TOPICS COVERED

• INTRODUCTION AND DEFINITION OF MANAGEMENT

• FUNCTIONS OF MANAGEMENT
• PRODUCTIVITY, EFFICIENCY AND EFFECTIVENESS
• EVOLUTION OF MANAGEMENT: 1.F.W TAYLOR
2. ELTON MAYO AND OTHERS
• APPROACHES TO MANAGEMENT
• MANAGERIAL FUNCTIONS: PLANNING, ORGANIZING, STAFFING,LEADING AND
CONTROLLING
• TYPES OF BUSINESS ORGANIZATIONS
• ORGANIZATION CULTURE
• CURRENT TRENDS AND ISSUES IN MANAGEMENT
 INTRODUCTION TO
MANAGEMENT
• Introduction: -
Companies of the same industry are being affected by the same
environmental factors. Some companies attract a number of
customers while some other companies repel them. Employees refer
to be identified with some companies while they prefer to be
unemployed in case of some other companies. Why do companies
perform differently when they operate under the same environmental
conditions, serve the same customer, and use the same raw material
and technology and employ the people with similar skills? The answer
for this question, invariably, is management practices. Thus
‘Management’ makes remarkable difference between the companies
regarding their performance in terms of productivity, products, sales,
profitability, service to the customer, employee welfare etc
• Definition of management: - Mary Parker defines the
term management as “the art of getting things done
through others.”
• Ivancerich, Donnelly and Gibson, defines the term
management as “the process undertaken by one or more
persons to coordinate the activities of other persons to
achieve results not attainable by any one person acting
alone.” John A. Pearce and Richard B. Robinson included all
kinds of resources in their definition on management.
 Management: A Science or an art?

• We should know what is science and what is a before discussing whether

management is a science or an art? What is science? Science is a body of
knowledge developed systematically, based on observation,
measurement, and experimentation and drawing inferences based on
data. The knowledge can be verified through cause- effect relationship.
The knowledge provides principles, theory and laws. Management
satisfies the characteristics of science like. What is an art? Art an
understands how a particular activity can be done. Art can be acquired by
conscious effort and practice. Management is getting things done by and
through other people. They have to continuously analyze the environment
and formulate the plans and strategies. They have to modify the
strategies based on environmental changes. The principles of
management cannot be implemented as learn, in the real world. They are
to be applied after making necessary modifications based on the real life
situations
 CHARACTERISTICS OF MANAGEMENT
• The various characteristics of management are:
• (a) Management is universal: It means that management is required for
every type of organisation. It may be a business organisation or social or
political. It may be a small firm or a large one. Management is required by
a school or a college or university or a hospital or a big firm like Reliance
Industries Limited or a small variety store in your locality. Thus, it is a
universal phenomenon and is common and essential element in all
organisations
• (b) Management is goal directed: Every organisation is created to achieve
certain goals. For example, for a business firm it may be to make
maximum profit and/or to provide quality products and services.
Management of an organisation is always aimed at achievement of the
organisational goals. Success of management is determined by the extent
to which these goals are achieved.
(c)Management is a continuous process: Management is an
ongoing process. It continues as long as the organisation exists. No
activity can take place without management. To perform all activities like
production, sale, storage, operation etc. management is required. So, as
long as these activities continue the process of management also
continues to operate.
(d) Management is an integrating process: All the functions,
activities, processes and operations are intermixed among themselves. It
is the task of management to bring them together and proceed in a
coordinated manner to achieve desired result. In fact, without
integration of men, machine and material and coordination of individual
efforts to contribute successfully as a team, it will be difficult to achieve
organisational goals
• (e) Management is intangible: Management is not a place like a
graphic showing Board meeting or a graphic showing a school Principal at
her office desk which can be seen. It is an unseen force and you can feel
its presence in the form of rules, regulation, output, work climate, etc.
• (f) Management is multi-disciplinary: Management of an
organisation requires wide knowledge about various disciplines as it
covers handling of man, machine, material and looking after production,
distribution, accounting and many other functions. Thus, we find the
principles and techniques of management are mostly drawn from almost
all fields of study like – Engineering, Economics, Sociology, Psychology,
Anthropology, Mathematics, Statistics etc.
• (g) Management is a social process: The most important aspect of
management is handling people organised in work groups. This involves
developing and motivating people at work and taking care of their
satisfaction as social beings. All managerial actions are primarily
concerned with relations between people and so it is treated as a social
process.
• (h) Management is situational: The success of management depends on,
and varies from, situation to situation. There is no best way of managing.
The techniques and principles of management are relative, and do not
hold good for all situations to come.
 What are Management or
Managerial Skills?
• Management skills can be defined as certain attributes or
abilities that an executive should possess in order to fulfill
specific tasks in an organization. They include the capacity to
perform executive duties in an oorganization while avoiding
crisis situations and promptly solving problems when they
occur.
• Management skills can be developedthrough learning and
practical experience as a manager. The skills help the manager
to relate with their fellow co-workers and know how to deal
well with their subordinates, which allows for the easy flow of
activities in the organization.
 Types of Management Skills

