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MANAGEMENT:
Management is the art of getting things done through others and with
formally organized groups.
OR
Management is the art and science of organizing and directing human efforts applied to control the
forces and utilize the material of nature for the benefit of man.
American society of mechanical engineers.
Functional concept-as a process, management is what a manager performs.
William
Spriegel
Management is the process by which a cooperative group directs action
towards a common goal.
Joseph Messie
Human Relations concept-Management is the art of directing and inspiring
people.
J.D Mooney, and A.C Railey
Leadership and decision making concept-Management is the art and
science of decision-making and leadership.
Donald J Clough
Management means decision-making
Ross Moore
Productivity concept-Management is the art of knowing what to do
------------ in the cheapest way.
F.W Taylor
Management is a technique of increasing productivity.
1

--Management means designing, organizing defining goals formulating policies and strategies
in accordance with the prevalent environmental conditions and these environmental conditions are
known as situations.
--Management is merging quality and variety with cost that is providing
unlimited variety of goods, better quality and at lowest price level to the customers.
--Management is defined as a process of identifying problems and threats and taking care of
these problems and threats in such manner that ultimately these turn out into opportunities which
could benefit the organization in accomplishment of its objectives.
In latest view:
Now a days in corporate sector taking advantage of the opportunities does not matter. What
matters is to convert or translate the opportunities then to face difficulties.
Definitions based on mixed views:
Good management achieves a social objective with the best use of human and material energy
and time and with satisfactions for the participants and the public.
Mary cursing Niles
Management is the direction of human behaviour towards a particular goal
or objective.
Conclusion:
On the basis of all the above-mentioned definitions it can be asserted. Management is the
process which by planning, organizing, staffing, leading and controlling, a human group makes
possible the maximum and efficient use of physical resources and helps in realizing the pre-
determined objectives of any organization.
------In modern times when human needs are continuously rising, it is
absolutely impossible to fulfill them single-handed. In such a situation the need of group activity is
felt. Man cannot produce any single thing by himself alone and there is always the necessity of a
human group whose activities and be named collective effort. Thus on human group produce one
particular produce while another such group produce something different and hence, human needs
are fulfill by collective efforts of different human groups.
2

Now the question arises whether all the people’s comprising a particular human group are
competent enough to achieve success in their activities without any outside discussion and control.
The obvious to this all-important question can only be in the negative. The reason for such an
answer is complex. So long particular human groups for into have their air aims, definite planning,
proper distribution of work, defining rights and duties, establishing proper co-ordination among
them, directing and controlling their activities, success cannot be achieved. These are the problems,
which give rise to another question, which is equally important, and the question is how to overcome
these problems? The answer to this really complex question in inherent in management.
Through the medium of management all these above-mentioned problems can be solve. The
activities of a human group can be efficiently managed on the pre-determined problems can be
effectively achieved handling by a manager. It would not be out of place to mention here that the
absence of proper management, the activities of a human group are like a ship without a captain.
Thus it is evident that success of collective efforts requires some special power. AND THAT
POWER IS THE MANAGER, who ensures the success of different activities by the process of
management. It is important to classify here that the importance of management is not limited to
business alone but it is needed at all those places where human activities take place-for example:
educational Institutions, Religious Institution, Govt. departments, unions, forces, families.
MEANING OF MANAGEMENT
“Anything minus Management is nothing”
--‘Sherlekar and Sherlekar’—
MANAGEMENT:
The word “management” can be styled as MANAGE-MEN-T. That means manage men
tactfully. Why manage men tactfully. This is with a view to get the things done being with them.
Thus management means managing men tactfully to get the things done being with them. Thus
management. In order to manage men tactfully, one has to understand the highly unpredictable and
uncertain human nature owing to this management is very complicated and challenging activity.
Some times it is known as a group of administration officers working in a particular
institution and sometimes it means a process of planning, organizing, staffing, directing, co-
coordinating and controlling.
3

In the light of different opinions the meaning of management can be


analyzed in the following ways:
(i)
Management as a process: some times it is defined as a process. A
process has means that different activities like planning, organizing,
staffing, leading, controlling through a definite process.
(ii) In other words, management is a definite process when coordinates different activities for the attainment
of an aim or target set by an institution or organization.
(iii)Management as a discipline: management is fast emerging as a discipline. Discipline here means a
separate and recognized subject, which has its own identity. Management is also being recognized as
separate syllabi because it has its own thoughts, principles and methodology.
(iv)Management as a economic resource: economists have accepted management as a resource of production
like other resources (land, labour, capital, material and machine). Production is not possible without
these basic things.
(v)
Management as a noun: when it is addressed as a noun, it is related to
those persons who get other people’s work completed.E.g. board of
directors, managing, general manages etc.
Meaning of management at glance:
(i)
As an activity: getting things done through others being with them.
(ii) As a process: a series of interrelated functions performed in all
organizational.
(iii) As a discipline: a subject of study drawing upon knowledge of others
disciplines. A young and growing discipline.
(iv) As a group: a body of persons who perform the task of managing
organization. An elite group in the society.
Nature or Characteristics of management:
(i)
Goal oriented.
(ii) Universal.
(iii) Integrated process
(iv) Social process
(v)
Activity based
(vi) Group activity
4
(vii) Art as well as science
(viii) Multi disciplinary
(ix) Intangible
(x)
Optimum co-ordination between human and material resources.
(xi) The combination of multiple functions
(xii) Management is a distinct entity.
(xiii) Management is a profession
(xiv) Management based on authorities
(xv) It is needed at all level
(xvi) It is a social responsibilities
(xvii) Purposeful
(xviii)It is an executive function
(xix) It is a coordinating force
(xx) Dynamic in nature
(xxi) Management principles are relative not absolute---- it means that
management results are according to the situation.
(xxii) Management is creative and innovative formulate creativity; creativity is
the process of developing new ideas.
OR
After a careful study of definitions we embark upon such features, which
illustrate the nature of management. Such features are as follows:
(i)
It is a process: process means a systematic method of doing some work.
Management is recognized as a continuous process. It is that process in which work is done with
others or it is got done from them. In order to achieve the pre-determined objective a manager
performs the work of planning, organizing, staffing, leading and controlling. A manager did these
works in a continuous order. So, it is a process.
(ii)
Group efforts: management always efforts to group efforts and does not
apply to an individuals. A group rather than an individual can easily and
effectively attain management of an enterprise.
(iii)
It is a social process: management is called a social activity because it is
connected with the people working in a human group and which requires organizing their efforts.
Any activity, which is connected with the people living in society, is called a social activity. In this
context management is also described as a social activity.
(iv)
Attainment of pre-determined objectives: group efforts in management
are always directed towards the achievement of some pre-determined
5

