BBA I SEMESTER _- FMOB UNIT 1- DETAILED NOTES

DEFINITION OF MANAGEMENT

According to 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 and individuals and can co-operate towards attainment of group goals‖.
According to F.W. Taylor, ―Management is an art of knowing what to do, when to do and
see that it is done in the best and cheapest way.

1. The act, manner, or practice of managing; handling, supervision, or control: management

of a crisis; management of factory workers.

2. The person or persons who control or direct a business or other enterprise.

3. Skill in managing; executive ability.

Management is a purposive activity. It is something that directs group efforts towards the
attainment of certain pre – determined goals. It is the process of working with and through
others to effectively achieve the goals of the organization, by efficiently using limited
resources in the changing world. Of course, these goals may vary from one enterprise to
another. E.g.: For one enterprise it may be launching of new products by conducting market
surveys and for other it may be profit maximization by minimizing cost.

Management involves creating an internal environment: - It is the management which puts

into use the various factors of production. Therefore, it is the responsibility of management to
create such conditions which are conducive to maximum efforts so that people are able to
perform their task efficiently and effectively. It includes ensuring availability of raw
materials, determination of wages and salaries, formulation of rules & regulations etc.

Therefore, we can say that good management includes both being effective and efficient.
Being effective means doing the appropriate task i.e, fitting the square pegs in square holes
and round pegs in round holes. Being efficient means doing the task correctly, at least
possible cost with minimum wastage of resources.

IMPORTANCE OF MANAGEMENT
 • Achieving Group Goals: Management encourages collaboration and coordination
amongst workers. A general control must be provided to the organisational and
personal objectives in order to favorably accomplish the aims.

• Increases Efficiency: Management improves productivity by managing resources in

a reliable conceivable way in order to decrease cost upscale potency.

• Creates Dynamic organization: Management undertakes the conditions by assuring

that these variations are well accepted privately and that objection to change is
controlled.

• Achieving personal objectives: Management promotes leadership and furnishes

motivation to the employees to operate effectively in order to accomplish their
personal aims while working towards the organizational goals.

• Development of Society: Management helps in the enhancement of community by

manufacturing reliable quality commodities, establishing employment chances and
fostering innovative technologies.

MANAGEMENT AS AN ART, AS A SCIENCE & AS A PROFESSION

1. MANAGEMENT AS AN ART

Art is the experienced and personal utilization of subsisting information to accomplish

solicited outcomes. The essential characteristics of art are as follows:

• The presence of theoretical knowledge: Art assumes the presence of specific

academic knowledge. Specialists in their particular fields have obtained specific
elementary postulates which are appropriate to a specific sort of art. For instance, the
literature on public speaking, acting or music, dancing is publicly acknowledged.

• Personalized application: The application of this primary information differs from

person to person. Art, hence, is a highly personalized notion.

• Based on custom and creativity: Art is practical. Art includes the creative practice of
subsisting intellectual knowledge. We know that music is based on 7 notes. However,
 what makes the style of a musician different or distinctive is his performance of these
notes in an artistic way that is uniquely his own solution.

2. MANAGEMENT AS A SCIENCE

Science is an organized collection of knowledge that emphasizes definite universal truths or

the action of comprehensive laws. The central characteristics of science are as follows:

• The organized body of knowledge: Science is a precise entity of knowledge. Its

systems are based on a purpose and consequence association.

• Universal validity: Scientific conventions have global genuineness and application.

• Systems based on experimentation: Scientific conventions are originally formed via

research and then tested via repeated trial and error under the regulated situations

3. MANAGEMENT AS A PROFESSION

The profession can be described as an occupation upheld by specific education and practice,
in which entry is limited. A profession has the following features:

• The well-defined theory of knowledge: All services are based on a well-defined form
of education that can be procured through education.

• Restricted entry: The entrance to a profession is defined through an examination or

through obtaining an educational degree. For instance, to become a chartered
accountant in India an aspirant has to clear a detailed examination regulated by the
Institute of Chartered Accountants of India (ICAI).

• Professional community: All professions are affiliated to a professional association

which controls entry, presents a certificate of training and expresses and supports a
system of government. To be qualified to study in India, lawyers have to become
members of the Bar Council which monitors and regulates their actions.

