BA 133

Management and Marketing

GBS FOR WEEK NO. 2

Period Covered: ____________________________

SCHOOL YEAR _________________ | ________ Semester

OBJECTIVES:

After working in this material, the learner is expected to:

 Define Nature of Management Functions;
 Explain the functions of Management;

CORE LESSON CONTENTS:

INTRODUCTION TO MANAGEMENT

MANAGEMENT
Management is the process of designing and maintaining an environment in which individuals
working together in groups to accomplish selected aims efficiently.
It connotes different meaning indifferent contexts. The concept management may be used as

Collective noun - Board of directors or Executive Committee

Field of study - A branch of knowledge including the principles,

techniques, functions and problem management.

Function - Functions to be performed to attain the

organizational objectives-planning, organizing
direction, co-ordination and control

In a more important sense, management is a vital function concerned wth all aspects of the working
of an enterprise. Here the management is considered as a body of knowledge consisting of several
concepts, principles, techniques and theories which can be adopted in any group Endeavour.

DEFINITIONS

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“Management is an art of knowing what do you want to do and then seeing that is is done in the
best and cheapest way.”
-F. W. TAYLOR

“To manage is to forecast, to plan, to organize, to command to co-ordinate and control.

 HENRY FAYOL

“Management is a distinct process consisting of planning, organizing, actuating and controlling

performance t determine and accomplish the objectives by the use of people and resources,”
 GEORGE R. TERRY

“Management is the creation and maintenance of internal environment is an enterprise where

individuals working in groups can perform efficiently and effectively toward the attainment of
group goals. It is an art of getting the work done through and with people in formally organized
groups.”
 KOONTZ ANDO’DONNEL

FEATURES OF MANAGEMENT

The important characteristics of management as a business function are:

 It is an art of getting things done through and with people.

 Art and science of decision making and leadership.
 It is a universal process for achieving results.
 It is an profession which involves specialized training and is governed by an ethical code.
 It coordinates human factor and physical resources for the accomplishment of group
objectives.
- by balancing and integration (or)
- by innovation and adaptation

IMPORTANCE OF MANAGEMENT STUDY

The need and significance of management functions in the modern organizations are given
below.
 To increase the efficiency
 to give a definite shape to management function.
 to improve research in management.
 to attain social goals by effective utilization of resources.

NATURE OF MANAGEMENT FUNCTIONS

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1. Universality : It has universal application in all kinds/nature and size of
business activities.

 Dynamism : This body of knowledge is going on changing

continuously with respect changes that are taking place in
the organizational environment.
 Relativity : It embraces all business functions at different levels.
 Regularity of
human nature : It helps to shape the human behaviour in the work
environment.

APPROACHES TO THE STUDY OF MANAGEMENT

A brief discussion about different approaches of management is given below.

EMPIRICAL APPROACH

The empirical school of management bases its methods on a close study of past managerial
experiences and management cases. As such, it is also known as case approach or management
experience approach.
According to this approach, management is considered a study of manager in practice. The
intention of studying experience is to draw generalizations and to develop means to teaching
experiences to other practitioners and students. Attempts are made to duplicate successful
experiences while avoiding unsuccessful ones.
This approach offers the most conventional way of acquiring skills in management, that is,
learning through the experience of others. This approach also helps in classroom, situations for
developing diagnostic and analytical skills in management students. Following limitations of this
approach are quite obvious.
- This empirical approach, basing its generalizations on cases and past experiences has not
contributed anything fundamental to the development of management as discipline because of
obvious contradictions in various management experiences.

HUMAN BEHAVIOR APPROACH

The human behavior approach is the outcome of the thoughts developed by behavioral
scientists who look at the organization as collectivity of people. Since management involves getting
things done with and through people, the study on management must revolve round human
behavior. This approach can be divided into groups interpersonal behavior approach and group
behavior approach. This approach suggestion how the knowledge of human behavior can be used in
making people more effective in the organization.

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 However, this approach is not free from limitations. It is true that manage can be better
placed by understanding human behavior but equating management with human behavior is
untenable. There is something more than mere human relations management. Human behavior
approach provides only the diagnosis for human problems but problems have to be solved by
taking many more factors which are not explained by this approach.

