1. UNIT-1 INTRODUCTION TO MANAGEMENT MANAGEMENT: DEFINITION According to HAROLD KOONTZ " Management is the art of getting things done through others and with formally organized groups" According to GEORGE R TERRY " Management is a distinct process consisting of planning, organising, activating and controlling, utilising in each both science and art and followed in order to accomplish predetermined objectives" MEANING: Management can be defined as the process of administering and controlling the affairs of theorganization, irrespective of its nature, type, structure and size. It is an act of creating and maintaining such a business environment wherein the members of the organization can work together, and achieve business objectives efficiently and effectively.Management acts as a guide to a group of people working in the organization and coordinating their efforts, towards the attainment of the common objective. WHAT IS MANAGEMENT? The word management refers to all the tasks and activities undertaken by the people in an organization for the successful achievement of goals and targets. It involves continuous activities such as planning, organizing, leading and monitoring physical, financial and information resources. Any organization’s success depends on the strength of those in management positions. The term management is flexible and has been used in various ways. While it refers to organizational activities, it also denotes a body of knowledge or discipline. Some describe it as a means of leadership while others view it as an economic resource. To understand the meaning and nature of management, let’s look at the concept from a broader perspective. Here are various categories that describe management in multiple contexts. 1.MANAGEMENT AS A PROCESS: As a process, management aims at increasing productivity and efficiency in an organization. The purpose is to strengthen the client base, improve the knowledge, skills and capacity of employees to achieve particular

2. targets and goals. Management is also a never-ending process that brings different teams and individuals together. Everyone works in harmony to achieve common objectives. 2.MANAGEMENT AS AN ACTIVITY: As an activity, management looks at the daily tasks and accomplishments of an employee. It helps them prioritize activities and monitor progress, which further helps them grow in their roles. It prevents miscommunication and task repetition as everyone is aware of their roles and responsibilities. There is clarity and accountability—the cornerstones of business growth and success. 3.MANAGEMENT AS A PROFESSION: Management as a profession has been popularized by courses and academic institutions across the globe. Several organizations prefer individuals with a Master of Business Administration (MBA) degree. Specialized knowledge (such as an MBA degree) provides an individual with a competitive edge, making them more desirable for managerial roles. Therefore, management has evolved as a body of knowledge that continues to solve various workplace problems. NATURE AND CHARACTERISTICS OF MANAGEMENT: 1. Management is an activity: Management is an activity which is consider with the effective utilization of human and non human resources of protection. 2. Goal oriented: Management is goal oriented as it aims to achieve definite goals and objectives. These goals differs from organization to organization.For example, an organisation can have a profit motive whereas a social work organisation might have a goal of eradicating illiteracy among children. Management recognises these goals and aims to fulfill them. 3. Accomplishment through the efforts of others: Manager cannot do everything by himself. They must have necessary ability and skills to get work accomplished through the efforts of others. 4. Universal activity: Management is universal as it considers both internal and external environment.All the organizations, whether it is profit-making or not, they require management, for managing their activities. Hence it is universal in nature. 5. Art as well as science: Management is bath art and science it is a science as it has an organized body of knowledge and an art is managing requires certain skills which apply in the organisation.

3. 6. Multi-dimensional: Management is not confined to the administration of people only, but it also manages work, processes and operations, which makes it a multi-disciplinary activity. It contains principles drawn from many social sciences, psychology, sociology etc., 7.Management is distinct from ownership: Management is different from ownership as per companies act. 8. Integrated process: All the activities are inter related. Management is an integrated process. It integrates the men, machines and material, money to carry out the operations of the enterprise efficiently 9. Need at all levels: The tasks, authority, responsibility is needed at all levels of organisation Higher level (board of directors and Chief Executives) Middle level (departmental and division heads and managers) Lower level (first-line managers, foreman, supervisors) LEVELS OF MANAGEMENT 1.Top-Level Management: This is the highest level in the organizational hierarchy, which includes Board of Directors and Chief Executives. They are responsible for defining the objectives, formulating plans, strategies and policies. 2.Middle-Level Management: It is the second and most important level in the corporate ladder, as it creates a link between the top and lower-level management. It includes departmental and division heads and managers who are responsible for implementing and controlling plans and strategies which are formulated by the top executives. 3.Lower Level Management: Otherwise called as functional or operational level management. It includes first-line managers, foreman, supervisors. As lower-level management directly interacts with the workers, it plays a crucial role in the organization because it helps in reducing wastage and idle time of the workers, improving the quality and quantity of output.