objectives; with out objectives management would be difficult if not


impossible.
(v)
Management has a distinct entity: in view of the widening scope of
business it is not possible for an owner to perform all functions himself. We can say that specially
qualified experts are needed for managing the company.
(vi)
Management is a universal activity: it is clear that management is not
only connected with business but also with non-business activities also,
which is also important. Management is everywhere.
(vii)Management as a profession: when we have recognized the distinct
entity of management, there should not be any doubt or hesitation to call it a profession. The quality
of a profession is that he must posses some special qualifications or ability for which he is paid
remuneration. The knowledge of management is also a qualification and managers also get their
remuneration for it. Hence, management is considered a profession.
(viii)Management is an intangible force: management is a force, which is
not visible. It can only be feel or realized on the basis of the success of an
organization.
(ix)
It is a combination of multiple functions: the basic function of
management is to achieve the objectives of the organization successfully. That is why a manager has
to perform various function like planning, organizing, staffing, leading and controlling etc. hence
management does not mean one particular job but it happens to be a combination of various jobs.
MANAGEMENT – Art, Science and Profession:
As a science: systematic body of knowledge, universal principles, scientific
experiments, cause and effect relationship, validity and predictability.
As an art: practical knowledge, personal skill, creativity and continuous practice.
As a profession: specialized body of knowledge, formal education service motive,
representative association and code of conduct management is not a full-fledged
profession.
6

MANAGEMENT AS AN ART:
Main features of art are:
(i)
Art involves the application of knowledge and skills to achieve desired
results.
(ii) Art is essentially creative and the success of an artist is measured by the
results he achieves.
(iii) Art is a personalized process as every artist has his own style or
approach.
(iv) Art prescribes row to do things and it can be improved through
continuous practice.
Management is essentially an art because:
Firstly, the process of management involves the use of knowledge and skills in
solving various problems.
It seeks to achieve concrete practical results that is output, profits, growth
etc.
Secondly, Management is creative as the manager creates new things and
improves upon the old things.
Thirdly, Management is a personalized process every manager has his own
approach and techniques to solve problems, depending upon the environment in
which he works.
Lastly, the manager gets perfection in the art of managing through continuous
practice.
Thus management fully lives up to the description of anArt and therefore it
is an art.
OR
Art implies the application of knowledge and skills to bring about the
desired results.
Features:
1.Practical knowledge: every art signifies practical knowledge. An artist
must not only learn the theory but also its application in practice.
7

Similarly a person cannot become a successful manager simply by reading the theory if must also
learn to apply his knowledge in solving managerial problems in practical life. A manager is judged
not just by his technical knowledge but his efficiency in applying that knowledge.
2.Personal skill: every artist has his own style and approach to his job.
This is
level of their personal skill. Similarly every manager has his individual approach
and style on solving managerial problems. The success of a manager depends on his personality in
addition to his technical knowledge.
3.Result oriented approach: art seeks to achieve concrete results. Every
manager applies certain knowledge and skills to achieve the desired
results. He uses CM’s to
the growth of his organization.
4.Creativity: art is basically creative therefore every piece of art requires
imagination and intelligence to create. A manager effectively combines
and coordinates the factors of production to create goods and services.
5.Improvement through practice: every artist becomes more and more
efficient through constant practice. Similarly a manager gains experience
through regular practice and becomes more effective.
Conclusion:
One cannot become efficient and effective manager simply by learning. Management
principles by heart it also requires practical application of those results.
MANAGEMENT AS A SCIENCE:
Main features of science are:
(i)
Science is a systematized body of knowledge.
(ii) It is based on cause and effect relationship.
(iii) The scientific study is based on observation and experiments.
(iv) The principles of science have universal validity and applicability.
Management is a science because:
According to the given information about science, management is also a systematized body of
knowledge. It consists of various concepts, principles and techniques developed through observation
and experience. These principles are universal in nature and establish on cause and effect
relationship. But the methods of observation followed by management are not purity objective
because the
8

subjects are human beings whose behaviors cannot be predicted with absolute
accuracy.
Thus management cannot be regarded as an exact science like physics and chemistry. It deals
with the study of behavior of human beings, which is subject to constant changes and difficult to
predict.
Thus management cannot be regarded as exact science like physics,
chemistry etc. therefore management may be called an inexact science, as is the
case with other social science like psychology, sociology.
OR
Science means a systematic body of knowledge pertaining to a specific field
of study. It contains general principal and facts which explains a phenomenon.
Features:
1.Systematic body of knowledge: management is a systematic body of

knowledge consisting of general principles and techniques. These help to explain events and serve as
guidelines for managers in different types of organization.
2.Universal application: scientific principles represent basic facts about and a

particular field of enquires. These principles may be applied in all situations and at all times.
Management contains some fundamentals principles, which can be universally applied. These
principles are flexible and need to be modified in different situations.
3.Scientific enquiry and experiment: scientific principles and derived

