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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

UNIT-1
INTRODUCTION OF MANAGEMENT

INTRODUCTION TO MANAGEMENT:
In the present context, managing has become one of the most important areas
of human activity because of increasing role of large and complex
organizations in society
...
This led to the development
of new field of study known as management
...

Management is co- ordination of all resources through the process of
planning, organizing, directing and controlling in order to attain stated
objectives
...
”

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

EVOLUTION OF MANAGEMENT:
The evolution of management can be categorized into different types:
(1)

PRE - SCIENTIFIC MANAGEMENT ERA
Pre-scientific management era refers to the period immediately
preceding the Scientific Management Movement started by F
...

Taylor and his associates
...


Evaluation of Pre-Scientific Management Theories:

These theories were primarily related to the organizational environments
...
As each
manager had his own way of viewing the organization, some emphasized on
production and others on human relations
...

CLASSICAL MANAGEMENT ERA
It is the oldest theory of management and is, therefore, called the traditional
theory of management
...
It includes management theories that provide
foundation to the study of management
...

With increase in complexity of organizations, the need to have systematic
approach to management became inevitable
...
Financial incentives were considered important contributors to
organizational output
...
It includes some of the early works on management which provide foundation
to the modern management the
2
...

3
...

4
...

5
...

6
...

CONTRIBUTION OF CLASSICAL THEORY TO MANAGEMENT THOUGHT:

1
...

2
...
It highlighted basic
organizational problems to the management
...
Many principles (job specialization and scientific methods of work) and
functions of management of the classical theory hold true even today
...
It provides a set of management principles and functions based on experiments
and scientific methods which can be applied to a large number of business and
non-business organizations
...
This theory originated when organizations had stable and simple structures
...
The modern organizations

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

are complex and changing in form and, therefore, do not fully comprehend the
principles of classical theories
...
The principles of management are not universally applicable in the
organizations today
...
The
principle of unity of command,
3
...
Their social and psychological needs are altogether
ignored
...
The focus of theory is more on task than people; human behavior and desires
are ignored
...
Monetary rewards are more important than non-monetary rewards
...
Non-monetary rewards like status, power, recognition etc
...

6
...
Overemphasis on
rules made these rules an end
...


(2)

NEO - CLASSICAL MANAGEMENT ERA

DEFINITION: The Neo Classical Theory is the extended version of the classical
theory where in the behavioral sciences gets included into the management
...

 The Neo Classical theory asserts that an individual is diversely
motivated and wants to fulfill certain needs
...

 The teamwork is the prerequisite for the sound functioning of the
organization, and this can be achieved only through a behavioral
approach, how individual interact and respond to each other
...


 The premise of this inclusion was based on the idea that the role of
management is to use employees to get things done in organizations
...


 Theorists concentrated on answering questions related to the best way
to motivate, structure, and support employees within the organization

(3) MODERN MANAGEMENT ERA
1
...
Successful
organizations adapt to environmental changes as part of the management
practices
...
Business organizations are dynamic institutions composed of inter-related
divisions and sub-divisions
...
Firms have multiple objectives
...

4
...
It draws knowledge from
various disciplines and synthesizes it to solve managerial problems
...
Management is future oriented
...


NATURE OF MANAGEMENT:
(1) Universal Phenomenon:
Management is a universal phenomenon
...
In short, it is present at all spheres of life
...

(2) It is an organized activity:
Management is an organized activity or process, as management attains its
full meaning only when there is an organized focus towards achieving
common objectives which is much concerned with efficient use of resources
...
As
stated earlier as management is all about getting things done through others,
it speaks about getting such work done through people working together as a
group thereby achieve the needful objectives successfully
...

(5) It is a social Process:
Management takes place only through people and is concerned with building
mutual understanding and co - ordination with different classes of people in
order to achieve a common goal
...

(7) Management is an integrated process:
Management is an integrating or unifying force i
...
, the task of management is
wielding or integrating into a single working force the human and the physical
resources
...

(9) Goal - Oriented:
Management is purposeful or goal - oriented activity
...
In fact, the success of management is measured by the extent to
which the organization goals are achieved
...
Etc

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

(11) Dynamic:
Management is dynamic and not static, as it adapts itself to changes in
environment and also initiates and introduces changes i
...
, innovations, in
methodology
...
In other words it is the function of executive leadership
everywhere
...


CHARACTERISTICS OF MANAGEMENT:
(1) Continuous & never ending process:
Management is a process
...
,
"PLANNING","ORGANISING","DIRECTING","And CONTROLLING"
...
He had to give proper directions to his
subordinates
...
They get the work done through
workers
...

(3) Result oriented science and art:
Management is result oriented because it gives a lot of importance to "Results
...

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

Management always wants to get the best results at all times
...
It has to manage
people
...
, Similarly, the same person may have
different emotions at different times
...

(5) A group and not an individual activity:
Management is not an individual activity
...
It uses group
(Employees) efforts to achieve group (owners) objectives
...

