Unit 1: Concept of Management

Definition of management Management functions (planning, organizing, staffing, directing, coordinating, controlling) Management & Administration Nature of management (management as art, science and profession) Roles of managers Evolution of management thoughts The scientific management school (Taylor) The management process school (Fayols Principles of Management) Bureaucracy theory school Developing excellent managers.

What is management?

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DEFINITIONS OF MANAGEMENT
Peter Drucker (19092005), the basic task of a management is twofold: marketing and innovation. Mary Parker Follett (18681933), who wrote on the topic in the early twentieth century, defined management as "the art of getting things done through people". Henri Fayol (18411925)[2] considers management to consist of sixfunctions: forecasting, planning, organizing, commanding, coordinating, and controlling.

Management functions
Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, controlling/monitoring and Motivation. Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action. Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans. Staffing: Job Analyzing, recruitment, and hiring individuals for appropriate jobs. Leading/Directing: Determining what needs to be done in a situation and getting people to do it. Controlling/Monitoring: Checking progress against plans. Motivation : Motivation is also a kind of basic function of management, because without motivation, employees cannot work effectively. If motivation doesn't take place in an organization, then employees may not contribute to the other functions (which are usually set by top level management)

PLANNING
According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be. It is the basic function of management. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals.

ORGANIZING
A manager performs organizing function with the help of following steps:Identification of activities - All the activities which have to be performed in a concern have to be identified first. For example, preparation of accounts, making sales, record keeping, quality control, inventory control, etc. All these activities have to be grouped and classified into units.

Contd
Departmentally organizing the activities - In this step, the manager tries to combine and group similar and related activities into units or departments. This organization of dividing the whole concern into independent units and departments is called departmentation. Classifying the authority - Once the departments are made, the manager likes to classify the powers and its extent to the managers. This activity of giving a rank in order to the managerial positions is called hierarchy. The top management is into formulation of policies, the middle level management into departmental supervision and lower level management into supervision of foremen. The clarification of authority help in bringing efficiency in the running of a concern. This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concerns working. Co-ordination between authority and responsibility - Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. A clear organizational structure is drawn and all the employees are made aware of it.

STAFFING
"Staffing is the function by which managers build an organisation through the recruitment, selection, and development of individuals as capable employees" - McFarland

Importance of Staffing
Filling the Organisational positions Developing competencies to challanges Retaining personnel - professionalism Optimum utilisation of the human resources

Staffing Process
Analyzing Manpower requirements:It is making an analysis of work and estimating the manpower requirement to accomplish the same. Recruitment: It is identifying and attracting capable applicants for employment. it ends with the submission of applications by the aspirants. Selection: It is choosing the fit candidates from the applications received in the process of recruitment. Placement: This may be on probation and on successfully completion of the same the candidate may be offered permanent employment. Training and Development: It is concerned with imparting and developing specific skills for a particular purpose. Performance Appraisal: Systematic evaluation of personnel by superiors or others familiar with their performance so as to rank employees to ascertain their eligibilty for promotions.

LEADING
A good leader inspires employees, boosts morale and encourages effective communication among employees. Excellent leadership can even increase the organization's income.

Contd
Leading Affects Morale Leading is Key to Effective Communication Leading Effectively Contributes More to the Bottom Line

CONTROLLING

MOTIVATION

Management & Administration

Five BMA Majors (Pathways)

Nature of management