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NATURE OF MANAGEMENT
5 May 2012
PRINCIPLES OF MANAGEMENT
A business develops in course of time with complexities. Management is not only essential to business concerns but also essential to Banks, Schools, Colleges, Hospitals, Hotels, Religious bodies etc. Every business unit has objectives of its own. These objectives can be achieved with the co-operative efforts of several personnel. As E. Demock has rightly said “ the management is not a matter of pressing a button, pulling a lever, issuing orders, scanning P&L statement, promulgating(belief) rules and regulations. Rather it is the power to determine what shall happen to the personalities and happiness of entire people, the power to shape the destiny of a nation and of all the nations which make up the world” 2
PRINCIPLES OF MANAGEMENT
5 May 2012
Principle of Management 5 May 2012 PRINCIPLES OF MANAGEMENT 3 .
There are various definitions given by various management gurus but simply management is the process consisting of the functions of planning.Meaning of Management Management is the art of getting things done by a group of people with the effective utilization of available resources. staffing. organizing. directing and controlling the operations to achieve specified objectives PRINCIPLES OF MANAGEMENT 4 5 May 2012 .
Features or Characteristics of Management Art as well as science Management is an activity Management is a continuous process Management achieving pre-determined objectives: Organized Activities Management is a factor of production Management as a system of activity Management is a discipline Management is a purposeful activity Management is a distinct entity 5 May 2012 PRINCIPLES OF MANAGEMENT 5 .
Features or Characteristics of Management Management aims at maximizing profit Decision – making Management is a profession Universal application Management is getting things done Management as a class or a team Management as a career Direction and control Dynamic Management is needed at all levels Leadership quality PRINCIPLES OF MANAGEMENT 6 5 May 2012 .
Management is an activity: It is a process of activity relating to the effective utilization of available resources.Characteristics of Management Art as well as science: Management is both an art of possessing of managing skill by a person and a science because of developing certain principles or laws applicable in a place where a group of activities are co-coordinated. PRINCIPLES OF MANAGEMENT 7 5 May 2012 .
Characteristics of Management Management is a continuous process: The process of management mainly consists of planning. The resources (men and money) of an organization should be used to the best advantages of the organization to achieve the objectives. directing and controlling the resources. Management achieving pre-determined objectives: The objectives of an organization are clearly laid down. Every managerial activity results in the achievement of objectives fixed well in advance. organizing. PRINCIPLES OF MANAGEMENT 8 5 May 2012 .
Characteristics of Management Organized Activities : Management is a group of organized activities. It can be in the form of limited company or a small club. manager. It can be achieved only by an entrepreneur in case of small organization and by management in case of large organizations. Land means a place where production is carried on. raw material and finished goods and fixed capital as in the form of plant facilities and production facilities. unskilled. All the organizations have an objectives and these objectives is achieved through systematic way of organized activities. capital and entrepreneurs. PRINCIPLES OF MANAGEMENT 9 5 May 2012 . semi-skilled. Management is a factor of production : The factors of production includes land. labor. Capital refers to the working capital in the form of cash. labour and capital can not achieve the organizations goals. supervisor and the like. Labour refers to paid employees either skilled. These land.
Characteristics of Management Management as a system of activity : Individuals are foundation of the management. PRINCIPLES OF MANAGEMENT 10 5 May 2012 . controlling and decision making. Management ensures the goal congruence between individuals and organization objectives. It may be increased by continuous discovery of more aspects of business enterprise. staffing. Management is a discipline: The boundaries of management are not exact like other physical science. organizing. Management is a purposeful activity: Management is concerned with objective achievement through planning. directing.
The quality of decision taken determines the organization performance 5 May 2012 PRINCIPLES OF MANAGEMENT 11 . Decision – making: Decision making arises because there is availability courses of actions.Characteristics of Management Management is a distinct entity: Management is distinct from its functional activity. As function is “to do” while management is to “ how to get things done” Management aims at maximizing profit: The available resources are properly utilized to get desired results.
