MANAGEMENT : AN OVERVIEW

, · )Vo job is more vit,1/ to our .,'ociety t/J;m tlwl ol the manager. It i<
-( the m,111c1ger wh~ det~rmines_i,v/Je ther our soci,Jl Jnstitudons serve
us woU or whetheI; ihey squander our 1dcnts resources."
Hen(Y ;Wintzbe,:g
~ day's world ~onsists of m 1"y 1E:1Y, small, big, giant_, loc\U, nati~naL
multinational and global Organisations. lbese il!clude so0al, political, religious,
cultural and , of ','l_l}rse, business organisations. Success of all these deg e n,ds
on their effucti_ye alld eff_i_c ienrmanagemi::nt. Therefore, management I~ays a
most powerful and c"rucialr"ole in the success ·and survival 'of the whole
world. Consequently, ;;1anagemeht h'ls emerged as a powerful 'institution', a
gr~~at 'resource' and an impQI!a]lt 'discipline of lear!lli:,g' in th!' mo<;lern
world Peter Drucker, the worldts well knovvn management guru, has very
ap · y re~arh ed that ''the emergence of management as an e!'sential,
distinct.and a leadiJlg institution is a pivE_:t.al e y e1!,t in social history.
R_arc!y, if ever, has a ne_w_basic institution, a new leading group,
emerged as fast as has management Since the turn of this (Twentieth)
...----. -
?en_t•ffY· ~ qrely in ~uman hisf?".Y-Mas· a neW instituti'?n 1'.ro,:c!'
• 1nd1spensable so quickly; and even less often has a new n1.stitut1on
arriyed with .so Jittle oppositio~, so Uttie- disturbance, so Iittle-
c~ntroversy." - .. ,
l\llanagement is regarded as the most crucial factor in the success or
· failure of any business organisatio'n. It plans, organises, directs and controls
the aclivi~es and resources for:- the purpose dr achieving common objectives.
It mobilises-and utilises human, phrsical. financial and inforrnalional resources
eff ~ctively and efficiently. It make~ tltlngs happen in ·the org&O.isation: In the
words oJlDruck~r, "Manage1nent is the dynamic life-giving element h1.
every b usiness. Without it the resource s of production 'rcinain
resources and never beco1ne production.", .
Management plays a significant role in the welfare of the socictv .
h I A
w , o e. s a .matter ff .. as a
o act no. job is .more vital to our society than tl la t~O f tl7.C_
-
rn.mager . It 1st1'le manager who d ete rmines whether our social in s titutions
serve u s well
1t,#":11"'~b .-,
or whether they squander
.
our talents <and reso u1, ces. '··117e.1.1r1
FLr. •

in~. ~ . CI:(1..1• - . '

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2 :) Management : An Overview
Management : An Overview 3
( In the words of Newn1an, Sununer and Warren "Managmncnt makei
talks about the same. In other words, he makes certain generalisations about
a significant contribution. Consumers' needs are met, e1nployees Sa.ii
that thing, activity or pe_rson. In the process of generalisation, there emerges
jobs th.at g ive them an ever-higher standard of living, suppliers fine
an idea or image in his mind about that thing, activity or person. This idea or
markets for their materials and goverrunents have resources of direc,
and indirect taxes .. .'j image is his concept about the thing, activity or person.
Management has also been regarded as strategic factor for economic
growth in any nation. It can creale capital, increase output and can creatE
wealth for the nation. It can help eradicate hunger, poverty, disease and
i gl)orance. It can bring h_gpour for the nation. Moreover, management is ai
the s ame tune, ·t he determiner of our economic progress, the erri,
ploycr of our educated, the aniasser of our resources, the guide for
our effective govermnent, the strength of our national defence, and
the 1nolder of our society. fcJadeS. George Jr. ./
The role of management is becoming more and more difficult and
challenging in the modern ever-changing world. Today's managers work in
a global economy. They deal with a differe111 kind of work-force. They are
even expected to act as trustees o ( physical, financial , human and inforrn'l-
tional resources. Therefore , today's and tomorrow's managers have to be
,?
proactive as w e ll as reactive. They 1~ ust be _ginoyative. They must exercise
influence to make things happen. They rn4St be highly sensitive and responsive Figure 1 .1 Lord G.!ineshji : Some view him as deity with big head,
to the needs of the changing times of 21st century. large ea_rs, long nose and small mouth while others treat
It is a matter of immense pleasure and p ~~ide that young corporate, hinl as the "inspiring power'. Yet others regard him as the
executives in India are~rea dy to fac e the challenge. In the words of Mukesh bestow~r of prosperity, i.e. 'ridhi-sicldhi'. Are these n9t
D. Alnliani, Chairman, Reliance Industries Ltd., "We are living in a new · the different concepts about Lord Ganeshji ? ·
age, the age of_glohalised economy . . . .- By setting the goal of glof>al
leadership before us, we are cmnnu~ ourselves to cllinb the_EvereS t For instance, many devotees g9 to the temple of Lord 6Bnesh.(i. Every ,
of global economy. The t ;.sk ls h ~ ! -li'rdous ; but not impossibl~ to devotee gets c/arshm-i(view) of th~ 9-e~ty~ f Ganeshji and ;-aY ~t
1:ear or read
achieve. In my view, competitiveness is critical for a successful assault so many things in his praisse or prayer. During this c_ourse, some image about
on this high peak. Our attitude to competitiveness is a barometer of Ganeshji emerges in th_e minc;l of every devotee. If any body asks these
our self-confidence, and efficiency is the most crucial component of devotees who is Ganeshji , the answer would not be the swne from all the
competitiveness. Faced with-ruthless global c onlpetition, we have to devotees. Some will describe his physical shape and a few others will
vvorship the goddess of efficiency with unflinching dedication." highlight the special features in the praise of Lord Ganeshji. Yet some other
devotees may describe Ganeshji in some philosophical way. Thus , every
( h\ ~NCEPTOFMANAGEMENT devotee develops a concept about Lord Ganeshji based on his-angle of
· There
\J/'are several different concepts about the term 'management •· BUI, viewing the deity of Ganeshji.
it \1/ill be in the fitness of things to explain the meaning of the term ·concept The devotees who view the physical features only may say that Lord
be[ore discussing the conce pts of mana gement. Ganeshji has a -big head, two large· ears, 'two narrow eyes, a long nose and a
small mouth. The visitors who are .lmpressed b y his greatnes s may describe
Meaning of Concept: that Ganeshji is the.first among the lords to be worshipp ed {Prathazn pu.lya),
Concept is the ir1,.,. or iinage or und erstandi ~e ~ der of P...1=.0 ~perl!:y_. i.e. 'ridhi-sicldhi'and the benefactor of knowl-
a person - that -emerges in the- mind- of ape rson A12g-about a- thin,,., "" ac1ivity_
,.... -- or
•
8
edge. Other d~votees with philo~ophical.!'!!1':'.C!U': may 'describe that Ganeshji' s
New- Collegiate Dictionary, '"A conceptis a·bstract 1'd to th e all
ccording We~stcr I frotTl big head in~pires to think big and positively, narrow eyes pointus to deep
p a rticular instances." . ea gener se< . concentration needed to accomplish our tasks quickly and carefully , long
nose tellsus to poke arou~d~ o learn more , small mouth reminds
As a matter offact, when e ver any one sees some thin . . crs oo,
· d unrneu,a
. JTllll · -" t e 1y ca t c h e s an
. 1"d ea or Image
· . g ,thing or ac 11-vi·ty or
acnv1tyorP ..is to speak less and large ears prompms to listen patiently new ideas and
about Lh at suggestions more and mor e.
h e15rson · Th e reafter, when h e finds some nme and need arises, . h c tJ... ioI<s o r
P
a ,zJea_
 , _~u~·: s=:.:.• ..- - -
,_
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. & ~-1 , 5
Management : An Overview Management : An Overv!ew
~- ~ e m e n t a s a system of' authority-Management professionals
.
; 1 4 - '"d of every person there emerges an idea
. I thatinthenw•
Thus, 1tis c ear
' d
. 'ty or person which he sees. Such an i ea or anctexperts view management as a system of authority. It is a matter offact
thiJ180f4CtiVI , , that for getting things done, managers at each level require proper authority•
or 1mage about 8 f the physical feature$ or other.}lll~tiliap~~ of that
,
tmage emerges
because O h 1,,1_.,,
hi Idea or bnage ls the concept about t at t ......118 or Therefore, every superior ~ a t e s authority to his subordinate. Every
'.f1
1
T of the person who sees or lm aglnes.
8
•\.'"" or person, manager tum, becomes liable to his superior for gettingthingS done. Thus,
t
uuue ,nlnd
erson In the . a chain of authority and responsibility.ls created between the superior and
·r _'"'""applies to management. Ev(lry person may conceptualise
ThesaJTll><.I"'"' · . subordinates across all the levels of the organisation Consequently, superior
, ·"•"ement' in the manner he seesp 1nderstands or imagines it.
the tenn, mw-o assumes a position and power to give orders and to get them executed. This
( CLASSIFICATION OP CONCEPTS OP MANAGEMENT results into a system of authority or hierarchy of command in the organisation.
The term 'management' is viewed and applied in nrultiple ways depend- . ~ e m e n t a s a discipline-The term 'management' is alsaused to
ing on the-user's purpose. Ali a result, m.irnerous concepts of management ~igqify an academic discipline or a field of leanling. Though it is relatively a
I
/ have emerged. All these concepts may be clas,sified'lmd~r the fallowing two youngt'ield of learning but it is regarded as an important academic discipline.
categories : ltlui.s an~rganised body of knowledge which can be taught and learnt. 'A large
l Concepts as a noun, and number of scholars and practitioners are working hard to enrich and refine
.n. Concepts as a verb. the knowledgb in the field of management. Vast amount ~f management
literature is av~able and is being published every year. All these facts are
I. C6ncepts as a Noun : ( ~ . wfdent of the existence of this discipline.
,/ The term 'managemen~ ometiines-used as a noun. In the sense of a ~ a g e ~ e n t as a career-The term 'management' is also"l.lsed to
.m m , £~ wing are the main concepts of the term management: si~y a career ~r an occupation devoted to managing the activities of
~ ementas aneconomlca,esource-Economists regard man- or~tlons. Any_p erson when joins a position in which he is responsible for
;e~ntas one of the factors of production. They consider it more iinportant getting things done through others, he is said to be in the management·career ·
d creative than the other factors of prpduction such as land, labour, capital or ·occupation. The field of management is providing challenging and
Management is that factor of E_l"Cl~ tig_n which collects and coordil!atfili.lhe rewarding career opportunities world over. Numerous youths are in waiting
other factors of production in the pro~ ~e piocess.It ensures-their most line for the dream career in the field of management. ,
efficient and e~ectiveuse. Drucker, tl\erefore, regards itas the basic and Ali a career or occupation, ·•--.,ement
ma.:.aa · ·i s a broad
· conc~pt. It includ ·
costliest ~urce,._of a bualneaa enterprls.e. caree: opportunities in general management as well as in functiorial - . , e!i
.:&.-Management - an organ of busine-- Managementl{UIVPeter management. Mar~finance, production, purchasing . . ~ -of
Drucker views .-nanagement as an organ of a busine&& enterprise, He factory
in th supervisor positions etc. are some of the -•-•a ~nnelmanager'
...... or' career op~--m... . .
...-- "'.'"" .... .es
c::;,.:::·
regards it as a multi-purpose organ that manages a business and manages e management ·o f a business organisation. Butit sh Id
' managing is a tough and demanding oc ti , au be noted that
managers, and manages workers and their work. Without this organ we would
rewarding occupation f.o r those who Nevertheless, it can be a
not have a business enterprise or an industrial society.
ready to work sincerely for long hours. P necessary skills and are
a. Management as a class of persons or elite- Sociologists view the
tenn ·management' as collective noun. They-use itto refer 'the boss' or those ~'1cepts as a Verb :
persons who manage the affairs of an organisatiQn. ln other words, theyuse The tenn 'management' is alsoused as a , ... . . ·' ·.
the tenn •management' to r.e fer those persons or elite who directs the work management means what verb.or an activity, In this
of others.Jn this sense, managementmeansateam.ofmanagersatall the levels efficiently and.effectively. Jmanagers do far accomplf - ..h•~-
... -e the O b. Jectives
_~ •
__ , ., ation. It includes not only the top executives but all the rnanasers Management practitioners and·wrt...- -
0 f ,,an org cu,...... W&y,1he '·' ""'" there(
_,,i., ry authority over others across an organisation. for , ... Yliaw,pe~ved,c~nceivedor~rt ore,deflned-thetenn.inttie, .
who have sup e • ¥- 0 ' all bUt ~ qmplishing the obje,ctives. But:unfornu:ced the activitjes of. . ers
are considered as elite. 'Vheh\.,_
'number is"Usually sm
Managers essive grc:iup. They ,enjoy a high measure of prestlged ~ ~ ters ~ v e d or-conceived the activt tely' most of'the.p.ramanagctttto
- --Consequentl · tiesof - •· ners
constinite an aggrThey are highly p jl'.id persons in the organlsatlon, an deflnlt1onof1n11na~~~twoconceptsof·manaa1~.. Illanagersfro'mtheirown
. ---....,..-elsuni rsall ----.,..'t!iareiden..ucal and no sir18le
...
privilege, power. high standard quality in life . - ve y acceptable.
therefore, enjoy a
Q...
\
~ ~ - ,; -- -=--- .' ... ~
... . .,. ~
1
.. , -.. . . 1
..· ----~~p !=
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~!·==·::.~-.;•:..:•.;·---~.. ;. _:..-------- ---.. .
rv-.. •..__, ;·,1 -: -~~ '"'-' - •"
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6 7
Management An Overview Management : An Overview
8
~anagement as the art and sci~nce getting' ~ ~-:me through
others-One ofl the earliest concepts of management 1s that it 1s the art and
science of getting things done through and with others. MarY Parker Folle~
is credited for this copcept. This conc~pt stresses th~ ~portance ~f ~rgani-
sation, team work, delegation of authonty and coordination for achieving the
objectives. This concept also recognises that managers skilfully apply scien-
tific irowledge in doing their job for getting things done.
~ e m e n t as process of fWlctions or functional concept-The
process or functional concept of management was developed by Henri
Fayol, the father of modern management, According to this concept, man-
agement is a process of interrelated functions i.e. planning, organising,
directing and controlling. Every manager accomplishes the objectives of his
organisation by following this process. With this process, a mannger ensures
th~ti_lisation of resources efficiently and effectively for accomplishing the
obiectives. _
The advocates of this concept believe that the management functions can
be~t be performed by following the principles of management. They also
be:;;ve that the principles of management are"\Jniversal and can be applied
to the managerial functions everywhere.
~ agement as the development of people- An0 th ,
managementwasdevel db . . erconceptof
igure 1 .2.:Six blind men and an elephant. Various parts and different concepts field of management 1t3~~c1Thiolo_gists and p~ychologists working in the
h . s. s concept 1s termed th
uman-or1ented concept· Thi s concept is based th as . e people or
Incidentally, one is reminded of the story of six blind men and the agement can achieve its objectives efficientl on e premise thatman-
elephant in which each blind man tries to describe the whole elephant fro~ people or employees in an org . . y through the development of the
anisation.
the part touched or caught by him. First one who happened to fall against his
The advocates of this conce t b Ii ',
broad and sturdy side (i.e. stomach or belly) said that elephant is like a wall. n;;:n~ of people and not the dire!o: o~~at management is the develop-
The second feeling the tusk said that it is like a spear. The third approaching 11 1mtis1I auon · "Th ey stressed that m gs · • • Management 15 · personnel
the trunk said the elephant is very much like a snake. The hands of the fourth
fellupon the knee and legs, who felt it like a tree. The fifth reached"\Jp to the
:1a~: ~ough ~etter education and tra;:;:J~rs
in ordy ephys~ological, psychological and gcial ..
;~st develop their subordi-
ey must-understand and
ears and told that it is like a fan (manually operated). The sixth who caught er to motivate d d so needs of th ·
the swinging tail said the elephant is very Itll)ch like a rope. must also develop : ~velop a sense of belongingne subordinates
opportunity to maximi er;:;:orunent in which every e s:- oreover, they
Similarly, every management p ractitioner or waiter conceived and per- goals. . se contribution to the achie mp oyee can find an
ceived the activity of management from his own angle. As a result, the I~ -- - - . vement of organisational
following concepts of the term 'management' as a verb have emerged : ag ""••uanasement as lead shi
( 1. Management as µie art of doing things in the best and cheaper th;ment ~s a function of lead:;shi' p-There are also experts
function of executi 1 p . R. C . Davis stat tha
w .
ho VIewman-
way or productivity or scientific management concept-The earHesL-- ve eadershi es t "man
conce t of m ement is known as the productivity concep t of management . ~ ers llJana~through leadersfuanywhere.'' According to _a gementis
:nus conce t was developed by F. . ay o r , the father of Scientific Manage- vi I~ Management as d i i E.· this concept,
\ ~ t. Accor ding to this concept, management is the art of knowing what
you want to do and then seeing that It ls done In the best and cheapest
way.