• According to American social and organizational

psychologist Robert Katz, the three basic types of
management skills include:
1. Technical Skills: Technical skills involve skills that
give the managers the ability and the knowledge to use a
variety of techniques to achieve their objectives.
• These skills not only involve operating machines and
software, production tools, and pieces of equipment but
also the skills needed to boost sales, design different types
of products and services, and market the services and the
products.
 2. Conceptual Skills:
• These involve the skills managers present in terms of
the knowledge and ability for abstract thinking and
formulating ideas. The manager is able to see an entire
concept, analyze and diagnose a problem, and find
creative solutions.
• This helps the manager to effectively predict hurdles
their department or the business as a whole may face.
 3. Human or Interpersonal Skills: The human or the
interpersonal skills are the skills that present the
managers’ ability to interact, work or relate effectively
with people.
• These skills enable the managers to make use of human
potential in the company and motivate the employees
for better results.
 Examples of Management Skills

• 1. Planning
• 2. Communication
• 3. Decision-making
• 4. Delegation
• 5. Problem-solving
• 6. Motivating
 PRODUCTIVITY, EFFICIENCY AND
EFFECTIVENESS
Productivity:Productivity is generally regarded as a measure of
outputs divided by inputs. All of the activities that you get done in a day
may be considered your output and the time you put into them are your
inputs.
• Productivity = Output / Input
Efficiency: Efficiency is a measure of how well you do those things. If you
are able to get more outputs from the same inputs, you are said to have
increased efficiency.
• Efficiency = Doing things right
Effectiveness:Effectiveness is a measure of doing the “right things.”
Highly effective individuals and companies act in ways that move their
highest priorities forward on a regular basis.
• Effectiveness = Doing the right things
LEVELS OF MANAGEMENT
1. Top-Level Management:
The top level management includes Board of Directors and the
Chief Executive. The chief executive may have the designation of
Chairman, Managing Director, President, Executive Director or
General Manager. This level determines the objectives of the
business as a whole and lays down policies to achieve these
objectives (making of policy means providing guidelines for
actions and decision). The top management also exercises an
overall control over the organisation.
 2. Middle-Level Management:
• The middle level management includes heads of various
departments, e.g., production, sales etc., and other
departmental managers. Sometimes, senior departmental
heads are included in the top management team. The
objectives of the business as a whole are translated into
departmental objectives for the middle level management.
• The heads of the departments then work out their own
strategies so as to achieve these objectives. Middle level
managers are particularly concerned with the activities of
their respective departments.
 3.Lower-Level Management:
• The lower-level management consists of foremen and
supervisors who look after the operative workers, and
ensure that the work is carried out properly and on time.
Thus, they have the primary responsibility for the actual
production of goods and services in the organisation.
• These three levels of management taken together form
the ‘hierarchy of management’. It indicates the ranks and
positions of managers in the hierarchy. It shows that the
middle level management is subordinate to the top-level
and that the lower-level is subordinate to the middle-
level management.
 Functions of management

