PRINCIPLES AND

PRACTICES OF
MANAGEMENT
INTRODUCTION
WHAT IS MANAGEMENT?

• 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”.

• In the words of Henry Fayol, “To manage is to forecast and to plan,

to organise, to command, to co-ordinate and to control”.
• According to Peter F Drucker, “Management is a multi-purpose organ that
manages a business and manages managers and manages worker and
work”.

• In the words of J.N. Schulze, “Management is the force which leads, guides
and directs an organization in the accomplishment of a pre-determined
object”.
• In the words of Koontz and O’Donnel, “Management is defined as the creation and maintenance
of an internal environment in an enterprise where individuals working together in groups can
perform efficiently and effectively towards the attainment of group goals”.
• In the words of Kimball and Kimball, “Management embraces all duties and functions that pertain
to the initiation of an enterprise, its financing, the establishment of all major policies, the
provision of all necessary equipment, the outlining of the general form of organization under
which the enterprise is to operate and the selection of the principal officers. The group of
officials in primary control of an enterprise is referred to as management”.
BEST ONE

•According to Mary Parker Follett,

“Management is the art of getting things
done through people.
 CONCLUSION

• From the definitions quoted above, it is clear the “management” is a technique of extracting work from others in an
integrated and co-ordinated manner for realising the specific objectives through productive use of material resources.
• Mobilising the physical, human and financial resources and planning their utilisation for business operations in such a
manner as to reach the defined goals can be referred to as “management”.
• If the views of the various authorities are combined, management could be defined as “a distinct ongoing process of
allocating inputs of an organisation (human and economic resources) by typical managerial functions (planning,
organising, directing and controlling) for the purpose of achieving stated objectives namely – output of goods and
services desired by its customers (environment).
• In the process, work is preformed with and through personnel of the organisation in an ever-changing business
environment”.
• Management is a universal process in all organized social and economic
activities. It is not merely restricted to factory, shop or office. It is an
operative force in all complex organizations trying to achieve some stated
objectives. Management is necessary for a business firm, government
enterprises, education and health services, military organizations, trade
associations and so on.
NATURE/CHARACTERISTICS OF MANAGEMENT

• Management is an activity.
• Management is a purposeful activity.
• Management concerned with the efforts of a group.
• Management is getting things done
• Management applies economic principles
NATURE/CHARACTERISTICS OF MANAGEMENT

• Management involves decision-making

• Management coordinates all activities and resources.
• Management is a universal activity
• Management is an integrating process.
• Management is concerned with direction and control
• Management is intangible
• Management is both science and an art.
• Management is a profession
• Management is an inter-disciplinary approach
• Management is dynamic and not static.
 IMPORTANCE OF MANAGEMENT

• Goal Achievement:

• A tech company sets a goal to launch a new software product within a year. Management breaks this goal into smaller,
manageable tasks, assigns these tasks to appropriate teams, and monitors progress to ensure timely completion. Regular
meetings and updates help keep the project on track.

• Resource Utilization :

• A manufacturing company implements lean management techniques to optimize the use of raw materials and reduce waste. By
training employees on best practices and regularly reviewing processes, the company increases its production efficiency and
reduces costs.

• Organizational Structure:

• A hospital establishes a clear organizational structure with defined roles such as doctors, nurses, administrators, and support
staff. Each role has specific responsibilities, ensuring that patient care is delivered effectively and that administrative tasks are
handled efficiently.
IMPORTANCE OF MANAGEMENT

• Adaptability to Change :
• A retail company faces a sudden market shift due to changing consumer preferences.
Management quickly conducts market research, identifies new trends, and adjusts its product
line and marketing strategy accordingly. This flexibility helps the company stay relevant and
competitive.
• Motivation and Leadership:
• A manager in an IT firm recognizes the hard work of their team by providing performance
bonuses, professional development opportunities, and public recognition. This boosts employee
morale, increases job satisfaction, and enhances overall productivity.
IMPORTANCE OF MANAGEMENT

• Coordination and Integration:

• An airline company ensures coordination between its flight operations, customer service, and
maintenance teams. Effective communication and integrated planning ensure that flights are on
schedule, aircraft are well-maintained, and passengers receive timely assistance.
• Decision Making:
• A pharmaceutical company decides to invest in a new drug development project. Management
conducts extensive research, evaluates potential risks and rewards, and makes a data-driven
decision to allocate resources to the project, leading to a successful new product launch.
 IMPORTANCE OF MANAGEMENT

• Innovation and Improvement:

• A car manufacturing company encourages its employees to submit ideas for process improvements. One employee suggests
a new assembly line technique that reduces production time. Management implements this idea, leading to increased
production efficiency and cost savings.