ew manag
or onaream
. . .ong sue x

ec s on-makin
.rnan,,.,...,.,1-_:mentas a decision-m .
~ h e does through
g-There are so
~ g activity. Th
deClSJ.ons.
· • R~ y
b i_ne experts who
v e Wh ateve
gantsing coordin . perts. Herbert s· oss oore and r a
The basic assumption behind this concept is that there ls one best way sion s . Success
' of • . or unon sta tes that Whil Herb ert
ating ' motivating
of doing a thing. sions. ·- - managerslargely d ependni controlling, m anagers epl,.n~,--
inai;-.... ~,
- pon the qualit e deci -
y of th .
- - e1rdect-
.,
.. ·, .-. ·. ~
' 8 Management : An Overview
Management : An overview
. 7. Modern eclectic concept-Modern concept of manag~ment is corn.
{ prehensive, all inclusive or eclectic. It includes the essentials of most of the
concepts of management Prof. Koontz, Prof. Terry, and Prof. Albanese
i
are among the pioneers of this concept.
According to this concept.management is the process of designing
L \
and maintaining an environment·in which people can work together ------ iii -~
and accomplish goals by using the human; physical, fin~ci~ and •• _, C: :e
,g :E
~)!-io0Jo .!mc,ft
j·g
"' ii! "' C: oO
lnfonnational resources of an organisation efflcie~tly_a nd effectively,
© MEANING AND DEFINITION OF MANAGEMENT/MANAGING
l!:&Gl
::, en
:i
u.. ei · ai
\
Itis often asked from the students, 'whatis management' or 'what do
0 0 a::
i
you mean by management' or 'define management'. ·11: implies from the
question that the person posing the question is asking the meaning of the tenn
management as a verb, Le., managing. The students are expected to answer
f,
f
accordingly.
There is nauniversally accepted definition of the term 'management' or J
i· f
'managing'. But perhaps the simplest and most popular def"mition of the tenn
~ ~ m e nthas offered by the ~ell-known management philosopher
~ Uett According to him,- ''Managem~rit !s the art of getting
i:CD
· ~ arker
' -t hings done tlu:CJ\lgh other people."
-Prof. HaroldKoo~ ~
· · . ·
·.e
e
·C j , l
j
this definition and stated that "Management
·s: ·>
is the art of g~things done through and with In formally organised
groups."
·c
w
."'ii
! •·
al'
The ab;-Je defimtioh is s~ple and easy taunderstand but many experts
-~
!
E
,f and scholars view that it suffers from the following drawbacks :
,Ji CD •
(i) _ It fails to highlight the functions a manager performs in getting Ji
f things done through others. _
(ii) It treats management as an art. Buttoday's manage~nt is fou nd:
"'
,..;
-upon scientific principles. Thus, it Ignores the scientific aspe
of management.
j
_..,~.,. thindS done-
(iii) It regards people merely as the means of ge ..£0""
nrus, it .ignores human aspect in getting things done.
(iv) It does not reveal the resources-used for getting no .
except the human resource.

,,
thi dS done
iJI

,
c

i a
.
cii Ill
s
fr DJJlent en ;,
111
(v)It ignores the role of organisation an d 1ts env o
e
E Ill C 111 ::,
-z
a. ::, >, 111 0
managing~ eJJlefll J: .c
a. .5 Ill
ee I I I
LL .E
(vi) LaSdy, it does not highlight the obj~for~hiclun~na&, .5
i
gets things done. lly 8 c·
. w of these facts, above-stated definition is not universa ement
In,vte nt practitioners and writers define the term JI18Jl-881s fof
cepted- ~ e r n e They define .rpanagement as a process of funcd~n nt /.
on a wider horizond... ~lnedobjectives in an ever-changing environqte .,.
accornp
Jishin8'Pre e.eu,-•
. "tlons are as follows :
•
few such def1Ill
....... r,' 11
10 Management : An Overvtew
\1.anagement : An Overview ,__} .
According to Weihrich and Koontz, ''Management is the process of Nithout objectives, management process is like a trip without specific desti-
designing and maintaining an environment in which individuals, working
1ation, would be aimless and wasteful. /KreJtner/.
together in groups efficiently accomplish selected aims.'' _0 t
is an environment-oriented activity- Management is an environ-
·
In the words of Kreitner, ','Management is the process of working With nent-oriented activity. It is a matter of fact that external environment heavily
and through others to achieve organisational objectives in a changmg ufects the working of every organisation. 'Iberefore, rnariagers are bound to
environment. Central to this process is the effective and efficienh.Jse of :io what external enviionment warrants. Consequently ,~agers create
lli:nited resources." · llll~ an internal environment accordingly. /RoberlAD,a.iese/.
In sum, IIUIDBgement is the process of planning, organising, direct- creative activity-Management is a creative activity. It makes
ing and controlling activities of, and using resources of an organisation things happen. Itis the dynamic activity whictruses hurnaJl, physical, f':inancial
·1 for accomplishing the organisational goals efficiently and effectively in and informational resources efficiently and effecJive for•creating wealth. It
creates more than the sum of individual efforts and resources-used in the
an ever-changing environment. Resources include the human, physical,
financial and informational resources. process of production.Peter Dnicker has, rightly observed thatinanagernent
. It should be 1?-ote~ that the term 'management' has been defined by is the dynamic life-giving elemP.nt in every organisation.
various experts m different ways. All these definitions have been BOX 1.1 :KEYTERMSANDCONCEPTS
systematically classified. For all such definitions please refer box 1.4 Goncept is anJdea or image about a ·thing or actirjty or .person
given b e ~ the test questions at p,te end of the chapter. ·under specific circumstances. , _
concepts of management may be classified !15 an economic
~CTERISTICS/NATUREOFMANAGEMENT
resource, as an organ of business, as a class of elite persons, as a
Following are the main characteristics of management which highlight system of authority, as a discipline and as a career.
the ~o/ of management: Management is the art of getting things done through and with others
~ e m e n t is a distinct activity-According to Terry and Franklin to achieve organisation goals. ,
management is widely accepted as a distinct activity. It can be studied, Management is the process of planning, organising, directing and
mastered and practised) It is a most·demanding and challenging activity. It controlling activities of, and-using resources of an organisation for
conve~sorganise::d resources intouseful goods or services. accomplishing the organisational goals efficiently and effectively
~ e m e n t i s human activity-Management is a human activity. It in an ever-changing environ1nent.
1
can be accomplished only by and through human beings. Management is Management is a process : a process performed for accomplishing
added .by computers but cannot be replaced by the computers. /Ter,ry811d stated objectives; a process of functions ; an integrated, interrelated
.n-ankDnJ. · . an~ continuous process, a social process, a dynamic process, a
3. An activity dealing with human organisations- Management deals uruversal process and a rational and intellectual process.
with\human organisations. Animals have no organisations and hence
cannot be managed. Moreover, animals are trained, not managed. An • It is universal activity-Management is a-universal activity. I~ is
.)Fainer is, therefore, not a manager. /Carlla.le/. performed in kinds of organisations irrespective of their nature, type, size
~t takes place in formal groups-Management is the activity that and purpose. Itis performed in small, medium and big ox:ganisations as well.
It is performed in all organisations engaged in 'b.usiness, politics,
talces informal groups or organisations. Unorganised groups of persons are rel.Jgion~ar, philanthropy. /HenriFayoJJ.
me~ ere wds and they are Iargelyunmanageable. t
•~ t i s pervasive at all levels-Managerial activity is pervasive at all the
activity for getting things done through others-ManBSemen
• An perform levels of P.very organisation. Every manager at top, middle and supervisory
. tivity for getting things done through others. Managers . ) f r levps ~orms the same managerial functions and activities.
is an ac . • . in d. . d ntro~ o
erial functions (planning, orgarus g, irecting an co fore, j ,
-~ It is an activity of~-Management is an activity performed by
~g . done through and with others. Mary Parker Follett, ther:usb elite or distinguished persons. Such persons have speciaj_knowledge-, skills
5
gewngthingd th t management is the art of getting things done thr
remarke a and ." JP~nce. They enjoy privileges , high status, and five-star-facilities .
eople. rposefu 1 .~~gement is a process-One of the salient features of manage -
o er eful activity-Management is always a pu of
i th~ t a ~urp:~owards accomplishing some objectives. 5ucce::ed- ment 1~ .t hat 1t 1s a process. This process has the following features :
activity. It IS directe asured by the extentto which objectives are achi
managers is generally me
,. -- ,ni., ,,.,
;.-'
 -
7 ,
11

