MANAGEMENT CONCEPTS AND
PRACTICES
BBAC 0001
Presented By
Dr. Ashutosh Singh
Assistant Professor- IBM
GLA University Mathura
MODULE I: INTRODUCTION & PLANNING
• Introduction of Management: Concept, Nature & Importance
• Development of Management Thought: Contribution of Taylor and Fayol
and their principles, Japanese vs. American Management, Modern Thoughts
of Management
• Management Process and Skills: Management Functions, Various Levels
of Management, SWOT Analysis
• Planning: Concept, Nature, Importance, Steps in Planning, Types of Plan,
MBO
• Decision Making: Concept, Process of Decision Making, Techniques of
Decision Making
TEXT BOOK AND
REFERENCE BOOKS:
• R1- Prasad L. M. (2008). Principles & Practices of Management. New
Delhi: Sultan Chand & Sons
• R2- Koontz Harold & Weihrich Heinz. (2006). Essentials of
Management. New Delhi: Tata McGraw-Hill
• R3 – K Aswathappa & G Karminder (2010). Concepts, Practices &
Cases- Management. New Delhi: Tata McGraw-Hill
INTRODUCTION OF MANAGEMENT: CONCEPT
• Concept of Management
The term management is used in three alternative ways:
1) Management as a Discipline
field of study having well defined concepts and principles
2) Management as a Group of People
include all those personnel who perform managerial functions in organization.
3) Management as a Process
systematic method of handling activities
ORIENTATIONS FOR DEFINING MANAGEMENT
PROCESS:
1) Production or Efficiency-oriented Definitions
• Taylor: “Management is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way”.
• John: “Management is the art of securing maximum results with minimum
efforts so as to secure maximum prosperity and happiness for both employer and
employee and give the public with best possible services”.
Both these definitions emphasize on relationship between efforts and results
& the objectives of management but do not specify how these objectives
can be achieved.
ORIENTATIONS FOR DEFINING MANAGEMENT PROCESS:
• 2) Decision-oriented Definitions
Stanley Vance: “Management is simply the process of decision-making and
control over the action of human beings for the expressed purpose of
attaining the determined goals”.
This definition indicates that the basic activity of a manager is to make
decision and enforces these decisions. However, this does not provide the
processes in which context decision making is applied.
ORIENTATIONS FOR DEFINING MANAGEMENT
PROCESS:
• 3) People-oriented Definition
• Lawrence Appley: “Management is the accomplishment of result through
the efforts of other people”.
• Koontz: “Management is the art of getting things done through and with
people in formally organized groups”.
These definition explain the nature of management through these do not
specify the functions or activities involved in the process of getting things
done by or with the cooperation of other people”.
ORIENTATIONS FOR DEFINING MANAGEMENT
PROCESS:
• 4) Function-oriented Definition
• Henry Fayol: “To manage is to forecast and to plan, to
organize, to coordinate and to control”.
This definition is more relevant for understanding the exact
nature and scope of management.
• From this point of view, management can be defined as follows-
• “Management is the process involving planning, organizing,
staffing, directing and controlling human efforts to achieve stated
objectives in an organization”.
NATURE OF MANAGEMENT
1) Multidisciplinary
developed as a separate discipline it draws knowledge and concepts from
various disciplines such as psychology, sociology, etc.
2) Dynamic Nature of Principles
Principles are flexible in nature and change with the change in the environment
3) Relative, Not Absolute Principle
as they are applied according to the need of the organization and need depends
upon the time, place, socio-cultural factors,
4) Management Science or Art
it uses both scientific knowledge and art in managing the organization.
NATURE OF MANAGEMENT
• Management as a Science:
• Science is a systematized body of knowledge which
• i) Establishes cause and effect relationship between two different variables,
• ii) is based on such tested and well experimented principles and theories,
that have a universal applicability.
• iii) can be taught and learnt in the classroom and outside.
NATURE OF MANAGEMENT
• Management is a science
i) Management is also a systematized body of knowledge. Principles and
theories are now available in every area of management.
ii) Principles of management have been developed through practical
experience and research over several decades.
iii) Like science, management establishes the cause and effect relationship
between two variables.
iv) Management principles and theories can be taught in classroom.
