mgt ppt new

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PRINCIPLES OF MANAGEMENT 1

CHAPTER 1NATURE OF MANAGEMENT


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26 March 2012 PRINCIPLES OF MANAGEMENT 2

Introduction

A business develops in course of time withcomplexities. Management is not only essential tobusiness concerns but also essential to Banks,Schools, Colleges, Hospitals, Hotels, Religiousbodies etc. Every business unit has objectives of

its own. These objectives can be achieved withthe co-operative efforts of several personnel. AsE. Demock has rightly said the management isnot 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 shallhappen to the personalities and happiness ofentire people, the power to shape the destiny ofa nation and of all the nations which make up theworld


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Meaning of Management

Management is the art of getting thingsdone by a group of people with the

effective utilization of available resources.There are various definitions given byvarious management gurus but simplymanagement is the process consisting of

the functions of planning, organizing,staffing, directing and controlling theoperations to achieve specified objectives


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Features or Characteristics of

Management

1) Art as well as science2) Management is an activity3) Management is a continuous process4) Management achieving pre-determined

objectives:5) Organized Activities6) Management is a factor of production7) Management as a system of activity8) Management is a discipline9) Management is a purposeful activity10) Management is a distinct entity


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Features or Characteristics of

Management

11) Management aims at maximizing profit12) Decision making13) Management is a profession14) Universal application

15) Management is getting things done16) Management as a class or a team17) Management as a career18) Direction and control

19) Dynamic20) Management is needed at all levels21) Leadership quality


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Characteristics of Management

Art as well as science: Management isboth an art of possessing of managing skillby a person and a science because of

developing certain principles or lawsapplicable in a place where a group ofactivities are co-coordinated.

Management is an activity: It is a process

of activity relating to the effectiveutilization of available resources.


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Management is a continuous process: Theprocess of management mainly consists ofplanning, organizing, directing and controllingthe resources. The resources (men and money)

of an organization should be used to the bestadvantages of the organization to achieve theobjectives.

Management achieving pre-determinedobjectives: The objectives of an organization

are clearly laid down. Every managerial activityresults in the achievement of objectives fixedwell in advance.



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Organized Activities : Management is a group oforganized activities. It can be in the form oflimited company or a small club. All theorganizations have an objectives and theseobjectives is achieved through systematic way oforganized activities.

Management is a factor of production : The factorsof production includes land, labor, capital andentrepreneurs. Land means a place where

production is carried on. Labour refers to paidemployees either skilled, unskilled, semi-skilled,manager, supervisor and the like. Capital refers tothe working capital in the form of cash, rawmaterial and finished goods and fixed capital as in

the form of plant facilities and production facilities.These land, labour and capital can not achieve theorganizations goals. It can be achieved only by anentrepreneur in case of small organization and bymanagement in case of large organizations.



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Management as a system of activity :Individuals are foundation of the management.Management ensures the goal congruencebetween individuals and organizationobjectives.

Management is a discipline: The boundaries ofmanagement are not exact like other physicalscience. It may be increased by continuousdiscovery of more aspects of businessenterprise.

Management is a purposeful activity:Management is concerned with objectiveachievement through planning, organizing,staffing, directing, controlling and decisionmaking.


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Management is a distinct entity: Management isdistinct from its functional activity. As functionistodowhile management is to how to getthings done

Management aims at maximizing profit: Theavailable resources are properly utilized to getdesired results.

Decision making: Decision making arisesbecause there is availability courses of actions.

The quality of decision taken determines theorganization performance


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Management is a profession: It possesthe qualities of a profession.

Universal application: The sameprinciples of management are applicable

in every type of industry only thepractice differs from one to another.

Management is getting things done:Manager gets things done by others.

Management as a class or a team: Classmeans group of people havinghomogeneous characteristics to achievecommon objectives.


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Management as a career: Now a daysmanagement is developed as a career focusedon specialization like Finance, Marketing,Systems, Personal etc and they are appointed

in the key posts of the management. Direction and control: Manager directs his

subordinates in the performance whenevernecessary. Direction & control deals with theactivities of human effort.

Dynamic: The management is not static in theever changing fast developing business worldas new techniques are developed and adoptedby the management


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26 March 2012PRINCIPLES OF MANAGEMENT

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Management is needed at all levels:The functions of planning,organizing, directing, controlling

and decision making is performedby all the level of organization.

Leadership quality: Leadershipquality is developed in the personswho are working in the top levelmanagement.


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26 March 2012PRINCIPLES OF MANAGEMENT

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Functions of ManagementThe important functions of management are as

below Planning Organizing Staffing Directing Co-coordinating Motivating or actuating Controlling Innovation

Representation Decision Making Communication


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12 January 2012 PRINCIPLES OF MANAGEMENT 15

According to Luther Gullik

Luther Gullik classifies the functionsof management as

POSDCORB:

i. Planning, Organizing, Staffing,Directing, Coordinating, Reportingand Budgeting.


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Importance of Management

1. Management meets the challenge ofchange

2. Accomplishment of group goals3. Effective utilization of business

4. Effective functioning of business5. Resource development6. Sound organization structure7. Management directs the organization8. Integrates various interests9. Stability10. Innovation11. Co-ordination and team spirit12. Tackling problems

13. A tool for personality development


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Management meets the challenge of change: In this everchanging business world, an efficient management savesthe business brought by the challenges.

Accomplishment of group goals: The achievement ofobjectives depends upon proper planning of availableresources and quality of decision taken and control made

by the unit.

Effective utilization of business: In eight Ms .. man,money, materials, machines, methods, motivation,markets and management, management has controlover remaining Ms.

Effective functioning of business: Ability, experience,mutual understanding, co-ordination, motivation andsupervision are the factors for effective functioning ofbusiness. Management utilizes the abilities of workersand fulfills their executions through motivationtechniques.


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Resource development: Resources like men, material,money and machines are identified and developed by themanagement.

Sound organization structure: Sound organizationstructure clearly defines the authority and responsibility.

Management directs the organization: Managementdirects and controls the org.

Integrates various interests: Management takes steps tointegrate various interests to achieve the objectives of anorganization.

Stability: The fluctuations caused by changing policy ofthe government, pressures from competitors andchanging preferences by customers in the business arestabilized by the management.


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Innovation: New ideas are developed bymanagement and implemented in theorganization.

Co-ordination and team spirit: Managementcoordinates the activities of differentdepartments and establishes team spirit toachieve the objectives.

Tackling problems: Good management acts as afriend of workers while tackling problems.

A tool for personality development:Management gives direction and training to theworkers that help them to raise their efficiencyand productivity


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erence e ween


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erence e weenAdministration and Management

Sr. No. Basis of Distinction Administration Management

1 Policy and Objectives Determines policy to be

followed and decide the

objectives to be achieved.

Implements the policy

and achieve the

objectives.

2 Directing of humanefforts

Not directly involves in the

execution of plan and

achievement of objectives.

Directly involves in the

execution of plan

and achievingobjectives.

3 Main functions Planning, organizing and

staffing.Direction, motivation

and control.

4 Levels of executives Top level executives (owners orboard of directors)

Lower level executives(

Manager, supervisor

and workers)

5 Position Acts as a principal Acts as an agency

6 Knowledge Requires administrative ability

more than technical ability

Requires technical

ability more than

administrative

ability.

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