SOCIAL SYSTEM APPROACH

Closely resembling the human behavior approach and often confused intermixed with it is
the social system approach. The real pioneer of social system approach is Vilfred Pareto, a
sociologist. His ideas were later developed by Chest Bernard who has really developed the concept
of social systems approach management. According to this approach, the organization is essentially
a culture system composed of people who work in cooperation. As such, for achieves organization
goals, a co-operative system of management can be developed only understanding the behavior of
people in groups.

The social system approach has real significance to the practicing managers in the sense
that all managers operate n a social system and the organization is likely to succeed if the demands
of the society in which it operates as fully recognized. The approach, however, spreads the
boundary and application of management beyond the true concept of organizations.

SOCIAL TECHNICAL SYSTEMS APPROACH

This approach believes that to solve organizational problems, it is not enough to look at the
cooperative social systems alone but technical systems (methods and machines) and how it affects
and is affected by social systems and a technical system. The real pattern of behavior in the
organization is determined by the interaction of the two.

The major contribution of this approach is that while analyzing management problem of
getting things done by people, adequate consideration should be given to technology as well as
informal interactions of people. Thus any change in technology must be viewed in subsequent
change in social interactions at the workplace. However, this approach is more suitable for
managing the problems at the shop floor leave rather than dandling the total management
problems.

DECISION THEORY APPROACH

The major emphasis of this approach is that decision making is the job of every manager. The
manager is a decision maker and organization is a decision-making unit. Therefore, the basic
problem in managing is to make rational decision.

The approach contributes to the sharpening of managerial tools specially for making
suitable decisions in the organization. The approach demonstrates how managers can discharge
their functions effectively. Decision-making is vital in every school of management. The vital aspect
cannot be denied but management is more than mere decision making.

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MANAGEMENT SCIENCE APPROACH

Management science approach also known as mathematical or quantitative measurement

approach, visualizes management as a logical entity, the action of which can be expressed in terms
of mathematical symbol relationships and measurement data.

Management science approach is a fast developing one in analyzing and understanding

management. This has contributed significantly in developing orderly thinking in management
which has provided exactness in management discipline. Various mathematical tools like sampling,
linear programming, games theory, time series analysis, emulation, waiting line theory etc, have
provided more exactness in solving managerial problems. However, it is very difficult to call it a
separate school of management because it does not provide the answer for the total managerial
problems, Moreover, many managerial activities are not really capable of being quantified because
of involvement of human being who are governed by many irrational factors also.

SYSTEMS APPROACH
This approach is of comparatively recent origin, starting late 1950, it ha assumed
considerable importance in analyzing the phenomena of management. It is an integrating approach
which considers management in its totality based on empirical data. The basic idea of systems
approach is that any object must rely on a method of analysis involving simultaneous variations of
mutually dependent variables. The implication of systems approach are given below.
System approach of management provides and integrated approach of managing. This
considers management in its totality.
System approach of management provides an integrated approach of managing. This
considers management in its totality.
System approach possesses the conceptual level of managerial analysis much higher than
any other approach. It provides a framework through which organization – environment interaction
can be analyzed and facilitates decision-making, since the system within which managers make
decisions can be provided as a more explicit framework decision-making is easier to handle.
It is often suggested that system approach is too abstract to be of much use to practicing
managers. It merely indicate that various parts of the organization are interrelated.
System approach of management lacks universality and its precepts cannot be applied to
all organizations.

CONTINGENCY OR SITUATIONAL APPROACH

The basic idea of contingency approach is that there cannot be a particular management
action which will be suitable for all situations. Rather, and appropriate action is one which is
designed on the basis of external environment and internal states and needs. Contingency approach
tries to fill this gap by suggesting what should be done in response to an event in the environment.
Contingency approach, on the other hand suggests an active interrelationship between
the variables in a situation and the managerial actions devised. The implications of the contingency
approach are given below.
It is the sophisticated approach to understand the increasing complexity of
organizations. It emphasizes the multivariate nature of organizations and attempts to understand

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how organizations operate under varying conditions. The approach is directed towards suggesting
organizational designs and managerial actins most appropriate to specific situations.

