Notes

Structure
1.0 Objectives
1.1 Introduction
1.2 Meaning of Management
1.3 Definition of Management
1.4 Nature or Characteristics of Management
1.5 Scope of Management
1.6 Is Management a Science or an Art?
1.7 Professionalisation of Management
1.8 Functions of Management
1.9 Skills of a Manager
1.10 Characteristics of Quality Managers
1.11 Universality of Management
1.12 Process of Management
1.13 Development of Management Thought

1.0 OBJECTIVES
After going through this unit, you will be able to:
 Understand the meaning and characteristics of management.
 Describe scope of management
 Understand functions of management.
 Know the nature of management i.e. is it a science or an art.
 Understand skill of the manager.
 Describe management as a profession.
 Understand scientific management.
 Understand the evolution of management thought.
 Understand the principles of management by H. Fayol.

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 8 Management Concepts and
Practices

Notes 1.1 INTRODUCTION

Management is a universal process in all organized, social and economic activities. Wherever
there is human activity there is management.
Management is a vital aspect of the economic life of man, which is an organized group activity. A
central directing and controlling agency is indispensable for a business concern. The productive
resources –material, labour, capital etc. are entrusted to the organizing skill, administrative a bility
and enterprising initiative of the management. Thus, management provides leadership to a
business enterprise. Without able managers and effective managerial leadership the resources of
production remain merely resources and never become production. Management occupies such an
important place in the modern world that the welfare of the people and the destiny of the country
are very much influenced by it.

1.2 MEANING OF MANAGEMENT

Management is a technique of extracting work from others in an integ rated and co-ordinated
manner for realizing the specific objectives through productive use of material resources.
Mobilising the physical, human and financial resources and planning their utilization for business
operations in such a manner as to reach the defined goals can be benefited to as management.

1.3 DEFINITION OF MANAGEMENT

Management may be defined in many different ways. Many eminent authors on the subject have
defined the term "management". Some of these definitions are reproduced below:
In the words of George R Terry - "Management is a distinct process consisting of planning,
organising, actuating and controlling performed to determine and accomplish the objectives by the
use of people and resources".
According to James L Lundy - "Management is principally the task of planning, co¬ordinating,
motivating and controlling the efforts of others towards a specific objective",
In the words of Henry Fayol - "To manage is to forecast and to plan, to organise, to command, to
co-ordinate and to control".
According to Peter F Drucker - "Management is a multipurpose organ that manages a business and
manages managers and manages worker and work".
In the words of J.N. Schulze - "Management is the force which leads, guides and directs an
organisation in the accomplishment of a pre-determined object".
In the words of Koontz and O'Donnel - "Management is defined as the creation and maintenance
of an internal environment in an enterprise where individuals working together in groups can
perform efficiently and effectively towards the attainment of group goals".
According to Ordway Tead - "Management is the process and agency which directs and guides the
operations of an organisation in realising of established aims" .
According to Stanley Vance - "Management is simply the process of decision-making and control
over the actions of human beings for the express purpose of attaining pre¬determined goals".
According to Wheeler - "Business management is a human activity which directs and controls the
organisation and operation of a business enterprise. Management is centred in the administrators
of managers of the firm who integrate men, material and money into an effective operating limit".
In the words of William Spriegel - "Management is that function of an enterprise which concerns
itself with the direction and control of the various activities to attain the business objectives".
In the words of S. George - "Management consists of getting things done through others. Manager
is one who accomplishes the objectives by directing the efforts of others".