i, I
12
Management : An 0v
(i) ltlsapro.,..,p,rlorndfoc==plishing,1o1eaobJe01, -m•m.
e~ .' An overview
1- • I
\ ·~
'- - ~~
13--......___,,
different from the activities, techniques and proced 1!{1 / r7 Fonniiating po1icies
(ii) It is a process of functions consisting of planning, or and p1an9
I directing and controlling of activities of members of the or~ -----·
(iii) It is an integrated, interrelated and conthmous Proce
(iv) It is a social process which is canied by the people, With~ Admlnlatntlon :
of people and for the people of organisation and society at~ ExecullOn ol policies
(v) It is a dynamic process which changes with the change in tiine andplanS
Ii .
circmnstances. I I
(vi) It is a universal proce,ss which is. performed at every lev, ·
organisation and irrespective of its nature, size, location,
II objective.
(vii) It is a rational and intellectual process. For details l'fl Figure 1.5: Hlera'ctticalSystem of Authority_
Chapter 2.
~agement involves dec~n-nmldng-Managerentin~o!ves
decision-making. While performing functions df planning, orgai:us~,
directing and controlling, managers have to make decisi~ns. Peter Drucker
has, therefore, rightly remarked that 'Whatever a manager do~ he does.
through milking decisions.'
I 18. Management is an integrating or coordinating force-Manage-
;/
ment is regarded by all that coordination is not a function of management but
"
1
( I ) itis the essence of managership. Management is an integrating or coordinating•
force. It coordinates physical, financial and informational resources and
activities of human resource for accomplishing the stated goals. Every manager
coordinates individual and group efforts while performing every managerial
function
17, Management ls concerned with productivity- Manageiriem is
, Figure 1.4: Process of Management
concerned with productivity of its-resources. And productivity reswb f~m
the efficiency and effectiveness of resources. ~erefore, ~very manager has
·- 1-:r. Management is a hierarchical system of authority-For getil t1JUse resmirces well and without waste./. e. efficiently and to acllleve desired
authority to his subordinate manager. Each subordinate manager, m
:
thfrlgs done', every manager at every level of an organisation delegat~s
becomes responsible to his superior manager. In this way a chain of autll

g o ~ _,tfects, .I.e. effectively. .

Managem~nt is intangible-Management is intangible. It cannot be
seen or touched butits existence can be felt in the fo .. f od

·
or responsibility (Le. chain of conunand) is created between the_supe;;::. of its efforts. Sometimes, existence of management~!;elt : r ~tsdbseresults
subordinates across ·a11 the levels of the organisation. This challl co r¢ where there is mismanagement. Y1 a nee
several managerial positions which is known as hierarchy of J1]8Jla8~eil 19. Management has distinct identi
Authority flows from top to the bottom across all the levels ~f man tflll' ment is int--oa
.. nmble but the persons perfonnin
ty and endty-Though ----.,m,,ruoae-
hi; z This system is known as the managerial hierarchical s~s ,
':{_ar~hy. tangible and identifiable human b Ing g managerial functions are
0 iden~ty and entity from the org~:tio s. ~erefore, managers have distinct
~ w .
ce
Universal principles-The practice of management ,
_ell established principles. These principles have been ~:rresJ
by managementpracti~oners and academicians after a good deever, apPlt1

and ~ntrepreneurs particularly in th n . ey are ever distinct from owners

cas~,,off~y org~sations, top . e :ase of co_m panies. However, in the_
mell)bers orrl!latives of the o w n ~ rial positions are held by the family
and analysis. These pnnclples have-universal application. ao;:,n to silLl'd~
don of these princlples is culture-bound and differs from situ•
'---..
\.
y 14

11.,...,:> .• ~-"- ~
15
_,, Management : An Ovel'Vie,,
Management : An Overview • .
20. Management is a combination of art and science-Managern with the application of skill or knowle~e
is a combination of both art and science. It is an art because applicatione~ In sum ' art is concerne dt dy and experience to ach"1eve d es.are
· d
knowledge and skills is essential for managing the affairs of any orgarusatloof acquired by observat1on, s u
It is science because it is founded-upon systematic body of knowledge an~ results.. . . th -~ln'1 and nature of art 1 management can be said
principles developed by scientific analysis. It is , therefore, considered a KeepingmVIeW eme=--c,
combination of both. This point is being discussed in detail in the to be ay art for the following reasons : . .
v£. Application of skill abllity-M~ ~_e_!l.!~~ bec~use 1t reg wres
Chapter3. skill and ability to translatM,V.Pwledge in! Q ~· Every manager ~as to
~ e m e n t is,b ecomingprofession-Managementis advancmi apply his skills for managing human, physical, financial, infonnattonal
towards professionalisatlon. It has developed all the essential attributes of 1
resources efficiently and effectively.
profession. It has a body of systematised knowledge consisting of concepts, ~ractical skill-Management is a practical skill. •~ becauae every
principles and theories. They are being systematically learnt, mastered, manager has to-understand real situations of his business an2 to apply
taught and transferred. However, code of ethical conduct regulatory orgaru. management conc~p..ts.Jro.d principles to ,!!!.~~al situatiqJ}S.
sation etc. are yetto be in place. Thus, management is fast moving towards ~c:;;;;;.tive skill-A manager deals with ever-changing complex situations
professionalisation. with his wide ranging conceptual and other skills. He decides and perfonns
22. Management is multi-disciplinary discipline- According to things in complex and uncertain conditions with his vision and judgeII1ent He
Massie, ".one of the characteristics of management is the integration creates orde!: on chaos by his judgemental skills. He even performs with his
intuition and inner voice when no scientific clue is available. Thus, managing
and application of knowledge and approaches developed bynumero111
is a creative skill or art. . ·
disciplines." As a matter offact management is inter-disciplinary and muld·
vt:Personal possession-Just like an; other art, manage~ent'skill is a
disciplinary discipline because its many concepts, principles, and theories
personal possession of a person. Therefore, he canvse and develop it in the
are founded-upon the knowledge of other disciplines. These disciplines
way he likes.
include economics sociology anthropology psychology mathematics etc.
I I I I
.. Personal styl-A manager can develop his own personal style of
The-use of knowledge drawn from these disciplines helps in-understandin8 J1;1st as any other artist does. The style of a manager depends-upon
--
\l
and analysing human behaviour and market trends. Recently the knowledge perception and SUITounding circumstances.
from information technology has proved to be a boon for management a; No foolproof' principles-Just like O th .
foolproof principles of management. any er art, there 1s no set of
I discipline.
MANAGEMENT AS AN ART OR A SCIENCE
7. Perfection by practice-A
only through regular practice of t h ~ y
,
anerdc~ re:iclh to a level of perfection
entisllli pnnc1p es of manag
There has been a hot debate over the years whether managern the 8. Transfer of knowledge-Like an o ement.
art or a science. In order to answer this question properly, it would be in ment cannot be transferred or trans I y ther art, knowledge of manage~
fitness of things to discuss the following aspects of the issue : through systematic teaching and tr . anted. It can be taught or imparted
I. Whether Management is an art? -uncommon to pass knowledge o f ~ - It may be noted that it has become
generation. agement from a generation to the next
n. Whether Management is a science ?
,· m. Management is a combination of both. \Jk1(esult-oriented-Manag .
other art. ementis also l .
knowledg!:~ n:ianager tries to achieve desire;;:~:~ented_jus~ like any
\7kether Management ls an Art ? : tandlJ18 Th u y. yapplicationofhis
Whether management is an att can be decided only afteJTUnders us, the above stated reaso
an art. Peter Drucker say s man:!!::ev~e that management or man,.mng 15
.
the tenn 'art'· .. cquired b!. Wh · " · apracti -o-•
-
Art is the skill in E . ~· It is the skill or abilitf..,'1eh11viout"
study and experience. Bernard calls it a 5 i.fl we
ether Management is a Selene -3'; ce.
observadon;, It is the know-how which teaches-us how to do thfpg -~ ience is sy stematised e ?
! .,,, or P~cular subject or Q!?j ~ . ! :8~ -~ d bod
p/
kJ1owle ge · .
alities of a situaoon.
.
n of s!O" ~e ed as a science-
.
ect. Mere knowledge~d_y ·c:{
lsnowledge about a
co ected facts cannot b~
light of r~ 1• I "Art is the systematic appllcalio
ding to Car 1s e, r .
Accor, ff cting desired results.''
knCJ ,,vJedge iI1 e e
' f
I
I
 1.6
D--
Management : An t) , -
Accordingt0 K " • . Ovel'\1!\ii 11
Whi h . e~ea, Science 1s a systematised body of kn anagement : An Overview
\·1
1li I c Inestablishes relationship between cause and effect." OW!e<ig! The principles of exact or pure science ( e.g. physics, c~emis~y,
I,, sum, science is a body of systematised knowledge Whi athematics, etc.) are stable anduniversally applicable without any limitation
I llshes cause and effect relationship between different varfach 8Staii.ll the more, they establish exact relationship between the cause and e~ect.
Predicts future events or results. Such systematised knowl d hies IJJdoreover the relationship does not change with the change in place and time.
fonn of verifiable concepts, generalisations principles th . e ge is inth!>rmstan~e twaunits of hydrogen and one-unit of oxygen make water at any
, , eones etc. .'
Keepinginviewthe . d . .aceandttme. . . th
called . mearungan natureofsc1ence,managementma be But it is not so in the case of inexact or applied science such_as e
1 a science because of the following reasons : . y :ience of medicine. The results of applied science may dif~er With the
· Systematised body of knowledge-The subject of manag iange in the factors governing the situation. Moreover, the p~ples and
;I a sys~ematised body of knowledge. There are well developed p~::;::,eories ofb.pplied science are to be applied with judgement.
the'!nes,techniquesetc. of management. Theycanbeusedinperfo _ . In the light of these facts, management cannot be regarded a pure
functions of Planning, organising,•directing and controlling. mung :ience. Peter Drucker has rightly claimed that "management~ never
- f sci t1fi e an exact science." It may be put in the category of applied or mexact
use o en c method-The concepts, principles, the~~tc.a:ience. Modern management experts prefer to call it a "social science" or
management have developed through continuous observation, Inquiry; lll·>ehaviaural science" or a "soft science" for the following reasons :
periinentation, ~d analysis byusing scientific methods. . (i) There are no uniform and unJversally accepted ass~ptlons
Universal application-The knowledge of manage:cQent can_bl --underlyingthesclenceofmanagement.Somegiveprimeimponance
~venially applied. The concepts, principles and theories of nianagementare to fiuman resources and some others to physical re sources in
applicable to all organised human activities anywhere in the-universe though management.
1
with certain liqutations. These are applicable to sole proprietaryfirmsto (ii) The principles and theories of ~anagement have no! been
\ global companies as we~. Taylor has rightly stated that fundamental developed through scientific processes and laboratory tests. .
principles of management are applicable to all human activities fro~ (iii) Management deals with human behaviour which is very comp~ ·
-I "J ,
our shn_J!.lest individual acts to the working of our ~ a t corporations. and unpredictable. _
~Cause and effect relationship-Just like any other science, th1 (iv) Managershavetoactinadynanucbuslnessenvironoien:twhich
principles and theories of management can also establish cause
relationship between different factors. For instance, highly moti ow
and_:~:~ .
is ever-changing. No accurate predictions of events and results can.
bemadeinsuchenvironment. _ 1
1 · h high productivity and poorly motivated cause 1
(v) The objective study and practice of management Is ahnoat
emp oyees ave Im
du ·vtty Thus the theory of motivation establishes cause and effect arxl
ibl ua~A- • · . ··
poss e. ·•--e-,ers, acttons and decrsions are affected by th~
, · · '
la
pro · cti ·
hipbetween 'th. e f actorsof mo tiva ti" on. Simil"arly , otherprinciples ( . experience,lntuitionandpersonall<>.arnin"saridfeelings.
-----., _·
re tions . h h lati hi , VI) Sometimes, managers are forced to take decisions without any >
theories can also eSt&blis sue re ons ps. th knowledge (prin· rational basis or on the basis of Incomplete and unre~ble
5 Verifiable knowledge-Like any other science, e inSIAllce, lni'onnadon .
· • • ) f
ciples and theones o ~ e .
ment can be tested and verified. For
rinciples of specialisation;uruty ~f comrnan '
d :uni of direction and o ,
b different expertS

