THE NATURE AND

CONCEPT OF
MANAGEMENT
LESSON 1
GROUPS IN ORGANIZATION

• FORMAL GROUP
• INFORMAL GROUP
FORMAL GROUP
IT IS CATEGORIZED AS FORMAL WHEN:
• formed when people come together to accomplish same goals and objectives
and they are considered as professionals
• particular structures and roles where responsibilities of members of the group are defined
• some rules and regulations guide the formation of a formal group
• Structures of a formal group are defined where the hierarchy and flow of information from
one member of the group to the other member is communicated.
• Formal groups are usually large because they are formed with the purpose of ensuring
that they can achieve goals that measure the success of the company.
INFORMAL GROUP
IT IS CATEGORIZED AS INFORMAL WHEN:
• Informal groups are formed by two or more members with the purpose of satisfying their personal
and psychological needs.
• are not subjected to any rules and regulations in the company, and the members of this group
willingly belong to this group.
• Informal groups are comparatively small because close friends or people who know one another on a
personal level from them.
• Informal groups are not stable because they are governed by the feelings between the members.
• The behavior of an informal group is governed by the expression of members, norms, beliefs, and the
values that members hold dear.
6 M’S / BASIC RESOURCES IN
ORGANIZATION

• MONEY
• MANPOWER
• MATERIALS
• MACHINES
• MARKET
• METHODS
THE BASIC
FUNCTIONS OF
MANAGEMENT

LESSON 2
8 BASIC FUNCTIONS OF MANAGEMENT

• PLANNING
• STAFFING
• LEADING
• ORGANIZING
• CONTROLLING
• DECISION MAKING
• COMMUNICATING
• MOTIVATING