• Customer Satisfaction:

• An e-commerce company invests in improving its customer service by implementing a 24/7 helpline and live chat support.
Management regularly reviews customer feedback and makes necessary adjustments, resulting in higher customer
satisfaction and repeat business.

• Crisis Management:

• During a natural disaster, a logistics company faces severe disruptions. Management quickly activates its crisis management
plan, rerouting shipments, communicating with customers about delays, and ensuring employee safety. This prompt response
minimizes the impact on operations and maintains customer trust.
MANAGEMENT AS A PROFESSION

• A profession may be defined as an • The basic requirements of a profession are

occupation backed by specialized knowledge as follows:
and training, whose code of conduct is
• Knowledge:
regulated by a professional body and which
is duly recognized by the society. • Competent Application:
• Professional Body:
• Self Control:
• Social Responsibility
• Community Approval:
DOES MANAGEMENT SATISFY THE TESTS OF A
PROFESSION?
• Specialized Knowledge: • Competent Application-Education and
Training:
• There exists a rapid expanding body of
knowledge underlying the field of management. • MBAs are generally preferred for managerial
jobs, though MBA degree is not necessary
• Since the beginning of this century, many to enter this profession
thinkers on management have contributed to
• Persons with degree in psychology,
the field of management.
engineering, etc., can also take up managerial
• Now we have systematic body of knowledge jobs.
that can be used for the development of • Thus, there are no standard qualifications
managers. for managers.
• Management is widely taught in the universities
and other educational institutions as a discipline
DOES MANAGEMENT SATISFY THE TESTS OF A
PROFESSION?
• Managerial Skills can’t be Learnt by • Professional Body:
Trial and Error Method:
• For the regulation of any profession, the
• To be a successful manager, it is essential to existence of a representative body is a
acquire management skills through formal must.
education and training.
• Many institutes of management have been
functioning in India and other countries
which offer MBA and other courses in
management.
DOES MANAGEMENT SATISFY THE TESTS OF A
PROFESSION?
• Social Responsibility: • Society’s Approval:

• Managers of today recognize their social • The managers of modern organisations

enjoy respect in the society.
responsibilities towards customers,
• There is typically a positive correlation
workers and other groups.
between a manager’s rank and his status in
• Their actions are influenced by social the organisation where he is working.
norms and values. • This status tends to affect the manager’s
status outside the organisation. Thus,
• That is why, managers enjoy a community approves management as a
respectable position in the society as is profession.
the case with doctors, chartered
accountants, etc.
MANAGEMENT AS A SCIENCE

• Science may be described, “as a • It is a systematized body of knowledge

systematic body of knowledge pertaining and uses scientific methods for
to an area of study and contains some observation.
general truths explaining past events or
• Its principles are evolved on the basis of
phenomena”.
continued observation and experiment
• Its principles are exact and have
universal applicability without any
limitation
MANAGEMENT AS A SCIENCE

• Management is a systematized body of knowledge and its principles have evolved on the
basis of observation.
• The kind of experimentation (as in natural sciences) cannot be accompanied in the area
of management since management deals with the human element.
• In management, it is not possible to define, analyze and measure phenomena by repeating
the same conditions over and over again to obtain a proof.
MANAGEMENT AS AN ART

• Art’ refers to “the way of doing specific things; it indicates how an objective is to be
achieved.” Management like any other operational activity has to be an art. Most of the
managerial acts have to be cultivated as arts of attaining mastery to secure action and
results.
MANAGEMENT AS AN ART

