Download PPM CH-1 iNTRODUCTION TO MANAGEMENT

WHAT IS MANAGEMENT
• The word management comes from Italian
word ‘maneggiare’(to handle especially tools)
which in turn derives from word ‘manus’.
• The French word ‘mesnagement’ also
influenced the development of english word
management in 17th and 18th centuries.
ACCORDING TO MANAGEMENT GURU
‘PETER DRUCKER’(1906-2005)
• “Management is a multi purpose organ that
manages business, manages managers and
manages work”.
KEEPING IT SIMPLE
• MANAGEMENT MEANS- Managing men
tactfully
MANAGEMENT
AS
ART
• Mary Parker Follet,Harold Koontz and several
other management authors called
management “as an art of getting things done
through people”
• Art refers to creative skill and talent which
people require to conduct certain activities
effectively.
• Art is an inborn talent, however it can be
refined through learning and practice.
WHY IS MANAGEMENT AN ART?
• PERSONAL SKILL
• PRACTICAL KNOWLEDGE
• RESULT ORIENTED
• REGULAR PRACTICE
• CREATIVITY
MANAGEMENT
AS
SCIENCE
• Science is systematic body of knowledge
which is universally accepted.
• FW Taylor father of scientific management
was perhaps the first person to consider
management as science.
• He was of opinion that management should
conduct their business affairs by following
certain well established standards
• Sciences can be broadly classified into two
groups: PHYSICAL SCIENCE and SOCIAL SCIENCE
• Physical sciences like Physics, Chemistry and
Mathematics are exact and accurate whereas as
social sciences are not exact and accurate as
these deal with humans.
• Management is social science as it deals with
humans and humans have unpredictable
behavior.
WHY IS MANAGEMENT SCIENCE?
• SYSTEMIZED BODY OF KNOWLEDGE
• CONTINUED OBSERVATION
• UNIVERSAL APPLICABILITY
• CAUSE AND EFFECT RELATIONSHIP
• VALIDITY AND PREDICTABILITY
MANAGEMENT
AS
PROFESSION
• According to Hodge and Johnson “Profession
is vocation requiring some significant body of
knowledge that is applied with high degree of
consistency in service of some relevant
segment of society.”
• A.S Horn by has defined profession as “
Occupation especially on requiring advanced
education and special training.”
WHY IS MANAGEMENT PROFESSION?
• BODY OF SPECIALIZED KNOWLEDGE AND
TECHNIQUES
• FORMALIZED METHODS OF ACQUIRING,
TRAINING AND EXPERIENCE
• ESTABLISHMENT OF PROFESSIONAL
ASSOCIATIONS
• CODE OF CONDUCT
• PRIORITY OF SERVICE OVER ECONOMIC
CONSIDERATION
COMPARISON
ART
SCIENCE
PROFESSION
1.BASED ON PRACTICE
AND CREATIVITY
1.IT IS BASED ON
EXPERIMENTATION
1.ETHICAL CODE OF
CONDUCT
2.IT IS THEORETICAL BODY 2.IT IS SYSTEMIZED BODY
OF KNOWLEDGE
OF KNOWLEDGE
2. WELL DEFINED BODY OF
KNOWLEDGE
3.HAS PERSONALIZED
APPLICATION
3.SERVICE MOTIVE AND
FEE AS REMUNERATION
3.HAS UNIVERSAL
APPLICATION
CONCLUSION
• MANAGEMENT IS BOTH ART AND SCIENCE
• MANAGEMENT IS KNOWN AS SOFT OR
INEXACT SCIENCE
• MANAGEMENT IN SOME RESPECTS QUALIFY
AS A PROFESSION
• MANAGEMENT IS NOW BACKED BY
SYSTEMIZED BODY OF LANGUAGE AND IS A
EMERGING PROFESSION
LEVELS
OF
MANAGEMENT
TOP MANAGEMENT
consists of Owners,
Board of Directors, CEO, General Manager
FUNCTIONS
1. Determining the objectives or goals.
2. Framing policies and making plans to achieve the
objectives laid .
3. Setting up an organizational framework.
4. Assembling the resources.
5. Exercising the effective control.
6. Providing overall leadership.
MIDDLE MANAGEMENT
can further be
classified into:
(A) SENIOR MIDDLE MANAGEMENT consists of production manager, marketing
manager and finance manager.
