Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc.

, 2000
 KRITIKA THAKUR
PRACHI GUPTA
KALYANI GUPTA
RICHA SHARMA

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 MANAGEMENT WILL
BE EXPLAINED BY:
KRITIKA THAKUR
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INTRODUCTION
MANAGEMENT IS NECESSARY FOR ALL THE
ORGANISATIONS IRRESPECTIVE OF ITS
SIZE,NATURE AND FUNCTIONS.THE
CONCEPT OF MANAGEMENT IS NOT
RESTRICTED TO BUSINESS ORGANISATION
BUT EVEN NON BUSINESS ORGANISATION
NEEDS TO MANAGE ITS
FUNCTIONS.MANAGEMENT IS A PERVASIVE
AND UNIVERSALLY ACCEPTED FUNCTION.

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 CONCEPT OF MANAGEMENT
•To understand the concept of management
we must know the meaning of management
.Management is defined differently by
different authors…

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 MANAGEMENT DEFINITION
“ Management is the art of knowing exactly what you
want your men to do and then seeing that they do it in the
best and cheapest way.”
 Management is the art of getting things done through

others.
 Management also means to manage ,to forecast ,to plan

,to organise ,to command ,to coordinate and to control.

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 FEATURES OF MANAGEMENT
 1.Achieving organisational objectives
 2.Distinct activity

 3.Group efforts

 4.Intangible

 5.Co –ordination force

 6.Working with and through others

 7.Balancing effectiveness and efficiency.

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 OBJECTIVES
 ORGANISATIONAL OBJECTIVES.
 SOCIAL OBJECTIVES.

 INDIVIDUAL OBJECTIVES.

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 Three Levels of Management

Top
Managers
Middle
Managers

First-line Managers

Non-management
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 TOP LEVEL MANAGEMENT
 It consists of Chairman, Board of Directors, Managing
Director and General Manager etc..The managers
working at this level have maximum authority.

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 MIDDLE LEVEL
MANAGEMENT
 This level of management consists of departmental heads
such as purchase department head, sales department head,
finance manager, marketing manager, executive officers
etc..They act as a linking pin between top and lower level
management.People of this group are responsible for
executing the plans and policies made by top level.

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LOWER LEVEL MANAGEMENT
 This level consists of supervisors, superintendent,
foreman, sub department executives, clerk etc..Managers
of this group actually carry on the activities according to
the plans of top and middle level management. Their
authority is limited.

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 Five functions of Management

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 PLANNING

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 1-9

Planning
Planning is deciding in advance what is to be done ,
when is to be done ,by whom it is to be done ,and how
it is to be done.
It bridges the gap between where we are and where we want to
go. It includes forecasting, formulation, policies, objectives,
procedures etc.

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 Planning Process

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 Advantages of Planning
 Better utilization of resources
 Encourages innovations and creativity

 Minimizes uncertainties

 Facilitate coordination

 Improves employee morale

 Provides competitive edge

 Planning facilitate control

 Planning helps in improving economies

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 Internal limitations
There are several limitations of planning. Some of them are inherit in the process
of planning like rigidity and other arise due to shortcoming of the techniques of
planning and in the planners themselves.
 Rigidity

 Time consuming
 Probability of planning

 False sense of security

 Expensive

 Human elements

 costs

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 External limitation
 Politicalclimate: change of political party
 Labour union: strikes, lockout , agitations

 Technological changes: computerization , modern

techniques and equipment

 Policies of competitors: companies like coca cola and

pepsi
 Natural calamities: earthquake and floods

 Change in demand and price: change in fashion ,change

in income ,change in taste etc.

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 ORGANIZING FUNCTION

PRACHI GUPTA

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 Organizing
Organizing refers to the process of identifying , and grouping
various activities and bringing together physical , financial and
human resources and establishing productive relations among
them for the achievement of specific goals.

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 Steps in organization
A manager performs organizing function with the help of
following steps:-

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 Importance of organization
 Specialization

 Well defined jobs

 Co-ordination

 Effective administration

 Sense of security

 Scope for new changes

 Growth and diversification

 Clarifies authority and responsibility

 Avoid duplication of work

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 Classification of organization

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Difference between formal and informal
FORMAL
organization
INFORMAL

MEANING Consciously coordinated Spontaneous personal

relationship relationship

NATURE Stable and predictable Unstable and

unpredictable

FORM Definite structure and Structure less and full

well defined jobs of discretions

SOURCES OF Formal position Informal , without

AUTHORITY position

EMPHASIS Office people

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 DIRECTING FUNCTION

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 DIRECTING
Directing is concerned with inspiring, guiding, instructing,
by motivating the employees in organization so that their
efforts results in achievement of organizational goals.

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 ELEMENTS OF DIRECTING
 Issuingorders and instructions
 Leadership

 Communication

 Motivation

 Supervision

 Co-ordination

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 IMPORTANCE OF
DIRECTING
 To initiate action.
 To integrate employee’s efforts.

 Means of motivation.

 Balance in the organization.

 To facilitate change.

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 SUPERVISION
Supervision means instructing, guiding, monitoring, and
observing employees while they are performing jobs in
the organization.

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 MOTIVATION
Motivation is an art of stimulating people in action to
accomplish the desired goal.

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 LEADERSHIP
Leadership is the ability of a manager to induce
subordinates to work with confidence and zeal

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 CO-ORDINATION
Co-ordination means bringing together the activities and
resources of organization and bringing harmony in them.

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 COMMUNICATION
Communication is the process of passing information and
understanding from one person to another.

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 STAFFING FUNCTION

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 STAFFING
 Staffing is the selection of employees who have the
training and skill to meet the demands of each position.It
also includes the development, promotion. And
performance evaluation of subordinates and the other
important “people” considerations in the organization.

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 STAFFING CYCLE

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 Staffing process
 Manpower planning.
 Job analysis.

 Recruitment.

 Selection.

 Placement and orientation.

 Training.

 Performance appraisal.

 Promotion and career planning.

 Compensation.

 Separation.

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 IMPORTANCE OF STAFFING
 Investment cost.
 Holistic approach.

 Long term investment.

 Potential contribution.

 Multiplier effect.

 Investment may surpass the cost

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 CONTROLLING FUNCTION

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 Controlling
 Controlling function can be defined as comparison of
actual performance with the planned performance . If
there is any difference or deviation then finding the
reasons for such difference and taking corrective measure
or action to stop those reason so that in future there is
match between actual and planner performance
:

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 IMPORTANCE OF
CONTROLLING
 Helps in achieving organizational goals
 Helps in adopting environmental changes

 Helps in improving the quality

 Controlling helps in financial matters

 Controlling helps in improving the performance of the

employees

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 CONTROLLING PROCESS
 Settingup of (target) standards
 Measuring of performance

 Compare performance against standard

 Taking corrective measures

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 FEATURES OF
CONTROLLING
 Simplicity

 Suitability

 Economical

 Flexible

 Forward looking
 Suggestive

 Feedback

 Vigilant eye

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