Fundamentals of Management(DAVV, BBA – Sem 1 )

UNIT 1Management concepts & evolution

byDR. SHAZIA WASEEM KHAN.

Topics of the UNIT

Introduction to Management Nature & scope of Management Process of Management Functions of Management Importance of Management Role of managers Management & administration POSDCORB Relevance of mngmt to modern

industry

What is Management?“Management is the process involving planning, organizing, staffing, directing and controlling human efforts to achieve stated objectives in an organization.”

Definition by management thinkers “Management is the art of knowing what you want to do

and then seeing that it is done in the best and cheapest way.” -F .W. Taylor

To manage is to forecast and to plan, to organize to command, to coordinate and to control. —Henry Fayol

Management is the creation and maintenance of an internalenvironment in an enterprise where individuals, working ingroups, can perform efficiently and effectively towards theattainment of group goals.

—Harold Koontz and Cyrill O’Donnell

The task of achieving results through others by coordinating their efforts is known as management. As the mind coordinates and regulates all the functions of a body - management coordinates and regulates the activities of various members of an organisation.

MANAGERA person who plans, organizes,

directs and controls the allocation of human, material, financial, and information resources in pursuit

of the organization’s goals.

Nature of ManagementManagement is:

Goal-orientedUniversalan Integrative Force.a Social Process.Multidisciplinary.Continuous Process.Intangible.an Art as well as Science.

Management is Goal-Oriented: Management goals are called group goals or organisational goals. The basic goal of management is to ensure efficiency and economy in the utilisation of human, physical and financial resources. The success of management is measured by the extent to which the established goals are achieved.

Management is Universal:

Management is an essential element of every organised activity irrespective of the size or type of activity. Wherever two or more persons are engaged in working for a common goal, management is necessary. All types of organisations, e.g., family, club, university, government, army, cricket team or business, require management. Thus, management is a pervasive activity. The fundamental principles of management are applicable in all areas of organised effort. Managers at all levels perform the same basic functions.

Management is AN Integrative Force: The essence of management lies in the coordination of individual efforts in to a team. Management reconciles the individual goals with organisational goals.

Management is a Social Process:

Management is a social process because it is concerned with interpersonal relations. Human factor is the most important element in management. According to Appley, “Management is the development of people not the direction of things. A good manager is a leader, not a boss. It is the pervasiveness of human element which gives management its special character as a social process”.

Management is Multidisciplinary:

Management has to deal with human behaviour under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like Engineering, Sociology, Psychology, Economics, Anthropology, etc.

Management is a Continuous Process:

Management is a dynamic and an on-going process. The cycle of management continues to operate so long as there is organised action for the achievement of group goals.

Management is Intangible: Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible.

Management is an Art as well as Science: Management is also a discipline involving specialised training and an ethical code arising out of its social obligations. It involves both the determination and the accomplishment of organisational goals. Involving the coordination of human and material resources in order to accomplish desired objectives.

Scope Of ManagementProduction ManagementMarketing Management Financial ManagementPersonnel Management

Scope Of Management

Production Management:a) Designing the productb) Location and layout of plant and

buildingc) Planning and Control of factory

operationsd) Operation of purchase and storage of

materialse) Inventory cost and Quality Controlf) Research and Development etc.

Marketing Management:a) marketing research to determine the

needs and expectation of consumersb) planning and developing suitable

productsc) setting appropriate pricesd) selecting the right channel of

distribution, ande) promotional activities like

advertising and salesmanship to communicate with the customers

Financial Management:

a) Selecting the appropriate source of funds

b) Raising the required funds at the right time

c) Administration of earnings d) Estimating the volume of fund.

Personnel Management:a) manpower planningb) recruitments,c) selection,d) traininge) appraisal,f) promotions and transfers,g) compensation,h) employee welfare services,

andi) personnel records and

research, etc.

Levels Of Management

Top Level Management-The top level management is generally occupied by the ownership group. It is the highest level in the managerial hierarchy and the ultimate source of authority in the organisation.

Middle Level Management-In order to fill up the gap which exists between functional and operative level, some managerial positions are created at the middle level of management. Middle level management consists of departmental managers, deputy managers,foreman and administrativeofficers etc.

Lower Level or Supervisory Level Management- It consists of factory supervisors, superintendents, foremen, sales supervisors, accounts officers etc. They directly guide and control the performance of rank and file workers. They issue orders and instructions and guide day to-day activities.

Management Level and Skills

PROCESS OF MANAGEMENTFor the first time, Henri Fayol, described the process of managementin 5-terms:

Planning : Planning is the first step which is basically a logical thinking process that decides what needs to be done in order to achieve organization's goals and objectives. It focuses on the broader perspective of the business as well as taking into consideration, the tactical methods to get the desired results.

Steps in the Planning Process

Deciding which goals the organization will pursue.

Deciding what courses of action to adopt to attain those goals.

Deciding how to allocate organizational Resources.

Organizing : Organizing is about setting up and maintaining the internal organizational structure in accordance with objectives mentioned in planning stage. It also involves assigning tasks to various individuals for the larger goal of organization's missions and objectives.

Organizing:Involves grouping people into departments according to the kinds of job-specific tasks they perform.Managers lay out lines of authority and responsibility.Decide how to coordinate organizational resources.

Staffing : Staffing is the process of choosing right people for organization. It can be associated with human resource management and involves recruitment, hiring, training and compensating the workforce.

Directing : Directing is guiding people in the organization through the means of counseling, instructing, motivating.

Controlling : Controlling The process of leading and influencing the task related activities of group members or an entire organization.