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Unit-2 Planning: Concept, Process, Type, Importance; Decision making: types of Decision, Process of
decision making, Models & Issues.
Unit-5 Contemporary Issues: -Recent Trends and Challenges, -Role of Managers in Changing
environment, -Contemporary Organizational Structure, Trends in Management, Challenges in
today’s global environment and competitiveness.
References:
CONCEPT OF MANAGEMENT;
Management may be defined in many different ways. Many eminent authors on the subject have
defined the term "management". Some of these definitions are reproduced below:
2. Management also implies skill and experience in getting things done through people:
3.Management is a process: Management is a process, function or activity. This process continues till
the objectives set by administration are actually achieved.
5. Management is a Science as well as an Art: Management is an art because there are definite
principles of management. It is also a science because by the application of these principles
predetermined objectives can be achieved.
8. Management is a group activity: Management comes into existence only when there is an group
activity towards a common objective. Management is always concerned with group efforts and not
individual efforts. To achieve the goals of an organisation management plans, organises, co-
ordinates, directs and controls the group effort.
10. Management involves decision-making: Management implies making decisions regarding the
organisation and operation of business in its different dimensions. The success or failure of an
organisation can be judged by the quality of decisions taken by the managers. Therefore, decisions
are the key to the performance of a manager.
1. Planning: Planning is a basic managerial function. Planning helps in determining the course of
action to be followed for achieving various organisational objectives: It is a decision in advance, what
to do, when to do how to do and who will do a particular task. Planning is a process which involves
'thinking before doing'.
2. Organising: Every business enterprise needs the services of a number of persons to look after its
different aspects. The management sets up the objectives or goals to be achieved by its personnel.
The energy of every individual is channelised to achieve the enterprise objectives. The function of
organising is to arrange, guide, co-ordinate, direct and control the activities of other factors of
production, viz., men, material, money and machines so as to accomplish the objectives of the
enterprise.
3. Staffing: The function involves manning the positions created by organisation process. It is
concerned with human resources of an organisation.
4. Directing: Directing is concerned with carrying out the desired plans. It initiates organised and
planned action and ensures effective performance by subordinates towards the accomplishment of
group activities. Direction is called management in action.
5. Leadership: A manager has to issue orders and instructions and guide and counsel his
subordinates in their work with a view to improve their performance and achieve enterprise
objectives. Leadership is the process by which an executive or manager imaginatively directs/guides
and influences the work of others in choosing and attaining specified goals by mediating between
the individual and organisation in such a manner that both will get maximum satisfaction. Leadership
is the ability to build up confidence and zeal among people and to create an urge in them, to be led.
To be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-
confidence and personal integrity. Different situations may demand different types of leadership,
viz., autocratic leadership, democratic leadership and free rein leadership.
7. Motivation: The term motivation is derived from the word 'motive' which means a need, or an
emotion that prompts an individual into action. Motivation is the psychological process of creating
urge among the subordinates to do certain things or behave in the desired manner. It is a very
important function of management. The importance of motivation can be realised from the fact that
performance of a worker depends upon his ability and the motivation. There are many strategics
adopted by managers for increasing the motivation of subordinates.
10. Controlling: Controlling can be defined as "determining what is being accomplished, that is
evaluating the performance, if necessary, applying corrective measures so that the performance
takes place according to plans. Control is essential for achieving objectives of an enterprise. The
planning of various activities does not ensure automatic implementation of policies. Control is the
process which enables management to get its policies implemented and take corrective actions if
performance is not according to the predetermined standards. If planning is the beginning of the
management process, controlling may be said to be the final stage. If planning is looking ahead,
controlling is looking back.
1. Technical Skills: Robert Katz has put various management skills into three broad categories;
technical skills, human skills, conceptual skills. It refer to knowledge and proficiency in processes,
procedures, methods and techniques which are used in doing a work. These skills are hard skills and
are easily visible in a person. Technical skills are developed by accountants, engineers, managers,
and other persons through the actual practice by doing things.
