Unit No.

1 Management
Weightage in % : 10
1.1.Meaning and Definition

• Management is essential for an organized life and necessary to run all types of management. 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 with and through other
people to achieve its objectives.
• Management is a set of principles relating to the functions of planning, organizing, directing and controlling,
and the application of these principles in harnessing physical, financial, human, and informational resources
efficiently and effectively to achieve organizational goals.
• Definition of Management
• Many management thinkers have defined management in their own ways. For example, Van Fleet and
Peterson define management, ‘as a set of activities directed at the efficient and effective utilization of
resources in the pursuit of one or more goals.’
• Megginson, Mosley, and Pietri define management as ‘working with human, financial and physical
resources to achieve organizational objectives by performing the planning, organizing, leading and
controlling functions‘.
For example, let us look at the managerial role of a simple housewife and how she uses the managerial
ingredients in managing the home. First, she appraises her household and its needs. She forecasts the
needs of the household for a period of a week or a month or longer. She takes stock of her resources and
any constraints on these resources. She plans and organizes her resources to obtain the maximum
benefits out of these resources. She monitors and controls the household budget and expenses and
other activities. In a large household, she divides the work among other members and coordinates their
activities. She encourages and motivates them to do their best in completing their activities. She is
always in search of improvement, mentions goals, resources, and means to attain these goals. These
ingredients, generally, are the basic functions of management.
1.2 The need, Scope and Process Of Management

• Scope of Management
• The scope of management is too wide to be covered in a few pages. It is very difficult to
precisely state the scope of management. However, management includes the following
aspects:-

• Economic Resource
• System of Authority
• Class or Elite
• Subject-matter of Management
• Functional Areas of Management
• Management is an Inter-Disciplinary Approach
• Principles of Management
• Management is an Agent of Change
• The Essentials of Management
Economic Resource
Business Economics classifies the factors of production into four basic inputs, viz. land, labour, capital and entrepreneur.
By the use of all these four, basic production can be done. But to turn that into a profitable venture, an effective utilization
of man, money, material, machinery and methods of production has to be ensured.

This is guaranteed by the application of management fundamentals and practices. The better is the management of an
enterprise; the higher is its growth rate in terms of profit, sales, production and distribution. Thus management itself
serves as an economic resource.

System of Authority
management is a system of authority. It formalizes a standard set of rules and procedure to be followed by the
subordinates and ensures their compliance with the rules and regulations. Since management is a process of directing
men to perform a task, authority to extract the work from others is implied in the very concept of management.
Class or Elite
Management is considered to be a distinct class that has its own value system. Managerial class, often referred to as a
collective group of those individuals that perform managerial activities is essential component of each organization. The
importance the class has become so huge that the entire group of mangers is known as “management” in every
organization.
Subject-matter of Management
Management is considered as a continuing activity made up of basic management functions like planning, organizing,
staffing, directing and controlling. These components form the subject matter of management.
Functional Areas of Management
Management covers the following functional areas:-

Financial Management: Financial management includes forecasting, cost control, management accounting, budgetary control,
statistical control, financial planning etc.

Human Resource Management: Human Resource Management covers the various aspects relating to the employees of the
organization such as recruitment, training, transfers, promotions, retirement, terminations, remuneration, labour welfare and
social security, industrial relations etc.

Marketing Management: Marketing management deals with marketing of goods, sales promotion, advertisement and publicity,
channels of distribution, market research etc.

Production Management: Production Management includes production planning, quality control and inspection, production
techniques etc.

Material Management: Material management includes purchase of materials, issue of materials, storage of materials,
maintenance of records, materials control etc.
Purchasing Management: Purchasing management includes inviting tenders for raw materials, placing orders, entering into
contracts etc.
Maintenance Management: Maintenance Management relates to the proper care and maintenance of the buildings, plant and
machinery etc.
Office Management: Office management is concerned with office layout, office staffing and equipment of the office.
Management is an Inter-Disciplinary Approach
Though management is regarded as a separate discipline, for the correct application of the management principles, the
study of commerce, economics, sociology, psychology, and mathematics is very essential. The science of management
draws ideas and concepts from a number of disciplines making it a multi-disciplinary subject.
Principles of Management
The principles of management are of universal application. These principles are applicable to any group activity
undertaken for the achievement of some common goals.
Management is an Agent of Change
The techniques of management can be improved by proper research and development.
The Essentials of Management
The essentials of management include scientific method, human relations and quantitative techniques.