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 9

In the words of Keith and Gubellini - "Management is the force that integrates men and physical Notes
plant into an effective operating unit".
According to Newman, Summer and Warren - "The job of management is to make cooperative
endeavour to function properly. A manager is one who gets things done by working with people
and other resources".
According to John F M - "Management may be defined as the art of securing maximum results
with a minimum of effort so as to secure maximum results with a minimum of effort so as to
secure maximum prosperity and happiness for both employer and employee and give the public
the best possible service".
In the words of Kimball and Kimball - "Management embraces all duties and functions that
pertain to the initiation of an enterprise, its financing, the establishment of all major policies, the
provision of all necessary equipment, the outlining of the general form of organisation under
which the enterprise is to operate and the selection of the principal officers. The group of officials
in primary control of an enterprise is referred to as management".
According to E. Peterson and E.G Plowman - Management is "a technique by means of which the
purpose and objectives of a particular human group are determined, classified and effectuated".
According to Mary gushing Niles - "Good management or scientific management achieves a social
objective with the best use of human and material energy and time and with satisfaction for the
participants and the public".
If the views of the various authorities are combined, management could be defined as "a distinct
ongoing process of allocating inputs of an organisation (human and economic resources) by
typical managerial functions (planning, organising, directing and controlling) for the purpose of
achieving stated objectives namely - output of goods and services desired by its customers
(environment). In the process, work is performed with and through personnel of the organisation
in an ever-changing business environment".
Management is a universal process in all organised social and economic activities. It is not merely
restricted to factory, shop or office. It is an operative force in all complex organisations trying to
achieve some stated objectives. Management is necessary for a business firm, government
enterprises, education and health services, military organisations, trade associations and so on .

1.4 NATURE OR CHARACTERISTICS OF MANAGEMENT

An analysis of the various definitions of management indicates that management has certain
characteristics. The following are the salient characteristics of management.
1. Management is a Factor of Production: Manager's primary task is to secure the productive
performance through planning, direction and control. It is expected of the management to
bring into being the desired results. Rational utilisation of available resources to maximise the
profit is the economic function of a manager. Professional manager can prove his
administrative talent only by economising the resources and enhancing profit. According to
Kimball -"management is the art of applying the economic princip les that underlie the control
of men and materials in the enterprise under consideration".
2. Management also implies skill and experience in getting things done through people:
Management involves doing the job through people. The economic function of earnin g
profitable return cannot be performed without enlisting co -operation and securing positive
response from "people". Getting the suitable type of people to execute the operations is the
significant aspect of management.
3. Management is a process: Management is a process, function or activity. This process
continues till the objectives set by administration are actually achieved. "Management is a
social process involving co-ordination of human and material resources through the functions
of planning, organising, staffing, leading and controlling in order to accomplish stated
objectives".

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 10 Management Concepts and
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Notes 4. Management is a universal activity: Management is not applicable to business undertakings

only. It is applicable to political, social, religious and educational institutions also.
Management is necessary when group effort is required.
5. Management is a Science as well as an Art: Management is an art because there are definite
principles of management. It is also a science because by the application of these principles
predetermined objectives can be achieved.
6. Management is a Profession: Management is gradually becoming a profession because there
are established principles of management which are being applied in practice, and it involves
specialised training and is governed by ethical code arising out of its social obligations.
7. Management is an endeavour to achieve pre-determined objectives: Management is
concerned with directing and controlling of the various activities of the organisation to attain
the pre-determined objectives. Every managerial activity has certain objectives. In fact,
management deals particularly with the actual directing of human efforts.
8. Management is a group activity: Management comes into existence only when there is an
group activity towards a common objective. Management is always concerned with group
efforts and not individual efforts. To achieve the goals of an organisation management plans,
organises, co-ordinates, directs and controls the group effort.
9. Management is a system of authority: Authority means power to make others act in a
predetermined manner. Management formalises a standard set of rules and procedure, to be
followed by the subordinates and ensures their compliance with the rules and regulations.
Since management is a process of directing men to perform a task, authority to extract the
work from others is implied in the very concept of management.
10. Management involves decision-making: Management implies making decisions regarding
the organisation and operation of business in its different dimensions. The success or failure
of an organisation can be judged by the quality of decisions taken by the managers. Therefore,
decisions are the key to the performance of a manager.
11. Management implies good leadership: A manager must have the ability to lead and get the
desired course of action from the subordinates. According to R. C. Davis -"management is the
function of executive leadership everywhere". Management of the high order implies the
capacity of managers to influence the behaviour of their subordinates.
12. Management is dynamic and not static: The principles of management are dynamic and not
static. It has to adopt itself according to social changes.
13. Management draws ideas and concepts from various disciplines: Management is an
interdisciplinary study. It draws ideas and concepts from various disciplines like economics,
statistics, mathematics, psychology, sociology, anthropology etc.
14. Management is Goal Oriented: Management is a purposeful activity. It is concerned with the
achievement of pre-determined objectives of an organisation.
15. Management is Intangible: It cannot be seen with the eyes. It is evidenced only by the
quality of the organization and the results i.e. profits, increased productivity etc.

