Introduction to

MANAGEMENT
(Nature of Management)
 Definition & Introduction of Management
 Scope of Management
 Characteristics of Management
 Importance of Management
 Management Vs. Administration

 Management – Science/ Art/ Profession

 Principles of Management
 Universality of Management Principles
 Why Study Management?
 Challenges of Managers
Follow this Learning Outline as you read and study this chapter.

What Is Management?
• Define management.
• Explain why efficiency and effectiveness are
important to management.

Management and Administration

• Describe the conceptual difference between
management and administration.
Why Study Management?
• Discuss why it’s important to understand
management.
• Explain the universality of management
concept.
• Describe the rewards and challenges of being a
manager.

The challenge of Management

• Describe various challenges to management in
changing context.
 WHAT IS
MANAGEMENT?
 Management is the force
 that unifies human as well as non-human

resources
 in the service of organizational goals.

 It is a process of getting results with and

through people.
 Manpower

Material
Money

Management

Methods Machinery
Management involves
 coordinating and overseeing
 the work activities of others
 so that their activities are completed
 efficiently and effectively.

 Process of getting things done effectively

& efficiently, through & with other people
 1. Management is the accomplishment of
result through the efforts of other people.

(Lawrence A. Appley)

2. Management is the art of getting things

done through and with the people in
formally organized groups.
(Koontz H.)
3. “Management is the art of getting things done
through people”
(Mary Parker Follett)

4. “Management is a process consisting of

planning, organizing, actuating and controlling,
performed to determine & accomplish the
objectives by the use of people and resources.”
(George R. Terry)
 Managerial Concerns

◦ Efficiency
 “Doing things right”
 Getting the most output for the least
inputs

◦ Effectiveness
 “Doing the right things”
 Attaining organizational goals
A manager’s performance can be measured in terms of
two concepts: efficiency and effectiveness.
Peter F Drucker

Efficiency is the ability of a manager to do something

correctly, i.e., at the lowest possible cost or cost
acceptable to the competitive environment.

Effectiveness is the ability of a manager to do correct

things, i.e., achieve high levels of value.

Efficiency is important, Effectiveness is

critical.
12
 It is not easy to define the term management.
There are certain genuine reasons for this :
(i) Management is a vast subject. It is very
extensive. It is, therefore, not possible to put all
the essential features of management in a
single formula.
(ii) Management is concerned with human beings,
who are behaviorally highly unpredictable.
(iii) Management is a young developing discipline
whose concepts are continuously changing.
 Management As A Noun
In popular usage, management refers to a
group of people who direct the activities of
other people and material resources towards
the attainment of predetermined goals.

Management as a Process
Management as a process refers to a series of
inter-related functions, such as planning,
organizing, staffing, leading and controlling.
Management as a Group/Team
The term ‘management’ is used to denote the
persons who manage the affairs of an
organisation. Thus, as a group of persons,
management includes all those who are
responsible for making decisions and
supervising the work of others.
Management as a Discipline
As a discipline, management is a specialized
branch of knowledge which involves the study
of certain principles and practices.
Management as an Activity
Management refers to a separate class of
activities which are performed by managers.
Managerial activity consists of planning,
organizing, staffing, directing and controlling.
 The scope of management is very wide.
 Basically, it refers to three distinct ideas.
Management may be understood as

(i) an economic resource,

(ii) a system of authority, and

(iii) a class or elite.

CHARACTERISTIC
S OF
MANAGEMENT
The various interpretations of management
emphasize three things:

 (i) management is a process and involves a

series of continuing and related activities,
 (ii) it tries to concentrate on reaching

organizational goals,
 (iii) and it reaches these goals by working

with and through other people and other

organizational resources.
 The important features which reveal the
nature of management may be stated thus:
1. Management is intangible
2. Management is goal-oriented
3. Management is universal
4. Management is a social process
5. Management is a group activity
6. Management is a system of authority
7. Management is an activity
8. Management is dynamic
9. Management is a science as well as an
art
10. Management is multidisciplinary
 The importance of management can be
understood from the following points:
 Optimum use of resources
 Effective leadership and motivation
 Establishes sound industrial relations
 Achievement of goals
 Change and growth
 Improves standard of living
• Management is a critical element in the economic
growth of a country
• Management is essential in all organized efforts, be it
a business activity or any other activity
• Management is the dynamic, life-giving element in
every organisation

In the words of Claude S. George, management is

“the central core of our national as well as personal
activities, and the way we manage ourselves and our
institutions reflects with alarming clarity what we
and our society will become.”

23
MANAGEMENT &
ADMINISTRATION
 Author Administration Management
Sheldon and Concerned in determining the Concerned with execution of
Schulze corporate action and policy, the policy.
coordination of finance,
production, distribution etc.

Spriegel Is determinative in nature, i.e., it Executive function which

sets for the general purpose of deals with active direction of
an enterprise, establishes human effort.
policies, formulates the plans,
etc.