Characteristics of Management
An analysis of the various definitions of management indicates that management has certain characteristics. The
following are the salient characteristics of management.

Management is universal
Management is a social process
Management is an integrating/unifying force
Management is objective/ target oriented
Management is dynamic, and not static
Management is a system of authority
 Decision-making
Continuous process
Management is born as well as acquired ability
Proper utilization of resources
Intangible
Management is a science as well as an art
Modern management can be regarded as a profession
Distinct Process
Management is a group activity
Management implies good leadership
Management draws ideas and concepts from various disciplines
Different Levels of Management
Need of organization
Management need not be owners

Management is universal
Management is applicable to all forms of human organizations whether it is profit- making or non- profit making.
Management is not applicable to business undertakings only. It is applicable to political, social, religious and
educational institutions also. Management is necessary when group effort is required
Management is a social process
To get things done from the people manager has to establish inter-personal relations with them. He has to understand
the behavior of all as individual members as well as members of a group. Management is a process, function or
activity. This process continues till the objectives set by administration are actually achieved.

“Management is a social process involving co-ordination of human and material resources through the functions of
planning, organizing, staffing, leading and controlling in order to accomplish stated objectives”.
Management is an integrating/unifying force
Management is integrating people into a single working force with available physical resources. The essence of
management is the integration of human and other resources to achieve the desired objectives. Managers seek to
harmonize the individuals’ goals with the organizational goals for the smooth working of the organization.
Management is objective/ target oriented
Management is purposeful or goal-oriented activity. The success of management is measured by the extent to which
organization goals are achieved.
Management is dynamic, and not static
Management is not a stereotype activity but is ever changing. It is a complex and dynamic activity. Management
adapts itself to changes in environment, and also initiates and introduces changes i.e. Innovations, change in
methodology etc.
Management is a purposeful activity. It coordinates the efforts of workers to achieve the goals of the organization. The
success of management is measured by the extent to which the organizational goals are achieved. Management is
concerned with directing and controlling of the various activities of the organization to attain the pre-determined
objectives.
Management is a system of authority
In management scalar- chain indicates system of authority. Everybody in the organization knows under whom he is
working, whose orders he has to follow and to whom he is answerable. Authority means power to make others act in a
predetermined manner.

Decision-making
Decisions are taken in all the activities of management. The success is judged by the quality of decisions taken by the
managers. Management implies making decisions regarding the organization and operation of business in its different
dimensions.

The success or failure of an organization can be judged by the quality of decisions taken by the managers. Therefore,
decisions are the key to the performance of a manager.
Continuous process
Management is not one time activity, but it is continuous activity. The cycle of management continues to operate so
long as the organizations continue to exist.

Management is born as well as acquired ability

Management is considered not only as an inborn ability but also an acquired ability by proper training.

Proper utilization of resources

Management is concerned with the best and proper utilization of the resources.
Intangible
Management is intangible, it cannot be seen with eyes, it is evidenced or measured only by the quality results
of organization, such as increased productivity, the increased morale of the employees etc. Management has
been called an unseen force.
Its presence is evidenced by the result of its efforts – orderliness, informed employees, buoyant spirit and
adequate work output. Thus, feeling of management is result-oriented.
Management is a science as well as an art
Management has an organized body of knowledge consisting of well-defined concepts, principles and
techniques which have wide applications. So it is treated as a science. The application of these concepts,
principles and techniques requires specialized knowledge and skills on the part of the manager. Since the skills
acquired by a manager are his personal possession, management is viewed as an art.
Modern management can be regarded as a profession
Management is gradually becoming a profession because there are established principles of management which
are being applied in practice, and it involves specialized training and is governed by ethical code arising out of its
social obligations.
Distinct Process
Management is a distinct process consisting of such functions as planning, organizing, staffing, directing, and
controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various
functions or their relative significance. Management enjoys the separate status in the organization, so,
management is a distinct activity.
Management is a group activity
Management comes into existence only when there is a group activity towards a common objective. Management is
always concerned with group efforts and not individual efforts. To achieve the goals of an organization management plans
organizes, coordinates, directs and controls the group effort.
Management implies good leadership
A manager must have the ability to lead and get the desired course of action from the subordinates. According to R. C.
Davis – “management is the function of executive leadership everywhere”. Management of the high order implies the
capacity of managers to influence the behavior of their subordinates.
Management draws ideas and concepts from various disciplines
Management is an interdisciplinary study. It draws ideas and concepts from various disciplines like economics, statistics,
mathematics, psychology, sociology, anthropology etc.
Different Levels of Management
Management is needed at different levels of an organization namely top level, middle level and lower level.
Need of organization
There is the need of an organization for the success of management. Management uses the organization for achieving
pre-determined objectives.