through scientific investigation and reasoning. So they can be explained logically, scientific
principles are critically tested. Management principles are also based on scientific enquiry and
investigation. These have been developed through practical and experimental experience of a large
number of managers.
4.Cause and effect relationship: principles of science lay down a cause and

effect relationship between related factors; similarly the principles of management establish cause
and effect relationship between different variables.
5.Test of validity and predictability: validity of scientific principles can be
tested at any time and any number of times. Every time the test will give the
same result.
Principles of science can also be tested for their validity.
Conclusion:
Management is not a perfect science like other physical science such as
astronomy, physics, chemistry, and biology etc. management deals with people and
9

it is very difficult to predict their behavior accurately so management is asocial


science.
Management as a profession:
A profession is a caving that requires specialized knowledge and often long
intensive academic preparation:
Features:
1.Specialized body of knowledge: every profession has a well-defined body

of knowledge relevant to the area of specialization. In order to practice a profession a person requires
specialized knowledge of its principles and techniques. There exists a substantially and rapidly
expanding body of knowledge in management. Today, management is a separate discipline having a
specialized and organized body of knowledge.
2.Restricted entry: there exist institutions and universities to impart

education and training for a profession. No one can enter a profession without going through the
prescribe course of learning. Many institutions have been set up which offer courses for specialized
training in management. Formal education and training has become very helpful in getting jobs as
managers.
3.Service motive: a profession is a source of livelihood but professional are

primarily motivated by the desire to serve the community. A profession enjoys community sanction
or respect. A manager of a factory is responsible not only to its owners, by the is also expected to
produce quality goods at reasonable costs and to contribute to the well being of the community.
4.Representative association: in every profession there is a statutory

association or institution, which regulates that profession. Managers have formed certain associations
for the regular exchange of knowledge and experience.
5.Code of conduct: members of one profession have to abide by a code of

conduct, which contains rules and regulations providing the norms of honesty integrity and
professional ethics. The representative association to ensure self-discipline among its members
enforces the code of conduct. Any member violating the code can be punished and his membership
can be cancelled.
10

Conclusion:
Management fulfills several essentials of a profession but like other professions management
does not restrict entry into managerial jobs, to people with a special academic degree.
Objectives of management at a glance
(i)
Securing maximum results with minimum efforts.
(ii) Maximum prosperity for employer and employee.
(iii) Human better mere
(iv) Elimination of all types of waste
(v)
Economic growth
(vi) Social justice
Importance of management at glance:
1. Achievement of group goals
2. Optimum utilization of resources
3. Minimization of cost
4. Survival and growth of business
5. Generation of employment
6. National development
OR
According to Drucker, management is a dynamic and life-giving element of every business. In its
absence the means of production remain merely the means and can never be the producers.
We know that not only in the field of business but in other fields also management has come
to occupy an important place. In this reference, it is said that “any thing minus management is
nothing.”
These are some topics, which clearly highlight the importance of
management.
1.
Achieving pre-determined objectives: each organization is
established with certain aims. Management is the only power and medium which can help in the
successful attainment of these aims. A manager with the help of his expertise and cleverness makes
and assessment of the future events and finally by his corrective action makes the impossible took
simple.
11
2.
Maximum utilization of resources of production:management
is that power which by establishing an effective coordination between the various resources of
production makes an optimum use of these resources. Most efficient use of the limited resources is
the key to the successful business and thus this fact can be converted into reality with the help of
management.
3.
Overcoming competition: these days business is not localized but
it has assumed national or even international dimensions. Competition is increasing day by day. In
these competition days only that organization can survive which can make available to its customers
the best quality of goods at the cheapest rates. Only an efficient and clever manager can make it a
reality and save the reputation of an organization.
4.
Integration with changing environment: management is not only
limited to various internal function of an organization but it has to compromise with the outer
atmosphere also. So many goods having modern techniques are in the bazaar customers accept only
those products which are cheap and the best. With the help of efficient and effective management a
co-ordination between the new and prevalent work system and methods can be established to save
the reputation of an organization.
5.
Research and investigation: a recent research has brought out the
fact that only those companies or business enterprises which are constantly
taking interest in research activities are developing very fast.
6.
Increased profits.
7.
To maintain a sound organizational structure.
8.
Fulfilling the social responsibility: Sound management monitors
the environment of business and makes necessary changes in the business policies and practices so as
to keep the consumers and workers satisfied to this way manager’s help an enterprise to fulfill its
obligation towards different sections of society.
9.
Management minimizes risks.
10.
Reduces cost of production.
11.
Economic growth: Management is the catalyst of economic
growth, development is a matter of human energies rather than of economic growth and generation of
human energies is the task of management. Management is the mover ad development in the
consequence.
12.
Stability: management ensures the survival of an organisation in a
fast changing environment. It co-ordinates the activities of different departments in an organisation
and maintains team spirit amongst the personnel.
12
13.
Human development: Management is not simply directions of
things but the development of men. It improves the personality and caliber of people to raise their
efficiency and productivity. A good manager serves as a friend and guide to his subordinates.
14.
Meets the challenge of change: Management is a catalytic force
that enables an organisation to face the challenge of change. The environment of business has
become very turbulent. Managers maintain a dynamic equilibrium between an enterprise and its
environment through innovation and creativity.
MANAGEMENT AND ADMINISTRATION
On the basis of different opinions of the experts over the world management
and administration, there are three prevalent concepts: -
(i)
American concepts: Administration is a higher-level activity or system
and management is lower.
(ii)
English concepts: management is the higher-level system and it has
more power than administration.
(iii)
Modern concepts: According to it, management and administration are
synonymous. In the modern scientific age of management this is the most prevalent and accepted
concept of management and it makes no difference between management and administration.
DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION:
Sr.
No.
Basis
of
difference
Administration
Management
1.
Meaning
It means the determination of objectives, plans and policies of an enterprise.
Management is to translate
threats into opportunities.
2.
Purpose
Administration
aims
at
determining the objectives.
Management
aims
at
achieving
pre-determined
objectives.
3.
Nature
Administration is a decision
making function.
Management is an execution
or doing function.
4.
Decisions
Administration decides what Management decides who will
13
is to be done and when it is to
be done.
do the function and how he
will do it, where he will do it.
5.
Scope
The term administration is applicable at the top level of management.
The term management is more applicable at middle level and lower level of management.
6.
Usage
The term administration is generally used from business organizations
like
govt., offices, colleges, universities etc.
Management is generally used with reference to business enterprises.
7.
Features
affecting
decisions
Administration decisions are influenced by govt. policies, social
and
political circumstances and economic additions.
Management decisions are mainly influenced by the target of enterprise.
8.
Relationship Administration is related mainly with the owner and top-level managers.
Management is related with the workers and employers of organization.
9.
Function
It is a determinative or
thinking function.
It is an executive or doing
function.
10. Concerned
It
is
concerned
with determination of major object and policies.
It
concerned
with
the
implementation of policies.
11. Level
It
is
mainly
top-level
function.
It is largely a middle and
lower level function.
12. Influence
Its services are influenced mainly by public opinion and other outside forces.
Managerial
decisions
are
influenced
mainly
by objectives and policies of organization.
13. Concerned
It is not directly concerned with direction of human efforts.
It is a activity concerned with directions of human efforts in the executions of plans.
olvement Planning and controlling are the main functions involved in it.
Directing and organizing are
main functions involved in it.
15. Skills
Conceptual and human skills used eagerly in govt. and public sector.
Technical and human skills used mainly in business organization.
16.
Minister,
Commander, Managing director, general
14