NATURE OF MANAGEMENT
• Management as an Art :The main elements of art are:
i) Personal Skills
ii) Practical know how
iii) Result oriented
iv) Creativity
NATURE OF MANAGEMENT
• Management is basically an art, due to the following reasons:
• i) Personal Skills: Every manager applies his own skills and
approaches to save the day to day problem.
• ii) Practical knows how: Like other artist, a manager applies
his knowledge and skills to coordinate the people. Thus, it
involves the practical application of the skills.
• iii) Goal oriented: The success of the manager is measured
by the results that he achieves.
• iv) Creative: Like any other art, management is creative. It
brings out new situations and converts resources into input.
NATURE OF MANAGEMENT
5) Management as a Profession
Management is regarded as a profession when there is well defined body of
knowledge, need of formal education & training, prescribed code of conduct
for managers.
6) Universality of Management
Though management is a universal phenomena, its principle are also universally
accepted and applicable but are to be modified according to the need of the
organization.
7) A Goal-oriented Process
It directs group efforts towards achievement of pre-determined goals .
8) An intangible factor of production
that is present everywhere but not visible.
NATURE OF MANAGEMENT
• 9) Management is a social activity
Due to the following reasons, management is generally said to be a social
activity:
i) Management is done by the people, through the people and for the people.
ii) Management is the development of people, not the things.
iii) One can manage man and woman, not things.
iv) Management cannot build products, but they build such people who build
products.
10) Management is creative
Management makes the things happen to happen, which would otherwise not
happen. It brings new situations and converts resources such as man, money,
materials, machinery, etc. into output
IMPORTANCE OF MANAGEMENT
• Due to the large sized organization and changing nature of
society and its various constituents, manager has to take
care of these changes so that organization achieve their
objectives.
IMPORTANCE OF MANAGEMENT
• 1) Accomplishment of Goals
The goals are communicated to the employees to seek their cooperation.
All organizational activities are directed towards the organizational
objectivities.
• 2) Effective Utilization of Resources The resources are scarce in nature
and to meet the demand of the society, their contribution should be maximum.
Through planning & organization, management eliminates all types of wastages &
achieves efficiency in all business operations.
• 3) Development of Resources: Management develops various resources such as
human as well as non-human resources. Management is the development of people. Thus,
through the development of resources, management improves the quality of life of people in
the society
4) Sound Organization
• It clarifies authority responsibility relationships among various
positions in the enterprise. It fills various positions with persons having
the right qualifications and training .
5) Providing Vision & Foresight
• It helps in predicting what is going to happen in future which will
influence the working of the enterprise
6) Harmony in Work
• In an organization employees come from different backgrounds,
they have different attitudes & different styles of working & if
everyone start following his own style, it can lead to chaos & confusion
in the organization. By giving directions managers bring uniformity &
harmony in action of employees.
IMPORTANCE OF MANAGEMENT
• 7) Helping the Employees in Achieving Personal Objectives
Every manager motivates & leads in such a manner that individual members are able to
achieve personal goals while contributing to the overall organization objectives. Through
motivation & leadership management individuals to develop team spirit, cooperation &
commitment to group success.
• 8) Development of Society & Nation
The development of country lies on the quality of management & available resources.
Management can increase the national income & standard of living of people by producing
maximum cost. Thus management is important at national level & is regarded as a key for the
economic growth of the country.
• 9) To incorporate innovations
• Today, changes are occurring very fast rate in both technology and social processes or
structure. Therefore, they require high degree of specialization, level of competence and
complex technology. All these require efficient management so that organization works in
the most efficient way.
IMPORTANCE OF MANAGEMENT
• 10) Integrating Various Interest Groups
In the organized efforts, there are various interest groups and they put
pressure over other groups for maximum share in the combined output. For
example, in the case of a business organization there are various pressure
groups such as shareholders, employees, government, etc.
• 11) Industrial Management
Industrial development of country depends upon the availability of capital,
natural resources and technical knowledge. Along with it, harmonious
relationship between labour and employer also encourage the industrial
development. This is possible only with the help of skilled management.
• 12) Minimum Efforts and Maximum Results
Management makes effective and efficient coordination among various
resources of production and maximizes the profit by minimum efforts
