Fundamentals of

Management
By-
Rachana Srivastava
IEC College of Engineering and Technology
Organisation
• Organization
• A systematic arrangement of people brought together to accomplish some
specific purpose; applies to all organizations—for-profit as well as not-for-
profit organizations.
• Where managers work (manage)
• Common characteristics
• Goals
• Structure
• People
Management Defined
• Management
• The process of getting things done, effectively and efficiently, through and with
other people
• Efficiency
• Means doing the thing correctly; refers to the relationship between inputs and outputs; seeks to
minimize resource costs
• Effectiveness
• Means doing the right things; goal attainment
• Management is the process of planning, organizing, leading, and controlling
an organization’s human, financial, physical, and information resources to
achieve organizational goals in an efficient and effective manner.
 Characteristics or Nature of management

• Management is Goal-Oriented:  

• Management integrates Human, Physical and Financial Resources:  

• Management is Continuous:

• Management is all Pervasive:

• Management is a Group Activity:

• Organized Activities:  

• Existence of Objectives: 

• Decision-making:

• Relationship among resources:

• Working with and through people:

• Multidisciplinary:

• Management is dynamic 

• Relative, Not Absolute Principles:  

• Management is Universal:
Managerial Levels
Managerial Skills
Management as a Science and as an Art and as a both

Science is characterized by following main features: 

• 1. Universally acceptance principles  

• 2. Experimentation & Observation 

• 3. Cause & Effect Relationship

• 4. Test of Validity & Predictability

• Management as an Art
 
1. Practical Knowledge
2. Personal Skill and creativity
3. Perfection through practice
 Objectives of management

• 1. Getting Maximum Results with Minimum Efforts

• 2. Increasing the Efficiency of factors of Production
• 3. Maximum Prosperity for Employer & Employees
• 4. Human betterment & Social Justice
• 5. It helps in Achieving Group Goals
• 6. Optimum Utilization of Resources
• 7. Reduces Costs
• 8. Establishes Sound Organization
• 9. Establishes Equilibrium
• 10. Essentials for Prosperity of Society
Managerial Functions
Qualities of a Successful Manager

• 1. Demonstrates

• 2. Deals honestly and diplomatically

• 3. Demonstrates flexibility  

• 4. Shows commitment and reliability

• 5. Listens effectively  

• 6. A good negotiator

• 7. A thorough planner
• 8 fair
• 9. Knows how to have fun and has a good sense of humor
• 10. Seeks to understand their workers
14 Principles of Management
Principles of Scientific Management

• 1. Development of Science for each part of men’s job (replacement of rule of thumb)
• 2. Scientific Selection, Training & Development of Workers
• 3. Co-operation between Management & workers or Harmony not discord
• 4. Division of Responsibility
• 5. Mental Revolution
• 6. Maximum Prosperity for Employer & Employees
 
Difference between Management and Administration
   
Basis Management Administration
     
Meaning Management is an art of getting things done It is concerned with formulation of
through others by directing their efforts towards broad objectives, plans & policies.
achievement of pre- determined goals.
     
Nature Management is an executing function. Administration is a decision-
     
making function.
Process Management decides who should as it & Administration decides what is to be
how should he do it. done & when it is to be done.
     
Function Management is a doing function because Administration is a thinking function
managers get work done under their because plans & policies are
   
supervision.  
determined under it.
Skills Technical and Human skills Conceptual and Human skills
     
Level Middle & lower level function Top level function
Hawthorne Experiments
• 1. Illumination Experiments - . Experiments to determine the effects of changes in illumination on
productivity, illumination experiments, 1924-27.

• 2. Relay Assembly Test Room Experiments - Experiments to determine the effects of changes in
hours and other working conditions on productivity, relay assembly test room experiments, 1927-28

• 3. Mass Interviewing Programme - Conducting plant-wide interviews to determine worker attitudes

and sentiments, mass interviewing programme, 1928-30

• 4. Bank Wiring Observation Room Experiment - Determination and analysis of social organisation
at work, bank wiring observation room experiments, 1931-32
Main conclusions drawn by Prof. Mayo
on the basis of Hawthorne studies
• 1. Social Unit:
• 2. Group Influence:
• 3. Group Behaviour:
• 4. Motivation:
• 5. Supervision:
• 6. Working Conditions:
• 7. Employee Morale:
• 8. Communication:
• 9. Balanced Approach:
SYSTEM APPROACH
Features of System Approach
• (a) Dynamic
• (b) Multilevel and Multidimensional
• (c) Multimotivated
• (d) Probabilistic
• (e) Multidisciplinary
• (f) Descriptive
• (g) Multivariable
• (h) Adaptive
Importance of Management
• Accomplishment of goal
• Effective utilisation of Resources
• Sound Organisation
• Providing vision and foresight
• Harmony at work
• Helping employees in achieving Personal Objectives
• Development of society and Nation
Planning
• Planning is a process of seeking answer to some of the following
particular questions:
• (i) What is to be done?
• (ii) Why it is to be done?
• (iii) How the work will be done?
• (iv) Who will do the work?
• (vi) When the work will be done?
• (vii) Where the work will be done?
Characteristics of Planning
• 1. Planning is goal-oriented.
• 2. Planning is looking ahead
• 3. Planning is an intellectual process.
• 4. Planning involves choice & decision making.
• 5. Planning is the primary function of management / Primacy of Planning.
• 6. Planning is a Continuous Process.
• 7. Planning is all Pervasive
• 8. Planning is designed for efficiency.
• 9. Planning is Flexible.
Planning Process
• 1. Establishment of objectives
• 2. Establishment of Planning Premises
• 3. Choice of alternative course of action
• 4. Formulation of derivative plans
• 5. Securing Co-operation
• 6. Follow up/Appraisal of plans