CONCLUSION: MANAGEMENT IS AN ART

MANAGEMENT AS AN ART • Art refers to personal and skillful application of
existing knowledge to achieve desired results.
• It can be acquired through continuous practice,
creativity, personal observation and experience.
• Examples of being an artist: Dancer, Potter,
Musician, Director, Actor, Designer etc. all are
artist in their respective fields.
• A manager is also an artist as he applies his
personal knowledge and experience to get the
work done from his subordinates.
• The way of getting work done by different
people differs from manager to manager

APPLICATION OF i. Existence of theoretical knowledge:

FEATURES OF ART IN a. Art occupies existence of some
MANAGEMENT theoretical knowledge, though it is not
compulsory for every field.
b. Education in Management is imparted
with the help of theoretical knowledge in
various colleges and universities.
c. Examples- BBA, BBS, MBA etc.
ii. Personalized Application:
a. Art is purely a personalized application
of knowledge to a particular field.
b. Similarly getting the work done by the
managers is purely personalised
application of their knowledge and
experience and their effectiveness vary
from person to person.
c. Example: Voice of every singer is
different; Acting style of each actor is
different.
 d. So, the management style of every
manager is different.
iii. Based on practice and creativity:
a. Performance in any art is purely based on
practice and the creativity of an individual
b. It varies from person to person.
c. Similarly, every manager has his / her own
unique style of functioning and delivers results
differently.
d. Example: Bill gates manage a team of thousands
of employees.
e. Recent performance of new entrepreneurs like
Rohit Bansal & Kunl Bahl of ‘Snapdeal’ has
shocked the established business houses on the
ability and creativity to generate revenue within
a very short period of time

CONCLUSION • On the basis of above discussion, we have

observed that the field of management fulfills
all features of art.
• Therefore, we can say, management is an art.

DIFFERENCE BETWEEN MANAGEMENT & ADMINISTRATION

Management is all about getting things done through the efforts of other people. Management
consists of group of individuals that do accept responsibilities to run an organization.
Management possess artistic and scientific elements and it is Continuous and never-ending
process.

Administration consists of group of individuals in charge of determining the goals,

objectives, plans and policies of the organization that decides what activities will be done and
when it will be done by means of management functions.
DISTINCTION MANAGEMENT ADMINISTRATION
POINT

[Link] / Art of getting things done through It is the process of determining goals or
DEFINITION others by directing their efforts objectives and policy of enterprise in
towards achievement of pre- systematic way
determined goals.

[Link] It is an executing function, that It is a decision-making function, thinking

implements the policies and function that determines policies and
objectives as decided by the objectives of the firm
administration

[Link] OF Middle level activity that includes Top level activity that includes Chief
AUTHORITY middle level managers executive officers

[Link] It takes decisions within the It takes major decision of a firm as a whole
framework set by administration

[Link] Management decides who will take Administration decides what activities will
MAKING responsibility for doing the various be done and when it will be done by means
activities towards the attainment of of management functions
pre-determined goals in proper way

[Link] Motivating and controlling Planning and organizing

FUNCTION

[Link] Management usually incorporates Administration includes the people who are
INVOLVED the employees of the firm who use either owners or partners of the firm that
their skills for the firm in return for usually contribute to the firm’s capital and
remuneration earn profits or returns on their investment
[Link] Decisions are influenced by the Decisions are Influenced by public opinion,
values, opinions, beliefs and government policies, customs
decisions of the managers.

[Link] It requires mainly technical abilities It needs administrative rather than technical
to run day to day activities. abilities.

LEVELS OF MANAGEMENT

Level of management refers to the categories or layers of managerial positions in an

organization. The level of management determines the amount of authority and status of the
person occupying the position at that level. These managerial positions divided into various
categories according to their amount of authority and status, they are known as the level of
management.

Managerial Hierarchy consists of-

• Top Level Management or senior management

• Middle Level Management
• Lower Level Management such as supervisors or team-leaders

Top-level management

• Top-level management Require an extensive knowledge of management roles and

skills.
• They have to be very aware of external factors such as markets.
• Their decisions are generally of a long-term nature
• Their decisions are made using analytic, directive, conceptual and/or
behavioural/participative processes
• They are responsible for strategic decisions.
• They have to chalk out the plan and see that plan may be effective in the future.
• They are executive in nature.
These includes board of Directors, CEO ‘s they comprise small groups but are responsible for
overall management they formulate plans, decide objectives & communicate to middle level
management.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They devote more
time to organizational and directional functions. In small organization, there is only one layer
of middle level of management but in big enterprises, there may be senior and junior middle
level management. Their role can be emphasized as –

• They execute the plans of the organization in accordance with the policies and
directives of the top management.
• They make plans for the sub-units of the organization.
• They participate in employment & training of lower level management.
• They interpret and explain policies from top level management to lower level.
• They are responsible for coordinating the activities within the division or department.
• It also sends important reports and other important data to top level management.
• They evaluate performance of junior managers.
• They are also responsible for inspiring lower level managers towards better
performance.

Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of

supervisors, foreman, section officers, superintendent etc. According to R.C. Davis,
―Supervisory management refers to those executives whose work has to be largely with
personal oversight and direction of operative employees‖. In other words, they are concerned
with direction and controlling function of management. Their activities include –

• Assigning of jobs and tasks to various workers.

• They guide and instruct workers for day to day activities.
• They are responsible for the quality as well as quantity of production.
• They are also entrusted with the responsibility of maintaining good relation in the
organization.
 • They communicate workers problems, suggestions, and recommendatory appeals etc
to the higher level and higher-level goals and objectives to the workers.
• They help to solve the grievances of the workers.
• They supervise & guide the sub-ordinates.
• They are responsible for providing training to the workers.
• They arrange necessary materials, machines, tools etc for getting the things done.
• They prepare periodical reports about the performance of the workers.
• They ensure discipline in the enterprise.
• They motivate workers.
• They are the image builders of the enterprise because they are in direct contact with
the workers.

WHAT MANAGERS DO?

• Three Approaches to Defining What Managers Do.

➢ Functions they perform.

➢ Roles they play.

➢ Skills they need.

1. FUNCTIONS OF MANAGER

a. PLANNING: Defining goals, establishing strategies to achieve goals,

developing plans to integrate and coordinate activities.

Planning involves the following steps.

(i) Determination of objectives;

(ii) Forecasting;

(iii) Formulation of policies and programmes;

(iv) Preparation of schedules

Planning is a process of seeking answer to some of the following particular

questions:

(i) What is o be done?

(ii) Why it is to be done?

(iii) How the work will be done?

(iv) Who will do the work?

(v) When the work will be done?

(vi) Where the work will be done?

Planning pervades at all the levels of organization. But the scope of planning is not the same
at each level of organization. Higher the level of organization, the broader the scope of
planning. Planning may be long term and short term.

b. ORGANIZING: Arranging and structuring work to accomplish

organizational goals.

Organizing as a process involves:

1. Identification of activities.

2. Classification of grouping of activities.

3. Assignment of duties.

4. Delegation of authority and creation of responsibility.

5. Coordinating authority and responsibility relationships

c. LEADING: Working with and through people to accomplish goals.

Direction is that inert-personnel aspect of management which deals directly with influencing,
guiding, supervising, motivating sub-ordinate for the achievement of organizational goals.
Direction has following elements:

1. Supervision

2. Motivation

3. Leadership

4. Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary incentives may be used for this purpose.

Leadership- may be defined as a process by which manager guides and influences the work
of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from one
person to another. It is a bridge of understanding.

d. CONTROLLING: Monitoring, comparing, and correcting work.

According to Koontz & O‟Donell ―Controlling is the measurement & correction of

performance activities of subordinates in order to make sure that the enterprise objectives and
plans desired to obtain them as being accomplished‖. Therefore, controlling has following
steps:

a. Establishment of standard performance.

b. Measurement of actual performance.

c. Comparison of actual performance with the standards and finding out deviation if any.

d. Corrective action.

2. ROLES OF MANAGER

To meet the many demands of performing their functions, managers assume multiple roles. A
role is an organized set of behaviors. Henry Mintzberg has identified ten roles common to the
work of all managers. The ten roles are divided into three groups: interpersonal,
informational, and decisional.

The informational roles link all managerial work together.

The interpersonal roles ensure that information is provided.

The decisional roles make significant use of the information.

The performance of managerial roles and the requirements of these roles can be played at
different times by the same manager and to different degrees depending on the level and
function of management. The ten roles are described individually, but they form an integrated
whole.

The three interpersonal roles are primarily concerned with interpersonal relationships.

In the figurehead role, the manager represents the organization in all matters of
formality. The top-level manager represents the company legally and socially to those
outside of the organization. The supervisor represents the work group to higher management
and higher management to the work group.

In the liaison role, the manger interacts with peers and people outside the organization.
The top-level manager uses the liaison role to gain favors and information, while the
supervisor uses it to maintain the routine flow of work.