1. Planning: Planning is deciding in advance what is to be

done, when it is to be done, how it is to be done. It is
basically concerned with the selection of goals to be
achieved and determining the effective course of action
from among the various alternatives.
• This involves forecasting, establishing targets, developing
the policies and programming and scheduling the action,
procedure, etc.,
• Thus, planning requires decisions to be made on what
should be done, how it should be done, who will do it,
where it will be done, and why it is to be done. The essential
part of planning consists of setting goals and programmes of
activities.
 2. Organising: After the plans have been drawn, management has
to organise the activities, and physical resources of the firm to carry out
the selected programmes successfully.
• It also involves determining the authority and responsibility relationships
among functions, departments and personnel at various levels to ensure
smooth and effective function together in accomplishing the objective.
• Thus, the organising function of management is primarily concerned with
identifying the tasks involved and grouping them into units and
departments, and defining the duties and responsibilities of people in
different positions within each department for well coordinated and
cooperative effort in the organisation.
 3. Staffing: Staffing is concerned with employing
people for the various activities to be performed.
• The objective of staffing is to ensure that suitable
people have been appointed for different positions. It
includes the functions of recruitment, training and
development, placement and remuneration, and
performance appraisal of the employees.
 4. Directing: The directing function of management includes guiding
the subordinates, supervising their performance, communicating
effectively and motivating them.
• A manager should be a good leader. He should be able to command and
issue instruction without arousing any resentment among the
subordinates. He should keep a watch on the performance of his
subordinates and help them out whenever they come across any
difficulty.
• The communication system, i.e., exchange of information should take
place regularly for building common understanding and clarity. The
managers should also understand the needs of subordinates and inspire
them to do their best and encourage initiative and creativity.
 5.Controlling: This function of management consists of the
steps taken to ensure that the performance of work is in
accordance with the plans.
• It involves establishing performance standards and measuring
the actual performance with the standards set. If differences
are noticed, corrective steps are taken which may include
revision of standards, regulate operations, remove deficiencies
and improve performance.
 6. Co-ordinating: Management has to ensure that all the activities
contribute to the achievement of the objectives of the business as a
whole. This requires integration of activities and synchronisation of
efforts.
• The heads of different departments should not treat each other as
competitors but should work as organs of one body. As the proper
functioning of every organ of a human body is important for a healthy
body, the work of every department is important for the organisation as a
whole.
• Managers should, therefore, see that everybody in the organisation
understands its objectives and works in co-operation with others to
achieve these objectives. This function of management is called co-
ordination. It consists of harmonising group effort so as to achieve
common objectives
 CONCEPT OF SCIENTIFIC
MANAGEMENT
• F.W. Taylor, well-known management expert, worked as
an apprentice, machinist, foreman and ultimately as the
chief engineer of a steel company in U.S.A. Taylor
suggested a new approach to management early in the
twentieth century. This is known as ‘Scientific
Management’. The basic principles developed by Taylor
as principles of scientific management were:.
• 1. Development of a true scientific approach to management
replacing the old rule of thumb method, which would enable
managers, among other things, to determine the best method
of performing each task;
• 2. Scientific selection and placement of workers so that each
worker could be assigned the task for which he is best suited;
• 3. Scientific training and development of workers so as to
achieve the highest level of efficiency; and
• 4. Close co-operation between management and labour to
ensure that work is carried out in accordance with the
scientific principles which are developed.
 GENERAL PRINCIPLES OF
MANAGEMENT (OR) FAYOL’S
PRINCIPLE OF MANAGEMENT
• Scientific management was primarily concerned with
increasing the efficiency of individual workers at the
shop floor. It did not give adequate attention to role of
managers and their functions. However, around the
same time Henry Foyal, Director of a coal mining
company in France made a systematic analysis of the
process of management. He strongly felt that
managers should be guided by certain principles, and
evolved 14 general principles of management which are
still considered important in management. These are:
• 1. Division of Work: This principle suggests that work
should be assigned to a person for which he is best suited.
Work should be divided into compact jobs to be assigned to
individuals. This facilitates specialisation and improves
efficiency.
• 2. Authority and Responsibility: Responsibility means the
work assigned to any person, and authority means rights
