Meaning & Nature of Management

Organization Two or more people who work together in a structured way to achieve a specific goal or set of goals .

organizations often have more than one goal .Goal The purpose that an organization strives to achieve.

Resources (5M)  Men  Machine  Money  Material  Methods .

Management Traditional Concept: Management is getting things done from others Modern Concept: Management is creating an internal environment at work place where people working together in groups can perform effectively & efficiently towards the achievement of the group goals .

Nature/Features of Management  Goal Oriented  Group Activity  Conducive Internal Work environment  Relationship among Resources  Pervasive  Continuous  Intangible .

Nature/Features of Management  Multidisciplinary  Social Process  Management is a science as well as an art .

Purpose of Management Objective Setting Using Resources efficiently Profit Making Customer Satisfaction Employee Satisfaction Conducive Work Environment Good relations with vendors Achieving National Goals .

Is Management Science or Art? .

Management As Art Art Personal Skills Mgmt as art Manager applies his knowledge and skills to coordinate the efforts of his people Constant Practice Constant practice for perfection Creativity Mgmt is creative. brings out new situations & convert them into results .

Chemistry .Management As Science Science Systematic Theories & Principles Can be Taught Mgmt as Science Manager work in a systematic way Theories. Principles. Research & experiments in Management Management can be taught like Physics.

Managerial Functions  Planning  Organizing  Staffing  Directing  Controlling .

Functional Areas of Management  Production Management  Marketing Management  Financial Management  Personnel Management .

Production Management  Production/Operations Mgmt is producing the right quantity & right quality of goods at the right place at the right time at the right cost. It involves: * designing the product * location & layout of plant & machinery * purchase & storage of raw material * repairs & maintenance * Quality control and R&D .

It involves: * MR for Identification of needs * deciding the right price * selecting the right channel of distributions * Promotional activities like advertising. salesmanship .Marketing Management  Identification of consumer needs & supplying them the goods & services to satisfy those needs.

It includes: * Estimating the funds for both long & short term needs of the business * raising the required funds at the right time * proper allocation & utilization of funds .Financial Management  To ensure the right amount & type of funds to business at the right time at reasonable cost.

Personnel Management  It involves Planning. compensation. directing & controlling the procurement. organizing. development. maintenance of the human resource in the organization. In includes * Manpower Planning * Recruitment * Selection * T&D * Compensation & promotion * Employee benefits & Personnel records .

Concept of Managerial Skills Skills Top Mgmt Conceptual Levels Middle Mgmt Human Supervision Technical .

Role of a Manager Figurehead Leader Liaison Monitor Disseminator Spokesman Entrepreneur Disturbance Handler Resource Allocator Negotiator .

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