MANAGEMENT

INTRODUCTION:
 Management is essential for an organized life and
is necessary to run all types of organizations. Good
management is the backbone of successful
organizations, Managing life means getting things
done to achieve life’s objectives and managing an
organization means getting things done through
other people to achieve organizational objectives.
FORMAL DEFINITIONS
 “Management is a distinct process consisting of activities of
planning, organizing, controlling, performed to determine and
accomplish stated objectives, with the use of human and non-
human resources”
 “Management is the process of designing and maintaining an
environment in which individuals work together, in groups to
efficiently accomplish selected aims”
 “Management is the art of knowing what is to be done, and seeing
that it gets done in the best possible manner through others”
 “Management is the art of getting things done through others, it is
an activity which co-ordinates the human and non-human
resources for achieving desired organizational objectives”
MANAGEMENT; DIAGRAM

HUMAN AND
MANAGEMENT ACHIEVEMENT
NON-HUMAN
OF OBEJCTIVES
RESOURCES
FUNCTIONAL AREAS OF MANAGEMENT
1. Financial management
2. Personnel management
3. Production management
4. Purchasing management
5. Maintenance management
6. Transport management
7. Distribution management
8. Office management
9. Development management
FEATURES OF MANAGEMENT
1. MANAGEMENT IS AN ACTIVITY
2. MANAGEMENT IS A PROCESS
3. MANAGEMENT IS PERVASIVE
4. MANAGEMENT IS GOAL-ORIENTED
5. MANAGEMENT IS INTANGIBLE
6. MANAGEMENT IS DYNAMIC
7. MANAGEMENT IS A DISCIPLINE
8. MANAGEMENT IS A GLOBAL PHENOMENON
9. MANAGEMENT IS A GROUP EFFORT
FUNCTIONS OF MANAGEMENT
There are five primary functions:
1. PLANNING
2. ORGANIZING
3. STAFFING
4. DIRECTING
5. CONTROLLING
PLANNING
 Planning is future oriented and determines an
organization’s direction. It is the rational and
systematic way of making decisions today that will
effect the future of the company
 Planning is selecting information and making
assumptions regarding the future for formulating
activities necessary to achieve organizational
objectives (Terry and Franklin)
 Planning involves selecting missions and objectives
and the actions to achieve them; it requires decision-
making, that is choosing from multiple alternatives in
order to determine the future course of action.
ORGANIZING
 Organizing means creating a structure of relationship
and assigning work to people down the hierarchy along
with authority and responsibility to achieve
organizational goals. It can be understood as the
division of work into units, assignments of duties/work
to each member, defining their relationships with each
other.
 Organizing is the process by which a co-operative
group of human beings allocates its tasks among its
members, identifies relationships and integrates its
activities towards common objectives.
STAFFING
 Staffing means hiring people and appointing them at
appropriate roles. It involves the process of recruiting,
training, developing and evaluating, employees as well
as maintaining this workforce with proper incentives
and motivation.
 Thus, staffing can be understood as the function
through which the right person is assigned the right
role or position in the organization
 Placing the right person, with the right knowledge, at
the right place and the right time to perform
organizational activities increases the efficiency of the
organizations
DIRECTING
 Directing essentially means activating. After plans are
made, organizational structure is designed, and people
are appointed at various posts, managers direct, guide,
motivate and lead the employees to positively
contribute towards organizational goals.
 Directing brings plans into actions by the process of
motivation, communication, leadership, supervision
and team building.
 Directing is the managerial function that involves the
responsibility of managers for communicating to
others what their roles are in achieving the
organization goals.
CONTROLLING
 Controlling is determining what is being
accomplished, that is evaluating the
performance and, if necessary applying
corrective measures, so that the performance
takes place according to plans.
 Controlling is the process of ensuring that
objectives laid in planning functions are
successfully achieved. It involves setting
standards of performance, measuring actual
performance, comparing it with planned
performance, finding deviations between actual
and planned and taking action to remove those
deviations.
LEVELS OF MANAGEMENT
Managers perform various managerial functions. Depending on the
activities performed by managers, they create a hierarchy in the
organizational structure. According to levels, managers, accordingly
management can be classified as follows:

