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What is the best definition of management PDF?
It is a sum of organized activities by a. group of people. Management involves decision. making at various levels of organization for getting. things done by others.What is management definitions by different authors?
Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.” J.N. Schulze – “Management is the force which leads, guides and directs an organisation in the accomplishment of a pre-determined object.” S. George – “Management consists of getting things done through others.What is management according to Peter Drucker?
“Management is a multi-purpose organ that manages business and manages managers and manages workers and work.” This management definition was given by Peter F. Drucker in his book, The Practice of Management.- Henri Fayol defined management as a process consisting of activities to plan, organize, mobilize human resources (HR), and carry out control to achieve goals. It can be said that management is all management processes, from planning to supervision, to achieve certain goals.
N2T(S STRUCTURE 1.1Introduction to Management
1.2Definition of Management
1.3Nature/Characteristics of Management
1.4Scope of Management
1.5Functions of Management
1.6Management Process
1.7Levels of Management
1.8Skills of Management
1.9Role of Management
1.10Evolution of Management Thought
Summary Review Ques tionsUNIT 1MANAGEMENT CONCEPTS#0&6*17)*651.1INTRODUCTION OF M ANAGEMENT
The man agers achieve o rganizational object ives by getting work from others and not perfo rming in t he tasks themselves. Management is an art and science of getting work done through people. It is the process of giving direction and controlling the various activities of th e people to achieve th e objec tives of an organiza tion.1.2DEFINITION OF MANAGEMENT
There are numerous definitions of management. Different experts have defined differ ent points of view. According to Mary Parker Follett, "Management is the art of getting things done thr ough people." Harold Koontz defined as, "Management is the art of getting things done through and with people in formally organized groups. It is the art of creating an environment in which people can perform and individuals could coope rate towards attaini ng of group goals." In view of Joseph Massie, "Management is defined as the process by which a cooperative group directs actions towards common goals."NOTESGeorge.R.Terry's point of view, "Management is a distinct process, consisting of planning, organizing, actuating and controlling, performedto deter mine and accomplish stated goals by the use of human bei ngsand other r esources."According to this definition, management is a process a systematic wayof doing things. The four management functions included in this processare planning, organizing, directing and controlling.Planning refers manager's thi nk of their actions in advance . Theiractions are usually based on some method, plan or logic, rather than ona hunch.Organizing refers manager's coordinate the human and material resourcesof the organization.Actuating refers managers motiva te and direct subordina tesControlling refers attempts to ensure that there is no deviation fromthe plan o r norms.This definition also indicates that managers use people and other resourcessuch as finance, equipment's etc. in attaining their goals.Finally, the definition st ates that t he management involves the act ofachieving the organization's objectives. These objectives will, of course,vary with each organization .The follo wing chart clearly presents th is definition of mana gement.1.3NATURE/CHARACTERISTICS OFMANAGEMENTFollowing are the nature and cha racterist ics of Managem ent:1.Management is an activity. It is a process of organized activityconcerned with efficient utilization of resources of product ionlike men, mater ial, machine, mo ney etc.2.Management is a purposeful activity. It is co ncerned w iththe achievement of an objective through its functions. Objectivesmay be ex plicit or implicit.3.Management concerned with the efforts of a group. Managementis concerned with management of people and not the direction ofthings. It motivates the work ers to contribute their best.