ttiet (vii) ua~n- •

··-~ei:nent principles are flexible and inexact. They need to be
applied m the light of changing and special conditions. Therefore,
P . ve been tested and verified again and again .Y liable baSll management cannot be an exact science. ·
theori~ • al serveasare U (viii) Ua~n- • • ·
PredlctabW1y-Management science ca.i:i so . . actions or even ••--ement 1s an Inter-disciplinary subJect. It is very difficult
• . ting future events or results of certain specific till tounderstand the exact effects of the theories of other subjects on
for predic easonable extent. • ce Buti!S Illanagement.
accurately to a r f ts rnanagenaent can be treated as scien .fence- Thus, the above stated reasons make it clear that man""ementTI1ay b
• ofthese ac ' adementsc ategorlsedas U d . --o e
In view
to be seen w h a tis the exact nature of the man..., . Ian an app e or inexact science and not as a pure science .
remains &gement ls a Combination of Art and Sci
-e~enl Science: , On the basis of abov ence :
Nal'UrC ofAfaD88'l 1 sified into two categories : ,_;. 'a combination of-b the discussion, it may be concluded that management
Sc ience may berec science,
as . and o art and science. It is the oldest of arts and yaun"est
-..,
;I (i) exact or pu
(ii) 1nexact or app
lied science.
rl
7 ;
. ,_ ,\ _
·,
 18
Management , A.
. n 0v .
of sciences. It is the art of doing things skilfully With the . "I Management : An Overview
19
· tif"1cally developed principles.
scien 8PPlicaH.""
1. Universal activity-First argt191ent in favour of this concept is that
In fact, art and science are the two sides oft he coin of mana, managerial activities are--universal.,-They take place in every organisation
practice of management is the "art side" of the coin and theg;lllent1 Henri Fayol has rightly stated that "be It a case of conunerce, politics,
""l.lnderlying the practice is the "science side". The art and science ?dow~ relfgion, war ... In every organisation there Is .QUID&gement function
com . cannot b e separated. They are not mutually exclusive but coll! s1 es••
to be performed."
tary to each other. Pl!!Ji Thus, there isuniversality of management among all organisations. The
It has been rightly said that "knowledge (.I.e. science) With functions of management are performed in every organisation including
(.I.e. art) is useless and skill without knowledge means stagna~:~ houses, schools, temples, sports ch.lbs, hostels, business organisations, etc.
Thus, the skill alone is nottheultimate indicator of a successfulll!all The functions are also performed in big, small, private, public, cooperative,
and knowledge of management alone cannot be regarded as the lllarl profit and non-profit organisations.
managerial success. Managers for managing successfully must, thera ___.--arl)niversal process of management-Another argument infavour of
blend the knowledge (principles and theories) of management with I1 this concept is that all managers perform the same process of management
practical skills. Therefore, management is a combination of bothart functions. Moreover, all managers at every level in all organisations perform
science. 1 the same process of functions . However, the rune devoted to each function
varies by the level of managers. It may be noted that the process includes the
In the modern times, management is increasingly becoming scienlifx
functions of planning, organising, directing and controlling.
it shall remain a combination of both art and science in the time
managers get the things done-All the managers in all the
come. Undoubtedly, in many areas (such as decision-making) IIUlllllgern
organisations aim at getting things done thr6ugh other people .ie. subordinates.
shall become more of a science. But all the problems confrontingmll!JI!
.In doing so all the managers coordinate the activities of all the persons while
cannot be solved by scientific analysis alone so long as managing involves
perfonning his managerial functions.
working with and through people. Skilful application of scientific knomi ~managersahn at using resources efficiently and effectively-AD
will be required to solve most of the problems of the day-to-day buSlll
the managers {regardless of the size , nature, type, sector etc. of their
Therefore in the-ultimate analysis it can be said that managemenllsl
organisation) aim atusing the resources efficiently and effectively. All man-
' for centuries,to come, a combmat1on • • o f both arl 1 agers strive tcruse lruman physical, financial and infonnational resources to
accomplish the objectives efficiently and effectively. _
~ AGEMBNT AS UNIVERSAL CONCEPT . 5. Universal prln_clples-There are certain principles of management
Universality of management oruruvers. ality o f management prtnllf
JIUllla&eJII wl.J:ch m-e regiirdeduniversal in application. Taylor, the father of Scientific
Management, argued that "the.fundamental principles of scientific man-
has been accepted ever since the initial stages of developmentifth Taylor1 agement are applicable J o all •kinds of huinan activities, from our
The credit for popularising the-universality concept goes t:. ;ppJey,JII shnplest Individual acts to the work of our great corporatio ,,
Fayal. The supporters of this con,cept include Lawrence However, the principles have to be modified and ada ted ns. .
d Mc Farland Koontz and O Donnell etc. d re"ardl the needs and prevailing situations. p according to
L--un y, ' ns an " ·
The concept of-universality of management mea ...Jh,5.imllar skills-All managers need similar skills. Acco .
L. Katz, all managers require the following three basic skill~ to Robert
following • things ·· entareapplicaII d~
(i) Technical skills, s ·
(°) That the fundamental principles of manage;°1 objective afl t
1 all D'Ani=tionsregardless of their nature, size, . respecO' {Ii) Human skills, and
or.,,--- f nctions1r
ii) That all the managers perform the same u eicJI {iii) Conceptual skills.
( the level at which they work. . . es' theories otl~ However, all managers do ncit require
agerial knowledge (i.e. prmci~l ·tniJl 8 nd relative importance of each skill varies by ~qual amount of each skill. The
(ill) That the manbtransferrec.i across the industnes Wl l'llanager requires all these skills f rf e managerial leveL But every
skillsmaY e effectively. fRobe.rtL. Kat..J. or pe 0 ~ his job efficiently and
the country. rA 7 ;_.Transferable knowledge or skills
~versally transferable. Managerial kn -Managerial knowledge and skills
in Favour of the Concep t •• the-universalitY cofl . . owledge is considered transferable
.Ar,gUJilents d cademicians who favour
______,,___PI"actitioners an athe following grounds :
o-11eon
JIUll1B8ement arc,-
~- ·"' .._
.,....
_....,.,,,.,,
_a. ~ --
~ -;;•
...! -~ t "
 - - ~$~
'lo-
20
Management : An Ovel"View
because all Illanagers perform the-smne functions irrespective of the natur
and
tha residence of the organisation. Koontz and O'Donnell are of the opinio e
t " managerIaI knowledge and experience is transferable from onen
department to another and from one enterprise to another." Transfer
of knowledge is possible through transfer of managers . Managers may be
transferred from one deparnnent of a company to another, from company to
another, one industry to another within and outside the country.
--s~ cation and training-Managementisuniversal also for the reason
that education and training can be imparted to any person around the globe.
In recent years, a number of-universities all over the world are offering
management education courses to the students in many countries. •
. The above stated arguments prove that the management iS"Universal.
BOX1.2:CONCEPTOFUNIVERsALITYOFMANAGEMENT
A large number of authorities on management regard management
ls universal. It ls-universal because the fundamental principles of
management are applicable to all organisations regardless of their_
nature, size, objective and kind. All the managers also perform the
same functions Irrespective of the level at which they work .
Moreover, the managerial knowledge (f.e. principles, theories etc.)
and skills may be transferred across the Industries within and outside
the country.
There are also managemeqt practitioners and academicians who
do not agree on concept of-universality of management. They argue
that different organisations have different objectives, belong
"to different sectors of the economy , different size, technology and
culture. Hence they disregard the theory of universality of
JILBnagement.
However, there are large number of management experts and
practitioners who follow a middle path. They argue that
management la -universal but all management principles and
techniques should applied keeping In view the objective, sector,
technology, size, culture etc. of the organisation. _ ples and theories of management that work in a modern culture are ri<>•
Arguments Against the Concept:
- . Management practition_ers and academicians like Ernest Dale, Joan
Woodward, Winston ~berg, Peter Drucker etc. are against the view that
~ e m e n t isUnlversal. They argue against the-universality of management
on the following grounds :
~. Difference in obJectives-Some of the experts argue that there exists
difference in the objectives of organisations. Public , private, cooperative,
quasi-goverrunent, government, profit and non-profit organisations have
different objectives. Therefore , managers of these different organisations
}lave w respond in a different way. Consequently, thema,nagersol:'buslne88
a, organJsadons and other orga.nl_sations do not require the same skills,
the principles, the competence and the experience. f Peternrucker/.
.....
Zl
Management : An Overview different sectors of the economy.
2. ol(ference In sectors-:rtier~ S.:e ector organisatlons exist In many
Governmeni, private , cooperattve, join s diff rsin these sectors. Each type
that~ement e .
countries. Experts belleve • f managerial processes and practtces.
of organisation requires different type o garosations have much less flexibility
ForJnstanCe, managers In gove~ent or es and regulations. But the managers
in taking decisions because of the rigid rol al f fl "bility in taking decisions.
in private.organisations have a great de o exi
/.tJ(yrOnD..Fottler/. . . the-universalityconcept
3 DifferenceJn size-Some experts argue against Su h
of m~gement on the ground of difference ID:size of organlsa:~e~
~-•t-n~ndeffientJn sma]lorgarosationis veryJYlll
expertscentered u ... ,._....,
from the management in large organisation. Fayol was
als
oo . skills
fthiSview He
said that a manager in a large organisation requires greater managerial
a
than a manager in small organisation.
In a 'recent research study, it has been f aund tha~ there is a li~e or no
f nna} organisation structure and aminimUID of authonty delegation m small
~ - Decision-making tends to be personal and subjective in suchftrms- On
the other' hand , large finns have a huge fonnal organisation struc~re, _
maxinrum authority delegation, and more1mpersonal and objective decision-
making. /D.R. ScottJ.
4 . Difference In technology-There are differences in technologyused
by different divisions of the same organisation and by different organisations.
Therefore, highly technology-oriented companies cannot transfer managers
from division to anolher divisions. Moreover, when such a cmnpany acquires
a new firnrusing different technofogy, it willusually retain the managers of
the acquired firm. Siµillarly, a manager of a lruge departmental store cannot
be transferred to a huge computer software company. 'Illus, the management
skills cannot be transferred If the technology of organisations differs.·
5. Difference In culture-There are differences in culture of different
geographical regions and countries. Therefore, some experts argue 1hatprin-
ciples and lheories of management cannot be equally applicable in all cultures.
They contend that management is culture-bound. Therefore, modern princi-
necessarily applicable to another culture with strong traditional bias. ·
It may be pointed out that certain experts are of the oplnio~ that
though cultural factors lnnuence the managerial practices but they do
not altogether Invalidate the iund1U11ental principles of management.
[Richman and Farmer; Negandhi and Batafen; Harold Koontz etc.].
8. Difference In stage of ~evelop:ment-There are some who argue that
same ~t of principles are not equally applicable to developed and developing
cauntrtes.Itwouldbequitefrultlesstosearchforacommonsetof t
Principles for developing and developed countries. They contend managemen
that the
Principles are to be adopted according the level of d- -'
cv.,.opment of the country.
 ,,_,
~ / 22
r Concll,ISion-CritiCIBln
Anexamina . • Assailed ' Management ·. A n Ov - . -•men< ' An o,,e<Vi•W
Nu,nberof...,..-el•• f .,..,.,.ge,nent 1eve'8 for any
that mostoftheargumenls
. d
tion of arguments f
orandagmru,tunive-
. · 00
:::'~sionandillusion. The :,;;;:,:;""agalnstthe concept ! , = - t . . . . _ fThere is P ~ n-::;.~s onIDe siZO• ! ! ' ~gy
-= acls are considered ·.
(Q"lhe,-.,'8- ttng,.,,,
=and illusionmay here ~vedllfoJm,., of produc<s or.~ e!,_c ' ¥.ve.
-n,enumeero " " .tcl ~
!o ~_ ~g ~
0
/ j wner)
; J Dand an
as a couple
personsd ctionbetw-fundau, ~ r. ~ tlon, ,here ,s one - . don t b ~ p l e
I
I
I
of manag:;;:ot;"ethedil"ference betweenthe,.Zand.............,_ ;r:.;s,.,."'· ~ ~ - = = : - , ; : r n . , even b e.Yond_a
In fact, they:/difndfargue against the concept ofuniv:nrstalsalityandfthe techniqu~ 1~ els~ s of manage~ ..- sapz t ~urnber of levels should be
~=... · . •
erent. Fund tais o manag Ul a very h uge orgaru ·
management whereas techniques":,en., are fue principles and theo::""" ~:::::. as possible for ,he folio~ '
or tools of accomplishing agi=result
m . ewaysofdoingthings or themethesof . -·.: ,- ·.,..T~ 1l•mi· ubg_J e co.ert.of.nP-eratlon- ••
tofacd•die8•
fun"';:"er to manager, or rnlture to cui!:"""""'-"ent_teclmiques diff fr: (ill To facilita'." eoora:::;don~ ~ ~- ,;;.iiv< s and rank and
renudn lhe same. re or s,tuation to situation but th, (iii) To ~ -- £"" -·a.,etw_. ex
(ii) There is a difference betwee file . . .
are also some persons wh f . . ~pracdceandfundatnenods-'Ib (iV) To mal<!taiQ<ffectiv. , , - u o, . _ . - •
practice of manag=entan~
not be lhe same mail types J-:::
ail '.o dfstingmsh between fundmnentals "' o.-wl~ ,igested ,hath> de..-,nlnlng<he number of
m ~onfumon. Practtce'of manag=ent:d regard ohould be paid to the span of contr0l and not the ,nee
gover.nment, quasi-grn,,mmento~-=:ns- It may dil"fer in public, prlv..:. In affioderate!;]!,e organisBtlon,~suall~

