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Management: An Introduction
BY Shivendra Singh
Assistant Professor
MG Central University, Bihar
A Manager’s Dilemma
12.7 million. That’s the total number of people employed in the
restaurant industry. Those employees hold jobs ranging from
greeting and serving customers to cooking for and cleaning up
after customers. There’s a lot of action taking place in a
restaurant—sometimes calm and sometimes frenetic—as
employees work together to provide customers what they want.
And overseeing those employees is someone who must ensure
that everything runs smoothly That someone is a manager. Pooja
is one such manager. As the general manager of a popular and
very busy restaurant in Taj, New Delhi, she oversees 100
employees. Working long hours, Pooja is expected to lead her
team and uphold the company’s high standards so employees
can do their assigned work efficiently and effectively. Like any
hard-working manager, Pooja is continually trying to find ways to
cut costs and make her restaurant run a little more smoothly. But
her most important challenge comes from looking for ways to
make her restaurant a better place to work. Put yourself in
Pooja’s place.
Introduction
• Every business unit has some objectives of its own.
• These objectives can be achieved with the
coordinated efforts of several personnel.
• The work of a number of persons are properly
coordinated to achieve the objectives through the
process of management.
• Management is the integrating force in all
organized activity.
• Whenever two or more people work together
to attain a common objective, they have to
coordinate their activities.
• They also have to organize and utilize their
resources in such a way as to optimize the
results.
• Scarce resources like men, machines, materials
and money have to be integrated in a
productive relationship, and utilized efficiently
towards the achievement of organisational
objectives.
DEFINITION OF MANAGEMENT
• Henry Fayol, "To mange is to forecast and plan,
to organize, to compound, to co-ordinate and
to control.“
• Harold Koontz says, "Management is the art of
getting things done through and within formally
organized group."
• Koontz and O'Donnel, "Management is the
creation and maintenance of an internal
environment in an enterprise where individuals,
working in groups, can perform efficiently and
effectively toward the attainment of group goals.
It is the art of getting the work done through and
with people in formally organized groups.“
• F.W. 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.”
Concepts of Management
Management as an Activity
Management as a Process
Management as an Economic Resource
Management as a Team
Management as an Academic Discipline
(i) Management as an Activity
• Management is an activity just like playing,
studying, teaching etc. As an activity
management has been defined as the art of
getting things done through the efforts of other
people. Management is a group activity wherein
managers do to achieve the objectives of the
group.
• The activities of management are:
Interpersonal activities
Decisional activities
Informative activities
(ii) Management as a Process
• Management is considered a process because
it involves a series of interrelated functions. It
consists of getting the objectives of an
organisation and taking steps to achieve
objectives. The management process includes
planning, organising, staffing, directing and
controlling functions.
• Management as a process has the following
implications:
• Social Process
• Integrated Process
• Continuous Process
• Interactive Process
(iii) Management as an economic
resource
• The economist's view of management is that it is
a factor of production just like entrepreneurship,
capital and labour.
• The managerial resource, to a large extent,
determines organisational effectiveness and
efficiency.
• Hence in a dynamic environment managerial
development is more important and its use must
be more intensive.
(iv) Management as a Team
• As a group of person, management consists of
all those who have the responsibility of
guiding and coordinating the efforts of other
persons.
• These persons are called as managers who
operate at different levels of authority (top,
middle, lower).
(v) Management as an Academic
Discipline
• Management has emerged as a specialised
branch of knowledge.
• It comprises principles and practices for
effective management of organisations.
• The theoretical foundations of management
have evolved on the basis of experience,
observation and scientific investigations.
Nature of Management
Universality Purposeful
Social
process
Coordinating
force
Intangible
Continuous
process
Composite
process
Creative
organ
1. Universality
• common and essential element in all enterprises
• Managers perform more or less the same
functions irrespective of their position or nature
of the organisation.
• regardless of the size, nature and location of the
organisation
2. Purposeful
• aimed at achieving organisational goals and
purposes
• success of management .is measured by the
extent to which the desired objectives are
attained
• directed towards effectiveness (i.e., attainment
of organisational goals), and efficiency (is., goal
attainment with economy of resource use).
3. Social process
• essentially involves managing people organised
in work groups
• includes retaining, developing and motivating
people at work, as well as taking care of their
satisfaction as social beings
4. Coordinating force
• coordinates the efforts of organisation members
through orderly arrangement of inter-related
activities so as to avoid duplication and
overlapping
5. Intangible
• It is an unseen force.
• presence can be felt everywhere by the results
of its effort
6. Continuous process
• on-going process
• The cycle of management continues to
operate so long as there is organised action
for the achievement of group goals.
7. Composite process
• Management is a composite process made up
of individual ingredients
• whole process is integrative and performed in
a network fashion.