In spite of the various contributions, contingency approach has not been acknowledged as a unified
theory of management because it suffers from some limitations.

 Inadequate Literature
Contingency approach suffers from inadequacy of literature.

 Complex :

Determination of situation in which managerial action is to be taken involves analysis of

a large number of variables with multifarious dimensions.

 Reactive not Proactive:

Contingency approach is basically reactive in nature. It merely suggests what managers can
do in given situation.

OPERATIONAL APPROACH

This approach attempts to draw together the pertinent knowledge of management by

relating it to the functions of managers, commonly known as management process. As such this
approach is also known as management process approach. This approach views the management as
a social process comprising a series of actions leading to the accomplishment of certain objectives.
The significance of operations approach is given below.

 Operational approach offers a broad, easy to understand conceptual framework of

management. The approach includes the entire scope of management and recognizes it as
a separate discipline.
 This approach suggests that management is a universal phenomenon irrespective of the
type of organizations or levels of an organization.
 Operational approach provides useful concepts for practicing managers. It helps the
managers to put their knowledge to use. It offers practical suggestions by providing
classification of managerial functions at first level into planning, organizing, staffing,
directing and controlling. However the operational approach has been criticized on the
following grounds.

 The basic tenets of operational management that is , various management functions, are
not universally accepted.
 Another criticism against operational approach is that various terms used in this
approach are not commonly shared.
 The analysis of various approaches suggests that no approach is fully free from
shortcomings. However, a positive sign is emerging in the form of convergence of
various approaches. The convergence is provided by operational approach as compared
to any other approach.

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FUNCTIONS OF MANAGEMENT

The basic aim of managing is to achieve certain objectives or goals. The manager must be sure of
the objectives he desires to attain or of the end result to be ensured. The precise and the complete
statement in this regard would make the objectives clear and understood by all concerned who have
ot divert their activities towards its attainment. The desired result, objective or goal is attained by
performing certain fundamental management functions which can be grouped under basic heads,
namely

 Planning
 Organizing
 Staffing
 Motivating
 Directing
 Coordinating
 Controlling

PLANNING

It means “Preparing a sketch or an outline of any proposed plan of actions”. It implies

considering and arranging in advance a projected course of action. It can also be defined as
determining what is to be done, making the decisions to do it, and devising a procedure, method
and time table to do it. Planning is a general activity. It is a necessary part of all operations of an
enterprise, and for the operations of each of the departments and sections. It stimulates people to
action and also determines their mode of action.

For e.g. Sales manager plans his sales campaign

The purchasing Manager plans his purchasing and transporting operations
The production Manager plans his production programs.

Planning is an exercise in forecasting and decision making. It involves forecast of future conditions
and an estimate of how the proposed plans would be affected by them.

Thus planning involves two aspects. First it involves mental formulations of an idea of what is
desired to be achieved. Up to this, it remains at the thinking level and is based on forecasts and
estimates. Secondly it determines the mode of action to be pursued to achieve what has been
thought up. At this stage, the idea takes a definite shape with a due regard to the ordinary and
immediate circumstances facing the enterprise.

ORGANISATION
To organize means to put into working order and arrange in a system. In this sense, an
organization is an organized body or persons. Organizing may be defined as arranging a number of
complex tasks into manageable units and defining the formal relationship among the people who
are assigned the various units of tasks. This definition is in the context of attainment of the goals and
objectives of an undertaking.

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 Generally, identifiable units of tasks are put under the charge of a department, section or
division. The head of that department, section or unit being given with the authority to perform
those tasks. For eg. Business activities in an industrial concern may be grouped under :
 Production
 Sales
 Finance and
 Personnel

After classification and analysis of functions to be performed by each department, persons

possessing requisite qualifications and experience may be appointed as head of each of these
departments. Such persons should also be given proper authority to discharge their functions
efficiently.
. Thus basically organization is concerned with grouping the activities required to attain the
planned objectives, defining responsibilities of the people in the organization, delegating the
appropriate authority to them to discharge the respective responsibilities and establishing structural
relationships to enable Co-ordination of the individual efforts towards accomplishment of the
enterprise objectives. The main objective of organization is to establish well defined relationships as
between individuals and groups of individuals and between the activities performed by them.

