MANAGEMENT

Unit - 1

 Management is one of the most important activities of human life. It is essential to ensure co-ordination of individual efforts. Henri Fayol defined it as management is conduct of affairs of business, moving towards its objective through a continuous process of improvement and optimization of resources Mary Parker Follett defined it as management is the art of getting things done through people

Characteristics of management
It should be stable Applicable to all kinds of organizations Transparent Approaches should be clear and goal oriented Simple yet effective Responsive to external elements technology, social, political and economic factors Management should have planning, organizing, staffing , directing and controlling function Should provide a conducive work atmosphere

Scope
Management is not limited only to business organization but is also applicable to non business ones. The nature of functions of management may differ from one type of organsiation to another, but all of them firm the essence of management. Eg- financial mgmt, marketing mgmt, production mgmt, transport mgmt etc.

Functional areas of management

There are 5 essential functions of management are
Planning Organizing Staffing Directing controlling

 Planning planning is an executive function and is referred to as decision making. It includes missions, objectives and the actions to achieve them( the actions affcourse are chosen from a range of alternatives). This involves
Setting short and long term goals Selecting objectives, strategies and policies for accomplishing goals. Deciding in advance the 4Ws and 1 H Planning bridges the gap from where we are today to where we want to be

 Organizing it involves establishing an intentional structure of roles for people to fill in an organisation. The various things essential for proper functioning are raw materials, tools, capital and personnel. This involves
Determination of activities required to achieve goals Grouping activities into departments Assigning such groups of activities to managers Forming delegation of authority Making provisions for coordination of activities

 Staffing an important function which makes provision for man power to fill different positions. This involves
Finding the right person for the right job Selecting the personnel Placement, training and developing new skills required for present and future jobs Appraising the staff and planning their growth and promotions etc.

 Directing it can also be understood as leading the people towards the defined objectives. This involves 3 sub functions namely
communication - is the process of passing information and understanding from one person to another leadership is the process where the manager guides and influences the work of his subordinates Motivation to arouse desire in the mind of the employee to perform to their best . 2types financial ( bonus, profit sharing etc) and non financial ( job security, promotions, recognition etc.)

 Controlling controlling is measuring and correcting of activities of subordinates to ensure work is going as per plans. It involves
Establishing standards of performance Measuring performance and comparing with established standards Taking necessary corrective action to meet set standards

Management Cycle
planning

controlling

organizing

Management cycle

directing

staffing

Management science , art or profession

ART managing like nay other practice is an art, as it is the art of getting things done through others in dynamic and mostly nonrepititive situations. SCIENCE it is organized knowledge with an essential feature of application of the scientific methods to the development of knowledge. Further it is cumulative in nature. All these aspects of science are there in management as well, which is why management can also be a science

 PROFESSION it has been understood that management is partly a science and partly an art. Earlier their was no specific qualification for management as a profess, this though has changed no and so it can also be a profession as it has become essential to have a certain qualification in management to follow it professionally.

Management & Administration

CHARACTERISTICS Main function Status AMINISTRATION Planning, organizing and staffing Acts as an owner MANAGEMENT Leading , motivating & controlling Acts as an agency

Skills
Level in the organization Position Objectives

Requires good administrative skills

Top level Managing director, owner, CEO etc. Makes the policies, objectives and goals to be achieved No direct involvement in production or services

Requires more technical skills

Lower level Managers , supervisors, foremen etc Implements the plans and the policies Directly involved in the execution of plans and achieving goals.

Involvement

Roles Of Management
Interpersonal roles
Figurehead here the manager performs some duties that are casual and informal like receiving and greeting visiting dignitaries etc. Leader here the manager should motivate, direct and encourage his subordinates. He also reconciles the needs with the goals of the organization Liaison the manager here works as a liaison officer between the top management and the subordinate staff.

 Decision roles
Resource allocator here the manager divides the work, provides the required resources & facilities to accomplish the objective. He decides who has to do what and who gets what Arbitrator a manager here works as a problem solver. He finds solutions for un-anticipated problems both within n outside the organization Entrepreneur- a manager who continuously looks for newer opportunities and tries to make improvement by doing so. Negotiator the role here is to negotiate and try and resolve any internal problems strikes, grievances off employees

 Information roles
Monitor the role is to monitor the environment and collect information through credible sources Spokesman to communicate the information about or of the organization to his staff, about performance of the firm to stakeholders and progress of work to superiors Disseminator here the managers passes some of the information directly to his subordinates and to his bosses.

Level Of Management
Top Management (conceptual & design skills)

Middle Management (human skills)

First line or Supervisory level (technical skills)

Evolution
Management has emerged as a powerful & innovative force on which todays society depends. It can be broadly classified into the
Early management approaches Modern management approaches

Early Management Approaches

Psychological development( before 17th C) Scientific management ( 18th C - 19th C) Administrative Management Human relations movement

Modern Management Approaches

Behavioural approach Systems approach Quantitative approach Contingency approach