(B) JUNIOR MIDDLE MANAGEMENT consists of divisional and sectional officers
,deputy managers and branch managers.
FUNCTIONS:
1. Interpreting the policies framed by top level.
2. Preparing the organizational setup in their respective
department.
3. Assigning duties and responsibilities.
4. Compiling and issuing instructions to the supervisors.
5. Motivating personnel for higher productivity.
LOWER OR OPERATING MANAGEMENT
consists of superintendents, supervisors and foremen.
FUNCTIONS:
1. To plan day to day work within the goals prescribed by
higher level.
2. To issue order and instructions for executing the work .
3. To arrange materials and equipment for the work force.
4. Providing on the job training to workers.
5. To supervise control and maintain personal contact with
them.
6. To advise, guide, communicate and solve their problems.
7. To maintain proper discipline and good relations among
workers.
MANAGEMENT
V/S
ADMINISTRATION
What Is Management ?
Management in business and organizations is the function that
coordinates the efforts of people to accomplish goals
and objectives using available resources efficiently and
effectively
Management comprises planning,
organizing, staffing, leading or directing,
and controlling an organization or
initiative to accomplish a
goal. Resourcing encompasses the
deployment and manipulation of human
resources, financial resources, technologic
al resources, and natural resources.
Management is also an academic
discipline, a social science whose object of
study is the social organization.
What Is Administration?
The administration of a business includes the performance
of business operations and decision making as well as the
efficient organization of people and other resources to
direct activities toward common goals and objectives.
The Administrator
takes complete
control of the
company, its business
and assets
MANAGEMENT
V/S
ADMINISTRATION
There is a controversy on the use of
these terms. Some authors say that
administration and management are
the same thing and there is no
difference between the two words
while others feel that they are
different.
Administration is above
Management
Oliver Sheldon was the first
person to make a distinction between administration
and management. According to him “Administration
determines policy and management execute that
policy.” American authors also agree with this point.
Administration is a part
of Management
Brech(European school) has propounded this
view. He said “Administration is that
part of management which involves
doing routine things in a known
setting. So European view is exactly
the opposite to the American view
point.
Administration and
Management is one
In the words of New man, “Management or
administration is the guidance, leadership and
control of the efforts of a group of individuals
towards some common goods.” Authors like
George Telly, Allen, Koontz and O’Donnell also feel
that both the terms mean the same thing.
Summary
1. Management is the act or function of putting into practice the
policies and plans decided upon by the administration.
2. Administration is a determinative function, while
management is an executive function.
3. Administration makes the important decisions of an
enterprise in its entirety, whereas management makes the
decisions within the confines of the framework, which is set
up by the administration.
4. Administrators are mainly found in government, military,
religious and educational organizations. Management, on
the other hand, is used by business enterprises.
Difference between
Management and
Administration
Nature of work
Administration- thinking function, decision
making function
Management- executing function, doing function
Scope
Administration- Major decisions of an enterprise
as a whole
Management- Decisions within the framework set
by the administration.
Level of Authority
Administration- Top level activity
Management- Middle level activity
Status
Administration- Consists of owners who
invest capital in and receive profits from an
enterprise
Management- Group of managerial
personnel who use their specialized knowledge
to fulfill the objectives of an enterprise
Main Functions
Administration- Planning and
organizing
Management- Motivating and
controlling
Skill Required
Administration- Conceptual and human
skills required
Management- Technical and human
skills required
Nature of Organisation
Administration- in government,
military, educational and religious
organisations
Management- in business firms
Influence
Administration- external factors
Management- internal factors
Abilities
Administration- Handles the business
aspects such as finance.
Management- Handles the employees
Key difference:
Administration frames the objectives and
policies of an organization. Management
implements these policies and objectives.
Universality of management
The concept of universality of management is, therefore ,
subject to the following two connotations.
 Management principles can be successfully applied to
different kinds of enterprises such as business enterprises,
clubs, hospitals and so on.
 Management principles are applicable to different
economic systems of the world. They have world wide utility.
Arguments in favour of universality
Common
problems of
effective use of
inputs:
Distinction
between
fundamentals
and techniques:
• Although objectives differ, all organisations require certain
principles, concepts and skills of management for allocating
scarce resources such as time, human resources, capita and so
on.
