Concept of

Management
Unit - III
Introduction
Every organization whether business , social, religious or
political is basically a group of people formed to
accomplish some common objectives.
A group of individuals exists for the achievement of
some definite purpose.
For instance, a business enterprise seeks to attain profits
and growth. It is made of individuals working on
various jobs. These individuals use physical resources
like machinery, equipment, raw materials, building etc.
The people working in an organization can work
efficiently only when there is mutual cooperation and
coordination between them.
 Therefore a central directing and controlling agency is
required for guiding and integrating the efforts of members of
a group. Such an agency plays the same role in an organization
which mind plays in the human body.
This agency comprises the managers and the activities of
managers are collectively called Management.
Meaning of Management
Management is the art of getting things done by a group of
people with the effective utilization of available resources.
An individual cannot be treated as a managing body running any
organization.
A minimum of two persons are essential to form a management.
These persons perform the functions in order to achieve the
objectives of an organization.
Definition of Management
Peter F. Drucker defines, Management is an organ,
organs can be described and defined only through
their functions.
Henry Fayol defines, To manage is to forecast and
plan, to organize, to compound, to co-ordinate and to
control.
F.W. Taylor defines ,Management is the art of knowing
what you want to do and then seeing that it is done in
the best and cheapest way.
The American Management Association, The art of
getting things done through other people.
Features or Characteristics of Management
From a critical analysis of the above definitions, the following features
or characteristics of management evolve.
1. Art as well as science : Management is both an art and a
science. It is an art in the sense of possessing of
managing skill by a person. In another sense,
management is the science because of developing
certain principles or laws are applicable in a place
where a group of activities are co-ordinated.
2. Management is an activity : Management is the process
of activity relating the effective utilization of available
resources for production. The term resources includes
men, money, materials and machine in the organization.
3.Management is a continuous process The process
of management mainly consists of planning,
organizing, directing and controlling the resources.
The resources (men and money ) of an organization
should be used to the best advantage of the organization
and the objectives to be achieved.
Any one management function alone cannot produce
results in the absence of other basic functions of
Management. So management is a continuous process.
4. Management achieving pre-determined objectives-
The objectives of an organization are clearly laid down.
Every managerial activity results in the achievement of
objectives fixed well in advance.
5.Organised activities Management is a group of
organized activities. All the organizations have their own
objectives. These objectives will be achieved only by a
group of persons. These persons activities should be
organized in a systematic way to achieve the objectives.
The objectives cannot be achieved without any
organized activities.
6. Management is a factor of production The factors of
production includes land , labour , capital and organization. These
factors could not realise the organizations goals. The
organizational goals are achieved only when these are effectively
co-ordinated . The co-ordination job is done by the management.
7.Management as a system of activity
A system may be defined as a set of component parts working as a
whole. Individuals are part of the working system.
An individual has some goals as a member of the organization.
There may be a conflict between his own goals and the
managements expectations from that individual. Such conflict is
resolved by the management by ensuring balance between
individual goals and organizational expectations.
Authority is vested with many persons to take decisions and
influence the behaviour of the subordinates.
8.Management is a discipline- The boundaries of
management are not exact as those of any other physical
sciences. It may be increased by the continuous discovery
of many more aspects of business enterprise. So, the
management status as a discipline is also increased in the
same manner.
9.Management aims at maximizing profit The
available resources are properly utilized to get desired
results. The results should be the maximizing profit or
increasing profit by the economic function of a manager.
10.Universal Application The principles and practices
of management are applicable to every type of industry.
Functions of Management
1. Planning- Planning is the most basic or primary function of
management.
. It precedes other functions because a manager plans before he
acts.
. Planning involves determining the objectives and selecting a
course of action to achieve them.
. It implies looking ahead and deciding in advance what is to be
done, when and where it is to be done, how it is to be done.
. Planning is a mental process requiring the use of intellectual
faculties, foresight, imagination and sound judgment.
. It consists of forecasting, decision-making and problem solving.
. A plan is a predetermined future course of action. It is todays
design for tomorrow and an outline of steps to be taken in future.
The process of planning consists of
determining of objectives
forecasting and choice of a course of action
formulation of policies , programmes ,budgets, schedules
etc to achieve the objectives.
laying down of procedures and standards of performance.
Planning may be long term or short term. Planning is a
pervasive function and managers at all levels have to prepare
plans.
Planning enables us to do things in an orderly and efficient
manner.
It is helpful in more effective achievement of goals. Planning
enables an organization to face uncertainty and change.
2. Organizing Once plans are formulated, the next
step is that of organizing.
Organizing is the process of establishing
harmonious authority-responsibility relationship
among the members of the enterprise.
It is the function of creating a structure of duties and
responsibilities.
The network of authority- responsibility
relationships is known as organization structure.
Such structure serves as the frame work within which
people can work together effectively for the
accomplishment of common objectives.
Organizing is an important element of management
because it is through organizing that a manager brings
together the material and human resources required for
achievement of desired goals.
According to Fayol , to organize a business is to
provide it with everything useful to its functioning- raw
materials ,tools , capital and personnel.
A sound organization helps to avoid duplication of work
and overlapping of effort. However an organization
structure is not an end in itself. It should therefore be
designed to fit into the needs and objectives of the
particular enterprise. It should ensure material and
human order.
The process of organizing consists of the following
steps:
determining and defining the activities required for
the achievement of planned goals.
grouping the activities into logical and convenient
units.
assigning the duties and activities to specific positions
and people.
delegating authority to these positions and people.
defining and fixing responsibility for performance and
establishing horizontal and vertical authority
relationships throughout the organization.
3. Staffing Staffing is the process of filling all positions
in the organization with adequate and qualified personnel.
According to Koontz and O Donnell, The managerial
function of staffing involves manning the organizational
structure through proper and effective selection,
appraisal and development of personnel to fit the roles
designed into the structure.
Staffing consists of manpower planning, recruitment ,
selection, training, compensation, integration and
maintenance of employees.
Staffing function has become important with growing
size of organization , technological advancement and
recognition of the human factor in industry.
4.Directing
Directing is the managerial function of guiding,
supervising, motivating and leading people towards the
attainment of planned targets of performance.
In the process of directing his subordinates, a manager
takes active steps to ensure that the employees
accomplish their tasks according to the established plans.
Directing is the executive function of management
because it is concerned with the execution of plans and
policies.
Directing initiates organized action and sets the whole
organizational machinery into action. It is therefore the
life spark of an organization.
Directing function of management embraces the
following activities:
issuing orders and instructions
supervising (overseeing) people at work
motivation i.e creating the willingness to work for
certain objectives
communication i.e establishing understanding with
employees regarding plans and their
implementation and
leadership or influencing the behaviour of
employees.
5. Controlling
Controlling is the process of ensuring that the
organization is moving in the desired direction and
that progress is being made towards the achievement of
goals.
The process of controlling involves the following steps:
establishing standards for measuring work
performance
measurement of actual performance and comparing
it with the standard
finding variances between the two and the reasons
there of and
taking corrective action for correcting deviations so
as to ensure attainment of objectives.
Managerial and Operative Functions
Operative functions include production, marketing ,
purchasing ,financing , personnel etc. operative
functions are also known as the functional areas of
business.
Managerial functions are essential in all organizations
irrespective of their nature and size. Managerial function
include planning , organizing, staffing , directing,
controlling.