Meaning of MANAGEMENT

• Management is a universal phenomenon. It is a very

popular and widely used term. All organizations -
business, political, cultural or social are involved in
management because it is the management which helps
and directs the various efforts towards a definite purpose. 
• Management is the art of getting things done through
other people.
• It is a problem solving process of effectively achieving
organizational objectives through the efficient use of scarce
resources in changing environment.
 Management is a purposive activity. It is something that directs group
efforts towards the attainment of certain pre - determined goals. It is
the process of working with and through others to effectively achieve
the goals of the organization, by efficiently using limited resources in
the changing world. 
 V= VOLATILE
 U= UNCERTAIN
 C= COMPLEX
 A= AMBIGIOUS WORLD
 Management has drawn concept and principles from a number of
disciplines such as economics, sociology, psychology and so on.
 Taking all these point of view together we can explain the term
Management in 3 alternative ways:
 Management as discipline
 Management as a group process
 Management as a process
Definition of Management
Harold Koontz: “Management is the art of getting
things done through and with people in formally
organized groups.”
Koontz and O’Donnell: “ Management is the
creation and maintenance of an internal environment
in an enterprise where individuals, working in
groups, can perform efficiently and effectively
towards the attainment of group goals”
Five M’s of Management
Money: Monetary resources help to operate and
sustain the business in form of fixed & working
capital. In an organization money is used/employed
to generate more money in terms of profit or surplus.
Material: Physical raw materials or semi-finished
goods or assembling into finished products. The
quality & cost of raw material is important. Proper
allocation and utilization of the resources should be
done.
Manpower: It refers to the managerial & non-
managerial personnel employed in an organization.
The success & proper working of the organization
depends to a great extent upon the skills, efforts, &
contributions of its managers & the subordinates.
Machinery: Machines are used to process the
materials into finished products. Proper use of
modern machinery helps to reduce costs & to improve
quality of output. Obsolescence of machinery should
be considered.
Method: It is the process of the manufactured
product. Use of right methods helps to increase
efficiency of operations & contributes to effective
management.
Nature & Characteristics of
Management
 Management is a Universal Process: The basic
principles of management are universal in character.
Their application is universal.
 Management is Purposeful: Management has a
specific purpose i.e. achievement of a objective. It
gives the direction towards accomplishment of
predetermined goals.
 Management is a group phenomenon: It involves
the use of group effort in the pursuit of common
objectives.
 It is a social process: Management is done by the
people, through the people and for the people. It is
concerned with the interpersonal relations.
 It is Multi-disciplinary: It deals with human
behavior under dynamic conditions. It depends upon
the wide knowledge derived from several disciplines
like engineering, sociology, psychology etc.
 It is a Continuous process: It is dynamic and on-
going process.
 It is Intangible: Management is an unseen or
invisible force. It cannot be seen, but its presence can
be felt everywhere in the form of result.
 Management is dynamic: Management has framed
certain principles, which are flexible in nature and
change with the changes in the environment in which
an organization exits.
 Relative, Not Absolute Principles: Management
principles are relative, not absolute, and they should
be applied according to the need of the organization.
A particular management principle has different
strengths in different conditions. Therefore, principles
should be applied according to the prevailing
conditions.
 Management is both a Science and Art:
Management like other practices- whether medicine,
music composition, or even accountancy- is an art. It
is know-how. Yet managers can work better by using
the organized knowledge about management. It is this
knowledge that constitutes science. Thus, managing
as practice is an art; the organized knowledge
underlying the practice may be referred to as science.
 Management as an Art:

The main elements of Arts are:

Personal skills and knowledge.
Practical way of doing specific things.
Is essentially creative.
Success in Arts is measured by the results achieved.
Is practice based and requires continuous practice.
 Management as an Art:
Management is basically an Art because:
Manager also applies his skills and knowledge to co
ordinate activities
Management seeks to achieve practical results.
Management also involves creativity.
Success of manager or management is measured by the
results achieved.
Mastery in Management requires long experience and
can be refined through continuous practice.
Thus Management is an Art.
Management as a Science:

The main elements of Science are:

Science is a systematized body of knowledge.
It contains underlying principles and theories
developed through research observation etc
The principles have universal applicability.
These Principles are verifiable
The organized body of knowledge can be taught and
learnt in the classroom and outside.
 Management as a Science:
Management is basically a Science because:
 Management is a systematized body of knowledge.
 Principles and theories of management have evolved
due to research etc.
 Managerial principles have wide range of applications.
 Management theory and principles can be taught in
classroom and in industry.
 Thus Management is a Science.
Management as a Profession
Profession: It means a vocation which involves service to people
through application of professional knowledge. It involves
application of expert knowledge to solve specific problems.
The essential attributes of a Profession are given below:
A well-defined & Organized body of Knowledge: Professionals
require experts/specialized knowledge pertaining to a particular
field.
Learning & Experience: A professional is a person who has
undergone certain rigorous training to acquire certain
knowledge & skills. The knowledge must be transferable
through the medium of teaching, training & practice.
Entry restriction by Qualification: Anybody who wants to enter
the profession must qualify the prescribed examination &
obtain the qualification.
Service Motive: A professional is expected to give priority to
service to others. A profession provides full time occupation
with reasonable remuneration.
Management as a Profession
Management satisfies many of the essentials of a
Profession:
A systematic & well defined body of knowledge exists
in the form of theories & principles of management.
Formal education & training can be imparted in
management.
Persons with formal education & training in
management are given preferences for filling the
managerial positions in industry & business.
The professionals are required to be socially
responsible while handling their tasks &
responsibilities.
Functions of Management:
Planning
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. It is a kind of organized foresight as well as
corrective hindsight. It involves the predicting of the
future as well as attempting to control the events. It
involves the ability to foresee the effects of current actions
in the long run in the future.
Peter Drucker has defined planning as follows:
“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 systematic
feedback”.
An effective planning program incorporates the effect
of both external as well as internal factors. The
external factors are shortages of resources; both
capital and material, general economic trend as far as
interest rates and inflation are concerned, dynamic
technological advancements, increased governmental
regulation regarding community interests, unstable
international political environments, etc.
The internal factors that affect planning are limited
growth opportunities due to saturation requiring
diversification, changing patterns of work force, more
complex organizational structures, decentralization
etc
Organizing
Organizing requires a formal structure of authority
and the direction and flow of such authority through
which work subdivisions are defined, arranged and co-
ordinated so that each part relates to the other part in
a united and coherent manner so as to attain the
prescribed objectives.
According to Henry Fayol, “To organize a business is to
provide it with everything useful or its functioning i.e.
raw material, tools, capital and personnel’s”.
Thus the function of organizing involves the
determination of activities that need to be done in
order to reach the company goals, assigning these
activities to the proper personnel, and delegating the
necessary authority to carry out these activities in a co-
ordinated and cohesive manner. It follows, therefore,
that the function of organizing is concerned with:
Organizing consists of :

