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MANANGEMENT-BASICS

Management – Nature & Scope

 Universal phenomenon
 Process of working with and through others
 A purposive activity that directs group efforts towards the attainment of pre - determined goals
 Includes being effective (doing the appropriate task) and being efficient (doing the task correctly
at least cost and minimum wastage of resources)
 Management is both science and art
 Dynamic and continuous
 Group concept
 Factor of production

Harold Koontz,
“Management is an art
of getting things done
through and with the
people in formally
organized groups. It is an
art of creating an
environment in which
people can perform &
individuals can co-
operate towards
through practice, goal-
attainment of group
goals”.
George R. Terry,
“Management is a distinct process consisting of planning,
organizing, actuating and controlling, performed to
determine and accomplish stated objective by the use of
Process human beings and other resources”
(social, integrating,
continuous, distinct)
Art
Practical Knowledge, Activity
personal skill,
creativity, perfection (Informational,
Decisional, inter-
oriented personal)
Management
is a Harold Koontz,
“Management is what a
manager does”

Science
Universally acceptable Multi-Disciplinary
principles, (code of conduct for
experimentation & managers, branch of
observation, cause and knowledge for
effect relationship, test managing resources)
of validity F.W. Taylor,
Ernest Dale – “It is a Soft Science” “Management is an art of
knowing what to do, when to do
Social Science – as it is social process; and see that it is done in the best
relative not absolute principles and cheapest way”.
Behaviour Science – deals with human
beings

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The Management Process

 Henry Fayol - “To manage is to forecast and plan, to organize, to command, & to control”.
 Luther Gullick has given a keyword ’POSDCORB’ where
o P stands for Planning,
o O for Organizing,
o S for Staffing,
o D for Directing,
o Co for Co-ordination,
o R for reporting
o B for Budgeting
 Koontz & O-Donell – most widely used
Harold Koontz,
“Planning is deciding in advance - what to do, when
to do & how to do. It bridges the gap from where
we are & where we want to be”.
Koontz & O-Donell,
“Controlling is the measurement &
correction of performance activities of
subordinates in order to make sure that
Henry Fayol,
the enterprise objectives and plans desired
“To organize a business is to provide it with
to obtain them are being accomplished”
everything useful for its functioning i.e. raw
material, tools, capital and personnel’s”.

Human Koontz & O-Donell,

“Directing consists of process or
technique by which instruction can be
issued and operations can be carried out
as originally planned”
“Managerial function of staffing involves
manning the organization structure through
proper and effective selection, appraisal &
development of personnel to fill the roles
designed in the structure”

Functions of Management

Function Features Steps Advantages Disadvantages

Planning o Primary function 1. Establishing o Facilitates o Rigidity
o Preparatory step Objectives Management by o Time consuming
o Systematic approach 2. Establishing planning Objective o Based on probability
o Goal-oriented premise o Minimises and estimates
o Future looking 3. Choice of alternative uncertainties o False sense of security
o Intellectual process course of action o Facilitates co- o Expensive
o Continuous process 4. Formulation of ordination o External limitations
o All pervasive derivative plans o Improves employee’s like government
o Flexible 5. Securing co- morale policies, technological
o Designed for operation o Helps in achieving changes, policies of
efficiency 6. Follow-up/appraisal economies competitors, change in
of plans o Facilitates controlling demand and consumer
o Provides competitive preferences, etc.
edge
o Encourages
innovation

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Function Features
Organising synchronization and
combination of human,
physical and financial
resources
Staffing o Right man for the right
job
o Pervasive activity
o Continuous process
o Basis of staffing is
efficient management
of personnel
Directing o inert-personnel aspect
of management
o deals directly with
influencing, guiding,
supervising, motivating
sub-ordinate
o Heart of management
Controlling o Measurement of
accomplishment
against standards
o Correction of
deviations
o End function
o Dynamic
Principles of Management
Henry Fayol’s 14 Principles of Management
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Steps Advantages Disadvantages
1. identification of o Specialization Works on various
activities. o Well-defined jobs principles like
2. Classification of o Clarifies authority specialization, functional
grouping of activities. o Co-ordination in organisation, span of
3. Assignment of duties. various departments control, unity of
4. Delegation of authority o Effective command
and creation of administration
responsibility. o Growth and
5. Coordinating authority diversification
and responsibility o Scope for new
relationships changes
1. Manpower Planning o Places right person o Time consuming
2. Recruitment, Selection for right job o expensive
& Placement o Reduces turnover
3. Training & o Improves efficiency
Development o Increases morale
4. Remuneration
5. Performance Appraisal
6. Promotions & Transfer
1. Supervision o Initiates action
2. Motivation o Ensures efficiency
3. Leadership o Achieving
4. communication organisational goals
o Means of motivation
o Provides stability
o Facilitates change
1. Establishment of o Facilitates co-
standard ordination
performance. o Helps in planning
2. Measurement of o Predict deviations
actual performance. before they actually
3. Comparison of actual occur
performance with the
standards and finding
out deviation if any.
4. Corrective action
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The Levels of Management

 The number of levels in management increases when the size of the business and work force
increases and vice versa.
 The level of management determines a chain of command, the amount of authority & status
enjoyed by any managerial position.
 three broad categories:
o Top level / Administrative level
o Middle level / Executory
o Low level / Supervisory / Operative / First-line managers

The Role of a Manager in an Organization

According to Henry Mintzberg, a manager has 10 roles sub-divided into three categories:

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Role Description Example
Inter-personal Roles
Figurehead Symbolic head; required to Representing organisation at
perform a number of routine conferences, seminars; signing
duties of a legal or social legal documents
nature
Leader Responsible for the motivation Training, counselling
and direction of subordinates subordinates
Liaison Maintains a network of outside Emails, phone calls, meetings
contacts who provide within and without the
information and favors organisation
Informational Roles
Monitor Receives wide variety of Handling all mails and contacts
information;
Serves as nerve centre of
internal and external
information of organisation
Disseminator Transmits information received Forwarding mails for decision
from outsiders or other making; instructions to
subordinates to members of subordinates
organisation
Spokesperson Transmits information to Board meetings; discussing
outsiders on organisation’s results on investor call;
plans, policies, actions, and speeches
results; serves as expert on
organisation’s industry
Decisional Roles
Entrepreneur Initiate improvement projects, Strategy sessions
identify new ideas, delegate
idea responsibility
Disturbance handler Take corrective action during Dispute with supplier
dispute or crisis, resolve
conflicts among subordinates,
adapt to environmental crises
Resource allocator Decide who gets resources, Budgeting and forecasting
scheduling, budgeting, setting
priorities
Negotiator Represent Labour union negotiations
organisation/department
during negotiations of union
sales, purchase, etc.