Commissioner, Registrar, Vice


- Chancellor, Governor etc.
manager,
sales
manager,
branch manager etc.
LEVELS OF MANAGEMENT (MANAGERIAL HIERARCHY)
The management levels may be classified as follows:
(i)
Top management
(ii) Middle management
(iii) Supervisory or operating management
(iv)
Top or executive management:
Top management refers to the managing at the highest level in the management hierarchy. It
is the ultimate source of authority. It is held responsible for the general success or failure of the
organization.
Top management consists of the board of directors and the chief executive or managing
director they establish overall long-term goals and plans of the organization. It is their responsibility
to ensure success of the organization. It is basically an organ of overall review and control. Chief
executive is concerned with the overall management of the company’s operations. He maintains
coordination among different departments of the company. He also keeps the organization in
harmony with its external environment.
Features:(i)
To analyse and interpret changes in external environment of the
company.
(ii) To establish long term corporate plans.
(iii) To formulate and approve the master budget and departmental
budgets.
(iv) To design broad organization structure.
(v)
To appoint departmental heads and key executives.
(vi) To coordinate and integrate the activities of different departments
and divisions of the company.
(vii) To provide overall direction and leadership to the company.
(viii) To exercise the overall review and control of the financial and
operating results of the company.
(ix) To represent the company to the outside world.
(x)
To decide the distribution of profits.
Intermediate management:
Intermediate or upper middle management comprises departmental or
divisional heads.
15
E.g. works manager, marketing manager, finance manager etc.
It is also known as departmental or functional management. Every divisional head is the
overall uncharged of one particular division or department. He is accountable for the performance of
his division or department to the chief executive. He performs the usual managerial functions of
planning, organizing, staffing, directing and controlling in relation to one department. He coordinates
and controls the activities of all personal working in different branches of his department.
Middle management:
Middle management consists of all sectional heads.
E.g. plant manager, area sales manager, branch manager, office manager etc.
These executives serve as a link between intermediate or top management
and the operating management.
Function:
(i)
To interpret and explain the plans and policies formulated by top
management.
(ii) To control the operating performance.
(iii) To cooperate among themselves so as to integrate the various activities of
department.
(iv) To train, motivate and develop supervisory personal.
(v)
To lay down rules and regulations to be followed by supervisory
personnel.
Supervisory or operating or first-line management:
This is the lowest level of management in an organization. It consists of supervisors, foremen,
sales officers, and purchase officers etc. supervisors and operating managers maintain close contacts
with rank and file workers and supervise day-to-day operations. They are concerned with the
mechanics of jobs.
Function:
1. To plan day-to-day production with is the goals laid down by higher
authorities.
2. To assign jobs to workers and to make arrangements for their training and
development.
3. To issue orders and instructions.
4. To supervise and control workers operations and to maintain personal
connection with them.
5. To arrange material and tools is maintain machinery.
16

6. To advice and assist workers by explaining work procdures, solving


problems etc.
7. To maintain discipline and good human relations among workers.
8. To report feedback information and workers problems to the higher
authorities.
CONCEPTS OF MANAGEMENT
(a)
Process of management: it includes six m’s.
1. Men
2. Money
3.Machine
4.Material
5. Market
(b)
As a profession: you need proper degree. There are certain legal
rules.
SKILLS OF A MANAGER
In order to have a proper achievement of good and in order to have plan to
be properly worked on a manager must have certain skills such as: -
(1)
Conceptual skills: A manager must have conceptual
knowledge of management. Each principle and concept should be clear in the mind of a manager and
he should be effectively able to apply him.
(2)
Technical skills: it is concerned with the application of
skill or knowledge acquired. Management does not simply mean the knowledge of principles of
management rather it is its application which makes its effective.
(3)
Human skills: A manager should have Psychological
knowledge. He should able to deal with different persons
in different circumstances.
(4)
Decision making skills: in crucial times a manager should
be able to have the ability of making decisions. These
decisions must be effective and practical in use as well.
17