(6) Follow established principles or rules:
Management follows established principles, such as division of work,
discipline, unity of command etc
...

(7) Aided but not replaced by computers:
Now-a-days, all managers use computers, Computers help the managers to
take accurate decisions
...

Computer cannot replace management
...
It is also essential for
running business, educational, charitable and religious institutions
...

SCOPE OF MANAGEMENT:
(1) Subject Matter of Management:
Planning, organizing, staffing, directing , co-ordination , & controlling are main
functions of management
...

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

(2) Functional Areas of Management
(a) Financial Management: It includes cash management, planning and
forecasting , budgeting , cost control and cost reduction management
accounting , pricing , sources of finances etc
...

(c) Production Management: Includes production planning and control,
materials management, scientific purchasing, inventory control, storage and
warehousing
...

(3) Interdisciplinary Approach :
In order Management is a body of discipline that takes the help of other social
sciences like psychology ,sociology, engineering, economics etc
...

(4) Universal Phenomenon:
Management is a universal phenomenon or process as it is not only present or
concerned in / with business undertakings, but also in political, religious,
charitable, armed force and even educational institution
...
In short, it is present at all
spheres of life
...

(b) To utilize the resources of the firm effectively
...

(e) To provide customer satisfaction & retain the customer
(f) To practice & follow healthy inter - business
...

(2) IMPORTANCE TO THE SOCIETY:
(a) To play a role in the welfare of the society through various social welfare
measures
...

(c) To serve, the people who are affected in times of war famine, earthquake
or any other natural calamities
...
Poor patients, handicapped
and other weak sections of the society
...

(3) IMPORTANCE TO THE NATION:
(a) To obey the rules of the centre, state & local Bodies
...

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

(c) To conduct business in accordance with government rules, policies &
practices
(d) To help government in overall economic planning and administration
...

(4) Importance to the Consumer:
(a) To ensure that products of right quality are available at the right place and
at the right time
...

(e) Avoiding unfair trade practices & other undesirable practices that exploit
the consumers
...

In other words, it is the conscious determination of the objectives to be
achieved and the course of action to be taken to achieve the results
...
The process of planning
includes the results
...
, men , money, machine ,
materials , managerial personnel etc
...
It can
also be defined as the identification of the activities required to achieve the
objectives of the enterprise
...
But some do not consider it as a separate function of
management
...
It
is considered as a part of directing, as the staffing activities are closely
related to leadership, communication and motivation
...
While planning,
organizing and staffing are merely the preparations for doing the work,
directing function actually starts the work
...
So, on we can say that
directing is the most pivot around which the entire performance and
undertaking revolves
...
In other
words; it is the harmonious blending of the activities of the different
departments and the different specialists for the achievements of the
desired ends
...

(6)

REPORTING:

A reporting system is possible for the organization to design with its wellestablished goals, broad policies and the sound organizational structure
...
, as data processed or evaluated for a
specific purpose
...
In other
words the procedure for preparing plan in respect of future financial and
physical requirements
...


FUNCTIONAL AREAS OF MANAGEMENT:
(1) PRODUCTION MANAGEMENT:
In the words of E
...
L Brech, “Production management is the process of
effective planning and regulating the operations of that section of an
enterprise which is responsible for the actual transformation of materials into
finished products
...

(2) MARKETING MANAGEMENT:
The functional area of marketing is mainly concerned with the distribution
system
...
A large number of activities
and operations are performed by the organizations involved in the
distribution system
...

(3) FINANCIAL MANAGEMENT:
It is a life-giving element to business organizations
...
An organization cannot be formed
without adequate finances
...

(4) PERSONNEL MANAGEMENT:
To achieve organizational objectives, a large number of activities are
performed and physical resources like land, building, capital, machine and
raw materials are utilized by the manpower employed in the organization
...

PRINCIPLES OF MANAGEMENT
(1) DIVISION OF WORK:
It is possible to divide any work into small jobs
...
So division of work leads to specialization
...
it is the efficient way to use
human effort
...

(2) AUTHORITY & RESPONSIBILITY:
According to Fayol , Authority is the right to give orders and obtain obedience
...
If
authority is granted to a person he should also be made responsible
...
There should be a balance between these two
...
Responsibility without authority May leads to
slaveries and may not work effectively
...


Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

(3) DISCIPLINE:
It means obedience to the organizational rules and employment agreements
...
For this purpose, it requires good superiors at all levels, clear
and fair agreements and judicious application of penalties
...
If an employee
gets orders from 2or3 superiors at a time, the principle of unity of command is
violated
...
This resembles military organization
...
It ensures unity of action and
co-ordination
...
If this principle is violated it
leads to wastage of resources, increase in cost and unhealthy competition
...
Every worker should show interest towards the
achievements of organizational goals
...
In all situations the interests of the
group will supersede the interest of any one individual
...
This will ensure congenial
atmosphere and good relationship between workers and management
...
The remuneration payable should
lead the workers to maintain a minimum standard of living and at the same
time, it should be within the paying capacity of the organization
...