that are given to him to manage people and things to
ensure performance. In other words, authority should go
hand in hand with the responsibility for effective results.
• 3. Discipline: This principle emphasises that
subordinates should respect their superiors and obey
their orders. On the other hand, superiors’ behaviour
should be such that they make subordinates obedient. If
such discipline is observed, there will be no problem of
industrial disputes.
• 4. Unity of Command: A subordinate should work under
the supervision of one superior only from whom he
gets instructions and to whom he is accountable. It
avoids confusion in authority and instructions.
• 5. Unity of Direction: Each group of activities having the
same objective must have one head and one plan of action.
Otherwise, there may be wastage, over expenditure and
useless rivalry among the managers.
• 6. Subordination of Individual Interest to General
Interest: While taking any decision, the collective good and
collective interest of the organisation as a whole should be
preferred to individual interests. The individual’s interest
should be subordinated to the overall interest of the
organisation. This ensures welfare of the organisation as
well as its individual members.
• 7. Remuneration: Management should try to give fair wages
to the employees so as to ensure reasonable satisfaction of
workers and productivity for the organisation.
• 8. Centralisation: When a single person controls the affairs
of an organisation, it is said to be complete centralisation. In
small concerns, a single manager can supervise the work of
the subordinates easily, while in a big organisation, control is
divided among a number of persons to facilitate operational
decision making at various levels. Fayol’s opinion was that
there should be a proper balance between centralisation and
delegation of authority in an organisation.
• 9. Scalar Chain: This is the chain of authority relationship
from the highest to the lowest ranks. This implies that
subordinates report to their immediate supervisors who, in
turn, report directly to their own boss. The order of this chain
should be maintained when some instructions are to be passed
on or enquiries are to be made.
• 10. Order: Placement of men and materials should be
properly made. Proper space should be made available where
materials can be kept safely. Each man should be provided the
work for which he is best suited.
• 11. Equity: This principle requires the managers to be kind and
just to workers. This promotes a friendly atmosphere between
superiors and subordinates and motivates them to perform
their duties efficiently.
• 12. Stability of Tenure: Employees should be provided
stability and continuity of their tenure of employment. There
should not be frequent termination of employees. This could be
achieved through attractive remuneration and honourable
treatment of personnel.
• 13. Initiative: This implies encouraging initiative among its
personnel to chalking out and execution of a plan to achieve the
desired results.
• 14. Esprit de Corps: These French words mean team spirit.
Managers should infuse the spirit of team work and
cooperation among the employees. It helps in developing an
atmosphere of mutual trust and a sense of unity.
 Taylor’s scientific management
• The concept of scientific management was introduced by
Fredric Winslow Taylor in USA in the beginning of 20th century.
“Scientific management is concerned with knowing exactly
what you want men to do and then see in that they do it in the
best and cheapest way”.
Elements and tools of scientific management
1. Separation of planning and doing: - Taylor emphasized the
separation of planning aspect from actual doing of the work.
Before Taylor’s scientific management, a work used to plan
about how he had to work and what instruments were
necessary for that. The worker was put under the supervision
of a supervisor commonly known as gang boss.
• 2. Functional foremanship: - Separation of planning from doing
resulted into development of supervision system which could
take planning work adequately besides keeping supervisions on
workers.
• 3. Job analysis: - Job analysis is undertaken to find out the one
best way of doing the thing. The best way of doing a job is one
which requires the last movements, consequently less time and
cost. The best way of doing the thing can be determined by
taking up timemotion fatigue studies.
• 4. Standardization:- As far as possible, standardization
should be maintained in respect of instruments and tools,
period of work, amount of work, work conditions, cost of
production cet.
• 5. Scientific selection & Training of workers: - Taylor has
suggested that workers should be selected on scientific basis
taking into account their education, work experience, aptitude,
physical strength.
• 6. Financial incentives: - Financial incentives can motivate
workers to put in their maximum efforts. If provisions exist
to earn higher wages by putting in extra effort, workers will
be motivated to earn more.
• 7. Economy: - While applying scientific management, not
only scientific & technical aspects should be considered but
adequate consideration should be given to economy &
profit. For this purpose, techniques of cost estimates and
control should be adopted.
• 8. Mental revolution: - scientific management depends on
the mutual co-operation between management and
workers. For this co-operation, there should be mental
change in both parties from conflict to co-operation
 Systems Approach to Management

