UNIT - 1

Introduction to Management
• Management is a vital aspect of the economic life of man, which is an
organised group activity. A central directing and controlling agency is
indispensable for a business concern. The productive resources -
material, labour, capital etc. are entrusted to the organising skill,
administrative ability and enterprising initiative of the management.
Thus, management provides leadership to a business enterprise.
Without able managers and effective managerial leadership the
resources of production remain merely resources and never become
production. Under competitive economy and ever-changing
environment the quality and performance of managers determine
both the survival as well as success of any business enterprise.
Definition of Management
• Management may be defined in many different ways. Many eminent
authors on the subject have
• defined the term “management”, some of these definitions are reproduced
below:
• According to Lawrence A Appley, “Management is the development of
people and not the direction of things”.
• According to Joseph Massie, “Management is defined as the process by
which a co-operative group directs action towards common goals”.
• In the words of George R Terry, “Management is a distinct process
consisting of planning, organising, actuating and controlling performed to
determine and accomplish the objectives by the use of people and
resources”.
Nature of Management
• 1. Management aims at reaping rich results in economic terms:
Manager’s primary task is to secure the productive performance
through planning, direction and control. It is expected of the
management to bring into being the desired results. Rational
utilisation of available resources to maximise the profit is the
economic function of a manager. Professional manager can prove his
administrative talent only by economising the resources and
enhancing profit. According to Kimball, “management is the art of
applying the economic principles that underlie the control of men and
materials in the enterprise under consideration”.
• 2. Management also implies skill and experience in getting things done
through people: Management involves doing the job through people. The
economic function of earning profitable return cannot be performed
without enlisting co-operation and securing positive response from
“people”. Getting the suitable type of people to execute the operations is
the significant aspect of management. In the words of Koontz and
O’Donnell, “Management is the art of getting things done through people
in formally organised groups”.
• 3. Management is a process: 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,
organising, staffing, leading and controlling in order to accomplish stated
objectives”.
• 4. Management is a universal activity: 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.
• 5.Management is a science as well as an art: Management is an art
because there are definite principles of management. It is also a science
because by the application of these principles predetermined objectives
can be achieved.
• 6. Management is a profession: Management is gradually becoming a
profession because there are established principles of management which
are being applied in practice, and it involves specialised training and is
governed by ethical code arising out of its social obligations.
• 7. Management is an endeavour to achieve pre-determined objectives:
Management is concerned with directing and controlling of the various
activities of the organisation to attain the pre-determined objectives. Every
managerial activity has certain objectives. In fact, management deals
particularly with the actual directing of human efforts.
• 8. Management is a group activity: Management comes into existence
only when there is an group activity towards a common objective.
Management is always concerned with group efforts and not individual
efforts. To achieve the goals of an organisation management plans,
organises, co-ordinates, directs and controls the group effort.
Scope of Management
• The scope of management is too wide to be covered in a few pages. Herbison and Myres have yet tried to
restrict it under three broad groups, viz.
• 1. Economic Resource
• 2. System of Authority
• 3. Class or Elite Let us understand each of them one by one.
• 1. 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 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.
• 2. System of Authority: As already discussed, management is a system of authority. It formalises 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.
• 3. 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 organisation. The importance the class has become so huge that the entire
group of mangers is known as “management” in every organisation.
Purpose of Management

• The purpose of management can be understood as following:

