Introduction to

Management

Unit 1
6 Ms of
Management
Concepts

Basic Understanding Meaning Characteristics

Management
• According to Harold Koontz and Heinz Weihrich, Management is the
process of designing and maintaining an environment in which
individuals, working together in groups, efficiently accomplish selected
aims.

• According to Robert L. Trewelly and M. Gene Newport, Management is

defined as the process of planning, organising, actuating and
controlling an organisation’s operations in order to achieve
coordination of the human and material resources essential in the
effective and efficient attainment of objectives.

• According to Kreitner, “Management is the process of working with and

through others to effectively achieve organisational objectives by
efficiently using limited resources in the changing environment.

• According to George R Terry, Management consists of planning,

organising, actuating and controlling, performed to determine and
accomplish the objectives by the use of people and resources.
Characteristics of Management

1 goal-oriented process 3 Multidimensional 5 Group activity

All pervasive 6
2 4 Continuous process 6 Dynamic function
Characteristics of Management

7 Intangible force 9 It is a Science

It is an Art 6 As a profession
8 Universal 10 11
Productivity,Effectiveness & Efficiency

Effectiveness Efficiency Productivity

Peter F. Drucker (1964) has an easier way to explain
this: “ Efficiency is doing things the right way;
effectiveness is doing the right things”.

Productivity = the amount of output created per unit

of input
A different approach to defining productivity by
Jackson and Petersson (1999) takes into account
both efficiency and effectiveness:
Productivity = Efficiency x Effectiveness
Case study:

Mega Ltd manufactured water heaters. In the first year of its operations, the revenue earned by the company was just
sufficient to meet its costs. To increase the revenue, the company analysed the reasons behind the less revenues. After
analysis, the company decided:
● To reduce the labour costs by shifting the manufacturing unit to a backward area where labour was available at a very
low rate
● To start manufacturing solar water-heaters and reduce the production of electric water heaters slowly.
This will not only help in covering the risks but also help in meeting other objectives.
a) Identify and explain the objectives of management discussed above.
b) State any two values which the company wanted to communicate to society.
 Significance of Management

• Optimum use of resources

• Competitive strength
• Cordial industrial relations
• Employee motivation
• Introduction to new techniques
• Social benefits
• Expansion of business
• Stability and prosperity
• Team spirit
• Effective use of managers

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 Features of Management process

• Continuity
• Circular process
• Social process
• Composite process

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Functions of Management

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