Chapter 1

As the subject itself is Basics to management. So I will be starting with my first chapter
on Principles of management.

The concept of management is as old as human civilization. The thoughts of

management are universal and have practical application in all the organizations
irrespective of its size, area, nature of business and scale of operation. Good
management is necessary not only in organizations but also in hospitals, hotels,
healthcare institution, train association, chamber of commerce, clubs, etc. In nut shell
management has universal application.

So what’s management? Any thoughts?

According to Howard Koontz, "Management is the art of getting things done through
and with people in formally organized groups. Here are few other definitions of
managements.”

Peter Drucker says, “Management is a multipurpose organ that manages a business

and manages managers, and manages workers and work.” So here he emphasizes
on three vital ingredients that is managing business, managing managers, managing
workers and work. Here are few other definitions of management. Modern
Management believes management is an integration of 6 vital ingredients that 6
Aims –

Man,

Machine,

Material,

Money,

Method and

Marketing by performing typical management functions like directing, organizing,

planning and controlling. The management achieves pre-determined objectives in the
form of inputs like better sales, higher profits, growth, diversification, expansion and
so.

Before I proceed to my next point, here is a question. Think and answer.

Do families also need good management? Yes or No?

Our next point is process of management

Many management gurus like Koontz, Odonel, George terry and many others have
explained management as a set of process integrating of various functions of
management. These experts along with few other experts were widely recognised as
the process rule of management.
Elements of Management

1) Planning

Planning is elementary element of management. It helps the manager in deciding the

future strategies based on the current scenario.

2) Organizing

Strong organizing serves as the foundation upon which the entire management
structure is build.

The third function of management is

3) Directing

After a strong organization structure is created, it is the duty of supervisor to lead and
manage the employees.

The next function of managements is

4) Staffing

Staffing involves recruiting and selecting the right man for the right job. It helps the
employees and the management to emphasize and multi realize on the productivity
and efficiency of the employees. It is the core function of human resource
management. Co is for coordination. Rightly termed as the essence of management
Co-ordination helps in interlinking various departmental functions. R is for reporting
each and every employee in the organization is expected to report his or her bosses
at regular intervals

Lastly the next function of management is

5) Budgeting

Budgeting involves all activities under accounting, auditing, financial planning and
control.

The next point is

Levels of Management

Ideally, there are 3 levels of management.

1) Top

2) Middle

3) Lower

Let’s analyze each of them in detail now

1) Top level management - The top level management is also known as
administrative management. It comprises of managing directors, board of directors,
CEO, CFO, President, Vice president, general manager etc. The BOD is the
representatives of shareholders. They are selected by the shareholders of the
organization. Selectively, the board of directors design the mission, vision, plans and
policies of the organization. They are thinkers, planners and decision makers. They
are also known as administrators and brain of the organization. They spend most of
the time in planning, organizing, directing and controlling. There are maximum duties,
responsibilities, authority and power. They also decides duties and responsibilities of
middle level of management

2) Middle level management - It is also known as executive level of management. It

comprises of head of department, branch manager, senior manager, senior
executives, junior executives and junior managers. They mainly assist, execute and
implement the plans and policies decided by the top level. They act as an
intermediary between the top level and lower level of management.

3) Lower level management - It is also known as supervisory, supervisor and first line
of management. This level comprises of supervisors, clerical staff and foreman. The
director worker acts as a link between the workers and middle level management.

Now let’s discuss more about various Functional areas of Management

1) Production management

It is defined as a process of converting raw materials into finished goods through

mechanical and human efforts. It also deals with purchase, storage, issue and control
of required raw materials. It deals with quality assurance, innovation, invention and
research and development of new products or services.

2) Marketing management

It involves management of 4 vital variables like product, price, place and promotion.
Product management deals with product related information like product line, product
depth, product standardization and product adaptation. Price management helps to
decide the price of various products and services of the organization. Place
distribution is mainly concern with selecting the right channel partners, intermediaries
so that the right product reaches the right place at the right time. Promotion
management involves all the efforts made by manager to advertising, sales promotion
and public relation.

3) Human resource management

It is also known as personnel management helps in identifying the current and future
requirement of human recourse in the organization. It deals with functions like
induction, training, selection, promotion, transfers, demotions etc. It also deals with
job evaluation, administration and maintaining congenial atmosphere in the
organization for better productivity, output and results.

4) Financial management
It is an expert and it deals with planning, organizing, directing and controlling the
financial aspects of the organization. It deals with procurement, utilisation, control and
allocation of funds of the organization.

So moving ahead the next function of management is

5) Office management

It is said as general management or administrative management. So the role of office

manager is same as performed by management like planning, organizing, directing,
controlling, coordination and so for.

6) Maintenance management

In any organization to achieve a desired output, maintenance of tool, techniques,

machine, equipment is very essential. Not just tools and equipments Maintenance of
human resource is equally important. Human resource can be motivated through
appropriate monetary and non monetary rewards. In nut shell Maintenance
department is responsible for maintenance of resources of the organization, be it
human or physical.

7) Inventory management

Inventory management is an important component of supply chain management. It

keeps the details of each and every product entered or leaves the warehouse. He
supervises the flow of goods from manufacturer to point of sales.

8) Transportation management

It is a vital part of supply chain management. It deals with planning, executing and
optimizing the physical movement of goods. It helps in procurement of raw materials
and semi finished goods.

Before I conclude my chapter 1 here is a question for you.

Do you think that all tasks are equally important for managers? Yes or No?
Why?