1.5 SCOPE OF MANAGEMENT

It is very difficult to precisely state the scope of management. However, management includes the
following aspects:
 Subject-matter of Management: Management is considered as a continuing activity made up
of basic management functions like planning, organizing, staffing, directing and controlling.
These components form the subject-matter of management.
 Functional Areas of Management: Management covers the following functional areas:-
 Financial Management: Financial management includes forecasting, cost control,
management accounting, budgetary control, statistical control, financial planning etc.

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  Human Resource Management: Personnel/Human Resource management covers the Notes
various aspects relating to the employees of the organisation such as recruitment,
training, transfers, promotions, retirement, terminations, remuneration, labour welfare
and social security, industrial relations etc.
 Marketing Management: Marketing management deals with marketing of goods, sales
promotion, advertisement and publicity, channels of distribution, market research etc.
 Production Management: Production management includes production plann ing, quality
control and inspection, production techniques etc.
 Material Management: Material management includes purchase of materials, issue of
materials, storage of materials, maintenance of records, materials control etc,
 Purchasing Management: Purchasing management includes inviting tenders for raw
materials, placing orders, entering into contracts etc.
 Maintenance Management: Maintenance management relates to the proper care and
maintenance of the buildings, plant and machinery etc.
 Office Management: Office management is concerned with office layout, office staffing
and equipment of the office.
 Management is an Inter-Disciplinary Approach: Though management is regarded as a
separate discipline, for the correct application of the management principles, study of
commerce, economics, sociology, psychology, and mathematics is very essential. The science
of management draws ideas and concepts from a number of disciplines making it a multi-
disciplinary subject.
 Principles of Management: The principles of management are of universal application. These
principles are applicable to any group activity undertaken for the achievement of" some
common goals.
 Management is an Agent of Change: The techniques of management can be improved by
proper research and development.
 Essentials of Management: The essentials of management include scientific method, human
relations and quantitative techniques.

1.6 IS MANAGEMENT A SCIENCE OR AN ART?

A. question often arises whether management is a science or art. It is said that "management is the
oldest of arts and the youngest of sciences". This explains the changing nature of management but
does not exactly answer what management is? To have an exact answer to the question it is
necessary to know the meanings of the terms "Science" and "Art".
What is "Science"?
Science may be described- "as a, systematic body of knowledge pertaining to an area of study and
contains some -general truths explaining past events or phenomena".
The above definition contains three important characteristics of science. They are:
1. It is a systematized body of knowledge and uses scientific methods for observation
2. Its principles are evolved on the basis of continued observation and experime nt and
3. Its principles are exact and have universal applicability without any limitation.
Judging from the above characteristics of science, it may be observed that-
1. Management is a systematized body of knowledge arid its principles have evolved on the
basis of observation.
2. The kind of experimentation (as in natural sciences) cannot be accompanied in the area of
management since management deals with the human element.

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 Notes 3. In management, it is not possible to define, analyse and measure phenomena by repeating the
same conditions over and over again to obtain a proof.
The above observation puts a limitation on management as a science. Management like other
social sciences can be called as "inexact science".
What is "Art"?
'Art' refers to "the way of doing specific things; it indicates how an objective is to be achieved."
Management like any other operational activity has to be an art. Most of the managerial acts have
to be cultivated as arts of attaining mastery to secure action and results.
The above definition contains three important characteristics of art. They are -
1. Art is the application of science. It is putting principle into practice,
2. After knowing a particular art, practice is needed to reach the level of perfection.
3. It is undertaken for accomplishing an end through deliberate efforts.
Judging from the above characteristics of art, it may be observed that-
1. Management while performing the activities of getting things done by others is required to
apply the knowledge of certain underlying principles which are necessary for every art.
2. Management gets perfection in the art of managing only through continuous practice.
3. Management implies capacity to apply accurately the knowledge to solve the problems, to
face the situation and to realise the objectives fully and timely.
The above observation makes management an art and that to a fine art.
Management is both a Science as well as an Art
Management is both a science as well as an art. The science of management provides certain
general principles which can guide the managers in their professional effort. The art of
management consists in tackling every situation in an effective manner. As a matter of fact,
neither science should be over emphas ized nor art should be discounted; the science and the art of
management go together and are both mutually interdependent and complimentary.
Management is thus a science as well as an art. It can be said that-"the art of management is as old
as human history, but the science of. management is an event of the recent past."

