many different subjects such as Economics, Information Technology, Psychology,
Sociology, etc. Therefore, it is multidisciplinary in nature.

5. A group and not an individual activity
Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve
group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Nowadays,
importance is given to the team (group) and not to individuals.
6. 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.
7. Aided but not replaced by computers
Now-a-days, all managers use computers. Computers help the managers to take accurate decisions. However,
computers can only help management. Computers cannot replace management. This is because management
takes the final responsibility. Thus Management is aided (helped) but not replaced by computers.
8. 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.
The manager first studies the full present situation. Then he draws conclusions about the situation. Then he
makes plans, decisions, etc., which are best for the present situation. This is called Situational Management.
.

9. Need not be an ownership
In small organizations, management and ownership are one and the same. However, in large organisations,
management is separate from ownership. The managers are highly qualified professionals who are hired from
outside. The owners are the shareholders of the company.
10. Both an art and science
Management is result-oriented. Therefore, it is an Art. Management conducts continuous research. Thus, it is
also a Science.
11. 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.
12. Management is intangible
Management is intangible, i.e. 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. If there is good discipline, good
productivity, good profits, etc., then the management is successful and vice-versa

13. Uses a professional approach in work
Managers use a professional approach for getting the work done from their subordinates. They delegate (i.e.
give) authority to their subordinates. They ask their subordinates to give suggestions for improving their work.
They also encourage subordinates to take the initiative. Initiative means to do the right thing at the right time
without being guided or helped by the superior.
14. Dynamic in nature
Management is dynamic in nature. That is, management is creative and innovative. An organisation will survive
and succeed only if it is dynamic. It must continuously bring in new and creative ideas, new products, new
product features, new ads, new marketing techniques, etc.

Objectives of Management

Following are the broad objectives of management
1. Proper Utilization of Resources:
The main objective of management is to use various resources of the enterprise in a most
economic way. The proper use of men, materials, machines and money will help a business to earn
sufficient profits to satisfy various interests. The proprietors will want more returns on their
investments while employees, customers and public will expect a fair deal from the management.
All these interests will be satisfied only when physical resources of the business are properly
utilized.
2. Improving Performance:
Management should aim at improving the performance of each and every factor of production. The
environment should be so congenial that workers are able to give their maximum to the enterprise.
The fixing of objectives of various factors of production will help them in improving their
performance.
3. Mobilizing Best Talent:
The management should try to employ persons in various fields so that better results are possible.
The employment of specialists in various fields will be increasing the efficiency of various factors of
production. There should be a proper environment which should encourage good persons to join
the enterprise. The better pay scales, proper amenities, future growth potentialities will attract
more people in joining a concern.
4. Planning for Future:
Another important objective of management is to prepare plans. No management should feel
satisfied with today’s work if it has not thought of tomorrow. Future plans should take into
consideration what is to be done next. Future performance will depend upon present planning. So,
planning for future is essential to help the concern.

Scope or Branches of management

Branches of management
The operational aspects of business management, called the branches of
management, are as follows:
1. Production Management
2. Marketing Management
3. Financial Management.
4. Personnel Management and
5. Office Management.

Production Management
Production means creation of utilities. This creation of utilities takes place
when raw materials are converted into finished products. Production
management, then, is that branch of management ‘which by scientific
planning and regulation sets into motion that part of enterprise to which
has been entrusted the task of actual translation of raw material into
finished product.’
It is a very important field of management ,’for every production activity
which has not been hammered on the anvil of effective planning and
regulation will not reach the goal, it will not meet the customers and
ultimately will force a business enterprise to close its doors of activities
which will give birth to so many social evils’.
Plant location and layout, production policy, type of production, plant
facilities, material handling, production planning and control, repair and
maintenance, research and development, simplification and
standardization, quality control and value analysis, etc., are the main
problems involved in production management.

Marketing Management
Marketing is a sum total of physical activities which are involved in
the transfer of goods and services and which provide for their
physical distribution. Marketing management refers to the
planning, organizing, directing and controlling the activities of the
persons working in the market division of a business enterprise with
the aim of achieving the organization objectives.
It can be regarded as a process of identifying and assessing the
consumer needs with a view to first converting them into products
or services and then involving the same to the final consumer or
user so as to satisfy their wants with a stress on profitability that
ensures the optimum use of the resources available to the
enterprise. Market analysis, marketing policy, brand name, pricing,
channels of distribution, sales promotion, sale-mix, after sales
service, market research, etc. are the problems of marketing
management.

Financial Management
Finance is viewed as one of the most important factors in every
enterprise. Financial management is concerned with the managerial
activities pertaining to the procurement and utilization of funds or
finance for business purposes.
The main functions of financial management include:
(i) Estimation of capital requirements;
(ii) Ensuring a fair return to investors;
(iii) Determining the suitable sources of funds;
(iv) Laying down the optimum and suitable capital
Structure for the enterprise:
(i) Co-coordinating the operations of various departments;
(ii) Preparation, analysis and interpretation of financial statements;
(iii) Laying down a proper dividend policy; and
(iv) Negotiating for outside financing.

