2. Chapter Outline
What is management?
Meaning of management
Purposes of management
Functions of management
Principles of management
Need for organization manager
Types of managers
3. What is Management?
According to Harold Koontz,
"Management is the art of getting things
done through and with people in formally
According to Henri Fayol,
"To manage is to forecast and to plan, to
organize, to command, to co-ordinate and to
4. What is Management?
According to Peter Drucker,
"Management is a multi-purpose organ that manages
business and manages managers and manages workers
According to Mary Parker Follet,
"Management is the art of getting things done through
5. Meaning of Management
According to Theo Heimann, management has three
O Management as a Noun : refers to a Group of
O Management as a Process : refers to the Functions of
Management i.e. Planning, Organizing, Directing,
O Management as a Discipline : refers to the Subject of
6. Meaning of Management
O Management is an individual or a group of individuals that
accept responsibilities to run an organization. They Plan,
Organize, Direct and Control all the essential activities of
the organization. Management does not do the work
themselves. They motivate others to do the work and co-
ordinate (i.e. bring together) all the work for achieving the
objectives of the organization.
O Management brings together all Six M’s i.e. Men and
Women, Money, Machines, Materials, Methods and
Markets. They use these resources for achieving the
objectives of the organization such as high sales, maximum
profits, business expansion, etc.
7. What Is the Purpose of Management?
O The purpose of management is to plan, direct, organize
and ensure the success of a business at various levels
through a number of methods including customer
satisfaction and employee training. Management,
normally made of a manager and their assistants, is key
to running an organization on what could be
considered microscopic levels.
8. What Is the Purpose of Management?
O A manager is responsible for the tiniest details in their
business or department. They are in control of
operating hours, scheduling, training and dealing with
customers who cannot be dealt with by other
employees directly. Someone in management may not
be referred to as a manager because different
companies and organizations use different terms. It is
possible to hear management referred to as team
leaders, coordinators and sometimes coaches.
9. Functions of Management
There are basically five primary functions of
management. These are:
10. 1. Planning:
“Planning is the continuous process of making present
entrepreneurial decisions systematically and with best possible
knowledge of their futurity, organizing systematically the efforts
needed to carry out these decisions and measuring the results of
these decisions against the expectations through organized and
Planning is future oriented and determines an organization’s
direction. It is a rational and systematic way of making decisions
today that will affect the future of the company.
11. 2.Organizing :
Organizing requires a formal structure of authority and
the direction and flow of such authority through which
work subdivisions are defined, arranged and
coordinated so that each part relates to the other part in
a united and coherent manner so as to attain the
The function of organizing is concerned with:
1.Identifying the tasks that must be performed and
grouping them whenever necessary
2.Assigning these tasks to the personnel while defining
their authority and responsibility.
3.Delegating this authority to these employees
4.Establishing a relationship between authority and
5.Coordinating these activities
13. 3. Staffing:
Staffing is the function of hiring and retaining a
suitable work-force for the enterprise both at
managerial as well as non-managerial levels. It
involves the process of recruiting, training,
developing, compensating and evaluating employees,
and maintaining this workforce with proper
incentives and motivations. Since the human element
is the most vital factor in the process of management,
it is important to recruit the right personnel.
14. 4. Directing:
O The directing function is concerned with
leadership, communication, motivation and
supervision so that the employees perform their
activities in the most efficient manner possible, in
order to achieve the desired goals.
O The leadership element involves issuing of
instructions and guiding the subordinates about
procedures and methods.
15. O The communication must be open both ways so that
the information can be passed on to the subordinates
and the feedback received from them.
O Motivation is very important, since highly motivated
people show excellent performance with less
direction from superiors.
O Supervising subordinates would lead to continuous
progress reports as well as assure the superiors that
the directions are being properly carried out.
16. 5. Controlling:
The controlling function involves:
O Establishment of standard performance.
O Measurement of actual performance.
O Measuring actual performance with the pre-
determined standard and finding out the
O Taking corrective action.
All these five functions of management are closely
17. principles of Management
1. Division of Work
2. Authority and Responsibility
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest
18. principles of Management
8. The Degree of Centralization
9. Scalar Chain
12. Stability of Tenure of Personnel
14. Esprit de Corps
19. principles of Management
1. Division of Work:
According to Henri Fayol specialization promotes efficiency
of the workforce and increases productivity. In addition, the
specialization of the workforce increases their accuracy and
2. Authority and Responsibility:
The accompanying power or authority gives the
management the right to give orders to the subordinates.
The responsibility can be traced back from performance and
it is therefore necessary to make agreements about this.
20. principles of Management
It is often a part of the core values of a mission and vision in
the form of good conduct and respectful interactions.
4. Unity of Command:
The management principle ‘Unity of command’ means that an
individual employee should receive orders from one manager
and that the employee is answerable to that manager. If tasks
and related responsibilities are given to the employee by more
than one manager, this may lead to confusion which may lead
to possible conflicts for employees.
