WHAT IS MANAGEMENT?

• Simply speaking management is what managers do. Management can be

explained as coordinating work activities so that they are completed efficiently
and effectively with and through other people.

• Efficiency refers to getting the most output from least amount of inputs (Means)
and Effectiveness is often described doing the right things(Ends).

• Efficiency is the ability to ‘get things done correctly.’ AND Effectiveness means ‘
doing the right things in the right way at the right time.’

• Thus, Management can be broadly defined as a process of planning, organizing,

staffing, directing and controlling to accomplish organizational objectives
through the coordinated use of human and material resources.
Definition: “Management is knowing exactly what you want men to seeing that
they do it the best and cheapest ways”.

Management is the art of getting work done through people with satisfaction
for employer, employees and public.

It is the process of designing and maintaining an environment in which

individuals, working together in groups, effectively accomplish selected aims.

Management may be called an Art as well as Science : Art because it requires a

range of skills to coordinate and get work done from others and Science
because management techniques are concepts based on measurements and
factual determinations.
Management is the process of effectively utilizing resources like manpower,
money, materials and machinery to achieve goals of enterprise through proper
methods
 Definitions of Management
As it is very difficult to define management through a single definition, listed below
are a few definitions provided by renowned experts.
• Mary Parker Follet : Management is the art of getting things done through people.
• George R Terry: Management is a process consisting of planning, organizing,
actuating and controlling performed to determine and accomplish the objectives by
the use of people and resources.
• Ralph C Devis : Management is the function of executive leadership anywhere”.
• William Spriegal : Management is that function of an enterprise which concerns itself
with the direction and control of various activities to attain business activities.
• Peter Ferdinand Drucker: Management is a multipurpose organ that manages a
business and manages managers and manages workers and work.
• Donald J Clough: Management is the art and science of decision making and
leadership
Some of the integral elements of this definition
can be separated and briefly explained as follows:
• Problem-solving process

• Achieving organizational objectives

• Efficient use of resources

Efficiency is the ability to ‘get things done correctly.’ AND effectiveness means ‘ doing the right
things in the right way at the right time.’

• Scarce resources

• Changing environment
IS Management a Science or an Art?
Management: a Science or an Art?
• It is said management is the oldest art and the youngest science.

• Science may be described as a systematized body of knowledge pertaining to

an act of study and contains some general truths explaining past events or
phenomena.

• This explains the changing nature of management but does not exactly answer
what management is?
Management: a Science, an Art or a Profession
• What is “Science”?

Science may be described, “as a systematic body of knowledge pertaining to an area

of study and contains some general truths explaining past events or phenomena”.

The above definition contains three important characteristics of science. They are:
1. It is a systematized body of knowledge and uses scientific methods for
observation,
2. Its principles are evolved on the basis of continued observation and experiment,
and,
3. Its principles are exact and have universal applicability without any limitation.
Management: a Science, an Art or a Profession
Judging from the stated characteristics of science, it may be observed that:

1. Management is a systematized body of knowledge and its principles have

evolved on the basis of observation.
2. Its principles are evolved on the basis of continued observation and
experiment.
3. Its principles are exact and have universal applicability without any limitation.
Management: a Science, an Art or a Profession
What is “Art”?

‘Art’ refers to “the way of doing specific things; it indicates how an objective is to be
achieved.” Management like any other operational activity has to be an art. Most of the
managerial acts have to be cultivated as arts of attaining mastery to secure action and
results.

The above definition contains three important characteristics of art. They are:
1. Art is the application of science. It is putting principle into practice.

2. After knowing a particular art, practice is needed to reach the level of perfection.

3. It is undertaken for accomplishing an end through deliberate efforts.

Management: a Science, an Art or a Profession
Judging from the above characteristics of art, it may be observed that:
1. Management while performing the activities of getting things done by others
is required to apply the knowledge of certain underlying principles which are
necessary for every art.

2. Management gets perfection in the art of managing only through continuous

practice.

3. Management implies capacity to apply accurately the knowledge to solve the

problems, to face the situation and to realize the objectives fully and timely.
Management is both a Science as well as an Art..!!
• Management is both a science as well as an art.

• The science of management provides certain general principles which can guide
the managers in their professional effort. The art of management consists in
tackling every situation in an effective manner.

• The science and the art of management go together and are both mutually
interdependent and complimentary.

• Management is thus a science as well as an art. It can be said that-”the art of

management is as old as human history, but the science of management is an
event of the recent past.”
Difference Between Administration And Management

• Definition of Management : Management is defined as an act of managing

people and their work, for achieving a common goal by using the
organization’s resources.
• It creates an environment under which the manager and his subordinates can
work together for the attainment of group objective. It is a group of people
who use their skills and talent in running the complete system of the
organization. It is an activity, a function, a process, a discipline and much more
Difference Between Administration And Management

• Definition of Administration : The administration is a systematic process of

administering the management of a business organization, an educational
institution like school or college, government office or any nonprofit
organization. The main function of administration is the formation of plans,
policies, and procedures, setting up of goals and objectives, enforcing rules
and regulations, etc.
Difference Between Administration And Management

• Definition of Administration : The administration is a systematic process of

administering the management of a business organization, an educational
institution like school or college, government office or any nonprofit
organization. The main function of administration is the formation of plans,
policies, and procedures, setting up of goals and objectives, enforcing rules
and regulations, etc.
Difference Between Administration And Management
Management Administration
Management is a systematic way of managing people and The administration is defined as an act of administering the
things within the organization whole organization by a group of people