• Management fundamentals are the basic principles and theories,
while management techniques are the tools for performing
managerial functions. The principles, concepts and skills of
management are universal, only the practices change.
• Management as a process is universal. It means functions of
planning, organising, leading and controlling are basic and
are performed by all managers regardless of the type of
Management enterprise.
as a process:
• When skills and principles can be transferred then it has
universal applicability. Managers can be developed through
education and training. This knowledge can be acquired by
Management
skills and
any one and anywhere so it is not related to particular caste
principles are
or creed.
Transferable:
Arguments against
Universality
Differences in philosophies:
• Differences in philosophies of various enterprises may not allow a person
to be an effective manager in all types of enterprises. This difference may
require different kinds of managerial techniques.
Differences in objectives;
• The objectives of an organisation determines the type of management
required. Because of differences in objectives, the competence, the skills
and the experience in management can not as such be transferred and
applied from one organisation to another.
Differences in Culture:
• Identifiable cultural differences bring variations in
managerial behaviour patterns. Management philosophy is
culture bound and hence it is not universally applicable.
A critical analysis of the above arguments brings
out that
 every type of organisation require
management.
 Managerial functions like planning, organising,
staffing and controlling are to be performed in all
types of organisations.
 The objectives of enterprises may differ but the
type of situations to be dealt with by them are the
same.
 It is obvious that principles, concepts and skills
are universal, only practices change.
SIGNIFICANCE OF MANAGEMENT
THE FOLLOWING FACTS CLEARLY HIGHLIGTH THE
IMPORTANCE OF MANAGEMENT
ACHIEVING PRE –DETERMINED OBJECTIVES
ENSURING MAXIMUM UTILIZATION OF
RESOURCES OF PRODUCTION
OVERCOMING COMPETITION
ENSURING INTEGRGATION WITH
CHANGING ENVIRONMENT
ENSURING SMOOTH RUNNING OF LARGE
SCALE BUSSINESS
MAINTAINING A SOUND ORGANISATINAL STRUCTURE
ETABLISHING GOOD LOBOUR
OWNER RELATIONSHIPS
FULFILLING THE SOCIAL RESPONSIBILITY

AIMING AT INCREASED PROFITS
1. ACHIEVING PRE –
PREDETERMINED OBJECTIVES
EACH ORGANISATION IS ESTABLISED WITH CERTAIN
AIMS . MANAGEMENT IS THE ONLY MEDIUM AND
POWER WHICH CAN HELP IN THE SUCCESSFUL
ATTAINMENT OF THESE AIMS.
2. Ensuring maximum utilisation of
resources
Management is that power which by establishing an effective coordination
Between the various resources of production makes an optimum use of these
Resources.
3.Overcoming competition
Competition is increasing with the widening of area and larger dimension
of business.
In such a competitive atmosphere only that organisation can
survive which can make available to its customers the best
quality of the goods at the cheapest rate.
4. Ensuring integration with
changing environment
Management is not only limited to various internal functions of
an organisation but
it has to compromise with the outer atmosphere also .Only an
efficient manager can coordinate his work with changing
atmosphere .
5. Ensuring Smooth Running of Large Scale Business
In view of the large scale production the means of
production (Men, Money, Material, Machine, Etc. ) will
also be required on a large scale.To perform these
functions efficient and in a controlled manner ,need of an
efficient manager is paramount.
6.Maintaining a Sound
Organizational Structure
A sound organisational structure means
defining a clear relationship between
the superiors and their subordinates.
7.Establishing Good Labour –
Owner Relationship
Labour and capital are the two main resources of production.
The owners invest capital and determine objectives while the labour
tries to transform
Those objectives into reality.
Therefore, existence of a sweet relationship between the two is of
paramount importance.
8. Fulfilling the Social
Responsibility
A business establishments starts its activities in
society, prospers and reaches the climax
of development in the same social surroundings.
Thus no organisation can remain aloof
from society and yet survive.
9.Aiming at Increased Profits
In order to increase the profits of any organisation it is the basic
principal either to
increase the sales revenue or reduce costs. Increasing the sales
revenue is beyond
The control of an organisation to some extent but to affect a
reduction in costs is
primarily an internal affair of the organisation and it can
certainly be accomplished
with the help of good quality raw material, modern machinery
and trained employees.