Introduction to management

MEANING OF MANAGEMENT

 Management is getting the work done through the

efforts of others and effective utilization of human
and material resources to achieve the enterprise
objectives.
The 4 M’s of Management

Manpower

Machinery Materials
Management

Method
 Difference between Management and
Administration

No Administration Management
.

1 Administration is concerned Management is concerned mainly

mainly with determining goals to with implementation of policies.
be achieved and policy working.

2 Administration requires Management requires technical skills

conceptual skills

3 Oriented more towards the Oriented more towards the internal

external environment environment
 Management Skills

• Three basic kinds of skills

1. Technical Skill - is the ability to use
procedures, techniques and knowledge of a
specialized field. E.g. surgeon, engineers,
accountants.
2. Human Skill – is the ability to work with,
understand, and motivate other people as
individuals or in groups.
3. Conceptual Skill – is the ability to coordinate
and integrate the organization goals and
activities.
 Managerial Objectives

 Efficient use of resources

 Customer Satisfaction
 Reasonable profits so as to give a fair return on
capital invested in bussiness
 Survival and continuity of business
 Enhancing goodwill or reputation of the enterprise
 Four Management Functions

•P L A N N I N G
–Defining the organizational purpose and ways to achieve it
•O R G A N I Z I N G
–Arranging and structuring work to accomplish organizational
goals
•L E A D I N G
–Directing the work activities of others
•C O N T R O L L I N G
–Monitoring, comparing, and correcting work performance
 Meaning and Definition of Business

 Business is exchange (buying and selling) of goods ( like furniture,

refrigerator etc. )and services ( Transport ,warehousing etc) for making
profit.
 Business uses 4Ms – Money, Manpower, Machinery, Material.
 Business involved risk (like changes in– consumer tastes, technology,
Government policies).
 Profit is the reward for risk-taking.
 The people who consume ( or buy) goods and services are called
consumers.
 Essentials of Good Business

 Well defined goals or objectives

 Proper planning procedure with up-to-date information
 Proper location so as to ensure low cost and high profits
 Flexible and adaptive management
 Sound organizational structure
 Customer-focused marketing system
 Sound personnel policies
 Manager

 Manager is a person who performs all the 5 functions of

management, that is – planning, organising, staffing,
directing (or leading) and controlling.

Modern Manager
• Modern Manager has to perform all the 5 functions of
management, that is – planning, organizing, staffing, directing
(or leading) and controlling.
• But he is not an owner-manager but a hired one ( that means
he does not owned the company, and he is doing a job of a
manager for a salary in the company)
 Business Environment

1. Economic Environment
• Capital (money, cash)
• Labour (manpower: availability, quality, and price)
• Price levels (Inflation)
• Government tax policies
• Customers (what customer want and willing to buy)
• Technology (high productivity, greater variety of goods)

2. Social Environment
• Attitudes, desires, expectations, beliefs, and customs of people
• Social responsibilities (of the business towards the society)
• Ethics (what is right and what is wrong)
3. Political Environment
• Attitudes and actions of political and government leaders
(may put some restrictions, or may promote business by
providing financial assistance)

4. Legal Environment
• Law, regulations and court decisions (to protect
consumers, workers, community) affects the business
History of Management
 Scientific Management
 Scientific Management is that kind of management
through which business is conducted based on facts
gained by systematic observation and experiment.

 The Managers should not stick to old ways but

should try scientific tools and techniques, so that
best results can be achieved.
 History of Management
 There are many Management Experts who have developed various
theories as follows:
1. BABBAGE : Specialization of Labour (when one worker do the
same task or work again and again, it will lead to specialization of
labour)

2. TAYLOR : Develop a science for each job with standardized

and efficient methods.
 Select Skillful workers
 Incentives (prizes, bonus for the workers so that they contribute to
their best to the organization)
 Dividing responsibilities
 History of Management

4. GILBRETH: Rest pauses after 8 hours (workers take rest after

eight hours)

5. GANTT: Work quota system (number of working hours differ

from one employee to the other)
Bonus ( for more work ,giving the worker financial reward i.e. more
money)

6. FAYOL: He has developed 14 Principles of Management

All managerial tasks are classified as Technical, Financial,
Accounting

7. BARNARD: Organizational communication system (success

comes where employees accept the authority of others)
 History of Management
8. SIMON: He believed that a manager is an administrative man
and not an economic man ( manager should lead, select, choose,
decide and not only count profit and loss only)

9. OWEN: He was the first to speak about Human Resources ( he

cares about the people and not machines)

10. MUNSTERBERG: He was the father of Industrial Psychology

( he studied the application of psychology in work)

11. MAYO: He studied the factors of satisfaction and

dissatisfaction to the workers
 History of Management
12. FOLLET: He believes in Group Work and Self Control (leads to
share power and belief)

13. MASLOW: He believes that a man’s needs could be placed in

“hierarchy of needs”

14. McGREGOR: He cares about employee work relationship and

he has developed Theory X and Theory Y (Theory X: Workers are lazy
and don’t want to work; Theory Y: Workers wants to work and are
positive)

15. DRUCKER: He has developed MBO (Management By Objectives)

and had contribute a lot in the field of management.