STAFFING

It has been defined as manning and keeping manned the positions provided by the
organization structure. Thus staffing involves four things:

Assessment of personnel needs of the enterprise and selection and training of employees.

Determination of employees remuneration.

Evaluation of employees performance.
Establishment of effective communication skills.

Staffing is a difficult managerial function, because it is concerned with selection of properly

qualified and mentally well-adjusted persons and their retention in the enterprise as a contented and
motivated work force.

DIRECTING
To direct means to guide and supervise any action or conduct. It implies guidance or
instructions about what to do and how to do it. We have seen that in organization executives assign
responsibilities and duties to their subordinates and delegate to them with requisite authority to
perform the assigned responsibilities of duties. This in fact is of very essence of management the art
and process of getting things done by others. No doubt, executives have the authority to force their
subordinates to comply with their directives. In case any subordinates fails or refuses to comply, be
may be thrown out or punished in some other manner. But this a wrong view of the enterprise
entire process of management. On any case, with strong trade unions and a number of labor laws to

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protect the worker, it would not be wise to demand compliance from one’s subordinated. For
securing whole-hearted compliance from subordinated, the function of direction assumes
considerable significance.

Direction function involves

 Issuing orders and instructions to subordinated.

 Guiding, training, energizing and leading the subordinates to perform the work
methodically.
 Exercising supervision over the work done by subordinates to ensure tat it is n conformity
with aims and objectives of the enterprise.

From all accounts, the function of directions is very important. Thus to make the organization click,
it becomes necessary to direct one’s subordinates in a manner that they become effective
instruments in the realization of enterprise goods. The process of direction comprises of the
following elements viz.

 Leadership
 Communication
 Motivation and
 Supervision

A detailed discussion about these aspects is given in the subsequent chapters.

CO-ORDINATION

Some authorities emphasis co-ordination as a separate function of Management. This

approach has not been adopted here because it is felt that co-ordination is emphasized in each of
the functions of management process. Co-ordination must be sought from the very first step,
namely, planning, so that plans of all departments are integrated into a master plan, issuing the
adequate co-ordination. Similarly organizing of people into groups and work into activities involves
adequate co-ordination. It can also be secured through proper motivation of the workers towards
organized efforts in terms of organizational objectives and personal objectives of the employees
through an integration of such objectives. Finally the controlling aspect also indicates further co-
ordination is required resulting in improvements and fresh plans.

CONTROL
Controlling can be defined as “comparing results with plans and taking corrective acting
when results deviate from plans.”
In an organizational set up, It every Manager’s responsibility to control the performance of
work and workers places under his charge.

Pre-requisites of control:
 Control is possible only where is there is a plan according to which actual performance is
intended to proceed.
 The second requirement of control to measurement of the results of actual operations.
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  The third requirement of control is taking corrective action as soon as deviation from the
plan is discovered.
Fundamentally, control is any process that guides activity towards some pre-determined goal.
The essence of this concept is in determining in whether the activity is achieving the desire
results. This is what control is all about. For control to be effective and fruitful, it must be based
on a plan. Then on the basis of information received from the operational level, there must be
measurement of actual performance to ascertain deviations.

Thus the above functions are said to be the important functions of Management.

ADMINISTRATION AND MANAGEMENT

The two terms administration and management are being used interchangeably for all practical
purposes. However these two terms are different from each other. Oliver Sheldon summaries the
distinction as follows.

Administration is the function in the industry concerned in the determination of corporate policy,
the co-ordination of finance production and distribution, the settlement of complaints of the
organization and ultimate control of executive”.

“Management is the function in the industry concerned in the execution of policy within the limits
setup by the administration and the employment of the organization for the particular object set
before it”.

William Sprigeal distinguishes “Administration as the determinate function and “management” as

the executive function.
Management is primarily concerned with carrying out of the broad policies laid down by the
administration”. Thus the administration is concerned with the thinking function and management
with doing function.