le~ls, pnme
~~l_?f ~ e , n e _
nt =·
I reJllalI1 applicable in all the or,.r.arn~ ti"
o sa ans.
ans. But the fundamental principles are found. They are as f olloW.§.:.
The above stated facts are evident that th . . ~ op management,
I management are,miversally'a li bl • pnnetples and theories of .-.,:Middle management, and
All managers
require perform
the same skillsthe sam Pf: '."'ru':;
All ...:.:;c
All managers =rk through peDpl,.
c~ons of rnanagmnent. Allmana;a-, 4.Firp• or supervisory management
J,Top-e,nent-Top or executive ,nanagementlevelrefers to that
f of resources. Above all. all th ers are liable for effective and efficientuse group of e.xecutives which c o nstitutes tfiehighe~t level of management. 'fhe
agement. Managers differ , onlemanagersapplyth
m th . . · ·
esmne p~ples of man· ~,~cutives •• tlrl5 level
-- - ---- the
represent - --
owners - and regarded as th• centre o f
,,~\ fundamental principles Ther yf · _eu- prbacttces and techniques but not in he ,li"dividUals Wlio occupy positions at this level .....,,sualW
ment isunlversal. ·. • armaru,g•-, d,,.,... e - as Ctutirp,rson of <he B o_a,,l, Chief Executive Off<~ ( or cEO «8-
, ~ - e ore, it can e safely conclud d th ,
ManaglngDl,ector), .
p ~ sid$'!t , Vj£!:-p resl"d _en ' 3 But ail these persons are
'
B11BLS OF MANAGEMENT ,muilly known as the executlves. ·
. Lev<;I• o anagement refer• to the categories or layer• of . Manager5Whoholdpositionsatexecutiveortoplevelareresponsiblefar
~erlal positions In an organloadon. Levels of management reveal.,. -.,,... su=ess and survival of <he organisation. They are also liable for lh•
hierarchy of management or lhe chain of conunand man organisation. • delivery of standard and quality of life to lhe society. Therefore, such levels
In fact, in every organisation, lhere exists an hierarchy of ,nanagentenl ohnanagers are expected to perform the follo.,;,,,r<unctlon"'
which utterlmks all the superiors mod subordinates with a chain of _;.,,n,nand. (I) To analyse th the business environment ,;;;aTtsimp"lfCa;;;;"ns on the
This hler'.""hy of management consists of• series of managerial positions ;n
the organu;atton When theoeman,,gerlalp08ltlonsaredlvldco!.lnto_var1oU' '-(ilf'
. . _,future of e organisation.
To establish =erailorganlsadonal goals.
(Iii) To formulate strategies plan• p r ·
~categories according to their amouni o fiiffthDrltyaiiilstatu• lh•Y ai'O
wn-runlie lev elso,____-- ~ --- - - --· -·· , · th
attaining al ,
b d
, o ic1es, master u get for
=----- __ a ...... ._!l'D•en.. _ ego s .
Thus, the terin 'levels of man&gem ent' refers to the categories or ~ To setup an organisation frailleW k
layer& of uu,n.ogerlal posltlon•demarcated according to their level ol (v) To del-te and decentralise euth::. •
_.... sonne1 m ear · ·
authorJty and status In the organisational hierarchy. ~ o appoint key per - th ty ·
The level of management deten1ifues fue amount of authorl'Y and•"'"" ~ o p=vide leaderohi t th .""".'sation.
of the person occupyhtg the position at that level. Therefo=, each level of (viii) To represent the ~ ; • orgarusational members.
,nanager may be dJslingUished wilh lhe olher by lhe amount of m,thorit)' i,eJd organisatio=. ganloatlon on other bodies a qd
by him•
 - :+ ,t~ --=- ~ ~ -- 25
..;. , 24
-
- f
(ix)
To exercise
d
To ma·1nta1n
. effective
control
epartrnents.
Management :g Andlft •
coordination amon Ovel'\1 .....,,...,..,,·An
. . ,.... o .
-,;ew - "dldle.JIV'u•a8ers are as f o llows:
To interact w;th over the activities of th ••, 'fhS ,nab> runctlo"' of_lhe n>! ·t tt,e srrategle5• pclicles at"1 plan"
(x)
(xi)
supplier
investors. financ u,J mstitutions of external
_repres~ntatives envir
e organisation. (!) r0 ,n,ulated bY the toPa,,d
To""""""''.,,.,,._ - --;:;~t.
. ..,..iu,g ;,np1ementaoon
. of
0
iguresetc. nioll ~laJlsandpo
... Cles.andmottvate
tr~·., develop . th e first-Une~ers. d ale
'po -ticalf'
------====:_--=-:~s:,~g:o~v~e~r~llIIl~~e=n=t~off;:i;c i~al~si'~cu~~~~t~o~m~e;r~s~,~employe•-u
flment,I (il) To prepare and li . lsSOe ;nsu-uc0°"" re,, .. . .
A "'· ~"'.' \ i ~. . o ="' f d arnnental acuv,ue• a,, t e
• ...,,.., ---.
.,
(iVl To monitor perfonnance o ep
1
..,.~prrective steps, ifnecessarY•
participate ;n ru-st-lin• .
deciston-.,,,.iong process,
'-(,<
. achieve coordJna'i"n amoni! ·dvarious.deparnnents- .
rproductS or services •Lo
,
I
I
I

IJvY'
0
(vii) -ro
0 develop team-spirit to proVl e supeno
thesociety- . .
Board of Directors ~P co_.-a<• ;n ,nakin«smoothfunctioni,,g of,he or8"""'"_,.
Chairperson Top/Executive
Managing Director ~ o report to th• top ,.,.,nage,nenl from tt,ne-to-o,ne. . .
Management (x) To suggest top management on the matters of or_g,.n,sauonal
Presidents
Vice-presidents ,--, /eativity, inJlovation and effectiveness.
, ~t-nnear•u_...,..,,---[i!:<itc]jn"-"" s~ o r y _
~ .enttevdinelodes-eraiwst at,ovethe-Worker or the rank .,.a
I Divisional Managers
Plant Managers
Departmental Managers
Area Managers

'
Middle
Man'agers
.........

~ . i i , f u X "••,!t.Wh• towesttevel of n,anagement in the

~ ~" y " '__,_
" " " ~ the ~~ " c~!! ~ o f
the operative•~ ~ or!!,• rank "°d flle . Th•Y are the persons-who
dl,:<<;!IY-- - es ofthoO<-perfqnnu,gw,ni<, n,ey...,.._
Branch Office Managers Arst-llne/
Supervisory
the employees at work in an offic"' or a flictory or in the field.
General Supervisors ,..!l!:>t-Une man"j!ers are ~esponsl ble f_or the unpJc,nentation of the
Shift Supervisors Managers
......... . ..... Sl"""~onal plans developed bymiddl•_- o r s • They are accounu,ble for
_,.:, J operattonal asp=" of pe.-<onnance e.g. the units produced, per unit cost,
r
I
I l t t t t t Non-,:nanagers levels of inventory quality control etc.
1:he m~ ~~irst:llne managers are as follows:
(1) n;!dle,nanage,-s•
To -
make day-to-day operative plans within - e.goal. s.set byilie
th
Figure ~.6 Levels of Management with Designations
f -;Middle·inanageDient-Middle level manageme(}J;is in th~middle of -~s;g,,jobsand•ask•totheoperattngemployees. , - ' . ,
~e managerial hierarclly. ,1ll t:lJ.e Jixe ~Ef ~ ed l.!lp.ositians .;,tw~en firSt- o adVIBe and assist ernplo_yees in understanding~1,,..-,.,. - ~ -
~ ethods and systenis. ..---, P L ~ - - •
!,in~ manQgeIIJ.m;it .J!!l<!.tQp manageme n t..are included in Jhe.middle-Ievel
!!1Afl:8&enient. p-tey direct and c ootrol the activities of first-line managers and '{,ivy""To maintain inventory
__J,'.VTobnpart-t thlevels of materials, tools and equipments,
. ,
lower middle managers, if any, Peter Drucke_r, therefore, call them as ( ·) T O e employees. ,
~ ~ o f D I ~~ r:s ~) - . V1 o supervise employees at their w ark and issue
wheneverneeded. . .
instructions
Middle level management is regarded as the most important fi!_!lll.~ge-
~ i l lecB!!sE!isa prime training gr~nd ~ r .fu.J:t!~?.'!lcutiv~.'.llt is at (vii) To == pe.-<onnance
activities and
,.. ) T
taking b Y_ continuously
.
correcttve steps on th
measuring eval - . ,
• uating
the centre of the organisational activities. i~agy,Jr.J.
_Middle man~ ~rp~-uS!laJl¼ de_:,jgnated as Oiyisianal manage.r, pJant vw o maintain p nal e spot
(. erso contact with th ·
human relations. subordlnat= and t,,.;Jdgood
~ t ~ e r ,~ ke~ ~ or~ ~ ~~ e.r,
- ; Mid~ managers are~s~-~ordinate_~ dJ!ccou~ b]!,_tgJbe top man8-6e- - place.
maintain discipline and con~nial atmosphere
, at the work-
rnent They are responsible for implementing plans and policies formulated
l;,y~ top numagement. They are a.Iso-uldmately liable for the perfonnance
of the first-line managers.
;:"\. l
idllJ I
 w
- - tic ~ ~~,,,....__.-.----~
...-
r
..

