Unit – 1 Management

By Radhika

Introduction to ManagementManagement has been applied since the beginning of the

civilization & community living. Whenever people have worked together in groups - to grow crops, to buy & sell, to wage war, to built a temple there has been management.

Management is necessary to achieve predetermined objectives in any area of human activity. The proportion of management is necessary for the formation of pyramids constructed in ancient Egypt, the same proportion but even more is necessary to construct the economic, industrial or commercial structures.

Cont.In the olden days, human needs & wants were very

limited & to satisfy them, they have to rely on other persons and mutual co-operation was required between them & also limited resources were enough. Their problem was also limited & their management was not a big problem. However, as the human beings developed their needs & wants also started expanding.

Perhaps there is no exaggeration to say that our present age is an Age of Management. We owe our economic progress, our comforts & luxuries of life etc. to efficient management. In all our social fields, be it business, politics or religion.

Meaning of Management

Management involves coordinating and supervising the work activities of others so that their activities are completed efficiently and effectively.

Efficiency is getting the most output from the least amount of inputs in order to minimize resource costs. Efficiency is often referred to as

“doing things right”

Cont.

Effectiveness is completing activities so that organizational goals are attained and is often described as

“doing the right things”

No two managers’ jobs are exactly alike. All managers perform certain function, enact certain roles and display a set of skills in their jobs.

Definition of Management“The art of getting things done true through others”

- Mary Parker Follet

“Management is the process of designing and maintaining of an environment in which individuals working together in groups efficiently accomplish selected aims”.

- Koontz and Weihrich

“Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.”

- F.W.Taylor

Nature of Management1. Universal process

2. Management is Purposeful

3. Management is Creative

4. It is Social Process

5. It is Multidisciplinary

6. It is Intangible

7. It is a Group Activity

8. It is a Leadership Activity

9. Management as Profession

10. Management is an Art & Science both

Scope of Management

1. Financial Management

2. Purchasing Management

3. Production Management

4. Maintenance Management

5. Personnel Management

6. Marketing Management

7. Logistics Management

8. Office Management

Objectives of ManagementA. Organizational Objectives:

i. Reasonable Profits so as to give a fair return on the capital invested in business

ii. Survival continuity of business

iii. Growth & continuity of business

iv. Enhancing the goodwill or reputation

B. Personal objectives:

i. Fair remuneration for the work done

ii. Reasonably healthy & safe working conditions

iii. Opportunities for training & development

iv. Reasonable security of service

Cont.v. Participation in Management & prosperity of the enterprise

C. Social Objectives:

i. Quality goods & services at fair price to consumers.

ii.Fair dealings with supplier, dealers and competitors.

iii.Honest and timely payment of taxes to the government.

iv.Conservation of environment and natural resources.

Functions of Management

Managerial Process

Development of Modern Management

Henri Fayol:

French industrialist

Father of modern management

Graduated as a mining engineer in 1860

He worked with one company only throughout his life.

14 Principles of Management:

2. Koontz & O’Donnell

3. Dr. George R Terry

4. Luther Gulick

5. F W Taylor “Initiative & Incentive”

Classical Approach

Contingency Approach