NOTES4.Management is getting things done. A manager does not doany opera ting work himself but gets it done through others.5.Management applies economic pr inciples. Management isthe art of applying the economic principles that underlie a controlof men and material s in the e nterprise under consideration.6.Management involves decision-making. It is a decision-makingprocess and the decisions are involved in all the functions ofmanagement.7.Management coordinates all activities and resources. It isconcerned with coordination of all a ctivities an d resources toattain the specif ic objecti ves.8.Management is a universal activity. The techniques and toolsof managem ent are universally applicable.9.Management is an integrating process. It integrates the men,materials and machines for achievi ng stated objectives.10.Management is concerned with direction and control. It isconcerned with direction and control of human efforts to attainthe specifi c objectives.11.Management is intangible. It is abstract and cannot be seen.It is evi denced by the quality of organi zation and through itsresults.12.Management is both science and an art. Management hascertain universally applic able principles, laws etc. Hence, it is a science. It is also an art, because it is concerned with applicationof knowl edge for the solution of org anizational pro blems.13.Management is a profession. It is becoming a profession becausethere is established principles of management which being appliedin pract ice.14.Management is an inter-disciplinary approach. Managementas a body o f d iscipline takes the help or other soc ial sciencelike psychology, sociology, engineering, economics, mathematicsetc.15.Management is dynamic and not static. Management adoptsitself to the social changes and also in troduces innovati on inmethodology.1.4SCOPE OF MANAGEMENTThe scope of management is very wide. The functional areas of managementmay be cl assified i nto the follo wing categories.(i)Production Management(ii)Marketing Management(iii)Financial Management(iv)Personnel Management
NOTES(i)Production Management. Production function so as to producethe right goods in right quantity at the right time and atthe right co st. It consis ts of the following activi ties.•Designing the product•Location and layout of p lant and bui lding•Operations of purchase and storag e of mate rials•Planning and control of factory o perations•Repairs and maintenance•Inventory control and quality c ontrol•Research and development etc.(ii)Marketing Management. It ref ers to the identificatio n ofconsumer's needs and supplying them the goods and services,which can satisfy those, wants. The activities are as follows:•Marketing Research to determine the needs and expectationsof consu mers•Planning and developing suitable products•Setting appropriate pri ces•Selecting the right channels o f distributio n•Promotional activities like advertisin g and salesmanship tocommunicate with the customers.(iii)Financial Management. Financial management seeks to ensurethe right amount and type of funds to business at the righttime and at reason able cost . The activ ities are as follows:•Estimate the volume of fun ds requires for long term andshort term need s of business•Selecting the appropriate so urces of funds •Raising the required funds at the right time•Ensuring proper util ization and allocation of raised funds•Administration of earnings.(iv)Personnel Management. It invo lves planning, organizin g,directing and controlling the procurement, development,compensation, maintenance etc. of the human resources in anenterprise. It consi sts of the following activi ties:•Manpower planning•Recruitment•Selection•Training and Development•Performance Appraisal•Compensation and promotion•Employee services and benef its•Maintaining personnel records etc.
NOTES1.5FUNCTIONS OF MANAGEMENTDifferent authors offering diff erent names for the sa me functions ofmanagementHenri Fayol identifies five functions of manag ement viz, planning,organizing, commanding, coordinating and controlling.Koontz and O'Donnell, divides the management functions into planning,organizing, staffing, directing and controlling.Warren Haynes and Joseph Massie classifies management functionsinto decision-making, planning, organizing, staffing, directing, controlling,and commun icating.Luther Gulick, sta tes seven such functi ons under the catc h word"POSDCORB"Which stand forP-PlanningO-OrganizingS-StaffingD-DirectingCo-CoordinatingR-ReportingB-BudgetingAs per managers are concerned, the following five functions are essential.They are Planning, Organizing, Staffing, Directing, and Controlling. Inaddition to above five functions, the two functions such as Innovationsand repre sentation are also necessary for managers.1.6MANAGEMENT PROCESSThere is enough d isagreeme nt among management w riters on theclassification of managerial functions. Some classify these f unctionsinto four ty pes, some into six or seven. The termi nology is also notalways alike, diffe rent authors offeri ng different names for the same functions of management. For manager ial purpose, the followingfive functions are very essential for managers. They are planning,organizing, staffing, directing and c ontrolling.(i)Planning. Planning is the function that determines in advancewhat should b e done. It is looki ng ahead and preparing forthe future . It is a process of d eciding the busin ess ob jectivesand charti ng out the methods of at taining thos e objectives. Inother words, it is the determination of what is to be done, howand where it is to be done, who is to do it and how results areto be evaluated. This is done not only for the organ ization asa whole but for every division or department or sub-unit of theorganization. It is a function, which i s performed by managers