1. TOP LEVEL MANAGERS OR TOP

MANAGEMENT
2. MIDDLE LEVEL MANAGERS OR MIDDLE
MANAGEMENT
3. LOWER LEVEL MANAGERS OR LOWER
MANAGEMENT
FUNCTIONS OF TOP MANAGEMENT
 They lay plans, policies, and procedures for the
organization
 They co-ordinate activities of various departments
of the organization
 They integrate the internal activities of the
organization with the external environment
 They remain aware of changes taking place in the
external environment and change their internal
environment accordingly
 They carry out overall management of the
organization by performing the managerial
functions of planning, organizing, staffing,
directing and controlling
FUNCTIONS OF MIDDLE MANAGEMENT
 They communicate policy decisions of top managers to
lower managers and guide lower level managers to
implement them
 They lay the goals, plans and policies for their respective
departments and ensure their successful accomplishments
 They spend a major part of their time in managing
company’s day to day operations
 They direct the activities of lower level and operating
employees
 They balance the demands of their superiors with the
capacities and capabilities of their subordinates
 They watch the activities of lower level managers and
report them to top managers.
FUNCTIONS OF LOWER
MANAGEMENT
 They supervise the activities of employees, give them
orders and instructions and help them in executing these
orders
 They coordinate the work of employees with the
organizations financial and non-financial resources
 They not only supervise the activities of employees but
also train them to perform better to ensure smooth
conduct of business operations
 They evaluate the performance of employees and sent
their reports to higher level managers
 They plan day to day operations of the business and do not
deal with the outside world.
NEED FOR MANAGEMENT
 To meet the challenges of change
 For effective utilization of the seven M’s – Money,
Men/WoMen, Materials, Methods, Market and
Management.
 For the development of resources
 Management directs the organization
 Management provides stability
 Management provides co-ordination and
establishes team spirit
 To tackle business problems
 A tool of personality development
 Social objectives
NATURE OF MANAGEMENT
An important aspect that explains the
nature of management is that management
is viewed as:

 AS A SCIENCE
 AS AN ART
 AS A PROFESSION
MANAGEMENT AS A SCIENCE
 Science is a systematic body of knowledge pertaining
to a specific field of study that contains general facts
which explains a phenomenon.
 It establishes cause and effect relationship between two
or more variables and underlines the principles
governing their relationship. These principles are
developed through scientific method of observation
and verification through testing.
 MANAGEMENT SCIENCE IS CHARACTERIZED BY
FOLLOWING MAIN FEATURES:
UNIVERSALITY

 Scientific principles represents basic truth about a

particular field of enquiry. These principles may be
applied in all situations, at all time & at all places.
E.g. - law of gravitation which can be applied in
all countries irrespective of the time.
 Management also contains some fundamental
principles which can be applied universally like
the Principle of Unity of Command i.e. one man,
one boss. This principle is applicable to all type of
organization - business or non business.
EXPERIMENTATION AND
OBSERVATION
 Scientific principles are derived through scientific
investigation & researching i.e. they are based on
logic. E.g. the principle that earth goes round the sun
has been scientifically proved.
 Management principles are also based on scientific
enquiry & observation and not only on the opinion of
Henry Fayol. They have been developed through
experiments & practical experiences of large no. of
managers. E.g. it is observed that fair remuneration to
personal helps in creating a satisfied work force.
CAUSE AND EFFECT
RELATIONSHIP
 Principles of science lay down cause and effect
relationship between various variables. E.g. when
metals are heated, they are expanded. The cause is
heating & result is expansion.
 The same is true for management, therefore it also
establishes cause and effect relationship. E.g. lack of
parity (balance) between authority & responsibility
will lead to ineffectiveness. If you know the cause i.e.
lack of balance, the effect can be ascertained easily
i.e. in effectiveness. Similarly if workers are given
bonuses, fair wages they will work hard but when not
treated in fair and just manner, reduces productivity of
organization.
VALIDITY AND RELIABILITY
 Validity of scientific principles can be tested at any
time or any number of times i.e. they stand the test of
time. Each time these tests will give same result.
Moreover future events can be predicted with
reasonable accuracy by using scientific principles.
 E.g. H2 & O2 will always give H2O.Principles of
management can also be tested for validity. E.g.
principle of unity of command can be tested by
comparing two persons - one having single boss and
one having 2 bosses. The performance of 1st person
will be better than 2nd.
MANAGEMENT IS NOT AN EXACT
SCIENCE
 It cannot be denied that management has a systematic
body of knowledge but it is not as exact as that of other
physical sciences like biology, physics, and chemistry
etc. The main reason for the inexactness of science of
management is that it deals with human beings and it is
very difficult to predict their behavior accurately. Since
it is a social process, therefore it falls in the area of
social sciences.
 It is a flexible science & that is why its theories and
principles may produce different results at different
times and therefore it is a behavior science. Ernest
Dale has called it as a Soft Science.
MANAGEMENT AS AN ART
Art is a branch of knowledge that gives
personal expression to feelings, thoughts and
ideas. It leads to creative growth and does not
depend on scientific experiments and testing.
It requires the application of personal aptitude
and skill in assessing how one can utilize
human and non-human resources to gain
maximum benefit out of them