MANAGEMENT AND SOCIAL RESPONSIBILTIES


FOR:
Manager should have social responsibility for the people. Because manager is a person who is
very skilled, if he will take interest in the social functions or problem, it will create a good
impression on other people living or working under him it will motivate the sub-ordinates working
under him. Thus, it creates a favorable impression on the society, which will ultimately helps the
business.
Managers have a creative and also communicative skill. As their main task is to have the
cordial relations with people inside the organization or outside the organization. The had to interact
with his subordinates, superiors and other members relating to business.
So, the managers are very creative and if they will take part in social problems, the society is
bound to improve in some kind or others. Managers take the input from the societye.g. education
values etc. if managers will take part in social event or they will become responsible towards society,
the society is sure to make progress become one man can change the whole environment. It will thus
create the source of motivation towards the society. According to System theory, for the efficient
working and smooth working small sub-systems should work properly.
AGAINST:
The main function of the manager is to govern his organization smoothly and efficiently. So,
he should not make himself responsible towards the society. He should not be able to do his work
properly. The social problem should be left for those people. So generally take the responsibility
(political parties, interest groups etc) of improving are solving the problem of the society. Manager
takes the salary for gobering his organizing properly not for solving the social problem of the society.
Thus, manager should not move his mind towards social responsibilities of the society.
OR
There are many thinkers who have supported this, but there are others who have
expressed their opinion both sides are given as under:-
18

Arguments against social responsibility:


1.Contrary to the objective of business: Just as the primary objective

of players in the play-ground is to achieve victory, in the same way the chief objective of business is
to enhance its profits by utilizing its, resources.
2.Inefficiency in the system: there is no power other than self-interest,

which can get work out of people. It owners of business, by ignoring self-interest, start thinking of
social responsibility the whole work- system will turn inefficient.
3.Effects of business values: Business should not have any social

responsibility otherwise social values will come to be dominated by business values, which in itself
is a painful delaminate. It means that when business is alive to its social responsibility, the people in
the beginning will be so thoroughly impressed by it, that in future business will come to occupy a
position of predominance the idea of social responsibility of management opinion against.
4.Conflicting consideration: A business manager will be guided by
two considerations, namely, private market mechanism and social
responsibilities which are opposite to each other.
5.Arbitrary power: Business managers will get arbitrary power in the

matter of allocation of resources in the welfare of the society. They should have no right to interfere
with the external environment of business.
6.Disregard of marketing mechanism: the doctrine of social

responsibilities implies acceptance of socialist view that political mechanism rather than market
mechanism is the appropriate way to allocate scarce resources to alternative uses.
7.Burden on customer: if the price in the market for a product does

not truly reflect the relative costs of producing mechanism of the market place will be distorted. The
consumers will have to pay higher costs.
8.Difficult implementation: the concept of social responsibility is ill
conceived and ill defined and is difficult to be implemented.
Argument for social responsibility:
19
1.
Business is a part of society:Since business organizations are a part of
society they must have a positive attitude towards the needs of society. Business is only a sub-system
of society and this sub-system must contribute to the welfare of the main system.
2.
Avoidance of govt. regulation: If business does not care of its social
responsibility, the govt. has to interfere increasingly in the business
system, which adversely affects the progress of business.
3.
Long term self-interest of business: the social responsibility of
business, if taken care of in the present ensures the success of the
organization in the future.
4.
Code of conduct: Members of a profession are bound to follow a code of
conduct. Code of conduct includes rules connected with profession,
honesty and morality, which form its base.
5.
Business is a creation of the society and so it should respond to the
demands of the society: Since business uses the resources which belong
to the society. It is necessary that every business are obliged to use the
social resources for the common good of society.
6.
The long-term self interests of the business are best served when
business assumes social responsibilities: There is a growing realization
on the part of the enlightened businessmen that it is in their self-interest to fulfill the demands and
aspirations of the society. People who have good environment, education, and opportunity make
better employees, customers and neighbours for business than those who are poor, ignorant or
oppressed.
7.
It is the moral and right thing to do: It is widely agreed that
businessmen today have considerable social power. This power is virtually granted to them by the
society, which must have a general relationship with social responsibilities. The social
responsibilities of businessmen must be proportionate to their social power. If the businessmen do
not assume social responsibilities, their social power must be taken away by the society through
government controls and regulations and other measures.
8.
Public image of business would be improved: The business will retain
the needed credibility with the public if it performs its social obligations. It will also avoid conflict
with the society in its own interest. Good relation with the workers, consumers and suppliers will
lead to success of business.
9.
The consumers are well informed: They expect higher quality products
at responsible rates. If they don’t get fair treatment form business, they
20

will organize themselves and compel the business its social


responsibilities.
MANAGERIAL SKILLS:
1.Planning skills: the manager must passes the skills of thinking the skills of

analyzing the environment, it includes what is happening in the society organization and political
system. He must be able to assess or guess the changes in environment, traits offered by the changes
in environment. He must be able to match two sets of environment on the basis of external and
internal analysis.
2.Organizing skills: organizing skill is needed to specify who will achieve

what and how manager must be in a position of identification of specific activities and specific jobs.
A manager must be clear about grouping of various jobs, span of management, type of relationship to
be established between various people and various jobs.
3.Leading skill: leadership is the ability of individual to influence the people.