1.7 PROFESSIONALISATION OF MANAGEMENT

There has been a growing trend towards professionalisation of management. Professionalisation
imparts a certain social responsibility and dignity to management. A professional cannot be
controlled or directed by the client. He has professional knowledge and judgment which he uses to
make his decision. Thus, professionalisation makes business more efficient, dynamic and socially
responsible. The growth of management education in India has contributed to professionalisation
in the business field.
The company form of business organization which has split ownership from management and the
gaining popularity of the company form of business organization ha ve increased the need for
professional managers.
According to Peter Drucker, "Professional management is a function, a discipline, a task to be
done; and managers are the professionals who practice this discipline, carry out the functions and
discharge these tasks. It is no longer relevant whether the manager is also an owner; if he is it is
incidental to his main function, which is to be a manager."
The World Council of Management has recommended the following criteria for
professionalisation. They are:
1. Members of a profession subordinate self-interest to the client interest and the official interest.

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 2. A profession is based on a systematic body of knowledge that is held to common and lends to Notes
application.
3. Membership of a profession should depend on the observance of certain rules of conduct or
behaviour.
A critical evaluation of the above definitions show that professionalisation of business
management shows that:
1. There exists a systematic body of knowledge on management. A professional should have
formally acquired the specialized knowledge and skill for management. Management is taught
as a discipline in various educational institutes, throughout the world.
2. Membership of a profession should depend on the observance of certain rules of conduct and
behaviour. The decisions and actions of a professional are guided by certain ethical
considerations.
3. A profession is based on a systematic body of knowledge that is held in common and lends
itself to application. Thus, a profession should have no ideological bias in the discharge of his
functions.
A close scrutiny of management shows that management unlike law or medicine is not a full-
fledged profession. The reasons are -
1. It is not obligatory to possess specific qualifications for being appointed as a manager.
2. There is no single association to regulate the educational and training standards of managers.
3. Uniform professional standards have not been set up for the practicing managers.

1.8 FUNCTIONS OF MANAGEMENT

A manager is called upon to perform the following managerial functions:
1. Planning
2. Organising
3. Staffing
4. Directing
5. Leadership
6. Communication
7. Motivation
8. Supervision
9. Co-ordination
10. Controlling
1. Planning: Planning is a basic managerial function. Planning helps in determining the course
of action to be followed for achieving various organisational objectives: It is a decision in
advance, what to do, when to do how to do and who will do a particular task. Pla nning is a
process which involves 'thinking before doing'. Planning is concerned with the mental state of
a manager. He thinks before undertaking a work. Other functions of management such as
organising, staffing, directing, co-ordinating and controlling are also undertaken after
planning.
Hart defines planning as "the determination in advance of a line of action by which certain
results arc to be achieved." According to Terry, "'Planning is the selecting and relating of facts
and the making and using of as sumptions regarding the future in the visualisation and
formulations of proposed activities believed necessary to achieve desired results."