The essence of management is highlighted by the definition given by KOONTZ and O’ DONEL and
by DONALD CLAGH. The later describe management a the art and science of decision making and
leadership. Art of getting things done through people and with people. Human factor in industry
has endless capacity for work provided planning and resources are made available to it. The
manager’s goal of attainment of enterprise objectives in the more efficient manner can be
accomplished only when the people in the enterprise work to the best of their ability in the spirit of
cooperation and zeal.

MANAGEMENT : AN ART OR SCIENCE

MANAGEMENT AN ART
According to G. TERRY; Art is “Bringing about a desired result through the application of will in
any activity is called as an art,’ The emphasis is on applying skills with knowledge and
accomplishing an end through deliberate effort. Thus the function of the art is accomplishing

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concrete ends efforts, results; predict situations that would not come about without the deliberate
effort, to secure them.

MANAGEMENT IS A SCIENCE
Science has been defined as “body of systemized knowledge accumulated and accepted with respect
to the under standing of general tools concerning particular phenomenon subject or object of study.

It is absolutely necessary that it should have codified principles and techniques that explains certain
truth with respect to basic phenomenon.

In this sense management is certainly regarded as science as it has also develop in to a systemized
knowledge regarding a particular phenomenon, namely, managerial function.

MANAGEMENT AS PROFESSION
Profession is defined as an occupation based upon the specialized intellectual study and training,
the purpose of which is to supply skilled service or advice to others for the definite fee or salary.

CHARACTERISTICS OF PROFESSION

 Existence of knowledge :

Profession emerges from the establishment of fact that there is a body of knowledge which cannot
started around but has to be studied for being a successful professional.

 Acquisition of knowledge :

An individual can enter profession only after acquiring knowledge and skills through formal
training for example, only the law graduates can enter the profession of legal practice.

 Professional association :

An occupation which claims to be profession should have an association. However manager do not
have single unified professional group like Indian medical council for medical practitioners from
this new management cannot be termed as trade profession.

 Ethical code :

For every profession some ethical standards are provided and every individual of the profession is
expected to maintain conformity with these standards. In management also, code of conduct has
been formulated to suggest the behavioral pattern for professional managers.

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  Service motive:

It is essential because the monetary value of professional service cannot be measured easily in
absence of market mechanism except the competition among the professionals themselves. The
success of any profession is measured not in terms of money. It earns but by the amount of social
service it provides. Similarly contributions of management cannot be measured in terms of money
alone because without integrating effort of management, resources worth millions of rupees may be
useless.

Once organization grows beyond certain size, changes in the nature of management process
demands that ownership and management should be divorced. So management positions should be
held by persons who have professional skill and adequate training.

TOPIC INDEXES AND KEYWORDS (TIK):

 ____________________________
 ______________________________

TANGENT ADDITIONAL KEYWORDS (TAK):

 __________________________________

EVALUATION (OUTCOME):

 Identify and describe great managers. What makes him or her

stand out from the crowd?

 Have you ever seen or worked for an ineffective manager? Describe

the cause and the consequences of the ineffectiveness.

 Name a great organization. How do you think management

contributes to making it great?

 Describe your use of the four management functions in the

management of your daily life.

 Who are Business Week’s most recent “best and worst managers, “
and why were they selected.

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  What are your strengths and weaknesses as you contemplate your
career! How do they correlate with the skills and behaviors
identified in the chapter.

PRIMARY REFERENCE MATERIAL(S):

SECONDARY REFERENCE MATERIAL(S):

 THE World Wide Web

SUBMISSION Instruction:

Deadline : Sunday of Week 03 (Extension: Sunday of Week 04).

e-mail : ba133@vem.edu.ph
[COPY FURNISH THE FOLLOWING e-mails: college@vem.edu.ph;
Filename : BA 133 - WEEK 02 – Activity and Output - YOUR NAME.doc
Subject (Re) : BA 133 - WEEK 02 – Activity and Output

Compiled By:

 Instructional Support Network (ISN)

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