8. Creative organ
• Provides creative ideas, new imaginations and
visions to group efforts
• It is not a passive force but a dynamic life giving
element in every organisation
SCOPE OF MANAGEMENT
Production
Management
Marketing
Management
Financial
Management
Personnel
Management
1. Production Management
• Production management implies planning,
organising, directing and controlling the
production function so as to produce the right
goods, in right quantity, at the right time and at
the right cost.
• It includes the following activities:
• (a) designing the product
• (b) location and layout of plant and building
• (c) planning and control of factory operations
• (d) operation of purchase and storage of
materials
• (e) repairs and maintenance
• (f) inventory cost and quality control
• (g) research and development etc.
(ii) Marketing Management
• Marketing management refers to the identification
of consumers needs and supplying them the goods
and services which can satisfy these wants.
• It involves the following activities:
• (a) marketing research to determine the needs and
expectation of consumers
• (b) planning and developing suitable products
• (c) setting appropriate prices
• (d) selecting the right channel of distribution, and
• (e) promotional activities like advertising and
salesmanship to communicate with the customers
(iii) Financial Management
• Financial management seeks to ensure the right
amount and type of funds to business at the right
time and at reasonable cost.
• It comprises the following activities:
• (a) estimating the volume of funds required for
both long-term and short-term needs of business
• (b) selecting the appropriate source of funds
• (c) raising the required funds at the right time
• d) ensuring proper utilisation and allocation of
raised funds
(iv) Personnel Management
• Personnel management involves planning, organising and
controlling the procurement, development, compensation,
maintenance and integration of human resources of an
organisation
• It consists of the following activities:
• (a) manpower planning
• (b) recruitments,
• (c) selection,
• (d) training
• (e) appraisal,
• (f) promotions and transfers,
• (g) compensation etc
LEVELS OF MANAGEMENT
• An enterprise may have different levels of
management.
• Levels of management refer to a line of
demarcation between various managerial
positions in an enterprise.
• We generally come across two broad levels of
management, viz. (i) administrative
management and (ii) operating management
• Administrative management is concerned with
"thinking" functions such as laying down
policy, planning and setting up of standards.
• Operative management is concerned with the
"doing" function such as implementation of
policies, and directing the operations to attain
the objectives of the enterprise.
• But in actual practice, it is difficult to draw any
clear cut demarcation between thinking
function and doing function.
• Because the basic/fundamental managerial
functions are performed by all managers
irrespective of their levels or, ranks.
• Considering the hierarchy of authority and
responsibility, one can identify three levels of
management namely:
• (i) Top management
• (ii) Middle management
• (iii) Lower level or operative management
Top management
• Top management is the ultimate source of
authority and it lays down goals, policies and
plans for the enterprise.
• It devotes more time on planning and
coordinating functions.
• It is accountable to the owners of the business of
the overall management.
• It is also described as the policy
• making group responsible for the overall
direction and success of all company activities.
• The important functions of top management
include :
• (a) To establish the objectives or goals of the
enterprise
• (b) To make policies and frame plans to attain the
objectives laid.
• (c) To set up an organizational frame work to
conduct the operations as per plans.
• (d) To assemble the resources of money, men,
materials, machines and methods to put the
plans into action.
• (e) To provide overall leadership to the
enterprise.
Middle Management
• The job of middle management is to
implement the policies and plans framed by
the top management.
• It serves as an essential link between the top
management and the lower level or operative
management.
• They are responsible to the top management
for the functioning of their departments.
• They devote more time on the organization and
motivation functions of management.
• The following are the main functions of middle
management :
• (a) To interpret the policies chalked out by top
management.
• (b) To prepare the organizational set up in their own
departments for fulfilling the objectives implied in
various business policies.
• (c) To recruit and select suitable operative and
supervisory staff.
• (d) To assign activities, duties and responsibilities for
timely implementation of the plans.
• (e) To compile all the instructions and issue them to
supervisor under their control.
• (g) To cooperate with the other departments for
ensuring a smooth functioning of the entire
organization.
• (h) To collect reports and information on
performance in their departments.
• (i) To report to top management
Lower management
• It is placed at the bottom of the hierarchy of
management, and actual operations are the
responsibility of this level of management.
• It consists of foreman, supervisors, sales
officers, accounts officers and so on.
• They are in direct touch with the rank and file
or workers.
• Their authority and responsibility is limited.
They pass on the instructions of the middle
management to workers
• They interpret and divide the plans of the
management into short-range operating
plans.
• They are also involved in the process of
decisions-making.
• They have to get the work done through the
workers.
• They allot various jobs to the workers,
evaluate their performance and report to the
middle level management.
• They are more concerned with direction and
control functions of management.
