UNIT - I

INTRODUCTION TO MANAGEMENT

Meaning of management:
Management can be defined as "a process of getting the work or the task done that is
required for achieving the goals of an organization in an efficient and effective manner. Process
implies the functions of the management. That is planning, organizing, staffing, directing and
controlling.

Definition of management:
● Management is the art of getting things done through people - Mary Parker Follet.
● To manage is to forecast and plan, to organize, to command, to co-ordinate, and to
control - Henry Fayol.
● Management is what a manager does - Louis Allen.
● Management is the art of directing and inspiring people - Mooney and Reiley.
Nature/Characteristics of management:
1. Goal oriented process:
Management is a goal oriented process, which is to achieve already specified and
desired objectives by proper utilization of available resources.
2. Pervasive:
Management is universal in nature. It is used by all types of organizations whether
economic, social or political irrespective of its size, nature, and location and at each and every
level.
3. Multidimensional:
Management is multidimensional as it involves management of work, people and
operations.
4. Continuous Process:
Management consists of a series of functions and its functions are being performed by
all managers simultaneously. The process of management continuous till an organization exists
for attaining its objectives.
5. Group activity:
Management is a group activity since it involves managing and coordinating activities of
different people as a team to attain the desired objectives of the organization.
6. Dynamic Function:
Management is a dynamic function since it has to adapt according to need, time, and
situation of the changing business environment.
For example:
MC Donalds made major changes in its "Menu" to survive in Indian market.
7.Intangible Force:
Management is an intangible force as it can't be seen but its effects can be felt in the
form of results like whether the objectives are met and whether people are motivated or not and
there is orderliness and co-ordination in the work environment.

Scope of management:
 Management practices are applied in the following major functional areas of business:
1.Production - Production management
2.Marketing - Marketing management
3.Finance - Financial management
4. Personnel - Personnel management
The relevance of the functions of management, namely, planning, organizing,
directing,coordinating and controlling for the various functional areas, namely, production,
personnel, marketing and finance may be explained by means of a diagram:

Production management:
In the case of a business manufacturing goods, production is an important function.
Production management is concerned with the proper planning, organizing, directing,
coordinating and controlling the production activities of a business may be stated as follows:
● Creation of the factory building.
● Acquisition of the necessary plant and machinery.
● Purchase and storage of raw materials.
● Attaining the targeted level of production.
● Quality control.
Personnel Management:
This is also referred to as 'Human Resources Management'. Personnel Management
is primarily concerned with the management of the human resources of a business organization.
The following activities will come within the preview of personnel management:
● Manpower Planning.
● Recruitment and Selection of employees.
● Employee training.
● Job analysis and evaluation.
● Determination of the correct remuneration for the workers.
● Performance appraisal or evaluation.
● Promotion, transfer, demotion and termination.
● Encouraging workers ' participation in management and so on.
Marketing Management:
Marketing is the total system of interacting business activities designed to plan, price,
promote and distribute want-satisfying products and services to present and potential
customers.Selling is only a part of the marketing function. Selling is concerned with the transfer
of title from the seller to the buyer. The philosophy of marketing is 'consumer satisfaction'.
The various marketing activities may be stated as follows:
1.Product Planning:
It is concerned with certain important decisions in respect of the following:
● Product mix - whether to manufacture one product or a number of products.
● Product modification - to alter outdated products.
● Product elimination - to drop unsuccessful products.
● Product life cycle - the measures to be adopted to handle the various phases of its life
cycle consisting of introduction, growth, maturity and decline stages.
● Branding - selection of the most appropriate name for the product.
 ● Packing - determining the type of container or wrapper for the product.
2.Pricing:
Determining the right price for the product is yet another important task of the marketer.
Cost of production and distribution is an important determinant of price. Some of the pricing
objectives of a business may be mentioned as follows:
● Target return on investment.
● Maximizing market share.
● Meeting competition.
● Prevent competition and so on.
The different types of pricing, which are followed by marketers, include, among others, the
following:
● Odd pricing
● Psychological pricing
● Prestige pricing
● Monopoly pricing
● Skimming - setting a very high initial price
● Penetration pricing - setting a very low initial price.
3.Physical distribution:
Most marketers distribute their products through a network of middlemen. Physical
distribution is a wider term which includes not only the channels of distribution comprising the
wholesalers, retailers and others but also storage and transportation which are vital in
distribution.
4.Promotion:
Finally, the marketer has to take certain important decisions on the promotional
measures that he would adopt to create demand for his products. The various promotional tools
are:
● Advertising
● Publicity
● Sales promotion
● Personal selling and
● Public relations
Financial Management:
Finance is the basic requirement of any business.
A business requires fixed capital to acquire fixed assets like land and building, plant and
machinery, furniture etc.
It also needs working capital to buy raw materials,pay salaries and wages and to meet all
the other routine expenses.
The following are the sources of fixed capital:
● The proprietor's own funds - in the case of one - man business, partnership or a private
company.
● Share capital - in the case of public and government companies.
● Debenture capital.
● Long -term loan from financial institutions like the IDBI, the ICICI, etc.
The sources of working capital are as follows:
 ● Overdraft
● Cash credit
● Discounting of eligible bills
● Trade credit from creditors, etc.
Financial management is concerned with the following important activities:
● To find out the long - term and short - term financial needs of the business.
● To identify and choose the right source of raising funds.
● To ensure proper utilization of funds.
● To ensure the shareholders a reasonable return on their holdings.