• 1. Reducing ambiguity in methods of working,
• 2. Keeping costs down, and motivating others to do the same.
• 3. Taking calculated risks
• 4. Managing prospective risk
• 5. Exercise good judgement
Characteristics of Management
• Economic Resource: Management is an important economic resource together with land,
• labour and capital. As industrialization grows, the need for managers increases. Efficient
• management is the most critical input in the success of any organised group activity as it
• is the force which assembles and integrates other factors of production, namely, labour,
• capital and materials.
• 2. Goal Oriented: Management is a purposeful activity. It coordinates the efforts of workers
• to achieve the goals of the organisation. The success of management is measured by the
• extent to which the organisational goals are achieved.
• 3. Distinct Process: Management is a distinct process consisting of such functions as planning,
• organising, 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.
• 4. Integrative Force: The essence of management is integration of human and other resources
• to achieve the desired objectives. Managers seek to harmonize the individuals goals with
• the organisational goals for the smooth working of the organisation.
• 5. Intangible Force: 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.
• 6. Results through Others: The managers cannot do everything themselves. They must have
• the necessary ability and skills to get work accomplished through the efforts of others.
• They must motivate the subordinates for the accomplishment of the tasks assigned to
• them.
• 7. A Science and an Art: Management has an organised 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
Functions of management
• As indicated earlier, management is the process of planning,
organizing, staffing, directing and controlling the efforts of
organization members in utilizing all resources to achieve
organizational goals, objectives and mission. Management is a
process as it operates the activities systematically
• Planning:
• Planning consists of the activities involved in choosing courses of action to achieve
• organizational objectives.
• It is deciding in advance what to do, when to do, how to do and who will do it, in order
to
• achieve these objectives.
• Both long- term and short- term plans are necessary to achieve goals.
• Organizing:
• Organizing involves the grouping of jobs into framework for coordination and direction.
• Formal organizations may be portrayed by use of an organisation chart.
• Organizations are structured based on product, function, geography, customer and
• project.
• The matrix structure has evolved as a result of complex environments, markets and
• technology.
• Staffing:
• Staffing is planning, organizing, directing and controlling of procurement, development,
• compensation, integration and maintenance of people for the purpose of contributing to
• individual, organizational and social goals.
• This process requires the performance of the functions like job analysis, human resources
• planning, recruitment, selection, induction, placement, training, execute development,
• wage and salary administration, leadership, teamwork, motivation, grievance procedure,
• disciplinary procedure ect.
• Directing:
• The important function of management at any level is directing the people by motivating,
• commanding, leading and activating them.
• The willing and effective cooperation of employees for the attainment of organizational
• goals is possible through direction.
• Tapping the maximum potentialities of the people is possible through and command.
• Thus, direction is an important managerial function in securing employee’s contribution
• Controlling:
• After planning, organizing, staffing and directing the various activities, the
performance
• is to be verified in order to know whether the activities are performed in
conformity with
• the plans and objectives or not.
• Controlling also involves checking, verifying and comparing of actual
performance with
• the plans, identification of deviations, if any and correcting of identified
deviations.
• Thus, actions and operations are adjusted to predetermined plans and
standards through
• control.
• The purpose of control is to ensure the effective operation of an organisation by
focusing
• on all resources- human, material, finance and machines
Behavioral Approach
Meaning
• The Behavioral approach to management evolved mainly because
the practicing managers discovered that adopting the ideas of the
classical approach failed to achieve total efficiency and workplace
harmony. The behavioral approach to management highlighted what
the classical advocates overlooked – the human aspect.
• The classical theorists looked at the organization from a production
perspective, the behavioral advocates viewed it from the
individual’s viewpoint. The behavioral approach to management
highlighted individual behavior & group processes, and
acknowledged the importance of behavioral processes at work. The
Hawthorne studies in the late 1920 and early 1930 helped to lend
credence to the behavioral approach.
• Branches of Behavioral Approach to Management
• The behavioral approach has been divided into two branches:
the Human relations approach and the behavioral science
approach. In the human relations approach managers should
know why their subordinates behave as they do and what
psychological and social factors have an impact on them.
Supporters of this approach make an effort to show how the
process and functions of management are influenced by
differences in individual behavior and the influence of groups
in the office.
• Human Relations Approach
• The term human relations means the way in which
managers connect to subordinates. Managers face many
difficulties because staff members usually do not stick to
predetermined and balanced patterns of behavior.
Supporters of Human relations approach feel that
management should recognize employees need for
recognition and social acceptance. Management should
look upon the work group as a positive force which can be
used productively. Thus, managers must be competent in
human relations skills along with technical skills
• Behavioral Science Approach
• The Behavioral Science Approach is actually an extension of the
Human Relations Approach. It gave value to attitudes, behavior
and performance of people and groups within the
organisations. The advocates of the behavioral science
approach consider that humans are much more complex than
the economic man description of the classical approach and the
social man description of the human relations approach. This
approach focuses on the nature of work, and the degree to
which it will satisfy the human need to show skills and
expertise.
• To get better employee performance, communication,
motivation, participative management, leadership and group
dynamics are integrated in this approach. The behavioral
approach acknowledges the quality of leadership as a major
• Contributions of the Behavioral Approach
• Improved usage of teams to achieve organizational
goals.
• Emphasis on training and development of staff
• Use of innovative reward and incentive techniques.
• Furthermore the main focus on modern management
theory led to empowering employees via shared
information.
Scientific Approach
 What is Scientific Management Theory?

