MANAGEMENT

• Introduction : The success of any business depends upon proper & efficient

management . Management plays vital (very important)and pivotal (like a person) role in all business concerns .

In this era of competition the success of any business greatly depends upon the management skills of high quality .

When man can manage its all work with the help of seven ‘M’ with total technical way and talent utilized in complete way is called Management .

Seven ‘M’s

1 - Man2 - Money3 - Machine4 - Material5 - Method6 - Mass Communication7 - Market

Definition

1 - By Own : “ Management is art of getting things done with the

help of seven ‘M’ is called Management.”

2 - By F. W. Taylor : “Management is the art of knowing what you want to

do and than seeing that it is done in the best & cheapest way.”

3 - By Harold Koontz , Cyril O'Donnell : “Management is the art of getting things done through & with people in formally organized groups . It is the art of creating an environment in which people can perform as individuals and yet co-operate towards the attainment of group goal .

• M’ment is a goal oriented process .• M’ment is all pervasive (tending to pass

through every part ) .• M’ment is an activity .• M’ment is a purposeful activity .• M’ment is multidimensional .• M’ment is concerned with the efforts of group• M’ment is applied economic principle .• M’ment is a continuous process .

Characteristics of M’ment

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• M’ment involves decision-making .• M’ment is getting things done .• M’ment is an integrating (made of a part)

process .• M’ment co-ordinates all activities & resources. • M’ment is a dynamic function .• M’ment is an universal activity . • M’ment is intangible .• M’ment is concerned with direction & control.

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• M’ment is an interdisplinary (Eco – Socio , mathematics , psychological , Anthropology , evolution .

• M’ment is an profession .• M’ment is both arts & science .• M’ment is dynamic not static .• M’ment is an economic resource .• M’ment is relative not absolute principle .

Importance of M’ment

• M’ment help in achieving group goals .• M’ment increase efficiency .• M’ment creates dynamic organization .• M’ment helps in achieving personal objectives• M’ment helps in the development of society .

M’ment as an Arts

• M’ment as an Arts : Arts is the skillful and personal application of existing

knowledge to achieve desired results .• It includes : Existence of Theoretical Knowledge . Personalized Application . Practice and creativity .

M’ment as an Science

• It includes : Principle based on experimentation Systematic body of Knowledge Universal validity

M’ment as an Arts & Science

SCIENCE• Advance by Knowledge • Proves• Predicts• Defines• Measures• Impresses (impact)

ARTS• Advance by Practice• Feels• Guess• Describes• Opines (opinion)• Expresses

M’ment as a Profession

• It includes : Well body of a Knowledge Restricted Entry Professional Association Ethical code of conduct Service Motive

Levels of M’ment

• People of an organization are arranged in a hierarchy and they all have the relationship of superior – subordinate .

• There are 3 levels of M’ment : Top Level M’ment Middle Level M’ment Lower Level M’ment

Top Level M’ment

• Top Level M’ment includes : Board of Directors Managing Director Chief executive General Manager Owners Shareholders

Functions of Top Level M’ment

• Setting basic goals & objectives of enterprise• Expanding or contracting objectives• Establishing policies• Making strategic plans• Appoints the executive for the middle level

position• Designing / Redesigning organization system• Shouldering financial responsibilities• Monitoring performance

Middle Level M’ment

• Middle Level M’ment includes : Head of functional department (say production

manager , marketing manager) Factory manager Superintendent

Functions of Middle Level M’ment

• Installing different departments• Designing operating policies and routines and

plans for the units• Selection of staff for lower levels of m’ment• Designing duties to their subordinates• To achieve co-ordination between different

departments of the organization • To conduct training for employee development• To build an efficient company team spirit

Lower Level M’ment

• Lower Level M’ment includes : Supervisor Foreman Office Superintendents Inspector

Functions of Lower Level M’ment

• To give finishing touch to the plans and policies of middle middleman

• To plan & organize the activities of the unit or section• To supervise and guide the subordinates• Importing instruction to subordinates• Developing & improving work methods & operations• Inspection function• To act as a link between top level m’ment & workers• To communicate feeling of workers to top level

m’ment

Principle of M’ment

There are 14 principles of m’ment which are made by Henry Fayol :

• Division of work• Authority and Responsibility• Discipline• Unity of Command• Unity of Direction• Subordinate individual interest to group interest

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• Centralization – decentralization• Scalar chain of command• Equity• Initiative • Stability of personnel• Order• Fair remuneration of employees• Espirit De-corps

Scope of M’ment

Scope m’ment is divide into 2 parts :-• Subject Matter of M’ment – It consists of various m’ment functions like : Planning Organizing Staffing Directing Controlling

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• Functional Area of M’ment – It consists of various m’ment functions like : Financial M’ment Personnel M’ment Purchasing M’ment Production M’ment Marketing M’ment Maintenance M’ment Office M’ment Transport M’ment

Functions of M’ment

There are 6 functions of M’ment :• Planning - What is to be done ? When is to be done ? How is to

be done ? Where is to be done ? Who will be responsible for it ?

“Planning includes forecasting , objectives , policies , programme , schedule , procedure and budget .”

Reporting & budgeting are types of planning

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• Organization – Grouping activity depending upon the nature and

type of delegating authority for those who have to perform them .

It includes departmentation , delegation of authority , assigning of responsibility , establishing of relationship .

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• Directing – Guiding and motivating subordinates to perform their

task for the accomplishment of organizational objective .

It includes decision-making , guiding , supervising , communicating .

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• Controlling & Co- ordinating – Laying down standard of performance and

monitoring performance to ensure that it confirm to standard introducing modification in plan where necessary .

Controlling includes : Fixation of standards , measurement , interpretation , correction.

Co-ordination includes : Balancing , timing , integrating

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• Motivation – Appreciation to subordinates with positive mark and

make them alert with negative mark overall leads about organizational objectives .

It includes selection , communication , participation , appraisal , counseling , and training .

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• Staffing - A number of members in an organization which works

together on different designations for achievement of organizational goal .

It includes recruitment , selection and training Government has decided 4 categories of staff: First category - Top level people Second category - Middle level people Third category - Involves clerical & official department Fourth category - Peon , Servants .

Difference - Administration & M’ment

Administration• Nature : Administration is a determinative

or thinking function .

• Scope : Administrative is concerned with

the determination of major objectives and policies .

• Level : Administration is mainly a top

level function .

Management• Nature : Management is an executive or

doing function .

• Scope : Management is concerned with

the implementation of policies

• Level : Management is largely a middle

and lower level function .

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Administration• Direction of Human

Efforts : Administration is not directly

concerned with direction of human efforts .

• Influence : Administrative decisions are

influenced mainly by public opinion & other outside forces .

Management• Direction of Human

Efforts : Management is actively

concerned with direction of human efforts in the execution of plans .

• Influence : Managerial decisions are

influenced mainly by objectives and policies of the organization .

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Administration• Skills Required : Conceptual and human skill

• Main Function : Planning and controlling are the

main functions involved in it .

• Illustrations : Minister , Commander ,

Commissioner , Registrar , Vice-Chancellor ,Governor , etc

Management• Skills Required : Technical and human skill

• Main Function : Directing and organizing are the

main functions involved in it .

• Illustrations : Managing Director , General

Manager , Sales Manager , Branch Manager .

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Administration• Usage : Used largely in government and

public sector .

Management• Usage : Used mainly in business

organizations .