Ho
:it"

?_-:-.;· •
·, 26
(x) To
report man
subordinaJes. •3agernent
ROXI about th
Man
.,==• •
e periormance and probl
An 0..
- . J',{artJl8eIIlent
'""• : An ove('\f)ew
• · f · ··

~ t)
Th - - I n

II •t,
0
0
i
Level 'KEY TERMS ,,...auction _....,,en,1n•olVeS a wide•""""' actlv,ne,. e - "
managerial
s of .position
and s,arn
ement refer to <he
manag • d =•<ed s ANDCON
CBPTS
ca<egono,. or
...,.it1e•.,.•••oU....,.'
,,,.- (0. D<rt-oonofP"' · .
d ucl d .....,.
,.....,..
l=I ,"Y""
In a d s m <he organisational
mo er ate size orga • .
.,;cconfingk>
~=chy.
<hcir
0
1 of
•"'hori<y
(ill Selection
="'
. , _ ba>ic
of production •Y•ten>•
of p,oduction ,ys,e,n, , (a) ,.,..,ces•
I< n"'Y be no<ed th•t tl,ere ""
production,
lin · op manage ' ee le-I of m (b) Job p,oductlon, and (c) In"'"""'""' pro uctlO" • ·
= d . (a) T
The
f
•
e or supervisory
m In
rnsatmn thr
functlo m ment, (b) ·Middle manag= ._em-• ue
anagement ent, and (c) Fir
,.. .
-
(Iii) activUY
'"
_,,..,....,,...,.,.coon
·
p-an•-• .,....-.
incJuded•l ,ched""°"' ro•-• esp••~-·• o n,is
d
d

. ystern
,.__,,.., f
raw
managemen< Ma ; • . area• of management .,.,erlal, (b) o,awrialhandlin8• (c) 1nven<o<Y con,rol, (d) con=•
• Personnel ' r etmg
1 management , . .•rec PN>ductfon of wnrl<-in p,_.,,,, (e) auali<Y contr<>l, and (f) c,,nrrol of - of
manageme n t ' ' inancial man agement,
\I'-. R
management
' ~
j : : ~= esearch and d
Purchasing .
management
? ~ ,--~e=-v~e=l=o~p~m:e:n~t~m:
·anagement Off :e~
~~:::'.:~-•-=~ic
production.
(v) preparationofplaPtJayoUL
(iV) Selection of plant Jocatlon-
,..j
" Sf SCOPE (vil ee!ectlon of pJaP' and equlpmen'•
I
I
.,.._,menUsanaD,-V
( . FMANAGBMBNT (vif) ....,......,..,ofplaOtandmachinC'Y·
organis••=· In:::::.
O
area of_,wery
the m,!Ufl functional
o d u c t iareas
on_ of
n rnanag
,.
...,...;,y.
em busmess
·
~;, canied ou,;neve,yfunctfmW
organisation, f ollo..""" are (vili)
(ix). --J'vfaintainiflg
,.,._ . , . - ._ research
of lnten,al
_, and
- ,ystem-
_developlllent
__ _ system.
. .. ~ w t t h
Marketing
. _ n,anagemenL ement · ··-"O ,i,o,eacti~•.,w-
Af ,~ure me flow of goodsand_..cesfro"'P-
«> =~umer in o.-der w ,atisfy tl,e ;dendned needs of <he - " " " " of
4.)Perso~nwpagement-
. ,nancial""'°"""=P'·
c-managemen<. "
- ·
-•{pJ,lllpKo...;:)marke..,..,concerned..,;<h..,actiVftie'af
.......,.,_.,.,w,gand de]Jveangof goodsand,e,vlce• wconsumer>and
In sum, marketing is concerned with identifyiD3 the needs of
business.''
I I
prosp~ve buyers and conswners, creatb)g goods and services ac-
cordlnsto the needs, promoting and dellver1ngthe same to the mei:n-
' ce znanagernent.
--
)
i,-:--..... esearch and development management. bersMarketing
of society.manasement is that area of IJ1ana8elllent which is con-
)/ '}. production or inanufacturin8' management-Production or cerned with plannin8• organising, directing and controlling the activities
.,,a,n.Uactorin& man"8"'°ent or production area Is concemed wtth ID< relating to creation, promotion and delivery of goods and services efficiently
..,,,,.,,,,,,_,_............,,.....,....,..-,,.,..,........-.....
prodU""on or cn,ation of goods or,eMces. n;,. that....,. of........S="°'
_ _ _ _ ...,........ tothe.,....U-PtunctlonlnaP _ _ ... _
and effectively with a view to satisfying the identified needs of the meinbers
of theInsociety.
order to perfonn marketing function in a proper way, marketing
a ,vieW to produce goods or services efficiently and effectively. manager develops and uses an appropriate marketing mix- A set of marketing
p,-odUcrion managemen< aim• attransfonn"'8 orass=hlin8,he ,e·
""°
miµ.~nsists of the decisions regarding the fc:,llo,-ving four areas :
.,urceS (J.•• ,wn,an, physical, f,nandal and informational resourc"'' i) Product-It includes me·decisions relating to product range of vari-
,...,..,,.,d products or ,ervJce• efflclendY and effectiVely wtth a ,,;ewtosa""Y ety/ quality, design, features, brand name, packaging etc.
9 ) Pricing-It includes decisions regarding list price, discounts, allow-
we eeds of the members of society.
'ID• production of goods or,e,.;ces may ,ake p1ace p-arilY In .,.o ' payment period, terms of credit etc.
0
..--- -- -=--- - _i~ Promotion-It includes the decisions regarding sales promotion,
0"
.,,,.,_y8 _;...- IIY,...,.,.r~ of rawma,erials and oth<rre•ourc"'· --mg, sales force, public relations etc.
(ii) ~ ~ t h e parts and creating a product. .
~ o n of goods and service• •ak•• placeU' fact-•• off,ceS,
_Mols, colleges, hOSP;mls, mail, ,ours and ,ravel org-••on•• neWS and
_ ,_~ ,;nns etc.'1- _,.,;.,.·
~~Le,,,. .f/'~ w,.; ,~zy..{( ·d.})_
,.. 30
-..~- = ~
~~..:!::a ~-
theserv:i ·
an d ces of obt . .
conununi . mning, recording Man
agement : An 0
31
gu ds . cation b and anal . . vel'Vie
ar Itsassets ' promot Ymeansofwhi• , c h them ysmginfonnati on of plann:-
. " Management : An Overview
In sum off" es its affairs and _anagementofbus · . ~-... ig, manag~ment. (ii) Maintenance management. (iii) Time management.
Safe. (iv) Environment and social respansibility managemenL (v) OisiS management-
co ncerned '
with ice n-a .. ..,.,,..,,
th ~--ement •
is th
achiev • mess
es Its objectives "
activiti e Planning at part of man . (vi) International business management. (vii) Technology management.
th . es relating too . . , Organising, .,i;__,___ agement Which
e information htaining, recording ~~U&"o and controlling ls IMPORTANCE/SIGNIFICANCE OF MAN'AG£MEN'T
The m . received or collected , :;ruysing and disshnlna the Management is regarded as one of the most important human activities.
i) run functions of office use I for the organisati 0 ting It Is essential for every organised activity in every society as well as nation.
( ") Collertin,,. management ar ? • Ray A. KillJan writes that ''JI131U18e1Dent beCOmes the servant of JWU]kind
---oor~eceivinO"inf . easfollows:
(11 Recordinginf ·--o ormatton. In assuntlns its role as the master of resources for the benefit of the
(iii) Arr . . C?nnation. employees, the enterprise, the owner, and the society-'' Thus, nianage-
. ) anginginfohnation ment plays an Important role not only in a business enterprise but also in the
(IV Disserrunatinginfonnati
· " life of every society and nation. Its importance JDBY be discussed under the
In order to perform th on. . following three heads :
different activities in ffiese ~unctions, every office man Importance for business inStitutions;
") . ano icemcludingth f, II • agermanages I.
(I Receiving and dis . e o owtng: ll. Importance for society; and
(ii) Filin" . . patching letters and messages
g and mderinO'. · m. Importance for the nation.
(""")
w supply and maintenance ·--o
of offic • J. Importance for Business Institutions:
(iv) Establishing simplest d ff . e ma~hiner_y; and stationery. " The great management thinker and guru Peter Drucker states that
(v) F d . . an e ecttve office procedures.
f~m:n_ent is the dynamic, life-giWJg element of every business." In
. arm esigrung and controlling.
, no busmess can run on itself. It needs repeated stimulus which can nI
(~! Sele~on and purchase of office appliances. e provided by tmanagfement. ManagementLS,therefore,thelife-breath
sourceofsub.
b . o orY
(vn) Retaining the records maintained. SIS ence o every business Theim '
business is being discussed und er th e f.o owing
11 • portance
heads : of management for
(viii) Safeguarding office assets.
(ix) Selection, training etc. ~f office staff. 1.· Setting objectives and priorities-A . .
in setttng objectives and priorities of ab . manager_pla:Y5 a significant role
(x) Controlling office costs. fact that every m,omu,er has tog t . usmess organisation. It is a 111atter of
(xi) Maintaining public relations. Th ··--o e maxunurnresults "th · ·
erefore, every numager has to trik b WI IDIIllffiUID resources.
(xii) Research and development about office activities. and priorities. In the words of St:nere;dalance ber:een various objectives
7. Research and developmentJJUIJ]ag'eIJ1ent-Research and develop· alwayslhnited eachDIBDag Wankle, Becausesourcesare
ment or R &, D management area is concerned with planning, organising, goals and needs.'' er must strike a balance between various
direcdn8 and controlling of activities necessary for research and development b .2. Accomplishing objectives-
in an organisation. The airnS of R & D management activities are as follows : ut also strives to accomplish the ob. ~ement nor only set the objectives
(f) Innovating new products and designS which may be produced by plans, organises , dir ects and controls
sour Jectivesoftheorganisati
the . . on. Management
ces for the purpose of achieving the ob. or~anisational activities and re-
the organisation. 3. Optimising utillsati f , Jecttves effectively and effi .entl
(ii) Searching new uses of the existing products. . role in optiJnum· . on o resources-Man CI y.
(iii) Finding out substitute cost effective products. _ physical financialutilisatlon of resources. Manag agement plays a crucial
' and info . ers can utilis
(iv) Innovating raw material, tools, equipment, machinery and and optimise the performannnanorlal resources of the or . the h~an,
ideology no 'i ' ce. UrwlckandBrech garusatton efficiently
production processes. less etto.:..S frosm, no political theory can win are of the opinion that ''No
(v) 1nnovating and c}uUlgirlg orgarusation strUcture, work procedures
Only sound mA:_i: given complex of hwnan
----.,ement can."
a greater output with
and material reso
and organisational environment. 4
diffl • Making difficult declsJ urces.
()ther Erner&ln& Areas of Management: . . u}arJyirl cultdecisions. They make decisions
o~Efficient
. finanmanagers .
. eas of management are ernergin8'Parttc 111 cial . make all crucial and
In modern tunes, new ar follows . (i ) Transport stringencies, in problems
h new areas are as ·
Jarge organisations. A f ew sue
---~r:-!sq;: _
.
,:
32