21. principles of Management
5. Unity of Direction:
All employees deliver the same activities that can be
linked to the same objectives. All activities must be
carried out by one group that forms a team. These
activities must be described in a plan of action.
6. Subordination of Individual Interest:
The primary focus is on the organizational objectives and
not on those of the individual. This applies to all levels of
the entire organization, including the managers.
22. principles of Management
This management principle of the 14 principles of
management argues that the remuneration should be
sufficient to keep employees motivated and
productive. There are two types of remuneration
namely non-monetary (a compliment, more
responsibilities, credits) and monetary
(compensation, bonus or other financial
23. principles of Management
8. The Degree of Centralization:
Centralization implies the concentration of decision
making authority at the top management (executive
board). Sharing of authorities for the decision-
making process with lower levels (middle and lower
management), is referred to as decentralization.
24. principles of Management
9. Scalar Chain:
Hierarchy” management principle states that there
should be a clear line in the area of authority (from top
to bottom and all managers at all levels). This can be
seen as a type of management structure. Each employee
can contact a manager or a superior in an emergency
situation without challenging the hierarchy.
25. principles of Management
Employees in an organization must have the right
resources at their disposal so that they can function
properly in an organization. In addition to social
order (responsibility of the managers) the work
environment must be safe, clean and tidy.
Employees must be treated kindly and equally.
Employees must be in the right place in the
organization to do things right.
26. principles of Management
12. Stability of Tenure of Personnel:
Management strives to minimize employee turnover
and to have the right staff in the right place. Focus
areas such as frequent change of position and sufficient
development must be managed well.
Henri Fayol argued that with this management
principle employees should be allowed to express new
ideas. This encourages interest and involvement and
creates added value for the company.
27. principles of Management
14. Esprit de Corps:
Managers are responsible for the development of
morale in the workplace; individually and in the
area of communication. Esprit de corps contributes
to the development of the culture and creates an
atmosphere of mutual trust and understanding.
28. Need for Organization Management
1.Helps to Create a Clearer Picture of the Goals within
2.Effective Implementation of Business Plan to Achieve
3.Better Coordination in the Various Departments
4.Enables Employees to Deliver Assigned Projects
5.Creates a Positive and Peaceful Work Environment
29. Types of Managers
Four basic levels of management: top, middle, first line, and
Top-level managers are the “bosses” of the organization. They
have titles such as chief executive officer (CEO), chief
operations officer (COO), chief marketing officer (CMO), chief
technology officer (CTO), and chief financial officer (CFO)
etc. Top managers are ultimately responsible for the long-term
success of the organization. They set long-term goals and
define strategies to achieve them.
30. Types of Managers
Middle managers have titles like department head,
director, and chief supervisor. They are links between the
top managers and the first-line managers and have one or
two levels below them. Middle managers receive broad
strategic plans from top managers and turn them into
operational blueprints with specific objectives and
programs for first-line managers. They also encourage,
support, and foster talented employees within the
31. Types of Managers
First-line managers are the entry level of management, the
individuals “on the line” and in the closest contact with the
workers. They are directly responsible for making sure that
organizational objectives and plans are implemented
effectively. They may be called assistant managers, shift
managers, foremen, section chiefs, or office managers. First-
line managers are focused almost exclusively on the internal
issues of the organization and are the first to see problems
with the operation of the business, such as untrained labor,
poor quality materials, machinery breakdowns, or new
procedures that slow down production.
32. Types of Managers
A team leader is a special kind of manager who may
be appointed to manage a particular task or activity.
The team leader reports to a first-line or middle
manager. Responsibilities of the team leader include
developing timelines, making specific work
assignments, providing needed training to team
members, communicating clear instructions, and
generally ensuring that the team is operating at peak
33. Managerial Skills
Managers at every level in the management hierarchy
must exercise three basic types of skills: technical, human,
•Technical skills refer to the ability and knowledge in
using the equipment, techniques and procedure involved
in performing specific tasks.
•These skills require specialized knowledge and
proficiency in the mechanics of a particular.
•Technical skills lose relative importance at higher levels
of the management hierarchy, but most top executives
started out as technical experts.
34. Managerial Skills
•Human skills refer to the ability of a manager to
work effectively with other people both as
individual and as members of a group.
•Human skills are concerned with understanding of
•These are required to win cooperation of others and
to build effective work teams.
35. Managerial Skills
•Conceptual skills involve the ability to see the whole
organization and the interrelationships between its parts.
•These skills refer to the ability to visualize the entire
picture or to consider a situation in its totality.
•These skills help the managers to analyze the
environment and to identify the opportunities.
•Conceptual skills are especially important for top-level
managers, who must develop long-range plans for the
future direction of their organization.