Kimball and Is concerned with the actual Is a wider concept, embracing

Kimball work of carrying out those all duties and functions that
policies. pertain to the initiation of an
enterprise and establishment
of all major policies.
 Distinction between Administration
and Management
Point of Administration Management
distinction
 Nature Thinking function (what is to Doing function (who should
be done and when). do it and how).
 Scope Determines broad objectives Implements plans and
and policies. achieves goals through
people.
 Level Top level function. Middle and lower level
function.
 Skills needed Conceptual and human skills. Technical and human skills.
 Represents Owners who invest capital Paid individuals who work for
and receive profits. remuneration.
 Usage Mostly in government, Mostly in business
military, educational, social organizations.
and cultural organisations.
 MANAGEMENT ADMINISTRATION
1. Modern & Dynamic, though
there is no way preventing the 1. Traditional &
bureaucracy and hierarchical bureaucratic
thinking from setting into the
management process 2. Refers to the
decision making and
2. Refers to execution &
determination of
implementation
what is to be done,
3. Focus is on how things CAN be
and how
done in the light of its existing
situation 3. Focus is on how
things SHOULD be
done
 MANAGEMENT ADMINISTRATION

4. More at operative 4.More at the upper

levels of the level of the
organizations organization

5. Focus on skills 5.Focus on ideology

6. Priority is performance 6.Priority is governance

7. Importance is variance 7. Importance of

and context uniformity and
standards
MANAGEMENT –
Science/ Art/
Profession
 Science: An organized or systematized body of
knowledge pertaining to a specific field of
enquiry

 Art: It is the application of knowledge and

personal skills to achieve result.

Properties of Science:
 Systematic body of knowledge
 Scientific inquiry & observation
 Experimentation
 Universal truths
 The Science of Management
◦ Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
◦ Requires technical, diagnostic, and decision-making
skills and techniques to solve problems.

 The Art of Management

◦ Decisions are made and problems solved using a blend
of intuition, experience, instinct, and personal
insights.
◦ Requires conceptual, communication, interpersonal,
and time-management skills to accomplish the tasks
associated with managerial activities.
 Management as a Management as an
Science Art
 Systemized body of  Use of knowledge
knowledge  Creative art
 Management is a  Personalized
social science  Practice
 Management is an
inexact science
 Managers v/s
scientist
 Scientific
management
 Profession: It is an occupation for which specialized
knowledge, skills and training are required and
these skills are used for larger interests of the
society and the success of these skills is not
measured in monetary terms always.

Characteristics:
◦ Well defined body of knowledge
◦ Formal education and training
◦ Minimum qualification
◦ Representative body
◦ Service above self
◦ Ethical code of conduct
Arguments for Arguments against

 Improve knowledge in  Formal qualification

systematic manner difficult to set.
 Improve professional
 Manager are known by
status and prestige performance
 Managers are
 Promotes managerial
responsible to many
ethics
groups
 Promotes talent  Competent education
and training facilities
do not exist
PRINCIPLES OF
MANAGEMENT
Nature of Management Principles
Management Principles change with the
change in the environment in which the
organisation exists.
 By means of principles of management, a
manager can avoid fundamental mistakes in his
job and foretell the results of his actions with
confidence.

 Principles help in the following ways:

 To increase efficiency
 To crystallize the nature of management
 To improve research in management
 To attain social goals
 Fayol’s Principles:
1. Division of work 7. Remuneration
2. Authority 8. Centralization
3. Discipline 9. Scalar chain
10.Order
4. Unity of command
11.Equity
5. Unity of direction 12.Stability and tenure
6. Subordination of of personnel
individual interests 13.Initiative
to the general 14.Esprit de corps
interest
 Mooney and Reiley’s staff principle
 Taylor’s principle of management by
exception
 Weber’s principles
 Likert’s principle of supportive relationship
 Human relations
 Modern organisation theories and
principles of management
 Universality of Management suggests that
the manager uses the same managerial
skills and principles in each managerial
position held in various organizations.
 Universality implies transferability of
managerial skills across industries,
countries.
 It means that management is generic in

content and is applicable to all types of

organizations.
 Arguments for Universality

 Same functions
 Universal principles

 Fundamentals are same, the techniques

employed and practices followed are

different
 Practical evidence
 Arguments Against Universality

 Complete substitutability is impossible

 Organizational philosophies differ

 Universality of principles: a ridiculous

statement?
 Management is a product of the culture
IMPORTANCE OF
STUDYING
MANAGEMENT
 The Value of Studying Management

◦ The Universality of Management

 Good management is needed in all
organizations.
◦ The reality of work
 Employees either manage or are managed.
◦ Rewards & Challenges of being a
Manager
CHALLENGES OF
MANAGERS
 Management offers challenging, exciting
and creative opportunities for meaningful
and fulfilling work.

 Successful managers receive significant

monetary rewards for their efforts.
 The need for vision
◦ The introduction of new technologies and
reshaping of the world is mean that managers
face new challenges in near future.

 The need for ethics

◦ Today managers should be worried about
increasing industrial pollution, values and
ethics.
◦ They need to act responsibly to ensure that
the businesses do not harm the society.
 The need for responsiveness to cultural
diversity
◦ Managers today must be prepared to deal
with diversity in organizations to take
benefit of talents of all of their employees.
THANK YOU