4. FUNCTIONS OF MANAGEMENT Planning: It is the first and foremost function of management, i.e. to decide beforehand what is to be done in future. It encompasses formulating policies, establishing targets, scheduling actions and so forth. Organizing: Once the plans are formulated, the next step is to organize the activities and resources, as in identifying the tasks, classifying them, assigning duties to subordinates and allocating the resources. Staffing: It involves hiring personnel for carrying out various activities of the organization. It is to ensure that the right person is appointed to the right job. Directing: It is the task of the manager to guide, supervise, lead and motivate the subordinates, to ensure that they work in the right direction, so far as the objectives of the organization are concerned. Controlling: The controlling function of management involves a number of steps to be taken to make sure that the performance of the employees is as per the plans. It involves establishing

5. performance standards and comparing them with the actual performance. In case of any variations, necessary steps are to be taken for its correction. Coordination: is an important feature of management which means the integration of the activities, processes and operations of the organization and synchronization of efforts, to ensure that every element of the organization contributes to its success. SCOPE AND FUNCTIONAL AREAS OF MANAGEMENT Management covers the following functional areas:- Financial Management: Financial management includes forecasting, cost control, management accounting, budgetary control, statistical control, financial planning etc. Human Resource Management: Personnel / Human Resource Management covers the various aspects relating to the employees of the organisation such as recruitment, training, transfers, promotions, retirement, terminations, remuneration, labour welfare and social security, industrial relations etc. Marketing Management: Marketing management deals with marketing of goods, sales promotion, advertisement and publicity, channels of distribution, market research etc. Production Management: Production Management includes production planning, quality control and inspection, production techniques etc. Material Management: Material management includes purchase of materials, issue of materials, storage of materials, maintenance of records, materials control etc. Purchasing Management: Purchasing management includes inviting tenders for raw materials, placing orders, entering into contracts etc. Maintenance Management: Maintenance Management relates to the proper care and maintenance of the buildings, plant and machinery etc. Office Management: Office management is concerned with office layout, office staffing and equipment of the office.

6. MANAGEMENT AS AN ART Art is the experienced and personal utilisation of subsisting information to accomplish solicited outcomes. It can be procured via education, research and practice. As art is involved with the personal utilisation of data some kind of inventiveness and creativity is needed to follow the fundamental systems acquired. The essential characteristics of art are as follows: The presence of theoretical knowledge: Art assumes the presence of specific academic knowledge. Specialists in their particular fields have obtained specific elementary postulates which are appropriate to a specific sort of art. For instance, the literature on public speaking, acting or music, dancing is publicly acknowledged. Personalised application: The application of this primary information differs from person to person. Art, hence, is a highly personalised notion. Based on custom and creativity: Art is practical. Art includes the creative practice of subsisting intellectual knowledge. We know that music is based on 7 notes. However, what makes the style of a musician different or distinctive is his performance of these notes in an artistic way that is uniquely his own solution. Management is basically an art because of the following reasons A manager applies his knowledge and skills to coordinate the efforts of his people Mgt seeks to achieve concrete practical results Mgt is creative. It brings out new situation and converts into output Effective Management lead to realization of Organizational and other goals. Mastery in Management requires a sufficiently long period of experience in, managing. MANAGEMENT AS A SCIENCE Science is an organised collection of knowledge that emphasizes definite universal truths or the action of comprehensive laws. The central characteristics of science are as follows: The organised body of knowledge: Science is a precise entity of knowledge. Its systems are based on a purpose and consequence association. Universal validity: Scientific conventions have global genuineness and application. Systems based on experimentation: Scientific conventions are originally formed via research and then tested via repeated trial and error under the regulated situations.

7. MANAGEMENT AS A PROFESSION The profession can be described as an occupation upheld by specific education and practice, in which entry is limited. A profession has the following features: The well-defined theory of knowledge: All services are based on a well-defined form of education that can be procured through education. Restricted entry: The entrance to a profession is defined through an examination or through obtaining an educational degree. For instance, to become a chartered accountant in India an aspirant has to clear a detailed examination regulated by the Institute of Chartered Accountants of India (ICAI). Professional community: All professions are affiliated to a professional association which controls entry, presents a certificate of training and expresses and supports a system of government. To be qualified to study in India, lawyers have to become members of the Bar Council which monitors and regulates their actions. MANAGEMENT AND ADMINISTRATION Basis Management Administration Meaning Management is an art of It is concerned with getting things done through formulation of broad others by directing their objectives, plans & policies. efforts towards achievement of pre-determined goals. Nature Management is an executing Administration is a decision- function. making function. Process Management decides who Administration decides what should as it & how should he is to be done & when it is to do it. be done. Function Management is a doing Administration is a thinking function because managers get function because plans & work done under their policies are determined under supervision it. Skills Technical and Human skills Conceptual and Human skills Level Middle & lower level function Top level function