Personnel Management
•
Personnel Management is that phase of management which deals with the
effective control and use of manpower. Effective management of human resources
is one of the most crucial factors associated with the success of an enterprise.
Personnel management is concerned with managerial and operative functions.
Managerial functions of personnel management include:
(i) Personnel planning;
(ii) Organizing by setting up the structure of relationship among jobs, personnel
and physical factors to contribute towards organization goals;
(iii) Directing the employees; and
(iv) Controlling.
The operating functions of personnel management are:
(i) Procurement of right kind and number of persons;
(ii) Training and development of employees;
(iii) Determination of adequate and equitable compensation of employees;
(iv) Integration of the interests of the personnel with that of the enterprise; and
(v) Providing good working conditions and welfare services to the employees.

Office Management
•
The concept of management when applied to office is called ‘office
management’. Office management is the technique of planning,
coordinating and controlling office activities with a view to achieve
common business objectives. One of the functions of management
is to organize the office work in such a way that it helps the
management in attaining its goals. It works as a service department
for other departments.
The success of a business depends upon the efficiency of its
administration. The efficiency of the administration depends upon
the information supplied to it by the office. The volume of paper
work in office has increased manifold in these days due to industrial
revolution, population explosion, increased interference by
government and complexities of taxation and other laws

MANAGEMENT—Importance
Maintains discipline
Distributes work
Co-ordination
Improves efficiencies
Suggest new Ideas and
improvement
Storing and recording
Arranging payments and
keep records
Marketing and publicity
Importance to labour
grievances and maintain
good human relations for
achieving the goals

Differences

Differences between management and administration
Basis Management Administration
Meaning
Management is an art of getting
things done through others by
directing their efforts towards
achievement of pre-determined
goals.
It is concerned with formulation
of broad objectives, plans &
policies.
Nature
Management is an executing
function.
Administration is a decision-
making function.
Process
Management decides who
should as it & how should he dot
it.
Administration decides what is
to be done & when it is to be
done.
Function
Management is a doing function
because managers get work
done under their supervision.
Administration is a thinking
function because plans &
policies are determined under it.
Skills Technical and Human skills Conceptual and Human skills
Level Middle & lower level function Top level functionMANU H NATESH MBA, M.Com. BMSEAC

Levels of management

Three levels of Management

Top Management
Formulation of policy, co-ordination and
motivation of the personnel.
E.g. Managing Director, Secretaries, Finance
Directors, etc
Functions of Top level management
Overall management(goal, objectives)
Overall operation
Overall relationship(internal and external with Govt., etc)

Middle Management
Co-ordination and motivation, planning and control of
activities.
E.g. Heads of Departments and Superintendents,
Managers.
Functions of Middle level management
To execute the various functions
To operate and co ordinate
To develop and train
To inculcate feeling among employees

Lower Management
Supervision and expert decision on technologies of
operation and day-to-day activities (including
administrative procedures).E.g. Foreman, First line
Supervisors
Functions of lower level (supervisory)
Related to work force
Takes decision from middle level
Guide the worker
Provide training to worker
Solve day to day problems
Maintain good HR

Management Functions

Management Functions
• Planning
• Organizing
• Commanding (directing)
• Staffing
• Controlling

Planning
• Planning is deciding in advance - what to do,
when to do & how to do. It bridges the gap
from where we are & where we want to be”. A
plan is a future course of actions. It is an
exercise in problem solving & decision making.
Planning is determination of courses of action
to achieve desired goals.

Organizing
It is the process of bringing together physical, financial
and human resources and developing productive
relationship amongst them for achievement of
organizational goals.
To organize a business involves determining & providing
human and non-human resources to the organizational
structure. Organizing as a process involves:
– Identification of activities.
– Classification of grouping of activities.
– Assignment of duties.
– Delegation of authority and creation of responsibility.
– Coordinating authority and responsibility relationships

Staffing
• The main purpose of staffing is to put right
man on right job i.e. square pegs in square
holes and round pegs in round holes.
• According to Kootz & O’Donell, “Managerial
function of staffing involves manning the
organization structure through proper and
effective selection, appraisal & development
of personnel to fill the roles designed on the
structure”.

Directing
It is that part of managerial function which actuates the
organizational methods to work efficiently for achievement of
organizational purposes.
It is considered life-spark of the enterprise which sets it in motion
the action of people because planning, organizing and staffing are
the mere preparations for doing the work. Direction is that inert-
personnel aspect of management which deals directly with
influencing, guiding, supervising, motivating sub-ordinate for the
achievement of organizational goals.
Direction has following elements:
• Supervision
• Motivation
• Leadership
• Communication

Controlling
Controlling is the measurement & correction of
performance activities of subordinates in order to
make sure that the enterprise objectives and plans
desired to obtain them as being accomplished”.
Therefore controlling has following steps:
• Establishment of standard performance.
• Measurement of actual performance.
• Comparison of actual performance with the standards
and finding out deviation if any.
• Corrective action

Management Principles developed by Henri Fayol:
• DIVISION OF WORK: Work should be divided among individuals and groups to
ensure that effort and attention are focused on special portions of the task. Fayol
presented work specialization as the best way to use the human resources of the
organization.
• AUTHORITY: The concepts of Authority and responsibility are closely related.
Authority was defined by Fayol as the right to give orders and the power to exact
obedience. Responsibility involves being accountable, and is therefore naturally
associated with authority. Whoever assumes authority also assumes
responsibility.
• DISCIPLINE: A successful organization requires the common effort of workers.
Penalties should be applied judiciously to encourage this common
effort.
• UNITY OF COMMAND: Workers should receive orders from only one
manager.
• UNITY OF DIRECTION: The entire organization should be moving towards a
common objective in a common
direction.

• SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one
person should not take priority over the interests of the organization as a
whole.
• REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general
business conditions, and success of the business, should be considered in determining a worker’s
rate of pay.
• CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role.
Decentralization is increasing the importance. The degree to which centralization or
decentralization should be adopted depends on the specific organization in which the manager is
working.
• SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from
the first line supervisor to the president, possess certain amounts of authority. The President
possesses the most authority; the first line supervisor the least. Lower level managers should
always keep upper level managers informed of their work activities. The existence of a scalar chain
and adherence to it are necessary if the organization is to be
successful.

• ORDER: For the sake of efficiency and coordination, all materials and
people related to a specific kind of work should be treated as equally as
possible.
• EQUITY: All employees should be treated as equally as
possible.
• STABILITY OF TENURE OF PERSONNEL: Retaining productive employees
should always be a high priority of management. Recruitment and
Selection Costs, as well as increased product-reject rates are usually
associated with hiring new
workers.
• INITIATIVE: Management should take steps to encourage worker initiative,
which is defined as new or additional work activity undertaken through
self direction.
• ESPIRIT DE CORPS: Management should encourage harmony and general
good feelings among employees.

social responsibilities of business

Shareholders or investors
Social responsibility of business towards its
shareholders or investors is most important of all
other obligations.
If a business satisfies its funders, they are likely to
invest more money in a project. As a result, more
funds will flow in and the same can be utilized to
modernize, expand and diversify the existing
activities on a larger scale. Happy financiers can
fulfill the rising demand of funds needed for its
growth and expansion.

Personnel
or employees or workers
Social responsibility of business towards its personnel is important
because they are the wheels of an organization. Without their
support, the commercial institution simply can't function or
operate.
If a business takes care of the needs of its human resource (for e.g.
of office staff, employees, workers, etc.) wisely, it will boost the
motivation and working spirit within an organization. A happy
employee usually gives his best to the organization in terms of
quality labor and timely output than an unsatisfied one. A pleasant
working environment helps in improving the efficiency and
productivity of working people. A good remuneration policy attracts
new talented professionals who can further contribute in its growth
and expansion.
Thus, if personnel is satisfied, then they will work together very
hard and aid in increasing the production, sales and profit.

Consumers or customers
•
Social responsibility of business towards its consumers or
customers matters a lot from sales and profit point of view.
Its success is directly dependents on their level of
satisfaction. Higher their rate of satisfaction greater are the
chances to succeed.
• If a business rolls out good-quality products and/or delivers
better quality services that too at reasonable prices, then it
is natural to attract lots of customers. If the quality-price
ratio is maintained well and consumers get worth for their
money spend, this will surely satisfy them. In a long run,
customer loyalty and retention will grow, and this will
ultimately lead to profitability.

Government
Social responsibility of business towards government's regulatory
bodies or agencies is quite sensitive from the license's point of
view. If permission is not granted or revoked abruptly, it can result
in huge losses to an organization. Therefore, compliance in this
regard is necessary.
Furthermore, a business must also function within the demarcation
of rules and policies as formulated from time to time by the
government of state or nation. It should respect laws and abide by
all established regulations while performing within the jurisdiction
of state.
Some examples of activities a business can do in this regard:
• Licensing an organization,
• Seeking permissions wherever necessary,
• Paying fair taxes on time,
• Following labor, environmental and other laws, etc

Local community
A business has a responsibility towards the local
community besides which it is established and operates
from. Industrial activities carried out in a local-area affect
the lives of many people who reside in and around it. So, as
a compensation for their hardship, an organization must do
something or other to alleviate the intensity of suffering.
As a service to the local community, a business can build:
• A trust-run hospital or health center for local patients,
• A primary and secondary school for local children,
• A diploma and degree college for local students,
• An employment center for recruiting skilled local people,
etc.

Environment
Social responsibility of business with respect to
its surrounding environment can't be sidelined at
any cost. It must show a keen interest to
safeguard and not harm the vitality of the nature.
A business must take enough care to check that
its activities don't create a negative impact on the
environment.
For example, dumping of industrial wastes
without proper treatment must be strictly
avoided.

Public
Finally, social responsibility of business in general
can also contribute to make the lives of people a
little better.
Some examples of services towards public include:
• Building and maintaining devotional or spiritual
places and gardens for people,
• Sponsoring the education of poor meritorious
students,
• Organizing events for a social cause, etc.

Any questions

Intro to mgt

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