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 Notes Planning is a process of looking ahead. The primary object of planning is to achieve better
results. It involves the selection of organisational objectives and developing policies,
procedure, programmes, budgets and strategies. Planning is a cont inuous process that takes
place at all levels of management. A detailed planning is done in the beginning but the actual
performance is reviewed and suitable changes are made in plans when actual execution is
done. Plans may be of many kinds, such as short range plans, medium range plans, long range
plans, standing plans, single use plans, strategic plans, administrative plans and operational
plans.
The process of Planning involves a number of steps : (i) gathering information ; (ii) laying
down objectives; (iii) developing planning premises; (iv) examining alternative courses of
action; (v) evaluation of action patterns ; (vi) reviewing limitations (vii) implementation of
plans.
2. Organising: Every business enterprise needs the services of a number of persons to look after
its different aspects. The management sets up the objectives or goals to be achieved by its
personnel. The energy of every individual is channelised to achieve the enterprise objectives.
The function of organising is to arrange, guide, co-ordinate, direct and control the activities of
other factors of production, viz., men, material, money and machines so as to accomplish the
objectives of the enterprise. In the words of Koontz and O'Donnel, "Organising that part of
managing that involve establishing and intentional structure of roles for people in an
enterprise to fill." Organisation provides the necessary framework within which people
associate for the attainment of business objectives.
Louis A. Allen describes organisation as, "the process of identifying and grouping work to be
performed, defining and delegating responsibility and authority and establishing relationships
for the purpose of enabling people to work most effectively together in accomplishing
objectives." The process of organisation involves the following steps:
(i) to identify the work to be performed;
(ii) to classify or group the work ;
(iii) to assign these groups of activities or work to individuals;
(iv) to delegate authority and fix responsibility and
(v) to co-ordinate these authority-responsibility relationships of various activities.
The character and type of organisation depends upon the size and nature of the enterprise.
Though there are many types of organisations but generally three types of organisations are in
vogue:
(i) Line organisation
(ii) Functional organisation; and
(iii) Line and staff organisation
In line organisation authority flows vertically from the top of the hierarchy to the bottom.
Under functional organisation, the work is divided into different departments. Each
department deals in one type of work and it specialises in one work only. A workman has to
work under many superiors who specialise in different functions. Line and staff organisation
provides for specialists with line executives. It is a combination of line and functional form of
organisation.
A sound organisation contributes greatly to the continuity and success of the enterprise.
However, an organisation is not an end in itself. The organisation structure should be flexible.
3. Staffing: The function involves manning the positions created by organisation process. It is
concerned with human resources of an organisation. In the words of Koontz and O'Donnel,
"staffing is filling, and keeping filled, positions in the organisation structure through defining
work-force requirements, appraising, selecting, compensating and training. Thus, staffing
consists of the following:

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 (i) Manpower planning i.e., assessing manpower requirements in terms of quantity and Notes
quality.
(ii) recruitment, selection and training:
(iii) Placement of man power;
(iv) development, promotion, transfer and appraisal
(v) determination of employee remuneration.
Every manager in an organisation has to perform the staffing function in one form or the
other, in order to get things done through others. But, it is decidedly a difficult managerial
function as it concerns human beings whose behaviour and actions cannot be predicted, and
that is why it has become a distinct and specialised branch of management.
4. Directing: Directing is concerned with carrying out the desired plans. It initiates organised
and planned action and ensures effective performance by subordinates towards the
accomplishment of group activities. Direction is called management in action. In the words of
George R. Terry, "Direction is moving to action and supplying stimulative power to the
group." After planning, organising and staffing, the manager h as to guide and supervise his
subordinates. According to Massie, "Directing concerns the total manner in which a manager
influences the actions of subordinates. It is the final action of a manager in getting others to
act after all preparations have been completed."
5. Leadership: A manager has to issue orders and instructions and guide and counsel his
subordinates in their work with a view to improve their performance and achieve enterprise
objectives. Leadership is the process by which an executive or manage r imaginatively
directs/guides and influences the work of others in choosing and attaining specified goals by
mediating between the individual and organisation in such a manner that both will get
maximu m satisfaction.
Leadership is the ability to build up confidence and zeal among people and to create an urge
in them, to be led. To be a successful leader, a manager must possess the qualities of
foresight, drive, initiative, self-confidence and personal integrity. Different situations may
demand different types of leadership, viz., autocratic leadership, democratic leadership and
free rein leadership.
6. Communication: Communication constitutes a very important function of management. u is
said to be the number one problem of management today. It is an establish ed fact that
managers spend 75 to 90 per cent of their working time in communicating with others.
Communication is the means by which the behaviour of the subordinate is modified and
change is effected in their actions.
The word 'communication' has been derived from the Latin word 'communis' which means
'common'. Thus, communication means sharing of ideas in common. The essence of
communication is getting the receiver and the sender tuned together for a particular message.
It refers to the exchange of ideas , feelings, emotions and knowledge and informations
between two or more persons. Nothing happens in management till communication takes
place.
Communication is a two-way process as it involves both information and understanding. It
may be written, oral, gestural. Communication is said to be formal when it follows the formal
channels provided in the organisation structure. It is informal communication, when it does
not follow the formal channels. Communication flows downward from a superior to
subordinates and upward from subordinates to a superior. It also flows between two or more
persons operating at the same level of authority.
Communication is essential at all levels of management for decision - making and planning. It
increases managerial capacity and facilitates control. It has been rightly said that good
managers are good communicators and poor managers are poor communicators.