Recognition of human factor is also included in leading skill of human factor various leadership track
like communication and motivation are also included in the leadership skills.
4.Technical skills: technical skills refer to the ability and knowledge in using

the equipment, techniques and procedures involved in performing specific tasks. These skills require
specialized knowledge and proficiency in mechanics of a particular job. A manager must know
which skills should be employed in his particular enterprise and be familiar enough with their
potentiality to ask discerning question of his technical advisors.
5.Human skills: human skills consist of the ability to work effectively with

other people. These are required to win co-operation of others and to build effective work teams.
Human skills are reflected in the way a manager perceives his superiors, subordinates and peers. An
awareness of the importance of human skills should be part of manager’s orientation.
6.Conceptual skills: conceptual skills comprise the ability to see whole

organization and interrelationships between its parts. These skills refer to the ability to visualize the
entire picture or to consider a situation in its totality. Such skills help the manager to analyse the
forces working in a situation and to take a broad and foresighted view of the organization.
7.Diagnostic skills: it includes the ability to determine by analyzing and
examination, the nature and circumstances of a particular condition. It is not
only the ability to specify why something happened but also the ability to
21

develop certain possible outcomes. It is the ability to it through unimportant


aspects and quickly gets though the heart of problem.
8.Controlling skill: there are certain standards, which are fixed in a way such

that accomplishment of those standards leads to the accomplishment of goals. A manager must keep
check on the activities of subordinates and must rectify them if there are any problems.
9.Decision making skills: there are two types of decisions to be taken by the
manager.
(i)
Routine and program decision
(ii) Non-routine and non-program decisions.
The course of action to be followed is as under:
1. The manager must be in a position to identify the problem.
2. Reaching to the main cause or the problem.
3. Searching for the alternative solution.
4. Comparing merits and demerits of each solution.
5. Selecting the best course of action.
6. Formulating the plan by the application of the alternatives.
Responsibilities of manager:
1.Responsibility towards suppliers: people who supply raw material,

mechanical components, financial institutions and advertising agencies. It is the duty or says
responsibility of the manager that the suppliers are being paid at the time.
2.Responsibility towards distributors: it is the responsibility of the manager

to check regular supply of the product. Product must be checked for the quality, packaging (as in the
case of children packaging plays a very important role). There must be free testing of goods that is
distribution of samples. There should be fair return on investment that is fair commission must be
paid. To motivate them the organisation must reward them, credit facilities must be made available to
the middle class people etc.
You can survive in the vest way if the industry will survive:
a. You can take the advantage by showing collectiveness.
b. Compiling with the norms lay down by the association.
c. Providing correct information to organisation.
d. Sharing latest knowledge.
e. Supporting the individual members of the association.
f. Indulging in fair and ethical competition.
g. Not using any political or other strategies.
22

3.Responsibility towards union: employees union is recognized as the


enemy of the organisation.
4.Responsibility towards govt.: Birth growth and death of any organisation
will generate according to statuary provisions and these will be governed by
the government of the organisation and this can be done by
(i)
Sending the correct information.
(ii) Taxes and duties must be paid regularly.
(iii) Organisation must try to operate as a model citizen.
(iv) Organisation must not try to damage the culture of that
area and must try to maintain the rich culture of that area.
5. Responsibility towards customers:
6. Responsibility towards society:
7. Responsibility towards competitors:
8. Responsibility towards workers:
9. Responsibility towards shareholders or owners:
Roles of a manager:
There are different types of managerial roles some of them are given below:
1.Figurehead: In this role manager performs symbolic duties required by the

status of his office. Making speeches, bestowing honors, welcoming official visitors, distributing
gifts to retiring employees are examples of such ceremonial and social duties.
2.Leader: This role defines the managers relationship with his own
subordinates. The manager sets an example, legitimizes the power of
subordinates and brings their needs in accord with those of his organisation.
3.Liaison: It describes the manager’s relationship with the outsiders. A
manager maintains mutually beneficial relations with other organisations,
governments, industry groups etc.
4.Monitor: It implies seeking and receiving information about his
organisation and external events. An example is picking up a rumor about
his organisation.
5.Disseminators: It involves transmitting the information’s and judgments to

the members of the organisations. The information relates to internal operations and external
environment. A manager calling a staff meeting after a business trip is an example of such a role.
6.Spokesman: In this role, a manager speaks for his organisation. He hobbies
and depends his enterprise. A manager addressing the trade union is an
example.
23

7.Entrepreneur: It involves initiating changes or acting as a change agent.


For example a manager decides to launch a feasibility study for setting up a
new plant.
8.Disturbance handler: This refers to taking charge when the organisation

faces a problem or crises. For example a strike, feud between subordinates, boss of an important
customer. A manager handles conflicts, complaints and competitive actions.
9.Resource allocate:In this role a manager approves budgets and schedules
sets priorities and distribute resources.
10.Negotiator: As a negotiator a manager bargains with suppliers, dealers,
trade union’s agents etc.
Functions of management:
1.
Planning:
It is a process of thinking before doing. It involves determinations of goals
and the activities required to be performed to achieve the goals. It consists:
What is to be done?
(i)
How it is to be done?
(ii) Where it is to be done?
(iii) When it is to be done?
(iv) By whom it is to be done?
So planning is a process of shorting out the path for attaining the determined objective of the
business. Over all planning is deciding that in present, what is to do in future.
2.
Organising:
Organizing refers to the way in which work of a group of people is arranged and distributed
among the group members to achieve the objectives of an organisation. As a function of management
organizing refers to thef ollowing:
(a)
Bringing together human and non-human resources that
is the work to be done and its distribution in human resources.
(b)
To define and establish authority responsibility
relationship for the achievement of goals.
(c)
Determination of objectives.
(d)
Division of activities into jobs
(e)
Fitting individuals into jobs, and
(f)
Developing relationships.
24
In conclusion we can say that organizing refers to distribution of work to the
superiors and sub-ordinates and fixing there authorities and responsibilities.
3. Staffing:
Staffing is the process of determining the manpower requirement that could meet the
company’s objectives. Staffing is a managerial function of attracting, acquiring, developing and
maintaining the human resources required to achieve the organisation objective efficiently.
Staffing also involves upgrading of quality/skills of the staff to get higher performance from
then. Personnel department of an organisation looks after the function of staffing. Staffing usually
includes the following activities:
(i)
Human resource planning.
(ii) Announcing vacant positions, that is recruitment.
(iii) Receiving applications.
(iv) Administering test.
(v)
Interviewing.
(vi) Medical test.
(vii) Final selection and appointment letter.
(viii) Orientation and placement.
4.
Directing or Leading:
Directing as a function of management is concerned with instructing, guiding and inspiring
people in the organisation to contribute to the best of their capabilities for the achievement of
organizational objectives. As a conclusion directing includes thefollowing:
(a)
Communication: it is the process of passing
information and understanding from one person to another. This process is necessary for making the
subordinates understand what the management expects of them. A manager has always to tell the
subordinates what to do, how to do it and when to do it. He has to create an understanding in their
minds in regard to these matters.
(b)
Leadership: a good manager must also be an effective
leader. Leadership is concerned with influencing the behavior of followers. In order to get the
cooperation of employees, the manager must have leadership skills. The style of leadership will vary
from situation to situation.
(c)
Motivation: effective motivation is necessary for getting
voluntary cooperation of the subordinates. Different types of rewards motivate different people.
Every manager should study the behaviour of individuals working under him to provide him or her
proper
25