• They devote more time in the supervision of
the workers.
SIGNIFICANCE OF MANAGEMENT
Achievements
of group goals
Optimum
utilization of
resources
Minimisation of
cost
Change and
growth
Efficient and
smooth running
of business
Higher profits
Provide
innovation

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Management: An Introduction

  • 1. Management: An Introduction BY Shivendra Singh Assistant Professor MG Central University, Bihar
  • 2. A Manager’s Dilemma 12.7 million. That’s the total number of people employed in the restaurant industry. Those employees hold jobs ranging from greeting and serving customers to cooking for and cleaning up after customers. There’s a lot of action taking place in a restaurant—sometimes calm and sometimes frenetic—as employees work together to provide customers what they want. And overseeing those employees is someone who must ensure that everything runs smoothly That someone is a manager. Pooja is one such manager. As the general manager of a popular and very busy restaurant in Taj, New Delhi, she oversees 100 employees. Working long hours, Pooja is expected to lead her team and uphold the company’s high standards so employees can do their assigned work efficiently and effectively. Like any hard-working manager, Pooja is continually trying to find ways to cut costs and make her restaurant run a little more smoothly. But her most important challenge comes from looking for ways to make her restaurant a better place to work. Put yourself in Pooja’s place.
  • 3. Introduction • Every business unit has some objectives of its own. • These objectives can be achieved with the coordinated efforts of several personnel. • The work of a number of persons are properly coordinated to achieve the objectives through the process of management.
  • 4. • Management is the integrating force in all organized activity. • Whenever two or more people work together to attain a common objective, they have to coordinate their activities. • They also have to organize and utilize their resources in such a way as to optimize the results. • Scarce resources like men, machines, materials and money have to be integrated in a productive relationship, and utilized efficiently towards the achievement of organisational objectives.
  • 5. DEFINITION OF MANAGEMENT • Henry Fayol, "To mange is to forecast and plan, to organize, to compound, to co-ordinate and to control.“ • Harold Koontz says, "Management is the art of getting things done through and within formally organized group."
  • 6. • Koontz and O'Donnel, "Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively toward the attainment of group goals. It is the art of getting the work done through and with people in formally organized groups.“ • F.W. 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.”
  • 7. Concepts of Management Management as an Activity Management as a Process Management as an Economic Resource Management as a Team Management as an Academic Discipline
  • 8. (i) Management as an Activity • Management is an activity just like playing, studying, teaching etc. As an activity management has been defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group. • The activities of management are: Interpersonal activities Decisional activities Informative activities
  • 9. (ii) Management as a Process • Management is considered a process because it involves a series of interrelated functions. It consists of getting the objectives of an organisation and taking steps to achieve objectives. The management process includes planning, organising, staffing, directing and controlling functions.
  • 10. • Management as a process has the following implications: • Social Process • Integrated Process • Continuous Process • Interactive Process
  • 11. (iii) Management as an economic resource • The economist's view of management is that it is a factor of production just like entrepreneurship, capital and labour. • The managerial resource, to a large extent, determines organisational effectiveness and efficiency. • Hence in a dynamic environment managerial development is more important and its use must be more intensive.
  • 12. (iv) Management as a Team • As a group of person, management consists of all those who have the responsibility of guiding and coordinating the efforts of other persons. • These persons are called as managers who operate at different levels of authority (top, middle, lower).
  • 13. (v) Management as an Academic Discipline • Management has emerged as a specialised branch of knowledge. • It comprises principles and practices for effective management of organisations. • The theoretical foundations of management have evolved on the basis of experience, observation and scientific investigations.
  • 14. Nature of Management Universality Purposeful Social process Coordinating force Intangible Continuous process Composite process Creative organ
  • 15. 1. Universality • common and essential element in all enterprises • Managers perform more or less the same functions irrespective of their position or nature of the organisation. • regardless of the size, nature and location of the organisation
  • 16. 2. Purposeful • aimed at achieving organisational goals and purposes • success of management .is measured by the extent to which the desired objectives are attained • directed towards effectiveness (i.e., attainment of organisational goals), and efficiency (is., goal attainment with economy of resource use).
  • 17. 3. Social process • essentially involves managing people organised in work groups • includes retaining, developing and motivating people at work, as well as taking care of their satisfaction as social beings
  • 18. 4. Coordinating force • coordinates the efforts of organisation members through orderly arrangement of inter-related activities so as to avoid duplication and overlapping
  • 19. 5. Intangible • It is an unseen force. • presence can be felt everywhere by the results of its effort
  • 20. 6. Continuous process • on-going process • The cycle of management continues to operate so long as there is organised action for the achievement of group goals.
  • 21. 7. Composite process • Management is a composite process made up of individual ingredients • whole process is integrative and performed in a network fashion.