8. Applicability It is applicable to business It is applicable to non-business concerns i.e. profit-making concerns i.e. clubs, schools, organization. hospitals etc. Influence The management decisions are The administration is influenced by the values, influenced by public opinion, opinions, beliefs & decisions govt. policies, religious of the managers. organizations, customs etc. Status Management constitutes the Administration represents employees of the organization owners of the enterprise who who are paid remuneration (in earn return on their capital the form of salaries & wages). invested & profits in the form of dividend. PRINCIPLES OF MANAGEMENT 1.Division of Work: Employees are specialised in different areas and they have different skills, different level of expertise can be distinguish with the knowledge area. So the management allocates the work according to the specialization in order to promote efficiency of work force and to increase over all productivity. 2.Authority: In order to get things done in an organisation, management has an authority to give orders to sub-ordinates, the sub-ordinates are the responsibility to perform the orders. 3.Discipline: It is essential to maintain discipline.Successful company will need the common effort of workers. It is often a part of core values of mission and vision in the form of good conduct and respectful interactions. 4.Unity of Command: unity of command means that an individual employee should receive orders from one manager and that employee is answerable to that manager. If tasks and responsibilities are given to the employees by more than one manager this may lead to confusion which may lead to possible conflicts for employees. 5.Unity of Direction: The management is all about focus and unity all employees deliver the same activities that can be linked to the same objective. All activities must be carried out by

9. one group that forms a team. These activities must be described in a plan of action. The manager is ultimately responsible for this plan and he monitors the progress. 6.Subordination of Individual Interests to the General Interest: The interests of any one employee should never be given more importance than the interest of the group. Even the manager’s interest comes after the group. In primary focus is on the organisational objectives and not on those of individual. The personal interest of subordinates will be consider to attain the organisational objective. 7.Remuneration: Fair remuneration should be given to everyone. This ensures employee satisfaction. Remuneration includes both financial and non-financial compensation. 8.Centralization: Centralization refers to how involved employees are in the decision-making process. Decentralization means to increase the importance. The degree of centralization or decentralization a firm should adopt depends on the specific organization. 9.Scalar Chain: Employees should know their position in the organization’s hierarchy. Where they stand in the chain of command is critical. Managers in hierarchies belong to a chain like authority scale. Each manager has a certain amount of authority. The President has the highest authority. The first-line supervisor has the least authority. It is important for lower level managers to inform upper-level managers about their work activities. The existence of a scalar chain is essential. It is necessary to adhere to it. 10.Order: The workplace should be clean and safe for all employees. Everything should be in its place. All the people related to a specific type of work should be treated as equally as possible. This is good for efficiency and coordination. 11.Equity: Managers must always be fair to staff. They are expected to maintain discipline when needed and act with kindness when it seems right. All treated equally. 12.Stability of Tenure of Personnel: Managers must make an effort to reduce employee turnover. They should give priority to Personnel planning. Recruitment and Selection Costs are usually related to hiring new workers. Increased product reject rates also cost a lot. Retaining productive employees should be a high priority of management. 13.Initiative: Employees should have the necessary level of freedom they need to make and conduct plans. Management should encourage worker initiative. New or extra work activity undertaken through self-direction is an example.

10. 14.Esprit de Corps:Organizations should always attempt to promote team spirit and unity. Management should inspire harmony and general good feelings among the workers. Unity is strength everyone has to work in team so objective can be achieved. THE CONTRIBUTION OF F. W. TAYLOR TO MANAGEMENT THOUGHT F.W. Taylor a rightly treated as father of scientific management. In fact, through his concept of scientific management, Taylor actually developed a new science of management which is applicable not only to management of industrial units but also to the management of all other business units. He suggested certain techniques which can be applied purposefully to all aspects of management of business activities. This is treated as Taylor’s unique contribution to management thought. The fundamental principles suggested by F. W. Taylor in his scientific management can be treated as his contribution to management thought. In fact, Taylor suggested scientific attitude and a new philosophy for discarding old and outdated ideas and techniques. He was instrumental for the introduction of new ideas and techniques in the science of management. These ideas aid techniques are now accepted in theory as well as in practice. 1. Emphasis on rational thinking: Taylor suggested rational thinking on the part of management for raising efficiency and productivity. He wanted managements to replace old methods and techniques by Modern methods which will raise productivity and offer benefits to all concerned parties. He was in favor of progressive, scientific and rational thinking on the part of management on all managerial problems. Such progressive outlook is essential for the introduction of new techniques and methods in the Management. 2. Introduction of better methods and techniques of production: F. W. Taylor suggested the importance of improved methods and techniques of production. Work-study techniques are his contribution to management thought. He suggested new methods after systematic study and research. Taylor recommended the use of new methods for raising overall efficiency and productivity.