FEATURES OF MANAGEMENT AS AN ART:

PRACTICAL KNOWLEDGE
 Every art requires practical knowledge therefore
learning of theory is not sufficient. It is very important
to know practical application of theoretical principles.
E.g. to become a good painter, the person may not only
be knowing different color and brushes but different
designs, dimensions, situations etc. to use them
appropriately.
 A manager can never be successful just by obtaining
degree or diploma in management; he must have also
know how to apply various principles in real situations
by functioning in capacity of manager.
PERSONAL SKILL
Although theoretical base may be same for every artist,
but each one has his own style and approach towards his
job. That is why the level of success and quality of
performance differs from one person to another. E.g.
there are several qualified painters but M.F. Hussain is
recognized for his style. Similarly management as an art
is also personalized. Every manager has his own way of
managing things based on his knowledge, experience and
personality, that is why some managers are known as
good managers (like Aditya Birla, Rahul Bajaj) whereas
others as bad.
CREATIVITY
Every artist has an element of creativity in
line. That is why he aims at producing something
that has never existed before which requires
combination of intelligence & imagination.
Management is also creative in nature like any
other art. It combines human and non-human
resources in useful way so as to achieve desired
results. It tries to produce sweet music by
combining chords in an efficient manner.
PERFECTION THROUGH
PRACTICE
Practice makes a man perfect. Every artist
becomes more and more proficient through
constant practice. Similarly managers learn
through an art of trial and error initially but
application of management principles over
the years makes them perfect in the job of
managing.
MANAGEMENT AS BOTH SCIENCE AND ART
 Management is both an art and a science. The above
mentioned points clearly reveals that management combines
features of both science as well as art. It is considered as a
science because it has an organized body of knowledge
which contains certain universal truth. It is called an art
because managing requires certain skills which are personal
possessions of managers. Science provides the knowledge &
art deals with the application of knowledge and skills.
 A manager to be successful in his profession must acquire
the knowledge of science & the art of applying it. Therefore
management is a judicious blend of science as well as an art
because it proves the principles and the way these principles
are applied is a matter of art. Science teaches to ’know’ and
art teaches to ’do’.
MANAGEMENT AS A
PROFESSION
 A profession may be defined as an occupation that
requires specialized knowledge and intensive academic
preparations to which entry is regulated by a
representative body.
 Over a large few decades, factors such as growing size
of business unit, separation of ownership from
management, growing competition etc have led to an
increased demand for professionally qualified
managers. The task of manager has been quite
specialized. As a result of these developments the
management has reached a stage where everything is to
be managed professionally.
SPECIALIZED KNOWLEDGE
  A profession must have a systematic body of
knowledge that can be used for development of
professionals.
 Every professional must make deliberate
efforts to acquire expertise in the principles and
techniques. Similarly a manager must have
devotion and involvement to acquire expertise
in the science of management. A person
acquires specialized knowledge through formal
education and training programmes
FORMAL EDUCATION &
TRAINING
There are no. of institutes and universities to impart
education & training for a profession. No one can
practice a profession without going through a prescribed
course. Many institutes of management have been set up
for imparting education and training. For example, a CA
cannot audit the A/C’s unless he has acquired a degree or
diploma for the same but no minimum qualifications and
a course of study has been prescribed for managers by
law. For example, MBA may be preferred but not
necessary.
SOCIAL OBLIGATIONS 
Profession is a source of livelihood but
professionals are primarily motivated by the
desire to serve the society. Their actions are
influenced by social norms and values. Similarly
a manager is responsible not only to its owners
but also to the society and therefore he is
expected to provide quality goods at reasonable
prices to the society.
CODE OF CONDUCT 
Members of a profession have to abide by a code of
conduct which contains certain rules and regulations,
norms of honesty, integrity and special ethics. A code
of conduct is enforced by a representative association
to ensure self discipline among its members. Any
member violating the code of conduct can be
punished and his membership can be withdrawn. The
AIMA has prescribed a code of conduct for managers
but it has no right to take legal action against any
manager who violates it.
REPRESENTATIVE ASSOCIATION
For the regulation of profession, existence of a
representative body is a must. Every professional
is guided by the norms laid out by the concerned
association or council. After attaining formal
education in medicine for example a doctor is
registered under and is required to practice
according to the guidelines laid down by the
medical council of India. The association or
council establishes the standards of performance
for the professionals. All India Management
Association is one such body for managers
THINKING CRITICALLY
It is quite clear that management fulfills several essentials of a profession,
even then it is not a full fledged profession because:

 It does not restrict the entry in managerial jobs for account of one
standard or other.
 No minimum qualifications have been prescribed for managers.
 No management association has the authority to grant a certificate of
practice to various managers.
 Competent education and training facilities do not exist.
 Managers are responsible to many groups such as shareholders,
employees and society. A regulatory code may curtail their freedom.
 Managers are known by their performance and not mere degrees.
 The ultimate goal of business is to maximize profit and not social
welfare. That is why Haymes has rightly remarked, “The slogan for
management is becoming - ’He who serves best, also profits most’.”
CORPORATE SOCIAL
RESPONSIBILITY
 CORPORATE SOCIAL RESPONSIBILITY (CSR): It can be defined as
the voluntary activities undertaken by a company to operate in
an economic, social and environmentally sustainable manner.

 CSR is all about how companies manage the business processes to

produce on overall positive impact on the society. An
organization’s focus on minimizing any harm to the environment
and working in ways that do not damage the communities in
which it operates. This is referred to as “Corporate Social
Responsibility”

 CSR can be defined as continuing commitment by business to

behave ethically and contribute to economic development while
improving the quality of life of the workforce and their families
as well as of the local community and society at large.
IMPORTANT ELEMENTS OF CSR
CSR is the process of assessing an organizations
impact on society and evaluating their
responsibilities. CSR begins with an assessment
of a business and their:

 CUSTOMERS
 SUPPLIERS
 ENVIRONMENT
 COMMUNITIES
 EMPLOYEES
BENEFITS OF CORPORATE
SOCIAL RESPONSIBILITY
Carefully implemented CSR policies can benefit the
organizations by :
 Winning new business
 Increases customers retention
 Develop and enhance relationship with customers,
suppliers and networks
 Attract, retain and maintain a happy workforce
 Differentiate yourself from competitors
 Improve your business reputation and standing
 Provide access to investment and funding
opportunities
 Generate positive publicity
CORPORATE SOCIAL RESPOSNIBITY
TOWARDS DIFFERENT STAKEHOLDERS
The scope of CSR of business is very wide. The
responsibility is manifold and extends to all
those who have a stake in the business:
CORPORATE SOCIAL RESPOSNIBITY
TOWARDS DIFFERENT STAKEHOLDERS