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

(8) CENTRALISATION & DECENTRALISATION:
The concentration of decision making power in the hands of one or few is
called centralization of authority or power
...
The degree of
centralization or decentralization will depend upon the circumstances in
which the organization is working
...

(9) SCALAR PRINCIPLE:
The formal lines of authority from highest to the lowest ranks are known as
scalar chain
...
This can be violated only in case of emergency to
facilitate rapid and easy communication without delay
...

Gang plank is a shorter route in a scalar chain which allows employees at the
same level to communicate with each other directly
...
, " People and materials must be in suitable places at
appropriate time for maximum efficiency",
...

(11) ESPRIT DE CORPS (SPIRIT OF CO-OPERATION)
Management should take necessary steps to promote team spirit among the
employees
...
There
should be a mutual confidence and understanding
...


Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

MANAGEMENT AS, ART, SCIENCE & PROFESSION:
MANAGEMENT AS AN ART:
(a)

Practical Knowledge:

Every art requires practical knowledge
...
It is very important to know practical application of theoretical
principles
...
That is why the level of success and
quality of performance differ from one another
...

(d)

Creativity:

Every artist has an element of creativity
...
It is the combination of intelligence and imagination
...
Every artist acquires perfection through practice
...

(f)

Goal oriented:

Every art is result oriented as it seeks to attain concrete results
...


Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

NAGARJUNA DEGREE COLLEGE (2019)

MANAGEMENT AS A SCIENCE:
Science is a systematized body of knowledge relating to a specific field of
study
...
It also
establishes cause and effect relationship between two or more variables and
states the principles governing their relationship
...

Similarly, management principles are also applied universally
...

(c)

Cause and effect relationship:

Principles of science lay down cause and effect relationship between various
variables
...
, have
increased the demand for professionally qualified managers
...
As a result of these developments, the
managements has reached a stage, where everything is to be managed
professionally
...
Every professional must make deliberate
efforts to acquire expertise in the principles and techniques
...
No one can practice a profession without going
through a prescribed course
...

(c)

Social Obligations:

Profession is a source of livelihood
...
Their actions are influenced by
social norms and values
...

A code of conduct is enforced by a representative association to ensure
self-discipline among its members
...

DIFFERENCE BETWEEN “ADMINISTRATION" & “MANAGEMENT" :

BASIS FOR
COMPARISON
Meaning

Asst,prof pushpa s

MANAGEMENT
An organized way of
managing people and
things of a business
organization is called
the Management
...


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Unit-1 INTRODUCTION TO MANAGEMENT

BASIS FOR
COMPARISON

NAGARJUNA DEGREE COLLEGE (2019)

MANAGEMENT

ADMINISTRATION

Authority

Middle and Lower Level

Top level

Role

Executive

Decisive

Concerned with

Policy Implementation

Policy Formulation

Area of operation

It works under
administration
...


Applicable to

Profit making
organizations, i
...

business organizations
...


Decides

Who will do the work?
And How will it be
done?

What should be done? And
When is should be done?

Work

Putting plans and
policies into actions
...


Key person

Manager

Administrator

Asst,prof pushpa s

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Unit-1 INTRODUCTION TO MANAGEMENT

BASIS FOR
COMPARISON

NAGARJUNA DEGREE COLLEGE (2019)

MANAGEMENT

ADMINISTRATION

Represents

Employees, who work
for remuneration

Owners, who get a return on
the capital invested by them
...
It directs group
efforts towards achievement of pre- determined goals
...

(2) Optimum Utilization of Resources:
Management utilizes all the physical and human resources productively
...
Management provides maximum utilization
of scare resources by selecting its best possible alternate use in industry from
out various uses
...

(3) Minimization of cost:
It gets maximum results through minimum input by proper planning and by
using minimum input and getting maximum output
...
This helps in cost reduction in the modern era of cut throat competition no business can succeed unless it is able to supply
required goods and services at the lowest possible cost per unit
...
To establish
sound organizational structure is one of the objective of management which is
in tune with objective of organization and for fulfillment of this, it establishes
effective authority and responsibility who is accountable to whom, who can
give instructions to whom , who are superiors and who are subordinates
...
It keeps in
touch with the changing environment
...

(6) Survival & Growth:
Modern business operates in a rapidly changing environment
...

Management keeps in touch with the existing business environment and
draws its predictions about the trends in future
...

(7) Generation of employment:
By setting up and expanding business enterprises, managers create jobs for
the people
...

Managers also crate such an environment that people working in enterprise
can get job satisfaction and happiness
...
Leaders - Responsible for staffing, training and associated duties
...
Liaison - Maintains the
communication between all contacts and informers that compose the
organizational network
...
Disseminator - Transmits all import information received
from outsiders to the members of the organization
...
Entrepreneur - Seeks opportunities

...
Negotiator Represents the organization at major negotiations
...


Asst,prof pushpa s

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