• Scientific management theory is a method of improving efficiency in

the workforce. As its name implies, this management theory uses
scientific methods to assess work processes.
• The scientific method consists of three steps: observation,
experimentation, and analysis. In science, this could mean observing
the effects of a treatment, experimenting with a different treatment,
and analyzing the results. Similarly, managers use scientific
management theory to observe their workplaces, test different
methods of completing tasks, and analyze the effect of the changes.
• The Principles of Scientific Management

• There are four principles of Taylorism.

• Choose methods based on science: Use the scientific method to
determine the most efficient way to complete a task. Focus on
increasing productivity and profits.
• Assign workers to tasks based on their natural skillset: Get to know
your workers, discover what they’re good at, and place them where
their skills will be the most useful.
• Monitor your workers’ performance: Observe what your workers are
doing while they are on the clock so that you can quickly address any
problems. If some workers are confused or unproductive, it is up to
their managers to step in and fix the issue.
• Divide workloads appropriately between workers and
managers: Make sure that managers understand how to plan and train
workers and that workers understand how to implement those plans.
What is the Systems Approach to Management?

• The Systems Approach to management theory, commonly viewed

as the foundation of organizational development, views the
organization as an open system made up of interrelated and inter-
dependent parts that interact as sub-systems.
• Thus the organization comprises a unified singular system made
up of these subsystems. For example, a firm is a system that may
be composed of sub-systems such as production, marketing,
finance, accounting and so on. As such, the various sub-systems
should be studied in their inter- relationships rather, than in
isolation from each other.
What are the components of an Organizational
System?

• The system approach envisions the organization as made up five

components:
• Inputs - Raw Materials, Human Resources, Capital, Information,
Technology
• A Transformational Process - Employee Work Activities,
Management Activities, Operations Methods
• Outputs - Products or Services, Financial Results, Information,
Human Results
Contingency Approach to Management

• The contingency approach to management is based on the idea

that there is no single best way to manage. Contingency refers to
the immediate contingent circumstances. Effective organizations
must tailor their planning, organizing, leading, and controlling to
their particular circumstances
• The contingency theory is similar to situation theory in that there
is an assumption that no simple way is always right. Situation
theory, however, focuses more on the behaviors that the leader
should use. The contingency theory takes a broader view that
includes contingent factors about leader capability and also
includes other variables within the situation.
Factors that influence the contingency theory
are numerous. These include the following

• The size of the organization

• How the firm adapts itself to its environment
• Differences among resources and operations activities
• Assumption of managers about employees
• Strategies
• Technologies being used
 Contribution of
Management Thinkers
Contributions of F.W. Taylor to Management:

• Fredrick Winslow Taylor is known as the founder of Scientific

Management. Taylor laid the foundation for modern scientific
management between 1880 and 1890. He began his carrier in 1871
as an apprentice machinist and turner at the Cramp Shipyard at
Philadelphia, U.S.A.
• The workmen did not want the management to know how much
work they could do. Because they feared that their wages would be
cut. Moreover, the management did not had any idea about the
capacity of the workers and further, management did not want to
pay more to workers. Taylor tried to work out some system whereby
the interests of management and the workers might be the same.
• F. W. Taylor (1856-1915) was an American mechanical
engineer who sought to improve industrial
efficiency. He was one of the first management
consultants. Taylor was one of the intellectual leaders
of the Efficiency Movement and his ideas, broadly
conceived, were highly influential in the Progressive
Era(1890s–1920s). Taylor summed up his efficiency
techniques in his book The Principles of Scientific
Management.
Salient Features of Scientific Management
• Taylor conducted various experiments at the work place to find out
how to human beings could be mad more efficient by standardizing
the work which as follow:-
• Separation of Planning and doing
• Taylor introduced the separation of Planning from actual doing we
know that in before Taylor’s Scientific management, a worker used to
plan about how he had to work and what instruments were
necessary for doing that work for the reason of being that this was
creating lot of problems. Taylor insisted that planning should be left
to on the shoulder of supervisor’s and the workers should
concentrate on work what work has been assigned to him.
• Functional Foremanship
• At above we have seen that all planning has been moved to shoulder of
supervisor shoulder so from ding resulted in the development of
supervision system. For this purpose. Taylor developed the concept of
functional foremanship based on specialization of functions.
• Job analysis
• According to Taylor the best way of doing a job is one which requires the
least movement what is the mean of least movement, consequently less
time and cost. He analyzed the various jobs to find out the best way of
doing things with the help of time and motion and fatigue study.
Standardization
• For this point, instruments and tools, period of work, amount of work,
working condition and cost of the production have to be standardized on
the basis of job analysis.
• Scientific Selection and Training of Workers
• Taylor suggested that workers should be selected on scientific basis which
would their education, work experience, aptitude, physical, strength
weakness etc. Apart from selection given to them training to make them
efficient and effective.
• Financial Incentive
• Taylor also introduced this concept financial incentive to motivate workers
to put in maximum efforts in their works. He introduced different scheme
to give them incentive. He also suggested that wages should be based on
individual performance.
• Mental Revolution
• Taylor strongly suggested a change in the attitude of employers and
employees. Mutual conflict should be replaced by mutual cooperation
which is beneficial to both. Taylor argued mental revolution is the most
important features of scientific management because in its absence, no
principle of scientific management could be applied.
The various contributions of Taylor were as follows:
• (1) He developed the principle of breaking a task (job) into elements for timing the same.
• (2) He kept himself involved in exploring the causes of inefficiency and labour difficulties in
the industry. Through Time studies he experimented to recognize losses of efficiency in
Industrial operations
• (3) He evolved certain principles of— Investigating work on scientific basis, selecting the best
worker for a task and training him further to acquire desired skill, developing co-operative
spirit between management and workers, almost equal division of work between workers
and management, etc., – which led to the concept of Scientific Management.
• (4) Another concept connected with the name of Taylor is A Fair Day’s Task While working on
it, Taylor undertook studies on fatigue incurred by the workers and the time necessary to
complete a task.
• Taylor suggested that for increasing production rate, the work of each person should be
planned at least one day in advance and he shall be allotted a definite work to complete by a
given time using a pre- explained method.
• (5) Taylor developed Functional Organisation in which one
foreman was made incharge for each function.
• (6) Taylor devoted his maximum attention towards Time studies
and he established work standards.
• (7) Taylor introduced and operated various costing systems.
• (8) Taylor suggested a Wage Incentive Scheme known as
Taylor’s Differential Piece Rate Plan.
Contributions of Henri Fayol (1841-1925):

• Henri Fayol, the father of Principles of Management was born in

1841 in France and graduated as a mining engineer in 1860 from the
National School of Mining at St. Etienne.
• During his long and successful career as an Industrial Manager, Fayol
tried to probe into the bottom of the principles of administration and
management. In contrast to Taylor’s emphasis on first-line supervision
in production areas, Fayol’s work was concerned with the higher
levels of the organisation. Fayol analysed the process of management
as he had observed it first-hand.
His conclusion was that all the work done in business
enterprises can be divided into six groups:
• 1. Technical activities (production, manufacture, adaptation).
• 2. Commercial activities (buying, selling, exchange).
• 3. Financial activities (search for optimum use of capital).
• 4. Security activities (protection of property and persons).
• 5. Accounting activities (stock taking, balance sheet, costs, statistics).
• 6. Managerial (administrative) activities (planning, organization,
command, coordination and control).
• Fayol believed that if any kind of business was to operate successfully,
these six functions had to be performed. If anyone was neglected, the
enterprise would suffer accordingly. Fayol devoted most of his attention to
the managerial activities.
 The principles laid down by him were:
• 1. Division of work. • 8. Centralization of authority.
• 2. Authority and responsibility. • 9. Scalar chain.
• 3. Discipline. • 10. Order.
• 4. Unity of command. • 11. Equity of treatment.
• 5. Units of direction. • 12. Stability.
• 6. Subordination of individual to • 13. Initiative.
general interest. • 14. Esprit de corps.
• 7. Remuneration.
Contributions of Elton Mayo (1880-1949):