inducements. To some financial incentives are important, while others are motivated by non-
pecuniary incentives like job security, job enlargement, freedom to do work and recognition.
(d)
Issuing orders and instruction by the superior.
(e)
Leading the subordinates to influence their activities
towards achievement of goals.
(f)
To ensure that the subordinates are working as per plans
and policies.
5. Controlling:
Controlling is a process of verifying whether actual performance is in accordance to the
planned performance and to take corrective action wherever required.
It involves comparison of actual performance with the planned performance as to quality,
quantity, time taken etc. and than analyse the deviations and to take corrective measures to correct
the deviations. It involves the followingst eps:
1.
Establishment of standards.
2.
Measurement of actual performance.
3.
Comparison of actual performance with the planed
performance.
4.
Find out deviations.
5.
Taking corrective action.
MANAGERIAL ETHICS:
The term ‘ethics’ refers to value-oriented decisions and behaviour. The word ethics comes
from the Greek root, ethros, meaning character, giving beliefs, standards, or deals that pervade a
group, a community, a people--------. Today ethics is the study of moral behaviour—the study of how
the standards of moral conduct among the individuals are established and expressed behaviourally.
Terms such as business ethics, corporate ethics, medical ethics, or legal ethics are used to indicate the
particular area of application. But to have meaning, the ethics involved in each area must still refer to
the value-oriented decisions and behaviour of individuals. Ethics refer to a set of moral principles,
which should pay a very significant role in guiding the conduct of managers and employees in the
operation of any enterprise. Ethics is concerned with what is right and what is wrong is human
behaviour. It is normative and prescriptive, not neutral. It addresses the question of what ought to be.
Ethics refer both to the body of moral principles governing a particular society or group and to the
personal normal precepts of an individual.
26
Some people subscribe to a utilitarian reference in determining what is wrong and what is
right. They hold that a proposed course of action should be judged from the standpoint of greatest
good for the greatest number of people. From this point of view, there are few absolute standards and
each issue must be judged by studying its impact upon all affected parties.
27

ETHICS AND SOCIAL RESPONSIBILITIES:


The term ‘social responsibility’ conveys the moral conduct that relates to such broad issues as
environmental pollution, discrimination, poverty, unemployment and inflation. Accordingly, an
organization whose practices contribute to inflation, unemployment, increased poverty and like
would be viewed as socially irresponsible---as not fulfilling its responsibility to society. An
automobile manufacturer who produces cars with faulty brakes, a pharmaceutical house that makes
false claims about its comd remedies, or a food company house TV ads promote substandard food
items are socially irresponsible.
Some people feel that social responsibility is linked to organisation and ethics to individuals,
but this is not a useful distinction. In the final analyses, decisions are made by people and therefore,
individual managers at some level must assume responsibility for every corporate decision. The
executive who lies about a competitor’s product, the manufacturer who markets a highly
inflammable article of clothing, the industrialist who dumps pollutants into a stream-all behaves in an
ethically irresponsible way. The most responsible way to distinguish business ethics from social
responsibility is in terms of a decision’s implications for society as a whole. Within this frame of
reference, business ethics are concerned with microethics (relating to daily operating decisions with
limited social impact), social responsibility is concerned with macroethics relating to decision with
broad implications for a large segment of society.
However this distinction is not even followed in practice. The term ‘ethics’
is used to convey both ‘microethics’ and ‘macroethics’.
DIFFICULTIES IN ESTABLISHING MANAGERIAL ETHICS:
The problem of laying down managerial ethics is more complicated than it is in established
professions such as medicine and law. The physician and lawyer understand clearly that their
responsibility is to the patient or the client. The manager is torn between the interests of owners,
employees and customers so that the “client group” is often impossible to identify and isolate.
Whereas the physician’s actions are “ethical” if the patient’s interests are served, the manager enjoys
no such security.
Established medical and legal associations have the legitimate authority to enforce standards
of behaviour. There is no comparable management organisation that possessed the right to enforce
ethical standards. Therefore, we have great difficulty in resolving the problems caused by
questionable acts such as paying
28
bribes or similar actions unless a law is violated. In management, the legal system also becomes the
ethical system and where higher standards of behaviour than those required by law are desired, there
is no way to enforce them.
There are four ways to establish acceptable standards of behaviour. The first is the
establishment of minimum standards of behaviour by law. But if law dictates ethical behaviour, the
true meaning of personal morality, individual responsibility and free choice is lost. Secondly, an
attempt should be made to develop accepted code of ethics to guide managerial action. In India and
other countries, management associations have attempted this approach. But how to enforce the
standards and make allowances for organizational and environmental differences is the main
problem.
The third approach is to follow the lead of medicine, law, engineering and accounting and
establish a professional society to enforce codes of behaviour for the managers. This option would,
however, require a new type of management organisation with mandatory membership, professional
certification, and so on. Nothing approaching this presently exists. Any move n this direction would
be, at best, long-range in character. One final option is the development of individual organizational
code of behaviour. This idea has a great deal of support and short- term promise. But the individual
organizational codes do not provide for uniform standards required of business.
29
EVOLUTION OF MANAGEMENT THOUGHT:
1.Classical (Traditional) approach:

(a) Bureaucracy (Weber’s)


(b) Scientific management (Taylor’s)
(c) Management process school (Fayol) (Administrative theory)
2.
Human relations approach (Neo-classifical approach) (Elton mayo)(It
helps in loving and caring the employees, it held the stress on social aspects only):
3.
Behavioural science approach (Neo-classifical approach):
4.
Systems approach (Modern approach) (There should harmony among the
sub-systems and among different departments of organisation):
5.
Contingency approach (Modern approach) (different theories needed for
different situations):
6.
Quantitative approach (Modern approach):
Classical theory:
The classical organisation theory is also called the traditional theory. In this theory, we shall
discuss the ideas of several contributors such as Taylor, Fayol, Luther Gulick, and Max Weber. All
these thinkers were dissatisfied, in one way or the other, with the organizational practices of their
time.
The classical organisation theorists dealt almost exclusively with the anatomy of formal
organisation. Organisation is treated like a machine and so making each individual, working in the
organisation efficient, can increase efficiency. For instance, F.W. Taylor emphasized on division of
labour, fixing everybody’s work for the day and functional formanship. That is why; Taylor’s
scientific management has been referred to as ‘machine theory’. It may be noted that scientific
management group emphasized efficiency of lower levels of organisation. It was Henri Fayol who
showed concern for efficiency at the higher levels for the first time.
30
Features:
The classical theory is more or less mechanical in nature as is revealed by its
following features:
a.
Classical organisation theory is built around an accounting
model.
b.
The relationship between workers and management is established through formal
communications, defined tasks and accountability and formalized procedures and practices to
minimize conflict between them.
c.
The worker is essentially an ‘economic man’ who can be motivated basically by
economic rewards. Money is considered the main motivator under this theory.
d.
This approach to the organisation is the embodiment of the
extra pair of hands concept.
e.
In designing the hob and in picking the extra pair of hands, classical theory assumes
man to be relatively homogenous and relatively unmodifiable.
f.
Stability of the employees-stability in the sense of minimizing
changes within the employees-is a goal in the organisation.
g.
Classical theory is in its essential character centralized, and the integration of the
system is achieved though the authority and control of the central mechanism.
Criticism of classical theory:
The classical theory is criticized on the following grounds:
(a)
Closed system: Classical theorists have viewed organisation as a
closed system, that is, having no interaction with the environment. This assumption is totally
unrealistic. A modern organisation is an open dynamic system, which has interaction with the
environment.
(b)
Unrealistic assumption about human behaviour: The classical
writers lacked sensibility to the Behavioural dimensions of an organisation and made over-simplified
and mechanistic assumptions for the smooth running of organisation ignoring all complexities of
human who perform tasks assigned to them and ignored their social, psychological and motivational
aspects of human behaviour. Human behaviour is most unpredictable and complex. This assumption
of classical writhers led the workers to frustration, conflict and failure and thus made ‘man’
subordinate to the organisation.
(c)
Inadequate emphasis on human beings: the interplay of individual
personality, informal groups and inter-organisational conflicts in the formal
31

structure appears to be neglected by the classical writers. Bennis feels that


the focus of classical theory is on ‘organisation without people’.
(d)
Economic rewards as main motivators: the assumption that people
at work can be motivated solely through economic rewards is also wrong. Several researches in
human behaviour have contradicted this assumption. Non-monetary factors like better status and job
enrichment can also motivate the workers.
(e)
Hierarchical structure: the classical theory is based upon the
hierarchical structure that establishes the authority relationship between individuals in an
organisation. It attempted to prescribe the ‘right’ organisational structure. This was a very narrow
approach as it concentrated only on line and staff structures. The classical writers did not explore
why certain forms of organisational structure are more effective than others.
(f)
Over emphasis on universality: classical theorists have claimed that
these principles have universal application. This suggests that the same principles can be applied in:
(i) different organisations, (ii) different management levels in the same organisation, and (iii)
different functions of the same organisation. The empirical researches, however, suggest that none of
the principles has such characteristics. Moreover, there are many of the principles, which are actually
contradictory with other principles. For example, principle of specialization is quite in conflict with
the principles of unity of command. Peter Drucker, Ernest Dale, etc. have also criticized universality
concept.
(g)
Bureaucratic behaviour: Weber’s ‘ideal’ bureaucracy, a major
constituent of classical theory, suggested strict adherence to rules and regulations. The scope for
individual initiative and their contribution to the organisation goal is thus limited. The result is red-
tapism and observation of rules and regulations becomes the main objective while the real objectives
for which these rules and regulations are formed are forgotten.
Bureaucracy:
According to the name bureaucracy theory was evolved by the German sociologist Max
Weber (1864-1920). The theory of bureaucracy is based upon hierarchy of authority and web of rules
and relations. It visualizes a machine model of organisation characterized by impersonal control over
human beings.
Characteristics:
(a)
A well-defined hierarchy of authority with clear lines of authority and
control and responsibility concentrated at the top of the hierarchy.
32

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