Management need not be owners

It is not necessary that managers are owners of the enterprise. In joint stock companies, management and owners
(capital) are different entities.
mportance of Management
Management acts as a creative and life-giving force in the organization. Management by right men through right methods may give
etter results. It is properly said that business is built not by the technical ability of specialists but largely by good managers who can
ffectively utilize human skill, energy and efficiency for transforming resources with higher productivity.
Management is considered to be the brain of business, which plans, coordinates resources of production, gets the things done through
ther people and accomplishers objectives.
More significance or importance of management can be explained with the help of the following points:
Management meets the challenge of change
Accomplishment of various interests of different groups
Effective utilization of resources
Stability to society
Innovation
Co-ordination and team spirit
Social responsibilities
Development of country
Effective functioning of business
Resource development
Sound organizational structure
Management directs the organization
It integrates various interests
It stabilizes the fluctuations
Tackling and solving problems
Management is a tool for personality development
Managerial Levels
• The term “Levels of Management’ refers to a line of demarcation between various managerial
positions in an organization. The number of levels in management increases when the size of the
business and work force increases and vice versa. The level of management determines a chain of
command, the amount of authority & status enjoyed by any managerial position. The levels of
management can be classified in three broad categories:
1. Top level / Administrative level
2. Middle level / Executory
3. Low level / Supervisory / Operative / First-line managers
• Managers at all these levels perform different functions. The role of managers at all the three levels is
discussed below:
Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is the
ultimate source of authority and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.
The role of the top management can be summarized as follows -
a.Top management lays down the objectives and broad policies of the enterprise.
b.It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
c.It prepares strategic plans & policies for the enterprise.
d.It appoints the executive for middle level i.e. departmental managers.
e.It controls & coordinates the activities of all the departments.
f.It is also responsible for maintaining a contact with the outside world.
g.It provides guidance and direction.
h.The top management is also responsible towards the shareholders for the performance of the
enterprise.
Middle Level of Management
The branch managers and departmental managers constitute middle level. They are responsible to
the top management for the functioning of their department. They devote more time to
organizational and directional functions. In small organization, there is only one layer of middle level
of management but in big enterprises, there may be senior and junior middle level management.
Their role can be emphasized as -
i.They execute the plans of the organization in accordance with the policies and directives of the top
management.
j.They make plans for the sub-units of the organization.
a.They participate in employment & training of lower level management.
b.They interpret and explain policies from top level management to lower level.
c.They are responsible for coordinating the activities within the division or department.
d.It also sends important reports and other important data to top level management.
e.They evaluate performance of junior managers.
f.They are also responsible for inspiring lower level management
Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman,
section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives
whose work has to be largely with personal oversight and direction of operative employees”. In other words, they
are concerned with direction and controlling function of management. Their activities include -
1. Assigning of jobs and tasks to various workers.
2. They guide and instruct workers for day to day activities.
3. They are responsible for the quality as well as quantity of production.
4. They are also entrusted with the responsibility of maintaining good relation in the organization.
5. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level
and higher level goals and objectives to the workers.
6. They help to solve the grievances of the workers.
7. They supervise & guide the sub-ordinates.
8. They are responsible for providing training to the workers.
9. They arrange necessary materials, machines, tools etc for getting the things done.
10.They prepare periodical reports about the performance of the workers.
11.They ensure discipline in the enterprise.
12.They motivate workers.
Managerial Functions

• Management has been described as a social process involving responsibility for economical and effective
planning & regulation of operation of an enterprise in the fulfillment of given purposes. It is a dynamic
process consisting of various elements and activities. These activities are different from operative functions
like marketing, finance, purchase etc. Rather these activities are common to each and every manger
irrespective of his level or status.
• most widely accepted are functions of management given by KOONTZ and O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.
• For theoretical purposes, it may be convenient to separate the function of management but practically these
functions are overlapping in nature i.e. they are highly inseparable. Each function blends into the other &
each affects the performance of others.
Planning
It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most
appropriate course of actions for achievement of pre-determined goals.