NOTESat all levels, like top, middle and supervisory levels of management.Plans made by top management of the organizations whole maycover periods as long as five or ten years. Also, plans made bymiddle or first line managers, cover such shorter periods. Suchplans may be for the next da ys or w eeks, or mont hs, etc. forexample, for a two-hour me eting to take place in a week.Following are the sub functions of planning: forecasting, decision-making, strategic formu lation, policy-making, program ming,scheduling, budgeting, problem solving, innovation and researchactivities.(ii)Organizing. It ref ers to coordinate human resourc es withother resources such as material, machine, money etc. Oncemanagers have established objectives and developed plans toachieve them, they must design and develop a human organizationthat will be able to carry out those plans successfully. Accordingto Allen, this organization refers to the "Structure which resultsfrom identifyi ng and grouping work, defining and d elegatingresponsibility and authority, and establishi ng relations hips."According to Amitai Etzioni, "An organization is a social unit orhuman grouping, deliberately structured for the purpose of attainingspecific goals".The proce ss of organizing involves the followin gs:•Identifying the activities nec essary to achieve the objectives.•Grouping activities into various departments.•Assigning duties or tasks to appropriate in dividuals. •Delegating necessary authority t o individuals and fixingresponsibilities for results.•Defining authority and res ponsibility relationship among individuals.Sub-functions of organizing functions are as follo ws:Functionalisation, divisionalisation, departmentation, delegation,decentralization, activity analysis,task allocation.(iii)Staffing. Staffing may also be considered an important functioninvolved in building the human organiza tion. In staffi ng, themanager attempts to fin d the right person f or each job.Staffing fixes a manager's responsibility to recruit and to makecertain that there is enough manpower available to fill the variouspositions needed in the organization. Staffing involves the selectionand training of future managers and a suitable system ofcompensation. Staffing obviously cannot be done once and forall, since peop le are continual ly leaving, getting fired, retiringand dying. Often too, the change s in the organizat ion createnew positio ns, and these must be filled.According to Koontz and O'D onnell, "T he managerial functionof staffing involves manning the organizational structure through
NOTESproper and effective selection, appraisal and development ofpersonnel to fill the roles designed i nto the structure ".Staffing function has the following sub functions. They are manpowerplanning, recruitment, select ion, training and development,placement, compensation, promoti on, appraisal etc.(iv)Directing. After plans have be en made and the organizationhas been established and staffed, the next step is to move towardsits defined objectives. This function can be called by variousnames: 'Leading', 'Directing', 'Motivating', 'Actuating', andso on. B ut whatever the name used to identify it, in carrying out this fun ction the manager e xplains to his peo ple whatthey have to do and helps them do it to the best of their ability.Directing thus involves three sub-functions. They are as follows•Communication,•Leadership and•Motivation.•Communication is the process of passing i nformatio n andunderstanding from one person to another.•Leadership is the process by which a ma nager guides andinfluences the work of his subor dinates.•Motivation means arousing desire in the minds of workers togive their best to the enterprise . It is the a ct of stimul atingor inspi ring workers. If the workers o f an enterprise areproperly motivated they wi ll pull their weight effective ly,give their loyalty to the enterprise, and carry out their taskeffectively.Two broad categories of motivation are financial and non-financial.Financial motivation takes the form of salary, bonus, profit sharing,etc., while non-financial motivation takes the form of job security,opportunity of advancement, recogni tion, prai se, etc.(v)Controlling. The manager must ensure that everything occursin conformity with the plans adopted, the instructions issuedand the pri nciples establi shed.Three elements are involved in the controlling function.•Establishing standards of performance .•Measuring current performance and comparing it agains tthe estab lished standards.•Taking action to correct any performance that does not meetthose standards. In the absence of sound control, there is noguarantee that the objective s, which have been set, will berealized. The management may g o on commi tting mistakeswithout knowing them . Control compels event s to conformto plans.
NOTESControlling function has the followi ng sub functions. They are•Fixation of standards,•Recording,•Measurement,•Reporting,•Corrective action.1.7LEVELS OF MANAGEMENTIn every company, there is a managerial hierarchy or chain of command,which consists of several levels of authority. The number of managementlevels may differ from company to company. In a big company the managementlevels may be classi fied into thr ee categor ies viz.(i)Top manageme nt(ii)Middle management(iii)Supervisory or Operating manageme ntIn a very large enterprise the middle management levels may be subdividedinto upper mi ddle management and lower middle manageme nt(i)Top Management. Top management consists of the board ofDirectors and the chief executives. Chief executives may be anindividual, for example, Managing Director, General Manager etc.,or a group of chairman and functional executive Directors.Board of directors is accountable to the shareholders in the annualgeneral meetings of the company. The chief executive is concernedwith the overall management of the company's operations. He maintainscoordination among different departments/sections of the company.He also keeps the organ izations in harmon y with its e xternalenvironment.Functions•To analy se and interpret changes in the externa l environment ofthe compa ny•To establish long term corporate plans (goals, policies and strategies)of the co mpany•To formu late and approve the master bu dget and dep artmentalbudgets•To design board organizatio n structure•To appoi nt departmental heads and key executives•To provi de overall direction and l eadership to the company•To repre sent the company to the outsid e world•To decide the distribution of profits.
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