Principles of Management

Basics of Management

 Concept of Management
 Management – Definitions
 Features of Management
 Importance of Management
 Management – Art, Science and Profession
 Professionalisation of Management
 Traditional vs. Professional Management
 Levels of Management
 Principles of Management

Concept of management

 New concept, used in 3 alternative

ways-

1. as a discipline
2. as a group of people
3. as a process
 Principles of Management

… as a discipline

 Discipline is a field of study with well defined

concepts and principles

 Management refers to (includes) various

concepts and principles

 Knowledge of these principles, aid in managing

 Principles of Management

… as a group of people

 People who perform managerial functions

 E.g. relationship between management and

labour

 Here management refers to a group of people

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… as a process

 Process is a systematic method of handling an

activity

 Managing consists of different activities

 Thus it’s referred to as a process

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Definitions

 Management is the accomplishment of results through

and with people in formal organised groups
- Harold Koontz
 Management is a multi purpose organ that manages
business, managers, workers and work
- Peter Drucker
 To manage is to forecast and to plan, to organise,
command, coordinate and control
- Philip Kotler
 Principles of Management

 Management is nothing but getting work done,

by organized use of resources, to achieve
desired goals

 It is a process involving planning, organising,

staffing, directing and controlling human efforts
to achieve stated objectives in an organisation
 Principles of Management

Features of Management

 Organised activities

 Existence of objectives

 Relationship among resources

 Working with and through people

 Decision making
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Importance of Management

 Effective utilisation of resources

 Development of resources
 Incorporates innovation
 Motivates employees
 Expansion of business
 Reduces turnover/absenteeism
 Integrating various interest groups
 Brings stability in the society
 Principles of Management

Management- a Science?

 Management provides principles/laws, just like science

 Scientific principles/laws consistent; management
principles are in a young state and not absolutely exact
 Management is a body of knowledge
 Mgmt collects info through observation/experiments
 Science is universal- it can be tested multiple times to
give same results
 Management principles give different results under
varying conditions
 Management theories get affected by bias of researchers,
unlike those of science
 Principles of Management

Management- an Art?

 Management uses skills and knowledge

 Creativity is a common factor among both

 Scope of further improvement always present in both- no

‘one best way’ to do it
 Principles of Management

Art and science - Both!

Art Science

Advances by Practice Advances by Knowledge

Feels Proves

Guesses Predicts

Describes Defines

Opines Measures
 Principles of Management

Management as profession

What is profession?

Profession is in which one professes to have acquired a

specialised knowledge which is used in instructing,
guiding or advising others.

For Management to be a profession, all the characteristics

of a profession must hold good for it. Let us have a look
at the characteristics of profession
 Principles of Management

Characteristics of a profession

 Existence of Knowledge – developed over 5-6 decades

 Acquisition of knowledge – Mgmt knowledge can be

acquired (though not restricted to mgmt graduates only)

 Specialised skills needed as in every other profession

 Professional association – All India Management

Association etc

 Ethical codes – exist, but not widely publicised/practiced

 Service motive – mgmt professional keep social interests

in mind
 Principles of Management

Professionalisation of Management

 Professional managers need to have a certain set of

qualities, to excel in the field

 Obtaining professional qualifications though study of

business at B-schools

 Not a compulsory requirement, though formal education

prepares managers in several ways
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Qualities of a manager

 Self motivation
 Knowledge of aspects of management
 Self discipline
 Innovation/creativity
 Enthusiasm
 Empathy
 Commitment
 Principles of Management

Traditional vs. professional mgmt

Traditional
Family owned
Autocratic
Centralised decision making
Popular in India
Downward communication
Promotion-loyalty basis
Professional
Shareholders
Democratic
Participative mgmt
Popular in the west
Two way communication
Promotion –merit basis
 Principles of Management

Levels of management

T o p le v e l m g m t
(C E O /C O O /M D )

M id d le m g m t M id d le m g m t M id d le m g m t
H O D -M k tg H O D - F in a n c e H O D - P ro d u c t io n

S a le s M a n a g e r s M a r k e t in g t e a m A c c o u n ta n ts S u p e r v is o rs W o rk e rs