Principles of Management

Module 1
Nature of Management

Why we should study

general management
Consider the following two situations:

You have job to perform

You know your job

You have skill for the same

2.You have half an hour to complete a
particular job

You have three subordinates

They know the job

They have skill for the same

If they dont complete the job?.............
1.

Why Management

Agenda

What is Management?
Nature & Scope of Management
Management-Science/Art/Profession?
Management Vs Administration
Managerial roles, functions & skills
Development of Management thought
Early management approaches
Modern management approaches

Meaning

Management is
the art of getting
things done
through and with
the people in
formally organised
groups..Koontz
H.

Management is the
process of planning,
organising, actuating
and controlling to
determine and
accomplish the
objectives by the use
of people and
resources..Terry G.

Nature & Characteristics of

Management

Critical element in the economic growth of

the country.
Essential in all organized effort, be it a
business or any other activity.
Dynamic and life giving element in every
organization.

A process, discipline, activity.

Intangible, goal oriented & universal.

Scope of Management

The scope is very wide.

According to Herbison & Myers, it refers to

three distinct ideas.
i) as an economic resource
ii) as a system of authority
iii) as a class or elite.

Importance of
Management

Optimum use of resources

Effective leadership and motivation

Establishes sound industrial relations

Achievement of goals

Change and growth

Improve standard of living.

Functions of
Management

No consensus on the classification

No similar terminology amongst the experts

Newman & Summer:

Organizing, planning, leading & controlling

Henry Fayol:

Planning,

organizing,

coordinating & controlling

commanding,

Functions of
Management

Luther Gullick:
POSDCORB
P : planning
O : organizing
S : staffing
D : directing
CO: coordinating
R : reporting
B : budgeting

Functions of
Management
Planning

The process of establishing goals

and a suitable course of action for
achieving those goals.

Functions of
Management
Organizing

The process of engaging two or

more people in working together in
a structured way to achieve a
specific goal or set of goals.

Functions of
Management
Staffing

Selecting

and

training

the

individuals for specific job functions

& charging them with the associated
responsibilities.

Functions of
Management
Directing

It is the process of influencing and

motivating employees to perform
essential tasks in a n organization.

Functions of
Management
CO: coordinating

The integration of the activities of

the

separate

organization

parts
to

organizational goals.

of

an

accomplish

Functions of
Management
Reporting

Process of executives keeping the

superiors

and

subordinates

informed about what is going on

through

records,

inspection.

research

and

Functions of
Management
Budgeting

Formal quantitative statement of

resources

allocated

for

planned

activities over stipulated periods of

time.

Planning

Organizing
Controlling

Manageme
nt
Functions

Directing

Staffing

Functional areas of Management

Production
Marketing
Finance
Human Resources
Research & Development
Industrial Engineering
MIS
Maintenance
Quality Engineering
Materials

Management :Science or
Art ?

Elements of Science

Elements of Art

Systematic body of
knowledge

Scientific inquiry and

Observation

Doing things creatively

Experimentation

Personalized skill

Universal truths

Application of
Knowledge

Perfection through
practice

Art

Practical know how

Technical skills
Concrete results
Creativity
Personalized nature

Science

Empirically Derived
Critically tested
General principles
Cause and effect relationship
Universal applicability

MANAGEMENT AS A
SCIENCE PROVIDES
PRINCIPLES AND AS
AN ART HELPS IN
TACKLING
SITUATIONS.

Management as Science

Distinct discipline

Offers principles & guidelines

Social science

An inexact science

Scientific & systematic.

Management as Art

Uses the practical knowledge acquired in

tackling problems.

Combines human & nonhuman resources

in a creative way to achieve results.

A personalized activity

Constant

practice

management

leads

to

good

Management: Science as well as

Art

Art of management is as old as civilization.

Science of management is young and
developing
Both are complementary
supportive

&

mutually

Management: Science as well as

Art

According to Peter Drucker:

Every organization has the same
resources to work with. It is the quality of
management that spells the difference
between success and failure.

Ability to solve problems requires sound

knowledge & constant practice

Management as a
Profession

Essential features of profession:

Well defined body of knowledge

Formal education and training

Minimum qualification

Representative body

Service above self

Ethical code of conduct

Management as a
Profession

Management has well defined body of

knowledge, tools and techniques, research
& consultancy
Acquiring management education through
formal training is possible
No representative body unlike for doctors,
lawyers, etc
No universal code of conduct.

Management as a
Profession

No regulatory body and code of conduct

leads to neglection of service motto.
Not a recognized profession ,but moving in
that direction .
Some initiatives are: separation of
ownership
from
management,
state
regulation
of
business
activities,
proliferation of management institutions,
etc.

Management &
Administration

Controversy over the meaning of the

terms Management and Administration.
Three schools of Thought- administration
is
broader
than
management,
administration is part of management,
management and administration are
identical.
American
School
of
thought:
Administrators
think,
managers
act;
administration is a top level activity,
management is a lower level function.

Management &
Administration

English School of thought: Management is

rule

making

and

rule

enforcing

body,

Administration is just an implementing

agency.

Proponents-

E.F.L.Brech,

Henry

Fayol, Kimball and Kimball.

Newman, Harold Koontz, McFarland , Ernst

Dale

maintain

that

management

administration are identical.

and

Distinction between Administration and

Management

Roles of Management

Management roles refers to specific

categories of managerial behavior.
Mintzberg identifies ten management roles
grouped under three major heads namely

interpersonal roles( roles that involve people

and other duties that are ceremonial and
symbolic in nature),
informational roles( roles that involve receiving
, collecting and disseminating information)
decisional roles( roles that revolve around
making choices).

Roles of Management

Interpersonal roles include: Figure head,

Leader, Liaison

Informational

roles

include:

Monitor,

Disseminator, Spokesperson

Decisional
Disturbance
Negotiator

roles

include

Entrepreneur,

handler, Resource allocator,

Roles of Management

According to Robert Katz, the following

skills are required for managers job:

Technical skills( knowledge and proficiency in a

specialized field),

Human skills( ability to work well with other

people individually and in a group),

Conceptual

skills(

conceptualize
situations).

ability

about

to

abstract

think
and

and

to

complex

Levels of Management

Three levels exist in Management

first line managers( responsible for the

overall direction and operations of an
organization),

middle managers( translate the broad

strategies into specific goals for
implementation)

top line managers( responsible for the

production of goods and services).

Three Levels of Management

Top
Managers
Middle
Managers
First-line Managers
Non-management

Levels of Management

First line managers: foremen, white collar

supervisors, Section heads.

Second line managers : Functional heads

and immediate subordinates.

Top

line

managers

Chairman, MD, COO, CIO .

CEO,

President,

Relative Skills Needed for Effective

Performance at different levels of Management

Top
Management
Middle
Management
First-line
Management

CONCEPTUAL

HUMAN

TECHNICAL

Question Bank

Case Study