Principles of Management

Chapter 1:

Nature of Management

According to Peter F. Drucker,

the emergence of Management
as an essential, a distinct and
leading social institution is a
pivotal event in social history
3

Management is an art
It is in the sense of possessing
managing skill by an individual

Management is science too

It involves developing certain
principles or laws applicable in a
place where a group of
activities are coordinated
5

According to Ralph C. Davis,

Management is the function of
executive leadership
everywhere

Application of Principles of
Management into action in
your life as well as on your
workplace every day and
correlating these principles with
your personal life situations is
called internalization
7

Learn this subject,

put it into your system,
convert the concept into experience,
convert abstract into concrete
by systematic approach:

It will improve your thinking

process
8

You should ask yourself:

Am I managing my life daily?,
Have I added values to myself?,
Have I set up any goals for me to
achieve?

This thinking process will take you

a long way
9

Management involves a set of

processes that come into play
whenever we want to achieve
something:
that is, our preset goal
by thinking process and
utilizing the inputs such as man,
machine, materials, money etc. in a
coordinated fashion
10

Our life is full of activities through

which we constantly try to achieve
something: e.g.
to get admission to school for our
children,
to get into a better job,
to find our life partner etc.
11

While doing this, due to lack of

systematic approach, many times,
we are in a chaotic situation

12

The advantages of learning

Principles of Management are:
Our life gets focus and direction
We know better how to plan and
organize our life

13

The advantages of learning

Principles of Management are:
We get clarity of thinking and
action
Our stresses get reduced
tremendously
14

The advantages of learning

Principles of Management are:
Our life becomes purposeful and
joyous
We start assuming responsibility
and accountability for whatever
we do
15

The advantages of learning

Principles of Management are:
Our behavior towards others and
the world improves drastically
We are not scared of taking
decisions
16

The advantages of learning

Principles of Management are:
By applying what we learn into
skills and actions we grow in our
career
We know methods of correcting
our mistakes
17

The advantages of learning

Principles of Management are:
By knowing,
internalizing,
becoming a role model
we take our people to achieve
our goals
18

Management is the art of

getting things done
by a group of people
with the effective utilization
of available resources
19

Management is the group of

activities, which
drafts plans,
prepares policies, and
arranges men, money, machines
and materials required to
achieve the objectives
20

Management is the activity of

man who struggles for better
living in the complex and
competitive world

21

Management is an organized
effort of people whose purpose
is to achieve the
Objectives and Goals of an
organization
22

F.W.Taylor

23

According to F.W.Taylor,
Management is the art of
knowing what you want to do,
and then seeing that it is done
in the best and the cheapest
way
24

Henry Fayol

25

According to Henry Fayol, to

manage is to forecast and to
plan, to organize, to command,
to coordinate and to control

26

Management is:
Optimum utilization of
Available Resources
In order to attain
certain pre-set
GOALS/Objectives
27

Optimum utilization means:

best possible utilization under
given circumstances
28

Management as a Process
McFarland defines management as
A process by which managers create,
direct, maintain and operate purposive
organization through:
systematic, coordinated, cooperative
human efforts
29

The term Process emphasizes

the dynamic
or ongoing nature of
management, an activity over
varying span of time.
30

The dynamic nature implies

that change is reality of
organizational life

31

Businesses fail and become

bankrupt because managers fail
in their attempt to cope with
the change

32

Management as coordination
Donally, Gibson and Ivancevich
also support the view of
management as a Process
but their stress in more on

co-ordination.
33

Management as a Function
Dunn, Stephens and Kelly say that:
Management is a role which includes
a set of duties, responsibilities, and
relationships-involved in work
organizations.
These duties and responsibilities
constitute the function a manager
performs
34

Management is getting things

done through other people
Efficient management is the
lifeboat of any developed
business
35

There are five Ms in the

business, which can be called as
the resources of the business:
1. MAN:
Availability of qualified, trained, skilled,
experienced and competent people is the
most important factor in any management,
anywhere
36

There are five Ms in the

business, which can be called as
the resources of the business:
2. MACHINES
Availability of capable machines and
equipment is a must to do the things in the
best and the cheapest way
37

There are five Ms in the

business, which can be called as
the resources of the business:
3. MATERIALS:
Quality, quantity, availability, cost/market
price and transportation of raw materials,
semi-finished goods and finished goods is a
clearly a very vital factor in success of
management.
38

There are five Ms in the

business, which can be called as
the resources of the business:
4. MONEY:
Availability of funds for running the
business is extremely important
particularly for procuring capital goods,
raw materials, tools and consumables, and
availability of working capital
39

There are five Ms in the

business, which can be called as
the resources of the business:
5. METHODS:
If we have to do things in the best and
cheapest way, it is also important how the
things are processed. That is, by which
method the things are processed
40

Methods form the competitive

edge:
The proper method will ensure
required quality, quantity and intime delivery
It will ensure the accomplishment of
management objectives
41

Management is an essential
activity of all organizational
levels
Lower, middle and upper level

42

Management applies to:

Small and large Organizations

Profit and nonprofit Organizations
Manufacturing Organizations
Service rendering Organizations

43

If you are a person who is:

capable of undertaking the tasks and
functions of managing at any level,
in any kind of enterprise;
you have leadership qualities;
and you have qualities of an
administrator;
You will become a good manager
44

A good manager is expected to

have ability of four skills as
given below:

Technical skills
Human Skills
Concept Skills
Ability to solve problems
45

 Any endeavor starts with end

purpose, i.e. GOAL
When goal is set, steps
towards goal also become
clear
One can become successful
only if he has preset goals
46

However, the goals must be

S-M-A-R-T as explained below:
-------------------------------Specific:
We should be specific in our goal.
E.g. I want to become a manager is not a
goal. What you want to accomplish in an
organization is a goal.
47

However, the goals must be

S-M-A-R-T as explained below:
-------------------------------Measurable:
The goal must be measurable. E.g., I want
to secure 95% marks.
48

However, the goals must be

S-M-A-R-T as explained below:
-------------------------------Achievable
Our resources are limited. Therefore, if you
want to buy a flat in Mumbai and you have
only Rs 10 Lakhs, it is not possible to buy a
flat there.
49

However, the goals must be

S-M-A-R-T as explained below:
-------------------------------Realistic:
The goal must be realistic. We cannot
dream to become a prime minster when
you have not yet become a corporator
50

However, the goals must be

S-M-A-R-T as explained below:
-------------------------------Time bound:
Your goal should have a time limit such as I
want to get admission to a medical college
during next year.
51

Importance of Management:
Management meets the challenge of
change
Accomplishment of group goals
Effective utilization of resources
Effective functioning of business
52

Importance of Management:
Resource development
Sound organizational structure
Management directs the
organization
It integrates various interests
53

Importance of Management:

It stabilizes the fluctuations

It innovates
Coordination and team spirit
Tackling and solving problems
Management is a tool for personality
development
54

THANK YOU

55