Introduction to management

Prof. Virupaxi V B MBA, M.Com

DEFINITION OF MANAGEMENT

According to Harold Koontz,

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

According to Peter. F. Drucker,

Management is a multi-purpose organ that
manages business, manages managers and
manages workers and work.
 NATURE / CHARACTERISTICS
OF MANAGEMENT
1. Multidisciplinary
2. It is a group activity
3. It is goal oriented
4. It is a process
5. It is a profession
6. It is universal; as Henry Fayol said be it
commerce, politics, religion.. in every concern
there is management function to be performed
7. It is an endeavor to achieve
predetermined objectives.
8. It is a social process.
9. It is a dynamic function
10. Management is an art as well as a
science
11. Management is a system of authority
 OBJECTIVES OF MANAGEMENT

Optimum utilization of resources

Minimization of costs

Improving Performance

Innovation and smooth running

Social benefits

Mobilizing best talent

Planning for the future

The primary objective is to run the enterprise
smoothly however the profit motive of business
should also be kept in the mind.
 FUNCTIONS OF MANAGEMENT

1. Subject-matter of management:

Planning
Organizing
Staffing
Directing
Coordinating
Controlling
2. Functional areas of management:

Financial management includes accounting, budgetary control,

quality control, financial planning and managing the overall finances
of an organization.
Personnel management includes recruitment, training, transfer
promotion, demotion, retirement, termination, labor-welfare and social
security industrial relations.
Purchasing management includes inviting tenders for raw materials,
placing orders, entering into contracts and materials control.
Production management includes production planning, production
control techniques, quality control and inspection and time and motion
studies.
Maintenance management involves proper care and maintenance of
the buildings, plant and machinery.
Transport management includes packing, warehousing and
transportation by rail, road and air.
Distribution management includes marketing, market research, price-
determination, taking market risk and advertising, publicity and sales
promotion.
Office Management includes activities to properly manage the
layout, staffing and equipment of the office.
Development management involves experimentation and research of
production techniques, markets, etc.

3. Management is an inter-disciplinary approach: For the correct

implementation of the management, it is important to have knowledge
of commerce, economics, sociology, psychology and mathematics.
4. Universal application: The principles of management
can be applied to all types of organizations irrespective of
the nature of tasks that they perform.
5. Essentials of management: Three essentials of
management are:
Scientific method
Human relations
Quantitative technique
6. Modern management is an agent of change: The
management techniques can be modified by proper
research and development to improve the performance of
an organization.
MANAGEMENT PROCESS
 IS MANAGEMENT AN ART OR SCIENCE?

Science may be described- "as a systematic body of

knowledge pertaining to an area of study and contains
some general truths explaining past events or
phenomena".
'Art' refers to "the way of doing specific things; it
indicates how an objective is to be achieved.
Management is both a science as well as an art. The
science of management provides certain general
principles which can guide the managers in their
professional effort. The art of management consists in
tackling every situation in an effective manner.
 Management A profession?

Mcfarland gives following characteristics of a

profession:
Specialized Knowledge
Formal education and training
Existence of an association with
professionalization as its goal.
Existence of an ethical code to regulate the
behaviour.
Charging the fees base on service.
 Challenges for Management in
a Global Environment

Global business management can be defined as the fundamental

principles and practice of conducting global business activities, the
proper evaluation of international business opportunities and the
optimum allocation of resources so as to attain the individual
business objectives in a global environment.
Issues in Global Management;
1. International trade, Global human resource management, Global
investment and global finance.
2. Rise of Global Organizations, Building a Competitive Advantage,
Maintaining Ethical Standards, Managing a Diverse Workforce,
Utilizing Information Technology and Technologies, Global Crisis
Management
 CURRENT TRENDS AND ISSUES IN
MANAGEMENT
Globalization: Organizational operations are no longer
limited by national borders
Ethics: Cases of corporate lying, misrepresentations, and
financial manipulations have been widespread in recent
years.
Workforce diversity: It refers to a workforce that is
heterogeneous in terms of gender, race, ethnicity, age,
and other characteristics that reflect differences.
Entrepreneurship:
Managing in an E-Business World:
Knowledge Management and Learning Organizations:
 Todays managemenT sTyle of managers

1. Select the right people

2. Show empathy
3. Communicate clearly
4. Lead by example
5. Delegate
6. Be positive and constructive
7. Thank and reward your people
9. Encourage innovation
10. Be flexible
MANAGEMENT LEVELS AND TIME SPENT
ON FUNCTIONS

Plan. Organ. Lead. Control.

Top 28% 36% 22% 14%
Middle 18% 33% 36% 13%
Lower 15% 24% 51% 10%
Skills Needed at Different Management
Levels
 Conceptual Skills

Using information to solve business problems

Identifying of opportunities for innovation
Recognizing problem areas and implementing
solutions
Selecting critical information from masses of data
Understanding of business uses of technology
Understanding of organizations business model
 Communication (Human) Skills

Ability to transform ideas into words and actions

Credibility among colleagues, peers, and
subordinates
Listening and asking questions
Presentation skills; spoken format
Presentation skills; written and/or graphic
formats
 Effectiveness(Technical) Skills

Contributing to corporate mission/departmental objectives

Customer focus
Multitasking: working at multiple tasks in parallel
Negotiating skills
Project management
Reviewing operations and implementing improvements
Setting and maintaining performance standards internally and
externally
Setting priorities for attention and activity
Time management