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 Notes 7. Motivation: The term motivation is derived from the word 'motive' which means a need, or an
emotion that prompts an individual into action. Motivation is the psychological process of
creating urge among the subordinates to do certain things or behave in the desired manner. It
is a very important function of management. The importance of motivation can be realised
from the fact that performance of a worker depends upon his ability and the motivation.
There are many strategics adopted by managers for increasing the motivation of subordinates.
According to Michel Jucius, Motivation means the act of stimulating some one or oneself to
get a desired course of action to push the right button to get a desired reaction, a compliment,
dollar raise, a smile, a promise of a rise, a new typewriter, a preferred lo cation or a new desk."
Thus, a manager has to provide some personal incentive to the subordinates to motivate,
persuade and inspire them for contributing their best towards the achievement of enterprise
objectives. The incentives to be proved may be financial such as increase in wages, or non-
financial, like better working conditions, job security, recognition, etc. A sound motivational
system must be productive, competitive, comprehensive and flexible, and it must consider the
psychological, social, safety, ego and economic needs of the workers.
8. Supervision: Supervision is another important element of directing function of management.
After issuing instructions, the manager or the supervisor has to see that the given instructions
are carried out. This is the aim of supervision. Supervision refers to the job of overseeing
subordinates at work to ensure maximum utilisation of resources to get the required and
directed work done and to correct the subordinates whenever they go wrong. Though
supervision is performed at all levels of management, the major responsibility for supervision
lies with the first line of management. Sound organisational set up, effective delegation,
human approach, effective communication and management by exception make supervision
effective.
9. Co-ordination: Co-ordination is one of the most important functions of management. It is
essential to channelise the activities of various individuals in the organisation for the
achievement of common goals. Every department or section is given a ta rget to be achieved
and they should concentrate only on their work and should not bother about the work of other
organs. It is left to the management to see that the work of different segments is going
according to pre-determined targets and corrective measures have to be taken if there is any
deviation. Co-ordination creates a team spirit and helps in achieving goals through collective
efforts. It is the orderly arrangement of group effort to provide unity of action in the persuit of
common objectives.
Dalton McFarland defines co-ordination as the "process whereby an executive develops an
orderly pattern of group effort among his subordinates and secures unity of action in the
pursuit of common purposes."
Co-ordination can be classified under two categories: (i) vertical and horizontal co -ordination,
and (ii) internal and external co-ordination. Whereas vertical co-ordination is the co-
ordination between different levels of management, the term horizontal co-ordination is used
when co-ordination has to be achieved between departments of the same level of authority.
Co-ordination is internal when it is between different sections of the same concern and
external when it is required with persons outside the organisation.
10. Controlling: Controlling can be defined as "determining what is being accomplished, that is
evaluating the performance, if necessary, applying corrective measures so that the
performance takes place according to plans.
Control is essential for achieving objectives of an enterprise. The planning of various
activities does not ensure automatic implementation of policies. Control is the process which
enables management to get its policies implemented and take corrective actions if
performance is not according to the predetermined standards. If planning is the beginning of
the management process, controlling may be said to be the final stage. If planning is looking
ahead, controlling is looking back. Control is not possible without planning and plann ing is
meaningless without control.