• Born in Australia and trained in psychology, Elton Mayo is generally

recognized as the ‘Father of Human Relations Approach’. Mayo led
the team which conducted the study at Western Electric’s
Hawthorne Plant (1927-32) to evaluate the attitudes and
psychological reactions of workers in on-the-job situations. Mayo’s
idea was that logical factors were far less important than emotional
factors in determining production efficiency.
• Mayo concluded that work arrangements in addition to meeting the
objective requirements of production must at the same time satisfy
the employee’s subjective requirement of social satisfaction at his
work place.
• Mayo was of the opinion that the cause of increase in productivity of
the workers is not a single factor like changing working hours or rest
pauses, but a combination of these and several other factors such as
less restrictive methods of supervision, giving autonomy to the
workers, allowing the formation of small cohesive groups of
workers, cooperation between workers and management,
opportunity to be heard, participation in decision making etc.
4 Main Contribution of Mayo in Developing
Management Thought

• Some of the major contribution of mayo in developing

management thought are as follows:

• 1. Human Relations Approach

• 2. Non-Economic Awards
• 3. Social Man
• 4. Organization as a Social System.
His main contributions are discussed as follows:
• 1. Human Relations Approach:
• Mayo is rightly called the father of human relations movement. His ideas were a milestone
and a turning point in human relations approach of the management. He recognised the
importance of human beings in management. He said that human beings are complex and
influential input into organisational performance. The social and psychological needs of
human beings cannot be ignored, if management wants to enhance productivity.
• 2. Non-Economic Awards:
• The earlier assumption was that workers will work more if they are offered more monetary
incentives. Taylor was the main proponent of this approach. Elton Mayo said that the
techniques of economic incentives were not only inadequate but also unrealistic. He was
able to show that humane and respectful treatment, sense of participation and belonging,
recognition, morale, human pride and social interaction are sometimes more important
than pure monetary rewards.
• 3. Social Man:
• Mayo developed a concept of ‘social man’. He said that man is basically
motivated by social needs and obtains his sense of identity through
relationships with others. He is more responsive to the social forces of
the informal group rather than managerial incentives and controls. He
also related productivity to a social phenomenon.
• 4. Organisation as a Social System:
• Mayo was of the view that informal relationships in the organisation are
more effective than formal relationships. People form informal groups to
give a bent to their feelings and seek guidance for action from such
groups.
• In Mayo’s words, “An organisation is a social system, a system of cliques,
grapevines, informal status systems, rituals and a minute of logical, non-
logical and illogical behaviour.” He was of the opinion that managers
should maintain an equilibrium between the logic of efficiency’
demanded by the formal organisation. He thought that besides logic and
facts people are also guided by sentiments and feelings.
Henri Fayol 14 Principles of
Management
Introduction
• Henry Fayol, also known as the ‘father of modern management
theory’ gave a new perception of the concept of management. He
introduced a general theory that can be applied to all levels of
management and every department.
• The Fayol theory is practised by the managers to organize and
regulate the internal activities of an organization. He concentrated on
accomplishing managerial efficiency.
• 1. Division of Work-
• Henri believed that segregating work in the workforce
amongst the worker will enhance the quality of the
product. Similarly, he also concluded that the division
of work improves the productivity, efficiency,
accuracy and speed of the workers. This principle is
appropriate for both the managerial as well as a
technical work level.
• 2. Authority and Responsibility-
• These are the two key aspects of management.
Authority facilitates the management to work
efficiently, and responsibility makes them responsible
for the work done under their guidance or leadership.
• 3. Discipline-
• Without discipline, nothing can be accomplished. It is
the core value for any project or any management.
Good performance and sensible interrelation make
the management job easy and comprehensive.
Employees good behaviour also helps them
smoothly build and progress in their professional
careers.
• 4. Unity of Command-
• This means an employee should have only one boss
and follow his command. If an employee has to
follow more than one boss, there begins a conflict of
interest and can create confusion.
• 5. Unity of Direction-
• Whoever is engaged in the same activity should have a
unified goal. This means all the person working in a
company should have one goal and motive which will
make the work easier and achieve the set goal easily.
• 6. Subordination of Individual Interest-
• This indicates a company should work unitedly towards
the interest of a company rather than personal interest.
Be subordinate to the purposes of an organization. This
refers to the whole chain of command in a company.
• 7. Remuneration-
• This plays an important role in motivating the workers of a
company. Remuneration can be monetary or non-
monetary. However, it should be according to an
individual’s efforts they have made.
• 8. Centralization-
• In any company, the management or any authority
responsible for the decision-making process should be
neutral. However, this depends on the size of an
organization. Henri Fayol stressed on the point that there
should be a balance between the hierarchy and division of
power.
• 9. Scalar Chain-
• Fayol on this principle highlights that the hierarchy steps
should be from the top to the lowest. This is necessary so
that every employee knows their immediate senior also
they should be able to contact any, if needed.
• 10. Order-
• A company should maintain a well-defined work order to
have a favourable work culture. The positive atmosphere
in the workplace will boost more positive productivity.
• 11. Equity-
• All employees should be treated equally and
respectfully. It’s the responsibility of a manager that
no employees face discrimination.
• 12. Stability-
• An employee delivers the best if they feel secure in
their job. It is the duty of the management to offer
job security to their employees.
• 13. Initiative-
• The management should support and encourage the
employees to take initiatives in an organization. It
will help them to increase their interest and make
then worth.
• 14. Esprit de Corps-
• It is the responsibility of the management to motivate
their employees and be supportive of each other
regularly. Developing trust and mutual understanding
will lead to a positive outcome and work
environment.
• This 14 principles of management are used to manage
an organization and are beneficial for prediction,
planning, decision-making, organization and process
management, control and coordination.
Role and Functions of
Manager
 Role of the Manager:
• Managers are the primary force in an organization's growth and expansion.
Larger organizations are particularly complex due to their size, process,
people and nature of business. However, organizations need to be a
cohesive whole encompassing every employee and their talent, directing
them towards achieving the set business goals. This is an extremely
challenging endeavor, and requires highly effective managers having
evolved people management and communication skills.
 Interpersonal Role
• Figurehead − Has social, ceremonial and legal
responsibilities.
• Leader − Provides leadership and direction.
• Liaison − Networks and communicates with internal and
external contacts
 Informational Role
• Monitor − Seeks out information related to your organization and
industry, and monitors internal teams in terms of both their
productivity and well-being.
• Disseminator − Communicates potentially useful information
internally.
• Spokesperson − Represents and speaks for the organization and
transmits information about the organization and its goals to the
people outside it.
 Decisional Role