According to KOONTZ, “Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we
are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making.

Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways &
means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human
resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

Organizing
It is the process of bringing together physical, financial and human resources and developing productive relationship amongst
them for achievement of organizational goals.

According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools,
capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the
organizational structure. Organizing as a process involves:

Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the
recent years due to advancement of technology, increase in size of business, complexity of human behavior etc.

The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes.
According to Kootz & O’Donell, “Managerial function of staffing involves manning the organization structure through proper and
effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:

Manpower Planning (estimating man power in terms of searching, choose the person and giving the right place).
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer.
Directing
It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of
organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because
planning, organizing and staffing are the mere preparations for doing the work.

Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating
sub-ordinate for the achievement of organizational goals. Direction has following elements:
Supervision
Motivation
Leadership
Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work &
workers.
Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary,
non-monetary incentives may be used for this purpose.
Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired
direction.
Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of
understanding.

Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement
of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An
efficient system of control helps to predict deviations before they actually occur.

According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards
the objectives and goals and acting if necessary, to correct any deviation”.
According to Koontz & O’Donell “Controlling is the measurement & correction of performance activities of subordinates in
order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore
controlling has following steps:

Establishment of standard performance.

Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.

Types of Managers in Principles of Management

There are three main types of managers: general managers, functional managers, and frontline managers. General
managers are responsible for the overall performance of an organization or one of its major self-contained subunits or
divisions.

Functional managers lead a particular function or a subunit within a function. They are responsible for a task, activity, or
operation such as accounting, marketing, sales, R&D, production, information technology, or logistics. Frontline managers
manage employees who are themselves not managers. They are found at the lowest level of the management hierarchy.
For illustration, consider a large diversified enterprise like General Electric. General Electric is active in many different
businesses: Among other things, it makes jet engines, power plants, medical equipment, railway locomotives, and
lighting products. GE also sells insurance, owns NBC, and offers a wide range of financial services, particularly to
industrial customers. GE is organized into different business divisions, and each division has its own functions, such as
R&D, production, marketing, sales, and customer services.

GE is thus known as a multidivisional enterprise. Multidivisional enterprises like GE have four main levels of
management: the corporate level, the business level, the functional level, and frontline managers. General managers
are found at the corporate and business levels. Functional managers are found within the divisions where they manage
functions or subunits within those functions. Frontline managers are found deep within functions managing teams of
nonmanagement employees.

The following are 6 essential skills that managers need to have in order to manage employees effectively and
efficiently to get the best from them.

1. Good communication
Having good communication skills is probably the most important skill of all for managers to have. Unless you can
properly communicate with those you supervise, the rest of the skills really won't matter. In numerous types of
management tasks, the most common and first thing that needs to be done is to communicate your opinions,
expectations and needs to others. You shouldn't be a manager if you don't enjoy working with people. You also need to
be able to send others the right messages and make sure that they understand you. The type of power that you use for
persuading others on your views is also very important.
2. Good Organisation
Probably the second most important skill that you can have as a manager is the ability to organise. You need to be able to come
up with a plan and then schedule, organise and follow it. This also involves understanding your company's processes and rules
as well as among individuals. You must be able to predict what will happen and at what time.
3. Team Building
Good managers know how to keep their teams intact. The well being of team members does not benefit from having
competition within the team. However, competition between teams can be very stimulating and healthy. If one of the team
members speeds ahead and leaves the rest of the members behind without helping them, the team will most likely fail. A good
manager will notice these irregularities very easily. He or she will attempt to correct the situation through having discussions
with the team, mostly through listening to members. To a great extent, a successful and healthy team relies on the trust
between members and with the manager. If a manager is able to build trust systematically, the team members will feel much
more committed and appreciated.
4. Leadership
It isn't enough to just listen to the problems of coworkers. A good manager needs to solve these problems and prove that he or
she is committed to the goals of the team. It is also the manager's responsibility to define goals along with team members and
then assign responsibility to various team members clearly. A good manager will have a clear vision in terms of the direction he
or she wants the team to be headed in. Team members need to be 'infected' with this vision so that everyone is headed in the
same direction.
5. Ability to Deal with Changes Effectively
Many managers are thoroughly familiar with the entire working process. This allows them to do things in an almost
automatic manner. A good manager is adaptable and flexible. When faced with obstacles, he or she has the ability to react
quickly. Stress doesn't prevent the manager from making the right decisions for the team and company.