1. RESPONSIBILITY TOWARDS
INVESTORS:
 A fair return on investment
 Safety of investment
 Steady appreciation of investment
 Regular, accurate and full information
about the working and progress of the
company
CORPORATE SOCIAL RESPOSNIBITY
TOWARDS DIFFERENT STAKEHOLDERS
2. RESPONSIBILITY TOWARDS EMPLOYEES:
 Fair wages and salaries
 Good and safe working conditions
 Adequate service benefits such as housing, medical
facilities, insurance cover and retirement benefits
 Recognition of workers, right to form trade unions
and to engage in collective bargaining and strikes.
 Opportunities for education, training, and promotion
 Workers’ participation in decision-making.
CORPORATE SOCIAL RESPOSNIBITY
TOWARDS DIFFERENT STAKEHOLDERS
3. RESPONSIBILITY TOWARDS CUSTOMERS
 Regular supply of right quality goods at right
time and price
 Charge reasonable prices
 Prompt adequate and continuous services
 True and fair information through
advertisements
 Supply goods that meet the needs of different
classes and tastes
 Avoid unfair and unethical practices like
hoardings and black-marketing
CORPORATE SOCIAL RESPOSNIBITY
TOWARDS DIFFERENT STAKEHOLDERS
RESPONSIBILITY TOWARDS THE
4.
GOVERNMENT
 To abide by the laws of the lord
 To pay taxes honestly and on time
 To avoid corrupting public servants
 To encourage fair trade practices
 To avoid monopoly and concentration of
economic power
CORPORATE SOCIAL RESPOSNIBITY
TOWARDS DIFFERENT STAKEHOLDERS
5. RESPONSIBILITY TOWARDS COMMUNITY:
 To make the best possible or efficient use of
the society’s resources
 To provide maximum possible employment
opportunities
 To keep the environment healthy and free
from all types of pollution
 To contribute to the upliftment of the
weaker sections of the society
 To improve public health, education and
cultural life of the community
MANAGEMENT/BUSINESS ETHICS
 Management/Business ethics is the study of how
a business should act in the face of ethical
dilemmas and controversial situations.
 Management/Business ethics is related to the
social responsiveness of a firm. It is the
discipline dealing with what is good or bad and
right or wrong, with moral duty and obligation. It
is a standard of behavior that guides individual
managers in their work
 It can be understood as the set of principles that
governs the actions of an individuals or a group
 Business ethics is the application of ethical
principles to business relationships and
activities.
 10 ETHICAL BEHAVIORS
 Honesty: In all their dealings, ethical
executives are honest and truthful. They do
not purposely mislead or deceive others by
partial truths, selective omissions, or any
other means.
 Integrity: Ethical executives show personal
honesty and courage. They are principled,
trustworthy and upright. They fight for what
is correct. Lastly, they will not betray
morality or be duplicates.
 10 ETHICAL BEHAVIORS
 Trustworthiness: Ethical executives are
worthy of faith. They make every fair effort
to fulfill the letter and spirit of their
promises and commitments.

 Fairness: Ethical people show a commitment

to fairness. They treat people equally with
tolerance and acceptance of diversity.
 10 ETHICAL BEHAVIORS
 Kindness: Ethical executives are loving,
compassionate, generous and kind. They help
those in need and aim to meet their business
goals with the least damage.

 Respect: They treat all people, regardless of

sex, race or national origin, with equal
respect and dignity.
 10 ETHICAL BEHAVIORS
 Lawful: Ethical managers follow rules and
regulations in their company operations.

 Excellence: In conducting their duties,

ethical employees seek excellence. They are
well educated and trained. They actively
aspire to improve their competence in all
areas.
 10 ETHICAL BEHAVIORS
 Leadership: Ethical employees strive to be
positive role models as leaders. They help to
build an atmosphere in which they are highly
respected for principled thinking.

 Responsible: They consider and accept

responsibility for their choices and actions
APPROACHES TO ETHICS IN MANAGEMENT :
CONSEQUENCES BASED APPROACH
 Managers check their decisions through this approach.
Here, the emphasis is on the action and not the
reason behind the action. It measures positive and
negative outcomes. If positive effects outweigh the
negatives, company decisions are justified. In this
approach, managers analyze the potential options
before taking a specific action.
 For example, a manager might receive more revenue
from fees or company donations from bringing on a
certain event in a city. It can be an adventure
programme such as boxing, but it will have a harmful
effect on a number of residents.
 They might fear noise pollution or harm from
competitors or loss of property during the programme.
APPROACHES TO ETHICS IN MANAGEMENT :
MORAL RIGHTS APPROACH
 In this strategy, managers adopt a moral code
that takes care of natural and moral rights. It
includes the right to speech, life, and protection,
and to express emotions, etc.
 Managers reveal all the necessary details in the
annual reports. When disclosing information, its
time and validity are taken into account.
 For example, a manager may see that it is
difficult for some of the workers to engage in
official training. It might be because they lack
the necessary skills. Or, they might have a
different challenge in participation. Some might
even have a financial crisis.
APPROACHES TO ETHICS IN MANAGEMENT :
SOCIAL JUSTICE APPROACH
Managers who take the social justice approach look
for equality and fairness. No one is discriminated
against based on caste, religion, race, or gender. But
differences are justified based on skills or
performance.

For example, workers belonging to any gender, with

the same abilities are equal. But treating employees
who produce better than those who make less is
justified.

This approach has two principal theories – the liberty

principle and the difference principle.