• Art is the application of science. It • Management while performing the activities

of getting things done by others is required
is putting principle into practice. to apply the knowledge of certain underlying
• After knowing a particular art, principles which are necessary for every art

practice is needed to reach the • Management gets perfection in the art of

managing only through continuous practice.
level of perfection.
• Management implies capacity to apply
• It is undertaken for accomplishing accurately the knowledge to solve the
an end through deliberate efforts. problems, to face the situation and to realise
the objectives fully and timely.
MANAGEMENT IS BOTH A SCIENCE AS WELL AS AN ART

• The science of management provides certain general principles which can guide the
managers in their professional effort.
• The art of management consists in tackling every situation in an effective manner.
• As a matter of fact, neither science should be over-emphasised nor should be the art
discounted; the science and the art of management go together and are both mutually
interdependent and complimentary.
MANAGEMENT FUNCTIONS
PLANNING

• Planning is the process of making decisions about future. It is the process of determining
enterprise objectives and selecting future courses of actions necessary for their
accomplishment. It is the process of deciding in advance what is to be done, when and
where it is to be done, how it is to be done and by whom. Planning provides direction to
enterprise activities.
• Planning is a fundamental function of management and all other functions of management
are influenced by the planning process.
ORGANIZING

• Organizing is concerned with the arrangement of an organization's resources - people,

materials, technology and finance in order to achieve enterprise objectives. It involves
decisions about the division of work, allocation of authority and responsibility and the
coordination of tasks. The function increases in importance as a firm grows.
• A structure is created to cope with problems created by growth. Through this formal
structure, the various work activities are defined, classified, arranged and coordinated.
STAFFING

• Staffing is the function of employing suitable persons for the enterprise. It may be defined
as an activity where people are recruited, selected, trained, developed, motivated and
compensated for manning various positions.
• It includes not only the movement of individuals into an organization, but also their
movement through (promotion, job rotation, transfer) and out (termination, retirement)
of the organization.
DIRECTING

• The function of guiding and supervising the activities of the subordinates is known as directing. This work
involves four important elements:
• Leadership: Leadership is the process of influencing the actions of a person or a group to attain desired
objectives.
• Motivation: Motivation is the work a manager performs to inspire, encourage and impel people to take
required action.
• Communication: Communication is the transfer of information and understanding from one person to
another.
• Supervision: In getting the work done it is not enough for managers to tell the subordinates what they
are required to do.
CONTROLLING

• The objective of controlling is to ensure that actions contribute to goal accomplishment.

It helps in keeping the organizational activities on the right path and aligned with plans
and goals.
• In controlling, performances are observed, measured and compared with what had been
planned. If the measured performance is found wanting, the manager must find reasons
and take corrective actions.
LET’S CONCLUDE

• Planning: Setting objectives and determining the best course of action to achieve them.
• Organizing: Arranging resources and tasks to implement the plan.
• Staffing: Recruiting, selecting, and training individuals for specific roles within the
organization.
• Directing: Leading and motivating employees to work towards the organization’s goals.
• Controlling: Monitoring performance and making adjustments to ensure objectives are
achieved.
MANAGERIAL SKILLS
TECHNICAL SKILLS

• Technical skill is considered to be very crucial to the effectiveness of lower level managers
because they are in direct contact with employees performing work activities within the firm.
• For instance, the success of a drilling supervisor of an oil rig depends a great deal on his
technical knowledge of drilling.
• However, as one moves to higher levels of management within the organization, the importance
of technical skill diminishes because the manager has less direct contact with day-to-day
problems and activities.
• Managers at these levels do the fundamental planning for operational work leaving
the detailed day-to-day operational plans to be made by the supervisory level.
HUMAN SKILLS

• Human skills refer to those abilities, which are needed by the manager to effectively deal with
subordinates. To manage, he has to understand their needs, interests and values. He interacts
with them, guides, directs, leads, and motivates them.
• By using human skills, he may establish good rapport, warmth relationships and conductive
interpersonal relations with his subordinates.
• It is needed for providing dynamic and effective leadership and building a team spirit among
employees.
• All managers from the top to the lowest levels in the management hierarchy equally
need human skill.
CONCEPTUAL SKILLS