PRINCIPLES OF MANAGEMENT 12 5 May 2012 .Characteristics of Management Management is a profession: It posses the qualities of a profession. Management is getting things done: Manager gets things done by others. Universal application: The same principles of management are applicable in every type of industry only the practice differs from one to another. Management as a class or a team: Class means group of people having homogeneous characteristics to achieve common objectives.
Marketing. Direction & control deals with the activities of human effort. Direction and control: Manager directs his subordinates in the performance whenever necessary. Personal etc and they are appointed in the key posts of the management. Systems.Characteristics of Management Management as a career: Now a day’s management is developed as a career focused on specialization like Finance. Dynamic: The management is not static in the ever changing fast developing business world as new techniques are developed and adopted by the management PRINCIPLES OF MANAGEMENT 13 5 May 2012 .
Characteristics of Management Management is needed at all levels: The functions of planning. Leadership quality: Leadership quality is developed in the persons who are working in the top level management. controlling and decision making is performed by all the level of organization. directing. PRINCIPLES OF MANAGEMENT 14 5 May 2012 . organizing.
Functions of Management The important functions of management are as below Planning Organizing Staffing Directing Co-coordinating Motivating or actuating Controlling Innovation Representation Decision Making Communication 5 May 2012 PRINCIPLES OF MANAGEMENT 15 .
Importance of Management Management meets the challenge of change Accomplishment of group goals Effective utilization of business Effective functioning of business Resource development Sound organization structure Management directs the organization Integrates various interests Stability Innovation Co-ordination and team spirit Tackling problems A tool for personality development 5 May 2012 PRINCIPLES OF MANAGEMENT 16 .
Staffing. Reporting and Budgeting. 5 May 2012 PRINCIPLES OF MANAGEMENT 17 . Organising. Co-ordinating. Directing. Luther Gullik classifies the functions of management as POSDCORB: Planning.
Management utilizes the abilities of workers and fulfills their executions through motivation techniques. an efficient management saves the business brought by the challenges. money. motivation and supervision are the factors for effective functioning of business. materials. management has control over remaining M’s. mutual understanding.Importance of Management Management meets the challenge of change: In this ever changing business world. co-ordination. methods. experience. markets and management. Effective functioning of business: Ability. machines. PRINCIPLES OF MANAGEMENT 18 5 May 2012 . Accomplishment of group goals: The achievement of objectives depends upon proper planning of available resources and quality of decision taken and control made by the unit. motivation. Effective utilization of business: In eight M’s man.
Importance of Management Resource development: Resources like men. pressures from competitors and changing preferences by customers in the business are stabilized by the management. material. Integrates various interests: Management takes steps to integrate various interests to achieve the objectives of an organization. Sound organization structure: Sound organization structure clearly defines the authority and responsibility. Stability: The fluctuations caused by changing policy of the government. 5 May 2012 PRINCIPLES OF MANAGEMENT 19 . Management directs the organization: Management directs and controls the org. money and machines are identified and developed by the management.
Co-ordination and team spirit: Management coordinates the activities of different departments and establishes team spirit to achieve the objectives. A tool for personality development: Management gives direction and training to the workers that help them to raise their efficiency and productivity PRINCIPLES OF MANAGEMENT 20 5 May 2012 . Tackling problems: Good management acts as a friend of workers while tackling problems.Importance of Management Innovation: New ideas are developed by management and implemented in the organization.
administration is distinguished as a top level function while management as a lower level functions 5 May 2012 PRINCIPLES OF MANAGEMENT 21 .Administration and Management There are various opinions of writers for the meaning of administration and management. In general.
3 4 Main functions Levels of executives Planning. organizing and staffing.Difference between Administration and Management Sr. motivation and control. Management Implements the policy and achieve the objectives. 1 Basis of Distinction Policy and Objectives Administration Determines policy to be followed and decide the objectives to be achieved. Directly involves in the execution of plan and achieving objectives. Top level executives (owners or board of directors) Direction. supervisor and workers) 5 6 Position Knowledge Acts as a principal Requires administrative ability more than technical ability Acts as an agency Requires technical ability more than administrative ability. No. Lower level executives( Manager. 2 Directing of human efforts Not directly involves in the execution of plan and achievement of objectives. 5 May 2012 PRINCIPLES OF MANAGEMENT 22 .