,. - . . - . -=- ...:__._..
~ b-~,}. --<~
33
with lo . Management : An 0ve .
emp yees and lil dubious situati ' l'Vi~ ·, Overview
larbutsounddeCIS'x·ons An ons.Theymakeunpleasantandun Management: An f.actthattechnologyisfast
. ordinary . JlOpu "1tisanopen 1 gy ButmanY
that. Onlyefficientmim .. a
----oerscan O
d managerorsubordinatecannotd ,; developm.entoftechnology, .
o<i/j • gamsattonmu
stadoptthelatesttechnO o .
fail to coor
dinate
5. Solving com lex . , . and every bus1?ess or e benefits of it because ~ey rise- 'Ibere-
There is a web of com~lex:=msph-1:~ayfinans bu~mess is complex actiVity enterprises fail;;~::;, : d the prevailingmethodsed~ theet,rrt;ry: ~ t i o n to
legal problems At f , ys1 , cial, technical, politicaI~n~ betweennewte d cti e managers are need in ev .
. . eazn o competent and skilled managers is n . _., fore enlightened an pra c . '
solving all these problems. ecessaryfor 'the benefits of new technology. . nly an instnJIIlent of
• . reap Management IS not o .
8. Ensuring l!Jllcce&8 of the business-According to Killian ;, 13. Introducing chanse- Trewatha and Newport has rightlt
ment Is the most' decisive in-..dient in tli f , .M:anage- change but also a catalyst of change. infl ced by·enviroDJDental
,, - , , . . ---e• _.., e success or allure of an .·" . ment alone is not uen
ent~. pa..,..,. Inde~d, ltlS the quality of management that decides th y stated that manage haD&fngthem." .-
of a b~siness enteryrise. R.K. Talwar, Former Chairman of SBi~ : : factors ~~tis also~ force inc can anticipate change and encompass it in
very rightly observed that "Good management is a critical inp'tit in the In fact, successful m a n a g e ~ of Bhadrachalam;':18~
success of a business." theirefforts:S. Ghosh, Fonner "--~--dement is prinuirllY concerned
. • Ltd has very aptly remarked that uuaa.._ , ernal
7. ~ e r c o ~ ~m~on-Cut-throat competiti9!1is the order of the wfthmanagfng change inspired both from intei:rw
,
and ext • .
day. I~ 1s _ever-mc~e~s~g m ever);' busine~~- As a result, many business ters.Successfulmanasementisrecognisedforitssldllsinm,tti~,
orgarusattons find 1t difficult to survive. According to ~rge R. Ten-y, "Out change and for orchestration of its planned response to the c ~ e .
of e~ery hundred ( 100) newly established enterprises, 5~ disap~earwi~~ 14_FulfilUng socialresponsibllities-(iood management is _a l:wa~ so-
penod of first two years and by the end of five years only one-third surv1ve. ciall responsible. Itis sensitive and responsive to the needs and exp~~ons
In such a COIDpetitive climate only the organisation with competitive edge. of v~ous sections of the society. It takes care of the interest investors,_
can survive and succeed. Therefore, a caliber of management is essential that customers, employees, suppliers~the government and other secti~ o f ~
can lead the business forward to gain competitive edge and advantage. Gray at large. Good managers are, therefore, needed by all business enterp~
and Smetzer, has very right said that "organisations with good JIUIJ1B8'8- who can effectively take care of i~ social responsibilities. ., , .
ment will have a competitive edge over those with mediocre JIUIJ1B8'e· 15. Building goodwill of the enterprise-Th~ existenc~ of so~(j, .
111
ent." ' ·' ' management is often experienced by the goodwill of tJ'te enterprise, In f~ct,
s. Creating sound organisatfon-Allen_states that "sound organisa· sound and efficient managers greatly con~bute to the goqdwQ,i of. the ~ter-,;
don structure greatly contributes to the successful ~p~rating of an prise. Ray A. Killian points out that "the full importan~ o( ~ -- ,
1nstftution. '' But without sound management, sound orgarusattons cannot be does not depend on)y on proflts·but on the atdtude of lnvestorsa-.I~-
created. Sound management can effectively allocate the work to be done b~ confidence with which prospective executives and.employees vifflvtbe ·
ea'chgroupandindividual.Itcandelegateproperamo~tofauthorityan company." . , . ,_-.
~-"-Jisbsoundrelationshipsbetweenthepersonsworkingtogether. 0 • Importance f or Society • · '
etJuau . said to t!JJ$ ·
9 veveloping human resource-Lawrence Appley has al Eff ti .
eXtefll tl1at"management is thedevelopment of people, not dfrecdon st role In thee : and ;:cient_management Pill:YS a powerful and P\lll><>Seful .
. . ·1e "Thus efficient management P-lays a critical role in the tulle has ew areo esoaety.LatePres.identofU.S.A.JohnF K , --::~. ,
peop • ' - . very aptly remarked that "th l · · •- -~
possible development of human resource of an enterpnse. trial ela• critical in human ro e ro e of management In our socie~ Is
1 o. Establishing sound industrial relatfons-So':111d indus r e- time: to improve~ s::;,_ess. It serves to identify ':I great need' of ~ur
dons serve as the foundation for the success pf an enterpnse. ~und utilisation of human d dards of living of all peoples througb.effectwe
111ent can timely prevent and settle industrial disputes ma con e importantroletoplay;:uru::;u-11~urces."Infactmanagem.enthasan
"one
J=~o~
attJlOSPhere. under the following heads . ty. importance in our soeiety is explain
11,lmprovlngproducdvity-AccordingtoRueandByars, Jstlltl l,Utlllsessoci 's . . . . . ed
:-;;;:::.i:::;:::~=:~:c;::::::::sd:C~=~ylll1d · ~==~~:;;~~esi::;:;:z~~::per~d efficientu~-
effecti~ely which, in tum, increases producti~ty of resources. at )lalll, S<>cfety than that of ::;:;::e, observed that "no lllanagement.
1.2. Adoptins new technology-According to Dr. Vinay Bharwith t11e Whether our social lnstituti ager. It ls the lllanager ore vital t o ~
,..L_, _ _ .. DCMGroup "1Inportanceofmanagementisgrowin8 onsserveusweU h whodeterrntnea
11.AUILLll-••--·, . ' orw ether th
ey8'1Uande.-
·· ~
.,
~JI'
 -•---as•~-
·~ .-~
1 34 Management : An Overvt"' 111· i,n,,..-.u"'ror<h•
Mana8ernent : An overview
· "1ado" Ii"°--,
__,,cutlfactorforu•ee,--wu•
.h - , h _ , . ..,.,n-t,eJn,1 of
-
81
.,,al reso.,,..,.,• of a countr.Y
o~ _talen~~ and resources." Thus, management plays a crucial roJe i
effiCient utilisation of human, physical, financial and informational reso~
of the society.
anad""· """" udliS•nawral, h_,.,. a,u1,_,,
efficl.,ndyandeffoetlvel.Yforaehi_,,.,gsubS...,tlBl)eVelof _.. --'c -
- -_- , , ,
.2. Integrates interest of various groups of society-Accorciing 1 __..p1aysequaDYfn>P.,rtantrol• in ad_,.,.ioped_.i,tevelDP-
Luther Glueck, "All organisations are responsible to certain socq and deveiopJJ1eJ1t.
.,_nadon- worldren,,wn•d-e,nentPbilosopher_oru_"""
groups and management is the link to these social groups." Thei veryrfShdY 0,-.ved ,hat .,__.,-rapid __,ic .,..d ..-i ...,.,.,..
...-----"'.,...-,.,10..-......-..-1---
groups include investors, lenders, customers, employees, local conunlllli~
op.,ent took.....- afler World war n, It . . . , - d •" a re,,.,Jt al
goverrunent etc. Management serves and integrates the interest of Ii
.....t." He ,.,,..._s<ate• mat ...,......s-•"'"' th• -over aod d_.,Jap·
concerned by directing dynamlc organisations. /'.Pel'er.Drucker/
3. Provides goods and services-Efficient management delivers whi,
ever and whenever the goods and services are needed. It ensures prope
,nentla• _,,_...,..c0." "11>• unportan"" of ,nanagement for a nation's
econoJJ1YrnaY be discussed under tbe followuig beads :
...,..,.....--EverY_,i,as
supply of quality goods and services needed by the members of the socieo
at reasonable price.
4. Generates employnient-Management helps to create jobs forth
·
""""°"'""'·
t.J>roperutllJsadonofpatural P h Y"ical
p1endfUlna<uralphYsicalre&0urce
-n,eefflcien<,nanag.,..;;,thas land, forests, ,ive<S, ,nJneraJs,
members of society. Sound management constantly strives for expansion an ,he development of <he nation - can cer<afn!yuse tt,ese ,esources for
w l < h = t - - • • aco.;..,,.,,'::;:""cker baS rightly observed,._
diversification of business. It makes innovation. All these efforts result inl
generation of employment opportunities. -~•.,...,..1,ecome ....,,.,,.:::;-- of production remain
5. Delivers and hnproves standards and quality of life-Trewath ·
and Newport state that "DUUlagement contributesgreadyto anynadon 1
standard of living." Management serves to improve the standards of liviq
of all people through effective utilis<j'.tion of human, physical, financial ail!

1 Jndiaalsohave sizabl
in the best interest.
Hlnd=tan L e . -of
lJIBD88ementof~~-~ery
........,..,
thee
Ltd :al
on.P.L.Tandon
_1,eengood

on.
resources and efficiency
Fo
categoric~y r;:taetr
can explollthem
dChaJrrnaJ'1 ofth
e , uwh
the
-of
infonnational resources. ofaftrm • - - 'the...,..ultBhawe ere e
Dr. Ram Tarneja, has remarked that "Common goal ofJDaDB&'ers•
to enrich quality of life of the society through upgradation of th1
"""""'
than ~macrolevelof
resources,
.,_,_
servi an
=of good
_..-andthl&I&
-,anomy." Th "°
us,forpro
on -
thendcro . -• -.
-
~
standard of living of people.'' '°
•~m be"::.:::::-"°"°'human m a n a g e m e n t ~ ~ vtllisatlnn of
e. Protects socio0 cultural values-According to Paul Plgours, "Man
ageinenrts'regarded as the stabilizer of society and guardian of tra&
=•
offecttv ely . .......
ofh =
du,t h =
Druck . Butonlysound
acounlry
...........,_.All the
resource plays a. ,
yrequtrecl.
. . . , _texpens
crncial
tlon~" In fact, sound management helps safeguarding the socio-cultura UIDan en er has righ numag role ·
values and traditions. Sound management establishes and follows socid donor.......:- ~th-than dystatedthat ~entcan~this ,n the
norms and values in its practice. · 3.Bnco - - - · • t h e t aor~omlc . , . . , . . , _ . . resource
7. Promotes social upliftment-Management can contribute to th1 eve,yc= - - - - p l t a l okor wealth.And amatter
social upliftment. It help!lto eradicate poverty, starvation, untouchability, countrl try.Butth fonnad management,, thegen
~thanth erateof --Fo • _...
injustice towards minority groups and women, class conflicts etc. rrnation
to save in ...., de=lo
limtted e develo capital fo nnatton
• ping counbi is of capltallak
8 . Promotes social change-Management serves as an Jnstrurnent d
social change and social innovation. It may help developing new value systeJll
for in in such countri
::;;:'andln~But_,;;;,_ p,ng_countrt
Moreover,,;:" of the -~.!"""'-oped
es. n is beca higher fn.th es plea, in
Planning,:"""'-'° twbich, In managemen, ""?Pe oJ:inv capacity
and culture in the society. -
9. Career opportunities-Management provides potentially lucradvt
satisfying and challen&fng career opportunities for the members of the society·
...,. conu1s...., •Nierof':"°""'P'--~'...mayencocanu=-se thestrnent is
10. Contributes to environment protection-Management also con· - oconlti •da,yln---....-Eco
Plan.Mand diversif bute to thls . almost all th !'lomic d
........., capital fn-.-..-~ues
eave,,
tributes to well being of the society by taking environment protection meas· oreov ena -•--on.
"""°""""
p Ythelrb P 1• - • - - evelo
ures. It can develop creative ways to make a profit without unduly ruu,nir\l . - . . . , . . er,1tcana1a ......,_;;;---..,proce tlona.Eff P'llenl
the environment. It can adopt environment friendly materials in producil18 """'devel In...., •odal o contnb sa. Manag ective throu,it,
- • emploY>neru Planasuch utetothe
aa J>lana totbeprt
suceesa oriti.,.. eracanemanag,,-
oJ:th •tah!t&h,
r
and packing products.
~eratt relating of natt e nationaJ.
on, P<>p~o heal~ Plana b
eontro1' ed.ucat-1....!
etc. --~
___,,.._
~-

~
rr'-·~.-~i'·:,,
: v-
- '~ ~
.