6. Domain Knowledge
Good managers have a thorough understanding of the process he or she is managing, including the type of tasks that team
members are performing and how they are working. This skill isn't quite as important as the other ones are. However, in
some cases, not having it will mean that the manager and the team don't ever work at maximum capacity or use all of
their potentials due to a lack of understanding of one another.

Social Responsibility of Management

Social responsibility is having a sense of duty to society and everything that is a part of it. In other words, “social
responsibility” means managers are accountable to society at large, not just their shareholders.

How should managers approach social responsibility?

Management should make every effort to appear and become socially responsible in everything they do, and what they
represent. This helps keep the company in high esteem with their customers, but also proactively avoids problems
caused by new regulations (either by preventing their passage to begin with, or already being prepared for them once
they are enacted). Managers can be socially responsible by focusing on four key areas.
Constructive
Being and becoming socially responsible is about working with people who are able to identify when something is socially
responsible or irresponsible. Social responsibility is about listening and learning about the people and the environment
from which it will apply. Being constructive means listening to complaints, coming from both inside and outside of the
organization, and being willing to act on those complaints.

Open-minded
The past is in the past, pay attention to the here and now, the moment in time where it actually counts. Do not be afraid
to try new things or consider different options because things will continue to change. Change is something we all have to
deal with as we approach the future.

This means companies need to be willing to listen to new research and new concerns coming from outside the
organization, even if those concerns might mean a fundamental change to their products or way of doing business.

Accommodating
Do whatever you can to be socially responsible in all areas of your life and your career. By being more accommodating
you will make it harder for critics to question your management ability or implicate you in crimes against social
responsibility.
In other words, when valid concerns are raised, socially responsible managers need to actually do something about it.
This does not mean changing the entire way an organization does business with every valid complaint, but it does mean
managers address complaints coming from outside the organization while mapping the company’s path forward.
Proactive
Take the necessary steps to make social responsibility happen and not wait around for others to follow through with it. Make
sure that the structure of social responsibility is in place, but always follow up just to be sure that everyone is complying with it
because even if one person diverges, detraction will soon follow.

Considering all of that, there are many ways a business and those who are running it can show that they are socially
responsible, here are a few of them:

Crowdsourcing
communityInviting the public (current, future, and potential customers) to share their thoughts and ideas of how the company
can improve their products and services and reaching out to the public to help solve problems. Whenever you take a survey or
write a review, all that data is used by the company to make a change.

Environmental Sustainability Initiatives

Creating products and services that are less harmful to the environment by recycling materials, cutting waste in the production
process, and using renewable energy. Many people are becoming more aware of global warming and how humans are
damaging the earth, by being on the right side of science you can change the world. SC Johnson Company has historically been
famous for willing to undermine its own product lines for the sake of environmental sustainability, which has been a huge
boost to its public image.
Give Back
Starting charity foundations, offering academic scholarships, donating resources, being generous, and caring about what is
important to others to win over customers, employees, and society. Helping others realize their true potential is what business
should be about and when people see that, you will be attracting more customers and keeping the ones you already have.
Confront the Critics
Warren Buffet understands that it takes a long time to build a good reputation, but it takes mere moments to
destroy it. Companies must take care to keep a good reputation and what better way than to face the
negative publicity, the horrible comments, and disgruntled individuals with undeniably positive solutions that
will help bring them to your side. Trying to silence critics or slander bad press usually only makes a bad PR
problem worse.