PRINCIPLES OF

MANAGEMENT

UNIT 1
CHAPTER 1
 MODULE – I OUTLINE
THE NATURE OF MANAGEMENT
INTRODUCTION TO MANAGEMENT
• Characteristics of management
• Principles of management
• Process and functions of management
• Managerial hierarchy and levels
• Managerial Skills and roles
 MODULE – I OUTLINE
THE NATURE OF MANAGEMENT
MANAGEMENT THEORIES
• The classical perspectives on management
• Behavioural perspectives on management
• Contemporary perspectives on management
 MODULE – I OUTLINE
THE NATURE OF MANAGEMENT
THE ENVIRONMENTAL CONTEXT OF MANAGEMENT
• Organization-environment interface
• Types and components of organizational environment
 DEFINITION - MANAGEMENT

"Management is a process of designing and maintaining an environment

in which individuals work together in groups to effectively and
efficiently accomplish selected aims".

“Management is the process of achieving goals and objectives effectively

and efficiently through and with the people."
• Management is thus a continuous effort aimed at shaping an organization and
contributing to its overall growth.
• The functions of managers include planning, organizing, staffing, leading and
controlling.
• These functions are essential to any kind of organization.
• It applies to managers at all hierarchical levels.
• The aim of managers is to increase productivity, effectiveness and efficiency.
 MANAGEMENT AS A “PROCESS”

• A process by which managers create, direct, maintain & operate purposive organization through systematic
coordinated, cooperative human efforts.”

• “Process” the term emphasizes the dynamic or ongoing nature of management, an activity over a varying span
of time.
 MANAGEMENT AS “COORDINATION”

• “Management is a process by which individual & group effort is coordinated towards group goals.”

• In order to achieve goals, coordination is essential & management involves securing & maintaining this
coordination.

• Management is a process of designing & maintaining an environment in which individuals, working together in
groups efficiently & effectively accomplish group goals.”
 MANAGEMENT AS A “FUNCTION”

• Management is a role which includes a set of duties, responsibilities & relationships involved in work
organizations.

• These duties & responsibilities constitute the function as manager performs.

MANAGEMENT AS PROFESSION
MANAGEMENT - SCIENCE OR ART
MANAGEMENT & ADMINISTRATION
ADMINISTRATION IS ABOVE
MANAGEMENT
ADMINISTRATION IS A PART OF
MANAGEMENT
 MANAGEMENT &
ADMINISTRATION ARE SAME
5M`S OF BUSINESS
 FEATURES OF MANAGEMENT

• Management is a social process

• Management is action-based
• Management involves achieving results through the efforts of others
• Management is a group activity
• Management is intangible
• Management is aided
• Management is all-pervasive
• Management aims at coordination of activities
• Management is innovative
• Management
 FEATURES OF MANAGEMENT

• Management has different operational levels

• Management is different from ownership
• Management has vast scope
• Management aims at achieving pre-determined objectives
 IMPORTANCE OF MANAGEMENT

Business Organizations
• Selling objectives & priorities
• Optimum use of resources
• Competitive strength
• Employee motivation
• Introduction of new techniques
• Expansion of business
• Team spirit
• Effective use of managers
 IMPORTANCE OF MANAGEMENT

Society
• Social benefits
• Stability & prosperity to business enterprises
• Utilises society`s resources properly
• Generates employment
• Improves quality of life
• Projects socio-cultural values
• Provides career opportunities
• Provides social upliftment
 IMPORTANCE OF MANAGEMENT

Country
• Development of the nation
• Encourages capital formation
• Balances economic development
• Proper use of natural & human resources
• Contributes to national planning
• Cordial industrial relations
• Attains prosperity
• Contributes to economic growth
 ACTIVITY

In your kitchen, you have to prepare rice & curry for your friend who is going to visit after a couple of hours. You
have only Rs. 500 with you. No other stock of materials is available.
Make a list of all your resources: Man, Machine, Materials & Money.
Make a process flow chart of the Method you will adopt to prepare rice & curry. Explain how you will utilize your
resources.
S-M-A-R-T GOALS
 ACTIVITY

Make a list of GOALS in your life

MANAGERIAL HIERARCHY

Top
Management
President, CEO,
Executive
Vice Presidents

Middle Management
Plant Managers, Division Managers,
Department Managers

First-Line Management
Foreman, Supervisors, Office Managers

Non- Managerial Employees

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 MANAGERIAL HIERARCHY

1. Top Level:
Top management sets the mission and goals, develops policies, evaluates the overall performance of various
departments, responsible for the business as a whole and is concerned mainly with long-term planning