• Entrepreneur − Creates and controls change within the organization -

solving problems, generating new ideas, and implementing them.
• Disturbance Handler − Resolves and manages unexpected
roadblocks.
• Resource Allocator − Allocates funds, assigning staff and other
organizational resources.
• Negotiator − Involved in direct important negotiations within the
team, department, or organization.
 Functions of Managers
• Managers just don't go out and haphazardly perform their
responsibilities. Good managers discover how to master five basic
functions: planning, organizing, staffing, leading, and controlling.
• Planning: This step involves mapping out exactly how to achieve a
particular goal. Say, for example, that the organization's goal is to
improve company sales. The manager first needs to decide which
steps are necessary to accomplish that goal. These steps may include
increasing advertising, inventory, and sales staff. These necessary
steps are developed into a plan. When the plan is in place, the
manager can follow it to accomplish the goal of improving company
sales.
• Organizing: After a plan is in place, a manager needs to organize her
team and materials according to her plan. Assigning work and
granting authority are two important elements of organizing.
• Staffing: After a manager discerns his area's needs, he may decide to
beef up his staffing by recruiting, selecting, training, and developing
employees. A manager in a large organization often works with the
company's human resources department to accomplish this goal.
• Leading: A manager needs to do more than just plan, organize, and
staff her team to achieve a goal. She must also lead. Leading involves
motivating, communicating, guiding, and encouraging. It requires the
manager to coach, assist, and problem solve with employees.
• Controlling: After the other elements are in place, a manager's job is
not finished. He needs to continuously check results against goals and
take any corrective actions necessary to make sure that his area's
plans remain on track.
Levels of Management - Top, Middle and Lower
• 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:
• Top level/Administrative level
• Middle level/Executory
• Low level/Supervisory/Operative/First-line managers
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 -
• Top management lays down the objectives and broad policies of the enterprise.
• It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
• It prepares strategic plans & policies for the enterprise.
• It appoints the executive for middle level i.e. departmental managers.
• It controls & coordinates the activities of all the departments.
• It is also responsible for maintaining a contact with the outside world.
• It provides guidance and direction.
• 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 -
• They execute the plans of the organization in accordance with the policies and directives
of the top management.
• They make plans for the sub-units of the organization.
• They participate in employment & training of lower level management.
• They interpret and explain policies from top level management to lower level.
• They are responsible for coordinating the activities within the division or department.
• It also sends important reports and other important data to top level management.
• They evaluate performance of junior managers.
• They are also responsible for inspiring lower level managers towards better performance.
 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 -
• Assigning of jobs and tasks to various workers.
• They guide and instruct workers for day to day activities.
• They are responsible for the quality as well as quantity of production.
• They are also entrusted with the responsibility of maintaining good relation in the organization.
• They communicate workers problems, suggestions, and recommendatory appeals etc to the
higher level and higher level goals and objectives to the workers.
• They help to solve the grievances of the workers.
• They supervise & guide the sub-ordinates.
• They are responsible for providing training to the workers.
• They arrange necessary materials, machines, tools etc for getting the things done.
• They prepare periodical reports about the performance of the workers.
• They ensure discipline in the enterprise.
• They motivate workers.
• They are the image builders of the enterprise because they are in direct contact with the workers.
 Management as a Science, Arts and Profession