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 Control is a line function and executives at various levels of management continuously assess Notes
the performance of their subordinates. The main purpose of control is to see that the activity is
achieving the desired results. A control system, to be effective, must conform to the nature of
activity, report deviations promptly, reflect organisation structure, assure corrective action and
be economical.
The process of controlling involves the following steps:
(i) establishing standards of performance ;
(ii) measuring actual performance ;
(iii) comparing the actual performance with the standard.;
(iv) finding variances or deviations, if any ; and
(v) taking corrective action or measures.

1.9 SKILLS OF A MANAGER

1. Technical Skills: Robert Katz has put various management skills into three broad categories;
technical skills, human skills, conceptual skills. It refer to knowledge and proficiency in
processes, procedures, methods and techniques which are used in doing a work. These skills
are hard skills and are easily visible in a person. Technical skills are developed by
accountants, engineers, managers, and other persons through the actual practice by doing
things.
2. Human Skills: Human skills, also known as human relations skills or administrative skills, are
the ability of a person to work with others on a person -to-person basis and to build
cooperative group relations to achieve group objectives and, consequently, organizational
objectives.
3. Conceptual Skills: Conceptual skills, also known as general management skills, are related to
concepts and mental perception conceptual framework intended to develop new ideas,
products, etc. Conceptual skills refer to the ability to see the whole picture to recognize
significant elements in a situation and to understand the relationship among these elements.
In short, technical skills deal with things, human skins deal with people, and conceptual skills deal
with ideas. Managers require these skills. However, what "will be proportion of these skills in
managers depends on the management levels at which they work. Managers at lower level require
technical skills more; managers at middle level require human skills more, and managers at top
level require conceptual skills more.
Besides these three skills, various writers and researchers have provided other skill sets for various
levels of management.
Top Management Skills: As per need of the world, much attention has been focused on the skills
and their development in top management because this level is the major driving force in an
organization. In a survey of 90 global chief executives, conducted by Anderson Consulting, a US-
based consultancy firm shows that the chief executives require fourteen skills. Accordingly, a
chief executive thinks globally, anticipates opportunities, creates a shared vision, develops and
empowers people, appreciates cultural diversity, builds teamwork and partnership, embraces
changes, shows technological savvy, encourages constructive challenge, ensures customer
satisfaction, achieves a competitive advantage, demonstrates personal mastery, shares leadership,
and lives the values.7 In Indian context, one such study of 125 chief executives has identified
various relevant personal skills as analytical skills, creativity, sense of high achievement, risk-
taking aptitudes, business aptitudes, leadership; job -related skills such as corporate perspective,
knowledge of external environment, outside contacts, planning processes, and accuracy in work.
Middle Management Skills: In middle management group, there may be managers at different
levels placed between the top management and supervisors. Usually, they are concerned with a
particular functional area of the organization. There is a tendency of faster movement of this group
of managers. Therefore, they require a variety of skills which must be relevant for their entire

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 Notes career. While at the lower end of middle management, more of technical and human skills are
required; at the higher end of middle management, more creative and integrative skills are
required. Thus, the managers in the middle management require human relations skill, leadership
skill, motivating skill and integrative skill.
Supervisory Management Skills: Supervisors may also be classified into front-line, intermediate,
and senior. Since they are directly concerned with operatives where the actual operations of the
organization take place, supervisors should possess skills which help them to get things done by
operatives. Every supervisor in the organization should have sound technical knowledge of his
field to provide proper instructions and guidance to operatives, interpersonal skill to develop
cohesive operative-management relations, accuracy in work, motivational skill for creating proper
work environment, and communication skill for interacting with higher management.