(1) Differentiation-means division of work into

smaller units and its assignment to individuals
according to their skills and abilities.
(2) Integration -refers to coordination of different
activities towards a common goal. It provides unity of
action towards organizational activities.
 Process of Organizing
(i)Identification of work(Organization Objective)
(ii) Grouping of work into smaller groups goals
(iii) Assigning work to every individual at every level
in every department
(iv) Delegation of authority and responsibility
(v) Establishing relationships amongst people to
make them contribute towards organizational goals in
an integrated manner
STAFFING
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.
According to Kootz & O’Donell, “Managerial function
of staffing involves manning the organization structure
through proper and effective selection, appraisal &
development of personnel to fill the roles designed in
the structure”.
This function is even more critically important since
people differ in their intelligence, knowledge, skills,
experience, physical condition, age and attitudes, and
this complicates the function. Hence, management
must understand, in addition to the technical and
operational competence, the sociological and
psychological structure of the workforce.
Staffing consists of following activities:
a)Manpower planning
b)Recruitment
c)Selection
d)Induction
e)Training & Development
f)Performance Appraisal
g) Compensation
Directing
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.
The leadership  element involves issuing of instructions
and guiding the subordinates about procedures and
methods.
The communication must be open both ways so that
the information can be passed on to the subordinates
and the feedback received from them.
Motivation is very important, since highly motivated
people show excellent performance with less direction
from superiors.
Supervising subordinates would lead to continuous
progress reports as well as assure the superiors that
the directions are being properly carried out.
Controlling
The function of control consists of those activities
that are undertaken to ensure that the events do not
deviate from the per-arranged plans. The activities
consist of establishing standards for work
performance, measuring performance and comparing
it to these set standards and taking corrective actions
as and when needed, to correct any deviations.
According to Koontz & O’Donell, “Controlling is the
measurement & correction of performance activities of
subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being
accomplished”.
The controlling function involves:
a. Establishment of standard/ target performance.
b. Measurement of actual performance.
c. Measuring actual performance with the pre-
determined standard and finding out the deviations.
Communicating the results/ deviation to the
Employees
d. Taking corrective action.
All these five functions of management are closely
interrelated. However, these functions are highly
indistinguishable and virtually unrecognizable on the
job. It is necessary, though, to put each function
separately into focus and deal with it.
 Levels of Management
The term “Levels of Management’ refers to a line of
demarcation between various managerial positions in
an organization. The number of levels in management
increases when the size of the business and work
force increases and vice versa. The level of
management determines a chain of command, the
amount of authority & status enjoyed by any
managerial position. The levels of management can
be classified in three broad categories:
Top level / Administrative level
Middle level / Executory
Low level / Supervisory / Operative / First-line
managers
Top Level of Management: It consists of board of
directors, chief executive or managing director. The
top management is the ultimate source of authority
and it manages goals and policies for an enterprise. It
devotes more time on planning and coordinating
functions.
The role of the top management can be summarized as
follows -
Top management lays down the objectives and broad
policies of the enterprise.
It issues necessary instructions for preparation of
department budgets, procedures, schedules etc.
It prepares strategic plans & policies for the
enterprise.
It appoints the executive for middle level i.e.
departmental managers.
It controls & coordinates the activities of all the
departments.
It is also responsible for maintaining a contact with
the outside world.
It provides guidance and direction.
The top management is also responsible towards the
shareholders for the performance of the enterprise.
Middle Level of Management : The branch
managers and departmental managers constitute
middle level. They are responsible to the top
management for the functioning of their department.
They devote more time to organizational and
directional functions. In small organization, there is
only one layer of middle level of management but in
big enterprises, there may be senior and junior middle
level management.
Their role can be emphasized as -
They execute the plans of the organization in
accordance with the policies and directives of the top
management.
They make plans for the sub-units of the organization.
They participate in employment & training of lower
level management.
They interpret and explain policies from top level
management to lower level.
They are responsible for coordinating the activities
within the division or department.
It also sends important reports and other important
data to top level management.
They evaluate performance of junior managers.
They are also responsible for inspiring lower level
managers towards better performance.
Lower Level of Management
Lower level is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section
officers, superintendent etc. According to R.C. Davis,
“Supervisory management refers to those executives
whose work has to be largely with personal oversight and
direction of operative employees”. In other words, they are
concerned with direction and controlling function of
management.
Their activities include -
Assigning of jobs and tasks to various workers.
They guide and instruct workers for day to day activities.
They are responsible for the quality as well as quantity of
production.
They are also entrusted with the responsibility of
maintaining good relation in the organization.
They communicate workers problems, suggestions,
and recommendatory appeals etc to the higher level
and higher level goals and objectives to the workers.
They help to solve the grievances of the workers.
They supervise & guide the sub-ordinates.
They are responsible for providing training to the
workers.
They arrange necessary materials, machines, tools etc
for getting the things done.
They prepare periodical reports about the
performance of the workers.
They ensure discipline in the enterprise.
They motivate workers.
They are the image builders of the enterprise because
they are in direct contact with the workers.
Management- Administration-
Organization
Management- Administration
14 Principles of Management- Henri
Fayol
1. Division of Work 8. Centralization
2. Authority and 9. Scalar Chain
Responsibility 10. Order
3. Discipline 11. Equity
4. Unity of Command 12. Stability of Tenure
5. Unity of Direction of Employees
6. Subordination of 13. Initiative
Individual Interest to 14. Esprit de Corps
Organizations Interest (Union is Strength)
7. Fair Remuneration
THANK YOU
 XYZ FIRM(SWOT/C)
Internal Factors- S & External Factors- O &
W T/C
 High Number of Employees  Goodwill in market
 Quality of employee  Competition higher
 Money low  Politics
 Organizational Policies  Govt Policies
 Relations between the  Environment condition
Employee & Employer  Location
 Rules & Regulation  Customers higher
 Technology  Market condition
 Value of Economy
 Technology
 ABC FIRM
 INTERNAL FACTORS S & W External factors O & T
 Goodwill
 Govt policies
 Efficient workforce HRM
 Presence on social media  Environmental factors
 Quality products  Pandemic
 Low liabilities  PESTEL
 High tech with minimal maintenance cost  Domestic and international players
 Cash flow mgmt.
 Customers
 Effective customer service
 Innovation
 R&D
 Large market share
 CRM
 Optimum utilization of resources
 Quality of employees
 Competitive pricing
 Relationship between employees and employer
 CSR
 Organization policies
 Company culture
 Football Match
MIT WPU Team XYZ Team
Positive -Strength Positive / Strength?
Negative- Weakness Threat/ Challenges
Negative/ Weakness?
Opportunity