2. Human Skills: Human skills, also known as human relations skills or administrative skills, are the
ability of a person to work with others on a person-to-person basis and to build cooperative group
relations to achieve group objectives and, consequently, organizational objectives.
3. Conceptual Skills: Conceptual skills, also known as general management skills, are related to
concepts and mental perception conceptual framework intended to develop new ideas, products,
etc. Conceptual skills refer to the ability to see the whole picture to recognize significant elements in
a situation and to understand the relationship among these elements. In short, technical skills deal
with things, human skins deal with people, and conceptual skills deal with ideas. Managers require
these skills. However, what "will be proportion of these skills in managers depends on the
management levels at which they work. Managers at lower level require technical skills more;
managers at middle level require human skills more, and managers at top level require conceptual
skills more. Besides these three skills, various writers and researchers have provided other skill sets
for various levels of management.
Top Management Skills: As per need of the world, much attention has been focused on the skills and
their development in top management because this level is the major driving force in an
organization. In a survey of 90 global chief executives, conducted by Anderson Consulting, a USbased
consultancy firm shows that the chief executives require fourteen skills. Accordingly, a chief
executive thinks globally, anticipates opportunities, creates a shared vision, develops and empowers
people, appreciates cultural diversity, builds teamwork and partnership, embraces changes, shows
technological savvy, encourages constructive challenge, ensures customer satisfaction, achieves a
competitive advantage, demonstrates personal mastery, shares leadership, and lives the values.7 In
Indian context, one such study of 125 chief executives has identified various relevant personal skills
as analytical skills, creativity, sense of high achievement, risktaking aptitudes, business aptitudes,
leadership; job-related skills such as corporate perspective, knowledge of external environment,
outside contacts, planning processes, and accuracy in work.
Middle Management Skills: In middle management group, there may be managers at different levels
placed between the top management and supervisors. Usually, they are concerned with a particular
functional area of the organization. There is a tendency of faster movement of this group of
managers. Therefore, they require a variety of skills which must be relevant for their entire 18
Management Concepts and Practices Notes career. While at the lower end of middle management,
more of technical and human skills are required; at the higher end of middle management, more
creative and integrative skills are required. Thus, the managers in the middle management require
human relations skill, leadership skill, motivating skill and integrative skill.
Supervisory Management Skills: Supervisors may also be classified into front-line, intermediate, and
senior. Since they are directly concerned with operatives where the actual operations of the
organization take place, supervisors should possess skills which help them to get things done by
operatives. Every supervisor in the organization should have sound technical knowledge of his field
to provide proper instructions and guidance to operatives, interpersonal skill to develop cohesive
operative-management relations, accuracy in work, motivational skill for creating proper work
environment, and communication skill for interacting with higher management.
The process of management involves the determination of objectives and putting them into action.
Management is an activity consisting of a distinct process which is primarily concerned with the
important task of goal achievement.
No business enterprise can achieve its objectives until and unless all the members of the enterprise
make an integrated and planned effort under the directions of a central coordinating agency. This
central coordinating agency is technically known as management and the methodology of getting
things done is known as Management Process.
According to G.R. Terry “Management is a distinct process consisting of planning, organsing,
actuating and controlling performed to determine and accomplish stated objectives by the use of
human beings and other resources” Under management as a process, management is considered as
a continuing activity made up of basic management functions. The process is ongoing and
continuing. It assumes a cyclic character.
1. Planning: Denotes the determination of short-to-long range plans to achieve the objectives of
organization.
4. Controlling: Offers assurance that directs action i.e., plan in-action is taking place as per plan. We
have an ongoing cycle of planning-action-control replanning Control function closes the system loop
by providing adequate and accurate feedback of significant deviations from planned performance in
time.
Feedback can affect the inputs or any of the managerial functions or the process so that deviations
can be removed and goals can be accomplished.