• Management as a Science

• To understand this topic, we should first know what does science

means? Science means a systematized body of knowledge that can
be acquired through observation and experimentation. It consists of
universally accepted principles that establish a relationship between
causes and their effects.
Management as a Science

• Systematized body of knowledge: Science is a systematic body of

knowledge. Its principles are based on a cause-and-effect
relationship.
• Observation and Experiments: All scientific principles are first
developed through observations and then tested through repeated
experimentation under controlled conditions.
• Causes and Effect Relationship: Science is based on causes and their
effects. For example, if a person eats lots of fast food without any
physical activity, he will put on extra weight.
• Universal Validity: Scientific principles have universal validity and can
be applied in all situations and times. basic truths.
Management as an Art
• Now, what do we mean by arts? Arts means the practical application of knowledge and
skills to achieve the desired results. It is personal application of knowledge to achieve
results. It is attained through study, observation and experience.
• The essentials features of arts are:
• Theoretical knowledge: Art comprises the application of theoretical knowledge. A
particular art has its basic principles and theory. Some fundamental principles have been
derived by the experts which apply to their particular form of art. For example, painting
has its principles and theory to start with.
• Personal skills: Every artist has his way of working. The use of basic knowledge varies
from individual to individual. Even how they tackle their problems for reaching the result
or the goal which they are willing to achieve differs. Applying this basic knowledge with
practise, creativity, imagination, initiative, and innovation is a personal skill.
• Creativity: Art consists of lots of creativity. The theoretical knowledge should be
practised and applied differently to become more creative and achieve the ultimate
goal.
• Perfection through Practice: As arts require nonstop practice to gain mastery. By
performing the task again and again, the artists gain perfection through practise. For
example, a dancer who practices for hours daily will get smooth and perfect with his
steps through practise.
Management as a Profession
• What is a profession? Profession means a vocation requiring specialized knowledge,
practical training, service motive and a code of conduct. A Profession is an addicted
group of individuals who obey ethical standards and hold themselves out and are
accepted by the public as having special knowledge and skills.
• The essential features of a profession are:
• Specialized Knowledge: All professions are based on a well-defined body of knowledge
that can be acquired through instruction.
• Formal Education and Training: Almost all professions provide specialized education and
training in their respective field. The professionals have to complete their education and
training to get a job. There are various universities and formal institutions for attaining a
complete education. For example, a doctor needs to complete his formal education and
training to practice his knowledge before providing his services to the people.
• Service Motive: The basic motive of a profession is to serve their client’s interests by
rendering dedicated and committed service. All professionals are also anticipated to
serve society rather than simply earn profit.
• Statutory Body: A legally recognized body regulates all professions. All professions are
affiliated with a professional association that regulates entry, grants certificates of
practice, and formulates and enforces a code of conduct.