11. 3. Emphasis on planning and control of production: Taylor suggested the importance of production planning and control for high production, superior quality production and also for low cost production. He introduced the concept of production management in a systematic way. 4. Importance of personnel and personnel department: Taylor suggested the importance of manpower in management. He was in favor of progressive personnel policies for the creation of efficient and satisfied labour force. He suggested the need of personnel department and its importance. He favored incentive wage payment to workers. 5. Industrial fatigue and rest pauses: Taylor noted the nature of industrial fatigue and suggested the introduction of suitable rest pauses for removing such fatigue of workers. He wanted to reduce the burden of work on workers through the use of scientific methods. 6. Time and motion study: Taylor introduced new concepts like time study, motion study and work study in the field of industrial management such concepts are for the introduction of new methods which will be more quick, scientific and less troublesome to workers. MANAGERIAL SKILLS Managerial skills may be classified as conceptual, human, and technical. 1.Conceptual Skills: Conceptual skills enable managers to think of possible solutions to complex problems. Through their ability to visualize abstract situations, they develop a holistic view of their organization and its relation to the wider external environment surrounding it. Top-level managers must have these conceptual skills in order to be successful in their work. 2.Human Skills: Human skills enable managers in all levels to relate well with people. Communicating, leading, inspiring, and motivating them become easy with the help of human skills. Dealing with people, both in the organization’s internal and external environment, is inevitable, so it is necessary for managers to develop these human skills. 3.Technical Skills: Technical skills are also important for managers for them to perform their tasks with proficiency with the use of their expertise. Lower-level managers find these skills very important because they are the ones who manage the non-management workers who

12. employ varied techniques and tools to be able to yield good quality products and services for their company LEVELS OF MANAGEMENT Levels of management refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increase when the size of business and work force increases. The level of management determines a chain of command, the amount of authority and status enjoyed by any managerial position. The levels can be classified into 3 broad categories Top level (or) administrative level Middle level (or) executory Low level (or) supervisory level (or) operative level (or) first line managers TOP LEVEL (OR) ADMINISTRATIVE LEVEL It consist of board of director’s chief executive (or) managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. ROLE OF TOP LEVEL MANAGEMENT 1.Top management lays down the objective and broad policies of the enterprise 2. It issues necessary instructions for preparation of department budgets, procedures, schedules etc., 3. It prepares strategic plans and policies for the enterprise 4. It appoints the executives for middle level i.e., departmental managers 5. It controls and coordinates the activities of all the departments 6. It also responsible for maintaining a contact with the outside world 7. It provides guidance and direction 8. It is also responsible towards shareholders for the performance of the enterprise MIDDLE LEVEL (OR) EXECUTORY The branch managers and departmental managers constitute the middle level. They are responsible to the top management for the functioning of their department ROLE OF MIDDLE LEVEL MANAGEMENT 1.They executes the plans of organization accordance with policies and directives of the top management

13. 2.They make plans for sub unit 3.They participate in employment and training of low level management 4.They interpret and explains the policies from top level management to low level management 5.They are also responsible for coordinating the activities within their department 6.It also sends important reports and other important data to top level management 7.They evaluate performance of junior managers LOW LEVEL MANAGEMENT It consists of supervisors, foreman, section officers, superintended, supervisory management refers to those executives whose work has to be largely with personal oversite and direction of operative employees. ROLE OF LOW LEVEL MANAGEMENT 1.Assigning of jobs and tasks to various workers. 2.They guide and instruct workers for day to day activities 3.They are responsible for quality and quantity of production 4.They have also entrusted with the responsibility of maintaining good relation in the management 5.They communicate workers problem and suggestions to the higher level 6.They have to solve grievances of the worker 7.They are responsible for providing training to the workers 8.They arrange necessary materials, machines, tools, etc., for getting the things done 9.They prepare periodical reports about the performance of the workers