1.10 CHARACTERISTICS OF QUALITY MANAGERS

Quality managers (or good managers) are those managers who continuously strive for success and
ultimately achieve it. Though success of managers depends on their own characteristics as well as
on the contextual variables which affect their working as discussed earlier, managers having
characteristics of quality managers tend to be succes sful even in unfavourable situations as they
have qualities to convert unfavourable situations into favourable situations. Various academicians
and practitioners have made attempts to describe characteristics of quality/ effective/successful
managers. As a result, there is lot of literature on this issue. In a comparatively recent publication,
Rao has identified dimensions of managers who make a difference: versatility, efficacy,
internality, values, creativity, interpersonal engagement, team building, time and talent
management, communication and motivation, and leadership styles. Based on this and other
literature, it may be concluded that the characteristics of quality managers are as follows:
1. Professional Competence: Professional competence refers to having thorough knowledge of
the field concerned. In the case of management, professional competence involves being well-
versed in management principles and how these principles can be applied in the given
situations.
2. Belief in High Achievement: Quality managers have belief in high achievement. They have
internal locus of control implying that they feel that they can control situations and the
situations cannot control them. They have a feeling that if others can do something
exceptional, they can also do the same way. This belief instills confidence in them for doing
better and better.
3. Creativity: Creativity involves conceiving of original and unique alternatives to the solution
of a problem. Creativity is required because nature of problems goes on changing requiring
innovative solutions.
4. Analytical Skills: Managers have to work in complex situations which contain both
significant and insignificant factors. With analytical skills, quality managers may be able to
identify those factors which are more relevant for their work.
5. Decisive: Quality managers are quite decisive. They make decisions after careful analysis of
the contextual variables well in time. They do not waver between 'what to do' or 'what not to
do' in a given situation.
6. Excellent Communication Skills: Communication involves sharing of ideas and
understanding with others. In order to understand others and making himself understood by
others, excellent communication skills are required. Further, persuasive communication may
influence others favourably.
7. Leading from the Front: Quality managers lead from the front. They do not speak about
themselves but their work speaks on their behalf. This feature leads the followers to follow
the leaders enthusiastically.

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 8. Openness: Quality managers have quality of openness. They are change -prone and not Notes
change-resistant. Being open, they appreciate any idea which is fruitful and accept it from
whatever source it comes.
9. High Integrity: Quality managers have high integrity and adopt ethical practices in all types
of decisions and dealings. Similarly, they expect the same pattern to be followed by others.
10. Team-based Approach: Quality managers adopt team-based approach. For work
performance,-they adopt 'give and take' approach. They believe in developing themselves as
well as others.

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 1.11 UNIVERSALITY OF MANAGEMENT
There is a controversy about the universality of management. The question
whether management is universally applicable or not has attracted attention of
management scholars and practitioners alike. Settlement of this controversy is
necessary to determine the extent to which management knowledge developed
in on country can be transmitted to other countries. If it is universal, there is no
problem in transferability of management knowledge. In its absence, there is
serious question on the universal use of management knowledge developed in a
country. However, opinions about the universal applicability of management are
not uniform. There are two divergent types of arguments; one suggests that
management is universally applicable and another suggests that it ft not
universally applicable. Therefore, it is essential to overcome this problem so that
Indian managers can take adequate precautions while applying management
concepts developed in other countries, mostly in developed countries.

1.12 PROCESS OF MANAGEMENT

The process of management involves the determination of objectives and putting
them into action. Management is an activity consisting of a distinct process
which is primarily concerned with the important task of goal achievement. No
business enterprise can achieve its objectives until and unless all the members of
the enterprise make an integrated and planned effort under the directions of a
central coordinating agency. This central coordinating agency is technically
known as management and the methodology of getting things done is known as
Management Process.
According to G.R. Terry “Management is a distinct process consisting of
planning, organsing, actuating and controlling performed to determine and
accomplish stated objectives by the use of human beings and other resources”
Under management as a process, management is considered as a continuing
activity made up of basic management functions. The process is ongoing and
continuing. It assumes a cyclic character.
1. Planning: Denotes the determination of short-to-long range plans to
achieve the objectives of organization.
2. Organising: Indicates the development of sound organization structure
according to predetermined plans.
3. Direction: Means stimulating and motivation of personnel of the
organization according to predetermined plans.
4. Controlling: Offers assurance that directs action i.e., plan in-action is taking place as per plan.
We have an ongoing cycle of planning-action-control replanning Control
function closes the system loop by providing adequate and accurate feedback of
significant deviations from planned performance in time. Feedback can affect
the inputs or any of the managerial functions or the process so that deviations
can be removed and goals can be accomplished.

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