,...,:::.
37

·~ -
36
Management : An Overview Management
0r. ual: aam
An overview
JaJ<har, fom>"' speak"' of Lok Sabha, has very aptly
5. Balanced
. l econonuc · d eveIopment-A nation remains underdevel-
Op e d if it acks in balance d econorruc
• development. All parts of the country ..,crn,eddre~of_..,.;nadevclopln8""""""'ylike"""'
b
st 1n me 1onowin8wortls , "Man"l!""'"°t IS vital to any caunttY' s deVelaP,nent.
~~ fully developed. Consumer goods industries as well as capital goods
m Ustries must be developed. Large as well as small industries must also be 1t1, ,nes""°tial tool to ensure excellence in any sphere of social activity. In
deve!oped in order to ensure balanced development. Managers can go along • country like our,, where indu,triaJisatlon Is a key factor of d,velop,nent,
way m developing all kinds and types of industries in all parts of the country. """ Is evecy need to make industrial nu,nagement more 1nnovative and
6. Eradicates poverty-Poverty has been mankind's lot through the effective 1ndustri.,, bo<h in ,he,,rban and rural sectors, have to be _,,,ed
ages and still continues to be one of the biggest problem in a large number of to new and effective techniques of management for achieving optinlum
countries. Almost one-third of the population of our country is living below results. sound management is sine quo non of progress.''
-I the poverty-line. Management is only the organ of society which can success- _ 'Ihe...-uflcanceof-=f=Jn<tianeconomycan be ,um,narised
I ful!Y fight against this problem or disease. Peter Drucker seems to be quite
confident about it when he states that "the achievement of business man-
agement enables us today to promise the abolition of the grinding
111 the following few points :
. 1. Th~r~ are plentiful physical resources including forests, rivers
m111eral, oil fields etc. In order to utilise them effectivel d ffi . . ,
poverty .... " ~und =-emenlis needed. y an e ,c,endy•
7. Contributes to the prosperity of nation-The Great economist 110
Scbllrnpeter referred "management as the engine of growth." In fact, 2. There
million are over
(4o crore) 1 100
peopl; beenmillion
t (l crore) people in India. Only 400
management is the flag bearer of growth. He uses the resources of the country, (4 crore) persons get empl ge ~mp oyment. Out of these only 40 nill)ion
oyment m the organi d
generates employment, and engages capital and human resources in produc- employment to other millio f se sector. Thus, to provide
tive use. All these ultimately results in the prosperity of the nation. John_F. crucial role · ns o people, efficient managers canp~a l
Mee has, therefore, rightly observed that "the greatest single factor or key
for unlocking the forces of economic growth in"any nation is.manage- 3. India · has a stock 5 •5 million (55 lakh)
doctorsf law
0
include engmeers, .
professionals Th
ment." · · · ·
secretaries IT e , yers, chartered ace ountant • ey
s.
Contribution to economic growth in dev~loping India need 't · · xperts
. and practitioners
o orgaruse and till
.. of mn s, c h arte~d
urnerable oth di .
econonues...:Currently economists divide econornjes of countries into three c=nh-y. Efficient= u se their services in th _er soplines.
main categories : (i) developed, (ii) developing, and (iii) least developed direction. agers can play powerful and e best mterest of the
econorrries. And management guru Drucker is of the view that "developing 4. Av · purposeful role in this
countries are not underdeveloped, they are under1nanaged." There-
average. G erageper
obal averag
• inco
capita me is• very low
fore, efficient management can go along way towards speeding-up economic capita• I epercap·ta • as comp are d totheglobal
. __ mcon:ieisonlyUS$1 mcomeisUS$5000
t.
,.
growth of lesser and "least developed econorrries of the globe.
m rmngating this gap.
i
00. Effective managerscanpla
, whereas the Indian per
SPECIAL SIGNIFICANCE OF MANAGEMENT IN INDIAN CONTEXT 5 . India need to ya purposeful
Indian economy falls in the category of developing nations. It i~ gener- Roads,,all . . d=elopinfr · =le
s, airlines astruct
i ally remark e d that
"India is a rich country but its inhabitants (residents)
. 1 d r Ids
edevel 'power etc ure faciliti
bbe notedothped. Efficient manag . are some of the infr es at a faster pac
I are poor.
"In fact plentiful natural resources m the form of an , ie . '
, uJa · cap1- tl, atpe,c . ern=co . =tructur th e.
.. · tal areas vegetation, minerals, livestock, human pop non, . e World aver apna power consum ~tribute a lot in this .es at need to
nvers, coas ail bl, within the country but it is relatively poor. The main Power. ageof2,054Kwh.Thisisl ptioninindiaIS363Kw
. direction . It may
.
tal etc. are av a ert . the slow econorrric growth and it is largely because 6. India is I • argelyduetothe hcomparedto
reason for the pove y is
. f ompetent managers. constitute 11 pe aggmg far heh· d . non-availability of
of the scarcity o c tin India has been recognised from time to
I
counrr1· r cent of GDP m in the
Importance ofmanag;.;;;ears. Decades ago, Mrs. Indira Gand~, efficientes. Ou r share in th as c ompared to exp ort front 0
time during the J?a~t overf:ndia observedthattrainedmanagerialmin s 7 Mmanagers can turne total world exp over 50 per cent.. ur ex"J)orts
fonner Prime MiJljSter o'nomy like 1ndia. Management has an e~en · anag around arts i lil so
-.. " ' c= playa crucial the situation.
. m e other
s only 0.6 per cent
'
are needed in a developing ec Chavan, our former Union Ho~e ~ ; 0
role in settm . · n l:_v
greater contribution to ~~e. s.::ial managers have to play a cru~!31 ro g Prtoritie SUlth
.
ena-ti ona.l
~I ister also observed that • ~dus trial growth and development . .
in o.:robjective of rapid mdus
- ~' --~·- ~·_;~ - ~~
,,. . --
~ l-
_)
38
• .,.
39
-- _,r
NSOF MA}VAG ·, 'or
ement
...._,,.' .. •""- ••·"-'An """"'""
)FIG<T[ONOFD J!FINlflO
. fdon• 'roan••
of doh• "••willrm be. in the rtneos of
1 logical
='"•orl•• ,
8 ...,___
9· --.....,. cancon,,,buo, """6canuy;,,._lllsingtha,. -- ,ome
.,
•-...,,...,Pltal.Itmaybenot.dthatfundsinlndiaoce..,.,.,..,:_b
P••centas'8ainat6pe,--inChina. "1 T e For the pu
•Y"
•, c,ASS ,,ou• dofuoe,nadc-'"' Y '·don• unde<
BOX~-" .c• •=.,,.,.of partan• d"";' llowln8
of the iJll ·under the o
some ified
·1looh
a <natte, - -.................
of concem -1ow1ni..u.
in• slohat """"onment, . .....,,
Though fue wog,, "1 : : aging.
~-"·. ro clo•olfY m•Y be c)add cdefinfd<>ru>•
Theyeo•ul•-- -oriented de rUUtion,.
aboutis- cen, of Ohat in fue USA hut fue P>"OdUctivt0y of lab""'"'~ f. -Goel 0 ' " ' " M .mc1en yd d,flnldons.
lust 14 pe, - • of Ohat m fue USA. Labaur co,t pe, Unit of °"'Puo1n~"' •· producll humon-orien<• --orien••d dermltions.
4 per cent "'""'thanm Ohe lJSA. Yolue · -by - - -""~ ......... 0 ' - .nd l••·"'... d•rmition,.
1 ,00o which ls one.flftleu, (1/SO) of Ohat of fue USA. Value .....:•• IV. Doci•l_
o'.:;. , •rocen-onen""" definition,.
"f!l"icultu,..w.....,_lsaboutfueos <oowhlchi.one.hund.-..i.,111~• v. """."'0 en•-orienoed
0 •cl• oh• ,
Ohatoflhe!JSA.p"'-m-....,._.,1_75-untt,._.,_,., I Dellnldons, . h w managm •• - .
lughli"!:' ,
'I VI.En=-
T,--sion and dl,lr!button Io,~, of powe, in h>dia.,.. 18 or R...it-oriented deflnltl=• ':,,, d•firuti= are
I ----fueWoddaver.g.ofg--Soun.,~ =""'·
=••:'°-,
LGoal ,I oc """'•orlenOed hiev<, A f• f
=• .
I
I
CanplayaCOUcial'Olem1nco-eamng.., _ _ ~ - I A 1.. o, ...,,..." •• "Manag=••·
0 1, .... O
-t'n,n,fueOU"tlcle ........ hyM-o.Aonbani,~.... P-k•• Polle~,
:I lndo-.,.,J
10.h,dian_lic_laesandeooperauve--. ... _ ,Acoocdlng
. _ Oo Mthrarryugh other people.
fllaroldK~ntz, nt is the art of getting
••--allyo,-edg,-oup ·
,..,.,...........,'YnonY<nou,"""lnefrocieney,lnon1e,..,._..,._
8e>vicesofapoolofm.n ••~,1sfueneedoffue h
•
OUr.
~•1.
. _m .,,
do=
. w°""ugho
done thro
0
r Lawrence Appley,
and with
' 'Mono~
l "
people in form
"Managemen
•"
t is the accomplishment
\)
lnadditton,OUfficlenoaru1effect1ve..._.,playa,,ru"'1m1,...
--- mult=•
through
o the efforts o f o "'" poop
highlight
e. that management -
', i forohefollowing-, Th~ • .,, Sool·orl•nre : t --•ed wiili gettlng shOno done
del
ll. To-hannonious"""""""relstton,ond1o-......
12. TopO"eVen,andoett1e1n..,_dlsputea,
""'
....,..mg 0....,
,...,, Yand with other p p
through
d d finitlons
actMOy w"'.:'o ,:. Such d,finittons ~• moat wl
dona.
y
---• db me ''°"'""
u =ll u •~•••rn.
13. To ............... f-yrun.,.......,on,_
14 To develop COmpetltive aplrlt and mengu, .,.."8.,_. P,oducu.i,y =• •fflci,~cy-on'.n<od d•ftpm1:10~ •m
n. ProductMOy-l!ftlclency-orie,nedoeflni . . •an•e ""''
thepminimum of
• ............. lo ... ort of """""8 oWtimun, OU U -
--- .
1s. Tohe1p1nn......,andmtt-oduconewiliing · · , ==•" """ effon., Some of <h, suOh
Acco,dlng'°Predrict.Wlost= d•flnitton,
T-,lor ar. as follow,
(P.w. Ta~lor), • of
Ohe f""'=
16. To remove....,_. ..._..._ Im - • • - . . . . . ,, " - • • i& <he ort of knowmg wha'.,Y•u wan,
"•Ing ...,.,
17. To era ca bl ""of flOOd, "'°"""'•
di lep0ver0yand»plif•p•oplebelowpov,ny : .
drinkfngw..,.,,_
0o do"""
A<
b don, in <he b.,, and•••••••• way.
"'°"'" PIO<e Tayto,. obo •Dm•ed ouo Oba, "m&nagemeno hnplie,
18. To help fight pro • O
••h•titi>Olon of '"'"" ••i•nttfI•
invosUg,tton """ knowledge for Ohe old
healthetc.effecttvely. flll '-dl.iduo1 iudg.,_, o, "Pini=, in oil m,n,c, in Oh, "0ablislunen o."
01 •o, •dlng '. 0 John P. "-•· "Manag,m,n, may be defined as Ohe ...,
Th
19. To Improve standard and qualiOy •· 0
... "'°'P•tioy =• happ1n,., Io, boOh
T make Ohe d,-eam of welfare •late realloy. Ilk - • • • "-•- ••~P•ti<y wi<h • mlnimun. of effon •• • son sec....,
20.uso• management P layaacruclalrolein•co-y
cl•Oy and economy - a whole. The
Ba • ..
...,.,~
•......
-, -l!lve the Public the best Possible service , ,
· ""Ploy" •m•••Y••
and and
developonentofbumeo,;;'; uali0yor._~.....,ln ,.:~,.
of a nationgreat
World'• depends upgo:,,en~
mana phllo,opher ha,
clalfactorlneconom1caod ........
of .!:: '::!~:""''Y·on ,.,•d deflruuons ""'••ea
or .....!m,n, P:::,..,"::,-:; ::~••Oca
• ;•m•- ...,u.,..,, byh...,..,_
......•·
<he .....,.
""·•• num...,_
,......_lathecru ducea OCOnom1c and ooclsl,:_.,.....,.,
• • • • Management pro
ntcancon tribu teinfalsifytngtheoldsa
"
Indeed, manageme
untry but Its lohablUUlt• are poor.
arlchco
.... c
,,..
.... , .
.. ...
- :..-.··:-~

Ba.r :I. 4 C'Ontr:J • • • •