❖Definition

❖Definition

Management is a multi-purpose organ that manages business

and manages managers and manages workers and work.“
This definition of management was given by Peter Drucker in his
book "The Principles of Management".
of management was given by Peter Drucker in his book "The Principles of Management".
❖Characteristics
(1) Management is Goal-oriented Process:
No goal in the hand no need of management. In other words, we need management
when we have some goals to be achieved. A manager on the basis of his knowledge and
experience tries to achieve the goals which are already decided.
(2) Management is All-pervasive:
Anything minus management is nothing or zero. Here by anything we mean all types of
activities-business and non-business. If we deduct management out of these activities,
the result will be failure or zero.
 (3) Management is Multidimensional:
(i) Management of Work:
Every organisation is established for doing
some work, like a school provides education, a hospital treats patients, a factory produces,
etc. Of these, no work can be completed satisfactorily without management, (ii)
Management of People:
Each organisation is established for doing some
work and the same is conducted by people. Hence, it is necessary to manage the people so
that the work can be accomplished in a better way.
(iii) Managementof Operations:
To achieve the goals of an organisation many
operations or activities need to be conducted, such as, production, sale, purchase, finance,
accounting, R&D, etc. Again, management is needed to make sure that operations are
accomplished efficiently and effectively.
(4) Management is a Continuous Process :
The various managerial activities
cannot be performed once for all, but it is a continuous process. A manager is busy
sometimes in doing one managerial activity and at other times some other activity.
(5) Management is a Group Activity :
It means that (|T-2 it is not a single
person who consummates all the activities of an organisation but it is always a group of
persons (managers). Hence, management is a group effort.
(6) Management is a Dynamic Function :
Management is a dynamic activity
as it has to adjust itself to the regularly changing environment. In this context, it can be
rightly said that nothing is eternal in management.
(7) Management is an Intangible Force :
Management is that power which
cannot be seen. It can only be felt. If any organization is heading toward higher levels of
achievement, it signifies the existence of good management and vice versa. In other words,
achievement reflects the quality of management and its effectiveness.
❖Scope of Management
1. Subject-Matter of Management: Planning, organizing, directing, coordinating and controlling are the activities included
in the subject matter of management.
2. Functional Areas of Management: These include: Financial Management
Personnel Management
Purchasing management
Production Management
Maintenance Management
Transport Management
Distribution Management
Office Management
Development Management
3. Management is an Inter-Disciplinary Approach: For the correct implementation of the management, it is important to
have knowledge of commerce, economics, sociology, psychology and mathematics.
4. Universal Application: The principles of management can be applied to all types of organizations irrespective of the
nature of tasks that they perform.
5. Essentials of Management: Three essentials of management are: Scientific method
Human relations
Quantitative technique
6. Modern Management is an Agent of Change: The management techniques can be modified by proper research and
development to improve the performance of an organization.
• Scientific Management approach by F.W. Taylor

Fredric Taylor made several important contributions which are classified under scientific management :
1) Time and motion study – Under this study each motion of a job was to be timed with the help of a stop watch and
shorter and fewer motions were to be developed.
2) Differential piece rate – Taylor introduced a new payment plan called the differential piece work, in which he linked
incentives with production. Under this plan a worker received low piece rate if he produced the standard number of
pieces and high rate if he surpassed the standard.
3) Drastic Reorganization of supervision – Taylor suggested 2 new concepts : i) separation of planning from doing,
ii)functional foremanship. Taylor suggested that the work should be planned by a foreman and not by the worker.
4) Scientific Recruitment and training – he said that the management should develop and train every worker to bring
out his best and to enable him to do a higher and more profitable class of work then he has done in the past.
Principles of Management by Henry Fayol
Fayol presented 14 principles of management as general guides to the management process and management practice.
These are as under –
1) Division of Work -
2) Authority and Responsibility –
3) Discipline –
4) Unity of command –
5) Unity of direction –
6) Subordination of individual interest to general interest-
7) Remuneration –
8) Centralization
9) Scalar chain –
10) Order –
11) Equity -
12) Stability of tenure of personnel –
13) Initiative –
14) 14) Espirit-de-corps –
LEVELS OF MANAGEMENT

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of
authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.
The role of the top management can be summarized as follows -
a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the performance of the enterprise.
2. 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 -
a. They execute the plans of the organization in accordance with the policies and directives of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or department.
f. It also sends important reports and other important data to top level management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better performance.
3. 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 -
a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the organization.
e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and
objectives to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the workers.
Managerial Skills
Simply, managerial skills are the knowledge and ability of the individuals in a managerial position to fulfill some specific
management activities or tasks. This knowledge and ability can be learned and practiced. However, they also can be
acquired through practical implementation of required activities and tasks. Therefore, you can develop each skill through
learning and practical experience as a manager.
Three Types of Managerial Skills
Robert Katz identifies three types of skills that are essential for a successful management process:

1. Technical skills,
2. Conceptual skills and
3. Human or interpersonal management skills.
❖Functions of management
1) Planning –
Planning is deciding in advance what is to be done. Planning is a mental process. It is concerned with future. It is choosing
an effective course of action from among various alternatives. Plan bridges the gap between where we are and where we
want to go. For the purpose of faithful planning activity one must have imagination, sound judgment and foresight.
Planning involves development of objectives, policies, programs, procedures, budgets, schedules. So these are the basic
elements of planning.
2) Organizing –
The function of organizing is the creation of a structure of duties and functions for the attainment of the objectives of the
concern. In planning one decides about what it is to be done? When it is to be done? How it is to be done? Why it is to be
done? Where it is to be done? It means in this function you decide who are responsible for implementing the plans.
Without proper organization, there may be duplication of efforts, conflicts among personnel, chaos in the system and
delays in decision making.
3) Staffing -
The staffing function of management relates to the management of managers. It includes recruitment, selection,
development, training and compensation of subordinate managers. In short this function is concerned with the people in
any organization because people are the dynamic elements of management. Without them, objectives and resources will
remain utilized.
4) Directing -
For the effective implementation of any administrative decision, planning, organizing, and staffing are not enough. The
manager must stimulate action by giving direction to his subordinates through orders and also supervise their work to
ensure that plans and policies achieve the desire action and result. In short function of direction involves following
steps.
1) Issuing of orders and instructions.
2) Guiding and teaching the sub ordinates.
3) Supervising the sub-ordinates to ensure that their performance conforms to the plans. The function of direction
also includes and motivating the employees.
5) Controlling -
controlling is ordinarily understood as giving of orders or command. In terms of managerial functions, control consist of
the steps taken to ensure that the performance of the organization conforms to the plans.
• Characteristics of a Good control system –
1) The control must conforms to the nature and needs of the activity.
2) Control must report any different promptly.
3) Control must be flexible.
4) Control must be economical.
5) Control must be understandable.
6) Control must assure, corrective action.
What is PODSCORB?

• This is the most celebrated acronym coined by management theorists Luther Gulick and Lyndall Urwick in their
management paper ‘Notes on the Theory of Organization’ published in 1937. Luther Gulick defines PODSCORB as all
any chief executive has to do. According to him, this acronym sums up the entire gamut of duties for any manager
who is at the helm of affairs in any organization.
• The full form of POSDCORB is planning, Organising, Staffing, Directing, Coordinating, Reporting, and Budgeting.
Gulick attributed his development of this concept to eminent French Management Theorist Henry Fayol’s 14
principles and 5 elements of management.
What are the tenet of POSDCORB?
➢ The core tenet of POSDCORB, as laid by Luther Gulick, says that any chief executive seeking to exercise control
over the affairs of any organization can do so through following a fixed set of these steps:
Planning:
• Planning is the hallmark of intelligent behavior. An organization, in order to reach its goals, must first set them and set them right.
• It is deciding the direction in which all the efforts and all the manpower of the organization will be directed over a fixed tenure of
time in order to strive for a predetermined outcome.
• E.g. In ABC Ltd., a toy manufacturing company, the plans for the next financial year are set at a meeting of all the departments such
as marketing, purchase & procurement, design &
engineering, manufacturing & operations, and IT at an annual conference. Here, the Chairman or Managing Director will present his
vision for the upcoming year. After deliberation and discussion upon it, the final vision with concrete milestones such as 25% growth in
sales, 12% growth in EBITDA (Earnings before Interest, Tax, and Depreciation), cutting down costs of distribution by 5% etc. will be
accepted by all the departmental heads and managers.
Organizing
• Here, the manager has been advised to arrange for all the necessary resources i.e. raw materials, monetary resources, human
resources, and technology as well as the
managerial expertise to help achieve the goals set under planning process.
However, certain problems may arise due to the division of work:
• It may result in the worker being occupied for only a limited number of hours leading to less productivity.
• It may result in certain workers doing the certain type of work only
• It sometimes leads to two complementary and essential tasks being cut off which leads to discordant progress.
Directing
• Here, after the plans have been laid out; necessary materials been sorted and employees hired to perform the jobs; the manager
has to direct their efforts towards the ultimate goals of the organization by dividing those ultimate strategic goals into small, workable,
time-bound targets.
• He has to perform the role of mentor and motivator as in telling them how to do their jobs in the best possible manner and
encouraging them to perform better by overcoming the challenges.
E.g. The new designer will need some time to adjust to the organizational culture and understand what’s expected of her. Hence, the
Head of Design and Engineering department will constantly guide her and solve her problems so that she can start contributing to the
visions of the company.
Coordinating
• Here, the Chief Manager would have to take steps to coordinate the efforts by various departments so as to ensure that they are moving
in tandem with each other
• For this, the manager has to arrange for the following two things:
• He has to appoint managers for each department/workstation/project who will coordinate the efforts of the employees under their
charge with those under other managers.
• Each and every employee has to be made aware as to how his role fits into the larger, organizational whole. This gives him a clear idea as
to his responsibility and prepares him to take necessary efforts for doing his part of the job.
Reporting
• Reporting refers to keeping the channels of communication open both the ways throughout the organization.
• This helps in reporting the progress of the work to the superior authorities and lets them make modifications to the plan if required.
Similarly, all the essential exchange of information such as problems of employees, new regulations, appreciation etc.
• can be easily shared with the concerned parties thin very less time and minimal distortions.
➢ E.g. There will be weekly or bi-weekly meetings held in each of the departments where the progress of the period will be reported to and
discussed with the departmental head.
Budgeting
Finance is the lifeblood of any organization. Appropriate and consistent account of every penny spent is crucial for the survival and
prosperity of any organization.
Resources – man, money, material and time – should be allocated to each and every work center or project in advance and the
employees responsible should be held accountable for their stipulated usage.
This is necessary to gauge the estimates for any such future requirements and also to investigate any source of mistake or fraud.
E.g. Continuing the same example, in ABC Ltd. there is separate department named as ‘Budgeting and Controlling’ that will frame the
budgets and allocations for all the departments after the departmental heads have submitted their goals for the year and requirements in
terms of money, human resource, materials, and technology.