  • 22. 8. Creative organ • Provides creative ideas, new imaginations and visions to group efforts • It is not a passive force but a dynamic life giving element in every organisation
  • 24. 1. Production Management • Production management implies planning, organising, directing and controlling the production function so as to produce the right goods, in right quantity, at the right time and at the right cost.
  • 25. • It includes the following activities: • (a) designing the product • (b) location and layout of plant and building • (c) planning and control of factory operations • (d) operation of purchase and storage of materials • (e) repairs and maintenance • (f) inventory cost and quality control • (g) research and development etc.
  • 26. (ii) Marketing Management • Marketing management refers to the identification of consumers needs and supplying them the goods and services which can satisfy these wants. • It involves the following activities: • (a) marketing research to determine the needs and expectation of consumers • (b) planning and developing suitable products • (c) setting appropriate prices • (d) selecting the right channel of distribution, and • (e) promotional activities like advertising and salesmanship to communicate with the customers
  • 27. (iii) Financial Management • Financial management seeks to ensure the right amount and type of funds to business at the right time and at reasonable cost. • It comprises the following activities: • (a) estimating the volume of funds required for both long-term and short-term needs of business • (b) selecting the appropriate source of funds • (c) raising the required funds at the right time • d) ensuring proper utilisation and allocation of raised funds
  • 28. (iv) Personnel Management • Personnel management involves planning, organising and controlling the procurement, development, compensation, maintenance and integration of human resources of an organisation • It consists of the following activities: • (a) manpower planning • (b) recruitments, • (c) selection, • (d) training • (e) appraisal, • (f) promotions and transfers, • (g) compensation etc
  • 29. LEVELS OF MANAGEMENT • An enterprise may have different levels of management. • Levels of management refer to a line of demarcation between various managerial positions in an enterprise. • We generally come across two broad levels of management, viz. (i) administrative management and (ii) operating management
  • 30. • Administrative management is concerned with "thinking" functions such as laying down policy, planning and setting up of standards. • Operative management is concerned with the "doing" function such as implementation of policies, and directing the operations to attain the objectives of the enterprise.
  • 31. • But in actual practice, it is difficult to draw any clear cut demarcation between thinking function and doing function. • Because the basic/fundamental managerial functions are performed by all managers irrespective of their levels or, ranks.
  • 32. • Considering the hierarchy of authority and responsibility, one can identify three levels of management namely: • (i) Top management • (ii) Middle management • (iii) Lower level or operative management
  • 33. Top management • Top management is the ultimate source of authority and it lays down goals, policies and plans for the enterprise. • It devotes more time on planning and coordinating functions. • It is accountable to the owners of the business of the overall management. • It is also described as the policy • making group responsible for the overall direction and success of all company activities.
  • 34. • The important functions of top management include : • (a) To establish the objectives or goals of the enterprise • (b) To make policies and frame plans to attain the objectives laid. • (c) To set up an organizational frame work to conduct the operations as per plans. • (d) To assemble the resources of money, men, materials, machines and methods to put the plans into action. • (e) To provide overall leadership to the enterprise.
  • 35. Middle Management • The job of middle management is to implement the policies and plans framed by the top management. • It serves as an essential link between the top management and the lower level or operative management. • They are responsible to the top management for the functioning of their departments.
  • 36. • They devote more time on the organization and motivation functions of management. • The following are the main functions of middle management : • (a) To interpret the policies chalked out by top management. • (b) To prepare the organizational set up in their own departments for fulfilling the objectives implied in various business policies. • (c) To recruit and select suitable operative and supervisory staff. • (d) To assign activities, duties and responsibilities for timely implementation of the plans. • (e) To compile all the instructions and issue them to supervisor under their control.
  • 37. • (g) To cooperate with the other departments for ensuring a smooth functioning of the entire organization. • (h) To collect reports and information on performance in their departments. • (i) To report to top management
  • 38. Lower management • It is placed at the bottom of the hierarchy of management, and actual operations are the responsibility of this level of management. • It consists of foreman, supervisors, sales officers, accounts officers and so on. • They are in direct touch with the rank and file or workers. • Their authority and responsibility is limited. They pass on the instructions of the middle management to workers
  • 39. • They interpret and divide the plans of the management into short-range operating plans. • They are also involved in the process of decisions-making. • They have to get the work done through the workers. • They allot various jobs to the workers, evaluate their performance and report to the middle level management.
  • 40. • They are more concerned with direction and control functions of management. • They devote more time in the supervision of the workers.
  • 41. SIGNIFICANCE OF MANAGEMENT Achievements of group goals Optimum utilization of resources Minimisation of cost Change and growth Efficient and smooth running of business Higher profits Provide innovation