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Chapter No 1

MANAGEMENT

Science Practice & Theory

What is MANAGEMENT?
The art of getting things done through people”
Management is the process of designing and maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims. Basic definition needs to be
expanded
 All managers’ carryout managerial functions of planning,
organizing, staffing, leading and controlling.
 Management applies to all kinds of organizations and
managers at all levels of organization.
 It is concerned with productivity, which implies effectiveness
and efficiency
 Job of managers is to create surplus.

FUNCTIONS OF MANAGEMENT

Concepts, principles, theory and techniques of management are

grouped into five functions Planning, Organizing, Staffing, Leading
and Controlling. However, managers must be responsive to external
environment; Economic, technological, social, ecological, political,
and ethical
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Managerial Skills & Organizational

Hierarchy
All managers carry out managerial functions but
the time spent for each function may differ

Time spent in carrying out managerial functions

Top
Mgmt
y
ch

Controlling
ar

g
ng

in

g
ie r

din
niz

Mid level
nni
gH

ga

manager
Pla

Le
Or
Or

First line
supervi sor

Top Management spends more time on planning & organizing

First line managers spend more time in leading

SKILLS REQUIRED BY MANAGER

TECHNICAL SKILL
Is knowledge of and proficiency in activities involving methods,
processes and procedures. Involves working with tools and
techniques or in other words the ability to perform ones job.

HUMAN SKILL
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Is the ability to work with people, teamwork, cooperative environment

in which people feel secure and free to express their opinions.

CONCEPTUAL SKILL
Is the ability to integrate and coordinate the entire organization
interests and activities.
DESIGN SKILLS
Is the ability to solve problems in ways that will benefit the enterprise.
Mgrs must have the valuable skill of being able to design a workable
solution to the problem in the light of realities they face.

Skills and Organizational Hierarchy

Katz identified
Skills & management levels 3 skills for administrators
De sign skill can be added

Conceptual
& Design
Top Management
Skills

Human
Middle Management Skills

Technical
Skills
Supervisors Percentage of Job

Productivity, Effectiveness and Efficiency:

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Another aim is to raise productivity

Productivity:
Out--input ratio within a time period with due consideration for quality.
Productivity can be improved by: Increasing outputs with same
inputs, decreasing inputs & maintaining same outputs and increasing
outputs & decreasing inputs to change ratio.
Productivity implies:
Effectiveness & efficiency in individual & Org performance
Effectiveness: Achievement of objectives and
Efficiency: Achievement of objectives with least amount of resources
& time
Managing: Science or Art:
Managing as practice is an art. Organized knowledge underlying the
practice is science. Science and art are complementary
Management is Art: It is known how. It is doing things in the light of
realities of a situation. Elements of art include Personal Skills,
Practical Know – How, Result Orientation, Creativity. Analysis of
management practices against elements of Arts suggests that as a
practice management is art
Elements of Science
Science is a systematized body of knowledge pertaining to a
particular field
It contains principles and theories developed through continuous
observation experimentation and research. Principles have universal
application and they are
Verifiable and lead to predictable results. The organized body of
knowledge can be taught and learnt
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Management: When reviewed against elements of science:

 Management is doing things in the light of realities of situations.
 Managers can work better by using organized knowledge
 Management is also a systematic body of knowledge
 It contains principles and theories developed over long periods
of time after continuous observations, experimentations and
research.
 These principles also have universal application and can be
verified.
Therefore management as knowledge is science and its application is
Art.

Henry Fayol (1841-1925:

According to him there are six industrial activities; Technical
(Production), Commercial (selling), Financial, Security, Accounting
(Statistical data), Managerial Function. He is considered as father of
modern management theory.

principles:
Divisions of work, Authority and responsibility, Discipline, Unity of
commands, Unity of Directions, Subordinations of individual over
general interest, Remuneration, Centralization, Scalar chain, Order ,
Equity, Stability of tenure, Initiative, Espirit de corps.
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Communication
Integration
External
Environment

Planning Staffing Controlling

Functions of Management
Planning: The process of setting organizational goals and deciding in
advance the action taken to achieve these goals. Involves Selecting
missions, Objectives & Actions to achieve them. All conditions like
available resource, environment, alternatives, Time are carefully
analyzed before making decision about future course of action from
amongst alternatives

Organizing: The process of assembling and coordinating human,

financial, and physical and other resources needed to achieve the
organizational goals...
Establishing an intentional structure of roles for people to fill in an
organization.
People working in an Org must have a role to play. Role may be big
or small but due importance and recognition must be given to it. For
better management of an organization, it is essential to place right
man for the right job.
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Staffing: The process of filling all positions & keeping them filled. It
involves Recruiting, Selecting, Placing, Promoting, Compensating &
Training employees
Leading: Process of stimulating people to high performance. It
involves directing, Motivating & Communicating to employees to
influence them to achieve organizational goals
Controlling; Evaluating and correcting individual performance to
ensure that events conforms to plans. It is important to monitor
progress of events. If objectives are not being achieved and
Performance is not up to the mark, remedial measures must be
taken. Deviation from objectives, short comings & other observations
must be given due consideration. All causes be evaluated & resolved
as required coordination.