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Functional areas of Functional areas of management,management,

management ismanagement is

Science or ArtScience or Art

Presented byPresented by

Sweta GuptaSweta Gupta

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Functional areasFunctional areas

of managementof management

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Functional areas of management«Functional areas of management«

 The scope of management is very wide. The The scope of management is very wide. The various functional areas of management may  various functional areas of management may 

be classified into the following categories.be classified into the following categories.

1.1. Production managementProduction management

2.2. Marketing managementMarketing management3.3. Financial managementFinancial management

4.4. Personnel managementPersonnel management

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1. Production management1. Production management

OperationsOperations managementmanagement isis thethe managementmanagement of of productionproduction functionfunction soso asas toto produceproduce thethe rightright good,good, ininrightright quantity,quantity, atat thethe rightright costcost.. ItIt consistsconsists of of thethefollowing following activitiesactivities ::

Designing the productDesigning the product

Location and layout of plant & buildingsLocation and layout of plant & buildings

Operation of purchase and storage of materialsOperation of purchase and storage of materials

Planning and control of factory operationsPlanning and control of factory operations

Repairs & maintenanceRepairs & maintenance

Inventory control and quality controlInventory control and quality control

Research and development, etc.Research and development, etc.

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2. Marketing management2. Marketing management

Marketing Marketing managementmanagement refersrefers toto thethe identificationidentification of of consumers·consumers· needsneeds andand supplying supplying themthem toto thethe goodsgoods andandservicesservices which which cancan satisfy satisfy thosethose wants wants.. ItIt involvesinvolves thethe

following following activitiesactivities :: Marketing research to determine the needs andMarketing research to determine the needs and

expectations of consumersexpectations of consumers

Planning and developing suitable productsPlanning and developing suitable products

Setting appropriate pricesSetting appropriate prices Selecting the right channels of distributionSelecting the right channels of distribution

Promotional activities like advertising and salesmanshipPromotional activities like advertising and salesmanshipto communicate with the customers.to communicate with the customers.

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3. Financial management «3. Financial management «

FinancialFinancial managementmanagement seeksseeks toto ensureensure thethe rightright

amountamount andand typetype of of fundsfunds toto businessbusiness atat thethe

rightright timetime andand atat reasonablereasonable costcost.. ItIt comprisescomprisesthethe following following activitiesactivities ::

Estimating the volume of funds required forEstimating the volume of funds required for

both long both long--term and shortterm and short--term needs of term needs of 

businessbusiness

Selecting the appropriate sources of fundsSelecting the appropriate sources of funds

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« Financial management« Financial management

Raising the required funds at the right timeRaising the required funds at the right time

Ensuring Ensuring properproper utilizationutilization andand allocationallocation of of raisedraised

fundsfunds soso asas toto maintainmaintain safety safety andand liquidity liquidity of of fundsfunds andand

thethe creditcredit worthiness worthiness andand profitability profitability of of businessbusiness of of 

businessbusiness

Administration of earnings Administration of earnings

 Thus,  Thus, financialfinancial managementmanagement involvesinvolves planning,planning,

organizing organizing andand controlling controlling of of thethe financialfinancial resourcesresources

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4. Personnel management «4. Personnel management «

PersonalPersonal managementmanagement involvesinvolves planning,planning,

organizing,organizing, directing directing andand controlling controlling thethe

procurement,procurement, developmentdevelopment compensation,compensation,

maintenance,maintenance, etcetc.. of of thethe humanhuman resourceresource inin anan

enterpriseenterprise.. ItIt consistsconsists of of thethe following following activitiesactivities

Manpower planning Manpower planning 

RecruitmentRecruitment

SelectionSelection

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« Personnel management« Personnel management

Training and development Training and development

Appraisal Appraisal Compensation and promotionCompensation and promotion

Employee services and benefitsEmployee services and benefits

Personnel records and researchPersonnel records and research

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Management isManagement is

science or artscience or art

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ManagementManagement isis both,both, aa

sciencescience asas well well asas anan artart.. ItIt isis

anan inexactinexact sciencescience.. However,However,itsits principles principles areare of of universaluniversal

applicationsapplications..

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Management is a Science «Management is a Science «

 All All scientificscientific informationinformation collectedcollected firstfirst asas

raw raw datadata isis finally finally orderedordered andand analyzedanalyzed with with thethe

helphelp of of statisticalstatistical toolstools.. ItIt thusthus becomesbecomes

communicablecommunicable andand intelligibleintelligible.. CommunicationCommunication

of of resultsresults alsoalso permitspermits repetitionrepetition of of thethe study,study, if if 

needneed be,be, by by thethe originaloriginal investigatorinvestigator othersothers..

 When When thethe study study isis replicatedreplicated andand thethe secondsecond try try providesprovides resultsresults similarsimilar toto thethe original,original, oneone

drivesdrives muchmuch moremore confidenceconfidence inin thosethose resultsresults..

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« Management is a Science« Management is a Science

ScienceScience isis alsoalso cumulativecumulative inin thatthat what  what isis

discovereddiscovered isis addedadded toto thatthat which  which hashas beenbeen foundfound

beforebefore.. Indeed,Indeed, we  we ourselves,ourselves, beforebefore we  we start,start, look look 

aroundaround andand findfind outout firstfirst what what hashas beenbeen donedone soso thatthat we we needneed nono startstart afreshafresh fromfrom aa low low basebase eacheach timetime.. We We

learnlearn fromfrom pastpast mistakesmistakes andand obtainedobtained guidesguides forfor thethe

futurefuture.. We We buildbuild uponupon thethe basebase thatthat hashas beenbeen leftleft by by 

othersothers..

OnOn thethe basisbasis of of aboveabove definitiondefinition of of sciencescience we we

may may presumepresume thatthat managementmanagement isis aa sciencescience..

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Management as an Art «Management as an Art «

 Whereas  Whereas underunder ´scienceµ´scienceµ oneone normally normally 

learnslearns thethe ´whyµ´whyµ of of aa phenomenon,phenomenon, underunder ´artµ´artµ

oneone learnslearns thethe ´howµ´howµ of of itit.. Art Art isis thusthus concernedconcerned

 with with thethe understanding understanding of of how how aa particularparticular work  work 

cancan bebe accomplishedaccomplished.. ManagementManagement inin thisthis sensesense

isis moremore anan artart.. ItIt isis thethe artart of of getting getting thingsthings donedone

throughthrough othersothers inin dynamicdynamic andand mostly mostly nonnon--repetitiverepetitive situationssituations.. ManagementManagement isis likelike thethe artart

of of musicianmusician oror thethe artart of of aa painterpainter who who seeksseeks toto

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« Management is an Art« Management is an Art

 Achieve  Achieve thethe desireddesired effecteffect with  with colourcolour ororinstruments,instruments, butbut mainly mainly with with hishis ownown skillskill.. HeHedoesdoes notnot copy copy thethe skillsskills of of othersothers..

 We We may may thusthus concludeconclude thatthat managementmanagementinvolvesinvolves bothboth elementselements-- thosethose of of aa sciencescience andand

anan artart.. While  While certaincertain aspectsaspects of of managementmanagementmakemake itit aa science,science, certaincertain othersothers which which involveinvolveapplicationapplication of of skillsskills..

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 Thank you Thank you