CONCEPT OF MANAGEMENT

 As there is no universally accepted definition

for management, it is difficult to define it.

 But a simple traditional definition, defines it

as the "art of getting things done by others".
This definition brings in two elements namely
accomplishment of objectives, and direction
of group activities towards the goal. 
 A few definitions by experts are:
 "Management is an art of knowing what is to
be done and seeing that it is done in the best
possible manner." (planning and controlling)
 F.W. Taylor (father of scientific management)

 "Management is to forecast, to plan, to

organize, to command, to coordinate and
control activities of others."
 Henri Fayol (father of modern management)
 NATURE OF MANAGEMENT
 Management involves characteristics of both
art and science.
 Whereas under "science" one normally learns
the "why" of a phenomenon, under "art" one
learns the "how" of it. In the words of Robert
H. Hilkert: "In the area of management,
science and art are two sides of the same
coin".
 In the beginning of development of
management knowledge, it was considered
as an art. There was a jungle of management
knowledge. Any one used it to get things
done in his own way. But later by codifying
and systemizing the management, it became
a science as well as being an art.
 MANAGEMENT AS AN ART
Management can be an art in the sense that it has the
following characteristics:
 Just like other arts it has to be practiced and performed.
The knowledge should be learned and practiced, just as
medical or legal practitioners practice their respective
sciences.
 The manager gains experience by continual application of
management knowledge and facing new experiences. This
helps to develop more skills and abilities for translating
knowledge into practice.
 Application calls for innovativeness and creativity.
 The fourth reason is that in many situations, theoretical
knowledge of management may not be adequate or
relevant for solving the problem. It may be because of
complexity or unique nature of the problem.
 MANAGEMENT AS A SCIENCE
Management as a science has the following characteristics:
 Its principles, generalizations and concepts are systematic. In
this case the manager can manage the situation or
organization in a systematic and scientific manner.
 Its principles, generalizations and concepts are formulated on
the basis of observation, research, analysis and
experimentation, as is the case with the principles of other
sciences.
 Like other sciences, management principles are also based
on relationship of cause and effect. It states that same cause
under similar circumstance will produce same effect. Suppose
if workers are paid more (cause), the produce more (effect).
 Management principles are codified and systematic, and can
be transferred from one to another and can be taught.
 Management principles are universally applicable to all types
of organizations.
FUNCTIONS OF MANAGEMENT
SIGNIFICANCE OF MANAGEMENT
 Management helps in achieving group goals
 Management increases efficiency
 Management creates a dynamic organization
 Management helps in achieving personal
objectives
 Management helps in the development of
society
 LEVELS OF MANAGEMENT

 With growth in size of the organization and

increase in the number of employees , there is
increase in the number of levels of the
organization and vice versa.

 The distinction is based on authority,

responsibility and nature of functions performed
by managers.
 FUNCTIONS OF TOP MANAGEMENT

 Objectives, plans, policies and procedures

 Planning, organising, staffing, directing,
controlling
 Appoint the executives for middle
management
 Coordinate activities of various departments
 Cater the demand of various stakeholders
 Put plan into action
 FUNCTIONS OF MIDDLE MANAGEMENT

 Communicate policy decisions of top managers

to lower level managers
 Lay plans and policies for respective
department
 Manage day to day operations
 Employment and training of lower management
 Send report to top management
 Motivated lower management
FUNCTIONS OF LOWER MANAGEMENT
 Supervise the activities of employees
 Train employees to work better
 Plan day to day operations
 Assign jobs and tasks to various workers
 Communicate workers’ problems and
suggestions to higher levels
 Ensures safety of tools, machines and
equipments
 Create sense of belongingness amongst
workers
CLASSICAL APPROACH TO
MANAGEMENT
FREDERICK W. TAYLOR’S SCIENTIFIC
MANAGEMENT THEORY(1856-1915)
 Increased Productivity & Efficiency
 Time and Work Study
 One best way of doing the work
 Change the sequence of existing operations
 Work schedule be reorganized by adding or
deleting some of the operations
 Separation of Planning and Doing
 Rest between the work activities
PRINCIPLES:
1) Rule of thumb should be replaced with
Science
2)There should be harmony, not discord in
group action
3)Cooperation, not individualism
4)Maximum output, not restricted Output
5)Development of workers to their fullest
capacity
HENRI FAYOL’S ADMINISTRATIVE
THEORY(1841-1925)

 Organisation as a whole
 Managers can be made
 14 PRINCIPLES OF
MANAGEMENT OF HENRI FAYOL
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
 WEBER’S BUREAUCRACY
THEORY (1864-1920)

1. Task specialization
2. Hierarchical authority
3. Formal selection
4. Rules and requirements
5. Impersonal
6. Career orientation
NEO CLASSICAL APPROACH TO
MANAGEMENT
CONTINGENCY APPROACH TO
MANAGEMENT
CONTEMPORARY APPROACH TO
MANAGEMENT
 THEORY OF MICHAEL PORTER
 Five Force Analysis

a) Threat of new competitors

b) Bargaining power of buyers
c) Threat of substitute products
d) Bargaining power of suppliers
e) Rivalry among existing firms
CONCEPTUAL FRAMEWORK OF
PLANNING
 TYPES OF PLANS – PLANS CAN
BE CLASSIFIED AS

1. Missions or purposes
2. Objectives or goals
3. Strategies
4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
 PLANNING PROCESS

Stage 1: Identify problems and needs

Stage 2: Develop goals and objectives
Stage 3: Develop alternative strategies
Stage 4: Select strategies and develop a
detailed plan
Stage 5: Design a monitoring and evaluation
plan
 DECISION-MAKING

 According to George R Terry: “Decision making is

the selection based on certain criteria from two or
more alternatives”
 PROCESS OF DECISION MAKING
 Identify the problem
 Diagnose the problem
 Establish objectives
 Collect information
 Generate Alternatives
 Evaluate alternatives
 Select the alternative
 Implement the alternative
 Monitor the implementation
MANAGEMENT BY OBJECTIVES
PROCESS OF MBO
 Develop overall goals
 Establish Specific Goals
 Devise action plans
 Self-control
 Appraisal of performance