• A system is a set of interrelated but separate parts

working towards a common purpose. The arrangement
of elements must be orderly and there must be proper
communication facilitating interaction between the
elements and finally this interaction should lead to
achieve a common goal.
 Key concepts of Systems Approach
• 1. Subsystem: - Systems are those parts which make up
the whole system. Each system in turn may be a subsystem
of a still larger system. Thus, a department is a subsystem of
a factory, which is a subsystem of a firm, which is a
subsystem of industry.
• 2. Synergy: - Synergy is a situation in which the whole is
greater than the sum of its parts. In organizational terms,
synergy means those departments that interact co-
operatively are more productivity than they would be.
• 3. Open system: - It is a system that interacts with its
environment. All organizations interact with their environment,
but the extent to which they do so varies.
• 4. Closed system: - It is a system that does not interact with
its environment.
• 5. System boundary: - It is the boundary that separates
each system from its environment. It is rigid in a closed
system while flexible in an open system
 TYPES OF BUSINESS
ORGANIZATIONS
The forms of business organisation are:-
1. Sole Proprietorship
2. Partnership Firm
3. Limited Liability Partnership (LLP)
4. Joint Stock Company
5. One Person Company (OPC)
6. Private Company
7. Public Limited Company
• 1. Sole Proprietorship: Sole proprietorship or
individual entrepreneurship is a business concern owned
and operated by one person.
• The sole proprietor is a person who carries on business
exclusively by and for himself. He alone contributes the
capital and skills and is solely responsible for the results
of the enterprise.
• In fact sole proprietor is the supreme judge of all matters
pertaining to his business subject only to the general laws
of the land and to such special legislation as may affect his
particular business.
• 2. Partnership Firm: As a business enterprise expands
beyond the capacity of a single person, a group of
persons have to join hands together and supply the
necessary capital and skills.
• Partnership firm thus grew out of the limitations of one
man business. Need to arrange more capital, provide
better skills and avail of specialisation led to the
growth to partnership form of organisation.
• 3. Limited Liability Partnership (LLP): According to the
Limited Liability Partnership Act, 2008, an LLP is a body
corporate formed and incorporated under this Act. It is a legal
entity separate from that of its members.
Features:
(i) An LLP must be registered under the LLP Act 2008.
(ii) It is a body corporate having a separate entity of its own.
(iii) It has perpetual succession. Any change in its members does
not affect its existence, rights and liabilities,
(iv) Any individual or a body corporate can be a partner in an LLP
• 4. Joint Stock Company: With the growing needs of modern
business, collection of vast financial and managerial resources
became necessary. Proprietorship and partnership forms of
ownership failed to meet these needs due to their limitations,
e.g., unlimited liability, lack of continuity and limited resources.
• 5. One Person Company (OPC): According to The Companies
Act, 2013 of India “One Person Company is a company
registered under the proposed Companies Act with just one
member and shall have ‘(OPC)’ added in brackets to its name.”
The Memorandum of such a company shall indicate the name of
the person
• 6. Private Company: “private company” means a
company having a minimum paid-up share capital of
one lakh rupees or such higher paid-up share capital
as may be prescribed, and which by its articles—
• i. Restricts the right to transfer its shares;
• ii. Except in case of One Person Company, limits the
number of its members to two hundred-
• 7. Public Limited Company:
• Public company is a separate legal entity incorporated under
companies act, allowing the members to transfer their shares,
while having a larger number of shareholder base
• Definition of Public Company: u/s2 (71) of Companies Act
Amendment 2013, public company means a company which:
• i. Is not a private company;
• ii. Has a minimum paid-up share capital of five lakh rupees or
such higher paid-up capital, as may be prescribed –
 What is organizational culture?

• Organizational culture is the collection of values,

expectations, and practices that guide and inform the
actions of all team members. Think of it as the
collection of traits that make your company what it is.
• A great culture exemplifies postive traits that lead to
improved performance, while a dysfunctional company
culture brings out qualities that can hinder even the
most successful organizations.
 The importance of culture to your
company
• Organizational culture affects all aspects of your business,
from punctuality and tone to contract terms and employee
benefits. When workplace culture aligns with your employees,
they’re more likely to feel more comfortable, supported, and
valued. Companies that prioritize culture can also weather
difficult times and changes in the business environment and
come out stronger.
• Culture is a key advantage when it comes to attracting talent
and outperforming the competition. 77 percent of
workers consider a company’s culture before applying,
and almost half of employees would leave their current job for
a lower-paying opportunity at an organization with a better
culture.
 Qualities of a great organizational
culture

• Every organization’s culture is different, and it’s important to retain

what makes your company unique. However, the cultures of high-
performing organizations consistently reflect certain qualities that
you should seek to cultivate:
• Alignment comes when the company’s objectives and its employees’
motivations are all pulling in the same direction. Exceptional
organizations work to build continuous alignment to their vision,
purpose, and goals.
• Appreciation can take many forms: a public kudos, a note of thanks,
or a promotion. A culture of appreciation is one in which all team
members frequently provide recognition and thanks for the
contributions of others.
• Trust is vital to an organization. With a culture of trust, team
members can express themselves and rely on others to have their
back when they try something new.
• Performance is key, as great companies create a culture that
means business. In these companies, talented employees motivate
each other to excel, and, as shown above, greater profitability
and productivity are the results.
• Resilience is a key quality in highly dynamic environments where
change is continuous. A resilient culture will teach leaders to
watch for and respond to change with ease.
• Teamwork encompasses collaboration, communication, and
respect between team members. When everyone on the team
supports each other, employees will get more done and feel
happier while doing it.
• Integrity, like trust, is vital to all teams when they rely on each
other to make decisions, interpret results, and form
partnerships. Honesty and transparency are critical components
of this aspect of culture.
• Innovation leads organizations to get the most out of available
technologies, resources, and markets. A culture of innovation
means that you apply creative thinking to all aspects of your
business, even your own cultural initiatives.
• Psychological safety provides the support employees need to
take risks and provide honest feedback. Remember that
psychological safety starts at the team level, not the individual
level, so managers need to take the lead in creating a safe
environment where everyone feels comfortable contributing.