• It is the mental ability to coordinate and integrate the organization's interests and activities. It
refers to the ability to see the ‘big picture’, to understand how a change in any given part can
affect the whole organization.
• Such skills help the manager to conceptualize the environment, to analyze the forces working in
a situation and to take a broad and farsighted view of the organization.
• Conceptual skills also include the competence to understand a problem in all its aspects to use
original thinking in solving the problem. Such competence is necessary for rational
decision-making.
• Conceptual skill is imperative for top management level, necessary for the middle
management and desirable for the lower level of management
EXAMPLE:

• It is more efficient for each department in a small firm to deal with one financing
department than for each department to have a separate financing department of its
own. Top executives must try to combine their human as well as non-human resources in
such a way that the goals of the organization are met in an effective and efficient manner
OTHER SKILLS

• Design skill: Design skill is the ability to solve problems in ways that will help the
organization. At higher levels, managers should be able to do more than see a problem, to
design a workable solution to a problem in the light of realities they face. If managers
merely see a problem and become problem watchers they will fail.
• Institution building skills:

Identity creating role: Linkage building role:

Enabling role: Futuristic role:
Synergising role: Creating an impact:
Balancing role: Provide superordination:
ROLES OF MANAGERS
INTERPERSONAL ROLES

• Figure head:In this role a manager performs symbolic duties required by the status of
his office. Making speeches, bestowing honours, welcoming official visitors, distributing
gifts to retiring employees are examples of such ceremonial and social duties.
• Leader: This role defines the manager relationship with his own subordinates. The
manager sets an example, legitimizes the power of subordinates and brings their needs in
accord with those of his organization.
• Liaison: It describes a manager’s relationship with the outsiders. A manager maintain
mutually beneficial relation with other organizations, governments, industry groups, etc.
INFORMATIONAL ROLES

• Monitor: It implies seeking and receiving information about his organization and
external events. An example is picking up rumors about his organization.
• Disseminator: It involves transmitting information and judgements to the members of
the organization. The information relates to internal operations and the external
environment. A manager calling a staff meeting after a business trip is an example of such
a role.
• Spokesman: In this role, a manager speaks for his organization. He lobbies and defends
his enterprise. A manager addressing the trade union is an example
DECISIONAL ROLES

• Entrepreneur: It involves initiating change or acting as a change agent. For example, a manager
decides to launch a feasibility study for setting up a new plant.
• Disturbance handler: This refers to taking charge when the organization faces a problem or
crisis. For example, a strike, a feud between subordinates loss of an important customer. A
manager handles conflicts, complaints and competitive actions.
• Resource allocator: In this role a manager approves budgets and schedules, sets priorities and
distributes resources.
• Negotiator: As a negotiator, a manager bargains with suppliers, dealers, trade union, agents, etc.
For example, the manager may negotiate with the union leaders regarding strike issues.
EXERCISE

• Mr Kunal Gandhi is Manager Operations at ABX Corporations that deals in online training courses.
Once a trainer comes to Mr Gandhi complaining that his computer is neither connected with
LAN, nor is having its key board functioning well.
• As an action, Mr Gandhi calls a hardware specialist to fix the problem. The specialist being busy,
asks for a 24 hr duration to come to the office. Mr Gandhi then tells the person to see if the cables
are fitted correctly. The trainer replies in affirmation. Mr Gandhi then helplessly asked him to wait
till the specialist came.
• The next afternoon, when the specialist came to rectify the things, the project that the trainer was
working on, had already got 10 hours late. Fuming at the trainer, he came back to the manger
shouting tat the data cables were fitted in wrong sockets so as to result in the problem.
QUESTIONS NEED TO ADDRESS

• What do you think were the key functions where the Operations Manger failed to
perform?
• In the case given in above question, do you think that the Operations Manager was doing
justice to his role? Explain your answer with reasons.
• What do you analyze were the main skills where the following lacked in managing the
situation well in the case discussed
• (a) Operations Manager (b) Trainer (c) Hardware Specialist