The leader role defines the relationships between the manger and employees. The direct
relationships with people in the interpersonal roles place the manager in a unique position to
get information.

Thus, the three informational roles are primarily concerned with the information
aspects of managerial work.

In the monitor role, the manager receives and collects information.

In the role of disseminator, the manager transmits special information into the
organization. The top level manager receives and transmits more information from people
outside the organization than the supervisor.

In the role of spokesperson, the manager disseminates the organization's information

into its environment. Thus, the top-level manager is seen as an industry expert, while the
supervisor is seen as a unit or departmental expert. The unique access to information places
the manager at the center of organizational decision making.

There are four decisional roles.

In the entrepreneur role, the manager initiates change.

In the disturbance handler role, the manger deals with threats to the organization
In the resource allocator role, the manager chooses where the organization will extend
its efforts.

In the negotiator role, the manager negotiates on behalf of the organization. The top-
level manager makes the decisions about the organization as a whole, while the supervisor
makes decisions about his or her particular work unit.

The supervisor performs these managerial roles but with different emphasis than higher
managers. Supervisory management is more focused and short-term in outlook.

Thus, the figurehead role becomes less significant and the disturbance handler and negotiator
roles increase in importance for the supervisor. Since leadership permeates all activities, the
leader role is among the most important of all roles at all levels of management.

3. SKILLS OF MANAGER

A skill is the ability to do something proficiently. Managerial skills fall into three basic
categories: technical, human relations, and conceptual skills.

Technical Skills

Specialized areas of knowledge and expertise and the ability to apply that knowledge make
up a manager’s technical skills. Preparing a financial statement, programming a computer,
designing an office building, and analysing market research are all examples of technical
skills. These types of skills are especially important for supervisory managers because they
work closely with employees who are producing the goods and/or services of the firm.

Human Relations Skills

Human relations skills are the interpersonal skills managers use to accomplish goals through
the use of human resources. This set of skills includes the ability to understand human
behaviour, to communicate effectively with others, and to motivate individuals to accomplish
their objectives. Giving positive feedback to employees, being sensitive to their individual
needs, and showing a willingness to empower subordinates are all examples of good human
relations skills. Identifying and promoting managers with human relations skills are important
for companies. A manager with little or no people skills can end up using an authoritarian
leadership style and alienating employees.

Conceptual Skills

Conceptual skills include the ability to view the organization as a whole, understand how the
various parts are interdependent, and assess how the organization relates to its external
environment. These skills allow managers to evaluate situations and develop alternative
courses of action. Good conceptual skills are especially necessary for managers at the top of
the management pyramid, where strategic planning takes place.

• Define the basic managerial skills.

• How important is each of these skill sets at the different levels of the management
pyramid?

SIGNIFICANCE OF VALUES AND ETHICS IN MANAGEMENT

1. Satisfying Basic Human Needs: Being fair, honest and ethical is one the basic
human needs. Every employee desire to be such himself and to work for an
organization that is fair and ethical in its practices.

2. Creating Credibility: An organization that is believed to be driven by moral values

is respected in the society even by those who may have no information about the
working and the businesses or an organization. Infosys, for example is perceived as an
organization for good corporate governance and social responsibility initiatives. This
perception is held far and wide even by those who do not even know what business
the organization is into.

3. Uniting People and Leadership: An organization driven by values is revered by its

employees also. They are the common thread that brings the employees and the
decision makers on a common platform. This goes a long way in aligning behaviors
within the organization towards achievement of one common goal or mission.

4. Improving Decision Making: A man’s destiny is the sum total of all the decisions
that he/she takes in course of his life. The same holds true for organizations.
Decisions are driven by values. For example, an organization that does not value
 competition will be fierce in its operations aiming to wipe out its competitors and
establish a monopoly in the market.

5. Long Term Gains: Organizations guided by ethics and values are profitable in the
long run, though in the short run they may seem to lose money. Tata group, one of the
largest business conglomerates in India was seen on the verge of decline at the
beginning of 1990’s, which soon turned out to be otherwise. The same company’s
Tata NANO car was predicted as a failure, and failed to do well but the same is
picking up fast now.

6. Securing the Society: Often ethics succeeds law in safeguarding the society. The law
machinery is often found acting as a mute spectator, unable to save the society and the
environment. Technology, for example is growing at such a fast pace that the by the
time law comes up with a regulation we have a newer technology with new threats
replacing the older one. Lawyers and public interest litigations may not help a great
deal but ethics can.