CHAPTER 1

Objectives of the chapter

Understanding management concepts
Characteristics of management
Functions of management
MANAGEMENT
Management is the attainment of organizational goals in
an effective and efficient manner through planning,
organizing, staffing, directing and controlling
organizational resources.
Organizational resources include men(human beings),
money, machines and materials.
Definitions
Louis E Boone & David L Kurtz- The use of people and
other resources to accomplish objectives.
Mary Parker Follet- the act of getting things done through
people.
Frederick Taylor defines Management as the art of
knowing what you want to do in the best and cheapest
way.
Characteristics
Management is a distinct process.
Management is an organized activity
Management aims at the accomplishment of
predetermined objectives.
Management is both a science and an art.
Management is a group activity
Management principles are universal in nature
Management integrates human and other resources.
Steps in MBO
To establish long-term and short-tem organizational goals
To establish long-term and short-term objectives for each
manager, clarifying the key performance standards
Periodic review of performance
Encouraging managers to accept responsibility
Benefits of MBO
The need for planning will be recognized
It provides for objectives and accountability for
performance
It encourages participative management
It helps in job enrichment
It provides for a good feedback system
FEATURES
Management involves five functions
These functions are organised to achieve organisational
goals.
Management involves effective and efficient use of
resources
He was a graduate in Physics from Loyola College-
Chennai (then Madras). He worked in Union Carbide
for nearly four years which according to him - in a
way shaped his ideas of management and then did his
masters from IIMA and his DBA from Harvard in 1975.
Then he taught at IIMA for a while to return to
Stephen M Ross School of Business at the University
of Michigan as a Distinguished Professor.

C K Prahalad was an interesting combination of an academic and a

practitioner
He compared the 'Diversified Company' as a tree and
major limbs as core products, smaller branches as
business units' leaves and fruit as end products and
the root system which nourishes and stabilizes all
things as core competencies.
Vijay Govindarajan known as VG, is the Coxe
Distinguished Professor at Dartmouth's Tuck School
of Business. VG, a New York Times and Wall Street
Journal Best Selling author, is an expert on strategy
and innovation. He was the first Professor in
Residence and Chief Innovation Consultant at
General Electric. In the Thinkers 50 Rankings, VG is
rated #1 Indian Management Thinker.
For the past 30 years, VG has been researching and
writing about strategy and innovation. His publications
have been cited more than 10,000 times—placing him
among the top researchers in the field of strategic
management. He is a rare academic who has published
more than 10 articles in prestigious academic journals
and has also published more than 10 articles in top tier
practitioner journals. VG is a two-time winner of the
prestigious McKinsey Award from Harvard Business
Review. His latest book is 
Three Box Solution: A Strategy For Leading Innovation.