PRINCIPLES OF MANGEMENT FOR

ENGINEERS

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 Unit 1- Introduction to Managers &
Management

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 Management

What is Management ?
Management is the process of effective utilization
of resources with the aim of achieving organizational
objectives effectively and efficiently.
It is coordination and oversight of the work
activities of others so that their activities are completed
efficiently and effectively

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 Effectiveness (Ends)
Doing the right thing or completing activities so that
organizational goals are attained or objectives are achieved.
High goal attainment.
Efficiency (Means)
Doing things right or getting the most output from the
least amount of inputs (time, money, etc.)
Resource usage.
low waste of resources.
Management strives for: low resource wastage and
high goal attainment.

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Efficiency and Effectiveness in
Management
Efficiency (Means) Effectiveness
(Ends)

Resource Goal
Usage Attainment

Low Waste High Attainment

Management Strives for:

Low Resource Waste (high efficiency)
High Goal Attainment (high effectiveness)

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 DEFINITION-MANAGEMENT
• F.W. Taylor -“Art of knowing what you want to do and then seeing
that it is done the best and cheapest way”.
• Henry Fayol –“To Manage is to forecast, to plan, to organize, to
command, to co-ordinate and to control”.
• Peter F. Drucker –”Management is work and as such it has its own
skills, its own tools and its own techniques”.
• “Management is the art of getting things done through and
with people”.

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Modern Definition of Management
“Management is a distinct process consisting of
planning, organizing, actuating (directing),
controlling, performed to determine and accomplish
the stated objectives with the use of human beings and
other resources:-
George R.Terry

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 Definitions Of Management

 Production-or Efficiency oriented

 Decision Oriented
 People oriented
 Function oriented

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 Production-or Efficiency oriented Definition

“Management is the art of knowing what you want to do

then seeing that it is done in the best and cheapest
way”
- According to Taylor

-Emphasis on Efforts and Results

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 Decision Oriented Definition

“Management is simply the process of decision

making and control over the action of human being
for the expressed purpose of attaining pre-determined
goals”
-According to Stanley Vance
-Indicate manager’s activity

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 People oriented Definition

“Management is the art of getting things done through

and with people in formally organized groups.”
-According to Koontz

-Emphasis on relation with internal people

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 Function oriented Definition

“Management is a process involving planning,

organizing, staffing, directing and controlling human
efforts to achieve stated objective in an organization”

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 Characteristics of Management
1. Management is intangible.
2. Management is goal-oriented.
3. Management is universal.
4. Management is a group activity.
5. Management is a system of authority.
6. Management is dynamic.
7. Management is a science as well as an art.
8. Management is multidisciplinary.

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Importance of Management
1. Optimum use of resources.
2. Effective leadership and motivation.
3. Establishes sound industrial relations.
4. Achievement of goals.
5. Improves productivity.
6. Improves profitability.
7. Increases efficiency.
8. Enhances effectiveness.

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 Concept of management:
1.Management is a Process:
Role of a Manager as follows-

Plan the activities

Organize the resources

Direct the subordinates

Control the activities

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2.Management follows professional approach:

A professional manager is who:

Encourages Invites Provides

Delegates
initiative suggestions of training to
Authority
attitude subordinates employees

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3.Management is like Science:
1. Systematized body of knowledge.
2. Scientific observation.
3. Experimentation.
4. Verifiable principles.
5. Universal application
6. Manager vs. Scientist. (A scientist can afford to wait
until all the information is available but a manager
cannot.)

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 4. Management is result oriented:
Management stresses on result orientation not on activities.
Results may lead to ultimate goals like:

Reduction
in wastages

Optimum
utilization
of resources

Motivated
workforce
Higher
efficiency

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 5. Management as an art
Management is a art as it involves the use of knowhow and
skills like any other art.
Management is an art because it requires:
1. Use of knowledge.
2. Creative art. (It combines human and non-human
resources in a useful way so as to achieve results.)
3. Constant practice.

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Management V/s Administration
Administration means: (a) Overall determination
of policies (b) setting of major objectives (c) the
identification of general purposes (d) laying down
of broad programs and projects.
It is concerned with policy making to attain the
given objectives.
It lays down the broad guidelines for the middle
level and lower level executives.
Contd.
There could be three different approaches inferred
regarding management and Administration

Administration is above management

Administration is a part of Management
Management and administration are same

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 Difference between administration and
management
No Basis of Difference Management Administration

1 Level in Organization Middle –Lower Level Top Level

2 Nature of function Executive function Decision making

function
3 Scope of Function Broad and conceptual Narrow and operation

4 Type of decision Management decides What is to be done and

who should do it and when it is to be
how he should do it. done.

5 Relative importance Doing function Thinking function i.e.

policy and decision
making

6 Factors in decision making Internal External

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