UNIT - I

THE MANAGEMENT CHALLENGE

CONCEPT OF
MANAGEMENT
Management as an Academic Discipline
Management as a Group of People/Team
Management as a Human Process
Management as an Economic Resource
CONCEPT

 Management is concerned with Ideas,

Things, and People.
 Management is the effective utilization of
Human & Material Resources to achieve
the Enterprise Objectives.
DEFINITIONS OF MANAGEMENT

 “Management is the art of getting things

done through others.”
 “It is the art & science of Decision-Making &
Leadership.”- D. J. Clough.
 “It is the coordination of all resources
through the process of planning, organizing,
directing, & controlling in order to attain
stated goals.”- Henry L. Sisk.
NATURE / FEATURES
 It is universal.
 It is purposeful.
 It is a unifying force.
 It is a social process.
 It is multi-disciplinary.
 It is a continuous process.
 It is intangible.
 It is situational.
 It is an art as well as a science.
 It is essentially an executive function.
MANAGEMENT AS AN ART

MAIN ELEMENTS
 Personal skills,
 Practical know-how,
 Result-orientation,
 Creativity, and
 Constant practice aimed at perfection.
MANAGEMENT IS BASICALLY AN
ART BECAUSE-
 Like any other artist, a manager applies his
knowledge & skills to coordinate the efforts of
his people.
 It seeks to achieve concrete practical results.
 Like any other art, it is creative.
 It is personalized process.
 It leads to realisation of organizational and
other goals.
MANAGEMENT AS A SCIENCE

MAIN ELEMENTS
 Systematized body of knowledge.
 It contains underlying principles & theories.
 Principles have universal applicability.
 Organized body of knowledge can be thought
& learnt in the classroom & outside.
MANAGEMENT IS A SCIENCE
BECAUSE
 There is now a systematized body of
knowledge.
 Principles of management have been evolved
through practical experience & theoretical
research over several decades.
 It have a wide & repetitive range of
application.
 Management theory & principles can be
thought in classrooms & in industry.
MANG. AS A PROFFESION

A well-defined & organized body of

knowledge.
 Learning & experience.
 Entry restricted by qualification.
 Recognized national body.
 Ethical code of conduct.
 Dominance of service motive.
IMPORTANCE OF MANAGEMENT

 Achievement of group goals.

 Optimum utilisation of resources.
 Fulfillment of social obligation.
 Economic growth.
 Stability.
 Human development.
 Meets the challenge of change.
LEVELS OF MANAGEMENT
TOP
MANAGEMENT

MIDDLE
MANAGEMENT

SUPERVISORY/
OPERATING MANG.
MANAGEMENT PROCESS

 Process means a series of operations or

actions necessary to achieve certain
results.
 A process has a beginning & a
termination.
 It consist of some distinct stages or
steps which take place in a sequential
manner.
FEATURES

 Continuity.
 Circular.
 Social.
 Composite.
 MANAGERIAL ELEMENTS/
FUNCTIONS
 Planning,
 Organising,
 Staffing,
 Directing,
 Controlling.
POSDCORB- Luther Gullick,
Innovation & Representation- Ernest Dale.
PROCESS OF MANAGEMENT

INPUTS FUNCTIONS OUTPUTS

PLANNING ORGANIZING
MEN GOODS & SERVICES

MONEY PRODUCTIVITY
PROCESS OF MANAGEMENT
MATERIALS GROWTH

MACHINERY TAXES

METHODS STAFFING CONTROLLING EMPLOYMENT

DIRECTING
 MANAGERIAL & OPERATIVE
FUNCTIONS
MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
 Planning,  Production,
 Organizing,  Marketing,
 staffing,  Purchasing,
 Directing,  Financing,
 Controlling.  Personnel.
MANAGEMENT & ENVIRONMENT

 The environment refers to those elements &

factors which are relevant to business
operations but are outside the organization.
 It means the totality of all factors which are
external to beyond the control of individual
business enterprise & their managements.
 In the age of rapid change, orgs need to
become more agile & responsive to their
environment.
THE EXTERNAL ENVIRONMENT

MEGA ENVIRONMENT

TASK ENVIRONMENT

ORG
MEGA-ENVIRONMENT

 Technological environment,
 Economic environment,
 Socio-cultural environment,
 Legal-political environment,
 International environment.
TASK ENVIRONMENT

 Customers,
 Competitors,
 Suppliers,
 Government,
 Labor supply.
INTERNAL ENVIRONMENT

 OWNERS,
 MANAGERS,
 EMPLOYEES,
 ORGANIZATION CULTURE.
BUSINESS & ENV INTERFACE

 Exchange of information,
 Exchange of resources,
 Exchange of influence & power.
MANAGING THE ENV. BUSINESS
INTERFACE
 Wait & Watch,
 Anticipation & Adoption,
 Innovative Approach,
 Autonomous & Commanding Thrusts.
SOCIAL RESPONSBILITY
AND ETHICS
CONCEPT OF SOCIAL
RESPONSBILITY
It implies responsibility to society beyond
the basic economic responsibility of
efficiency & profitability. As an economic
agent of society, a business enterprise
must use its economic power to protect
& promote public interest & social
values.
DEFINATION

“It is the obligation of the decision

makers to take decisions which protect
and improve the welfare of the society
as a whole along with their interests.”
- by Keith Davis.
FIVE BASIC PREPOSITIONS FOR
SOCIAL RESPONSIBILITY
 Social responsibility arises from social power.
 Open disclosure of operations & open receipt of inputs
from society are essential.
 Social costs as well as technical feasibility & economic
profitability should be taken into account in deciding
what to proceed within any given activity, product or
service.
 Social cost should be included in the ultimate price of
the product or service.
 Managers & non-managers have responsibility for
social involvement in their areas of competence.
SOCIAL RESPONSBILITY OF
CONFLICTING INTERESTS
SHAREHOLDERS

OTHERS CUSTOMERS

BUSINESS

COMMUNITY EMPLOYEES

GOVERNMENT
MANAGEMENT ETHICS
 Ethics is derived from the Greek word
‘ethos’ which means a person’s
fundamental orientation toward life.
 Managerial ethics refers to the moral
standards used to govern manager’s
behavior & to determine right or wrong,
good or evil.
 Ethical standards may change overtime
& differ from culture to culture.
Ethical issues are inevitable in
business.
These can be divided into four levels:

 Societal,
 Stakeholders,
 Internal
policy,
 Personal.