2. Middle Level:
Middle level management develops departmental goals, executes the policies, plans and strategies determined by
top management , develops medium- term plans and supervises and coordinate lower-level managers’ activities
 MANAGERIAL HIERARCHY

3. Lower (Supervisory, frontline) Level:

Lower level management takes charge of day-to-day operations, is involved in preparing detailed short-range plans, is
responsible for smaller segments of the business, executes plans of middle management , guides staff in their own
subsections and keep close control over their activities
 Most

Least
Important
Important

Planning

Organizing

Top
Staffing

Managers
Directing
Controlling

Planning
Organizing
Staffing
Middle
Managers

Directing
LEVEL

Controlling

Planning
Organizing
Staffing
Managers
First-Line

Directing
Controlling
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IMPORTANCE OF MANAGEMENT
FUNCTIONS TO MANAGERS IN EACH
FUNCTIONS OF TOP MANAGEMENT
FUNCTIONS OF TOP MANAGEMENT
FUNCTIONS OF MIDDLE
MANAGEMENT
FUNCTIONS OF SUPERVISORY
MANAGEMENT
 INTERPERSONAL ROLE

• Figurehead - ethical guidelines and the principles of behavior employees are to follow in their dealings with
customers and suppliers

• Leader - give direct commands and orders to subordinates and make decisions

• Liaison - coordinate between different departments and establish alliances between different organizations
 INFORMATIONAL ROLE

• Monitor - evaluate the performance of managers in different functions

• Disseminator - communicate to employees the organization’s vision and purpose

• Spokesperson - give a speech to inform the local community about the organization’s future intentions
 DECISIONAL ROLE

• Entrepreneur - commit organization resources to develop innovative goods and services

• Disturbance handler - to take corrective action to deal with unexpected problems facing the organization from
the external as well as internal environment

• Resource allocator - allocate existing resources among different functions and departments

• Negotiator - work with suppliers, distributors and labor unions

SKILLS OF MANAGEMENT
 MANAGERIAL SKILLS

Conceptual skills:
• This refers to the ability to think and conceptualize abstract situations. These abilities are required for making
complex decisions.
• In short it is: The mental capacity to develop plans, strategies and vision

Human or interpersonal skills:

• This includes the ability to understand other people and interact effectively with them. The human skills are also
important in creation of an environment in which people feel secure and free to express their opinions.
• In short it is:
• The ability to work with other people in teams
 MANAGERIAL SKILLS

Communication skills:
• The abilities of exchanging ideas and information effectively. To understand others and let others understand
comprehensively.

Leadership skills
• The abilities to influence other people to achieve the common goal.
 MANAGERIAL SKILLS

Design skills:
• These skills enable a manager to handle and solve any kind of unforeseen or actual problems, that may crop up in
the organization. Such problems could arise due to internal factors or external factors and/or both.
• In short it is: The problem solving skill

Technical skills:
• These skills include the knowledge, abilities of and proficiency in activities involving methods, processes and
procedures in the relevant fields as accounting, engineering, manufacturing etc.
• Or in short: The ability to use the knowledge or techniques of a particular discipline to attain ends.
SKILL DISTRIBUTION AT VARIOUS
MANAGEMENT LEVELS

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 FUNCTIONS OF MANAGER
1 Planning is the process of setting goals, and charting the best way of action for
Planning achieving the goals. This function also includes, considering the various steps to
be taken to encourage the necessary levels of change and innovation.

2 Organizing is the process of allocating and arranging work, authority and

Organizing resources, to the members of the organization so that they can successfully
execute the plans.

3 A: Staffing is the process of filling the positions in the organization and keeping
them filled.
Staffing B: Staffing is the process of recruiting and selecting the right person for the right
job at the right time in the right place.

4 Leading involves directing, influencing and motivating employees to perform

essential tasks. This function involves display of leadership qualities, different
Leading leadership styles, different influencing powers, with excellent abilities of
communication and motivation.

5 Controlling is the process of devising various checks to ensure that planned

performance is actually achieved. It involves ensuring that actual activities
Controlling conform to the planned activities. Monitoring the financial statements, checking
the cash registers to avoid overdraft etc., form part of this process.
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