Management is an activity of business and functional level, Administration is a high-level activity

whereas

Management focuses on policy implementation Policy formulation is performed by the administration

Management makes decisions under the boundaries set by Administration takes all the important decisions of the
the administration. organization

A group of persons, who are employees of the organization, is On the other hand, administration represents the owners of
collectively known as management the organization

Management can be seen in the profit making organization Administration is found in government and military offices,
like business enterprises. clubs, hospitals, religious organizations and all the non-profit
making enterprises.
Difference Between Administration And Management
Management
Management is all about plans and
actions
Management plays an executive role in
the organization
The manager looks after the
management of the organization
Management focuses on managing
people and their work
Administration
Administration is concerned with
framing policies and setting objectives
Administration, whose role is decisive in
nature.
Administrator is responsible for the
administration of the organization.
administration focuses on making the
best possible utilization of the
organization’s resources.
Levels of Management
 Levels of Management
Top Level of Management

• It consists of board of directors, chief executive or managing

director. The top management is the ultimate source of authority
and it manages goals and policies for an enterprise. It devotes more
time on planning and coordinating functions.
 Levels of Management
Top Level of Management

The role of the top management can be summarized as follows -

a.Top management lays down the objectives and broad policies of the enterprise.
b.It issues necessary instructions for preparation of department budgets, procedures,
schedules etc.
c.It prepares strategic plans & policies for the enterprise.
d.It appoints the executive for middle level i.e. departmental managers.
e.It controls & coordinates the activities of all the departments.
f.It is also responsible for maintaining a contact with the outside world.
g.It provides guidance and direction.
h.The top management is also responsible towards the shareholders for the
performance of the enterprise.
 Levels of Management
• Middle Level of Management

The branch managers and departmental managers constitute middle

level. They are responsible to the top management for the
functioning of their department. They devote more time to
organizational and directional functions. In small organization, there
is only one layer of middle level of management but in big
enterprises, there may be senior and junior middle level
management. 
 Levels of Management
• Middle Level of Management

a. To execute the plans of the organization in accordance with the policies and
directives of the top management.
b. To establish the organization.
c. To make plans for the sub-units of the organization.
d. To participate in employment & training of lower level management.
e. To interpret and explain policies of top management to lower level.
f. To coordinate the activities within the division or department.
g. To send important reports and other important data to top level
management.
h. To evaluate performance of junior managers.
i. To inspire lower level managers towards better performance.
 Levels of Management
• Lower Level of Management

• Lower level is also known as supervisory / operative level of

management. It consists of supervisors, foreman, section officers,
superintendent etc. According to R.C. Davis, “Supervisory
management refers to those executives whose work has to be
largely with personal oversight and direction of operative
employees”. In other words, they are concerned with direction and
controlling function of management. 
 Levels of Management
• Lower Level of Management
Their activities include -
a.Assigning of jobs and tasks to various workers.
b.They guide and instruct workers for day to day activities.
c.They are responsible for the quality as well as quantity of production.
d.They are also entrusted with the responsibility of maintaining good relation in the organization.
e.They communicate workers problems, suggestions, and recommendatory appeals etc. to the higher level and
higher level goals and objectives to the workers.
f.They help to solve the grievances of the workers.
g.They supervise & guide the sub-ordinates.
h.They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k.They ensure discipline in the enterprise.
l. They motivate workers.
m.They are the image builders of the enterprise because they are in direct contact with the workers.
Roles and skills of a Manager
 Roles and skills of a Manager
• Interpersonal roles
Three interpersonal roles help the manager keep the organization running smoothly.
Managers play the figurehead role when they perform duties that are ceremonial
and symbolic in nature. These include greeting the visitors, attending social
functions involving their subordinates (like weddings, funerals), handing out merit
certificates to workers showing promise etc.
As a leader the role includes hiring, training, motivating and disciplining employees.
Managers play the liaison role when they serve as a connecting link between their
organization and others or between their units and other organizational units.
Mintzberg described this activity as contacting outsiders who provide the manager
with information. Such activities like acknowledgements of mail, external board
work, etc., are included in this category.
 Roles and skills of a Manager
• Informational roles

Mintzberg mentioned that receiving and communicating information are perhaps the most
important aspects of a manager’s job. In order to make the right decisions, managers need
information from various sources. Typically, this activity is done through reading magazines
and talking with others to learn about changes in the customers’ tastes, competitors’ moves
and the like. Mintzberg called this the monitor role.
In the disseminator role, the manager distributes important information to subordinates that
would otherwise be inaccessible to them.
Managers also perform the spokesperson role when they represent the organization to
outsiders.
 Roles and skills of a Manager
• Decisional roles

There are four decision roles that the manager adopts. In the role of
entrepreneur, the manager tries to improve the unit. He initiates planned
changes to adapt to environmental challenges.
As disturbance handlers, managers respond to situations that are beyond their
control such as strikes, shortages of materials, complaints, grievances, etc.
In the role of a resource allocator, managers are responsible for allocating
human, physical and monetary resources.
As negotiators, managers not only mediate in internal conflicts but also carry
out negotiations with other units to gain advantages for their own unit.
Significance of ethics in Management

•Business ethics refers to

implementing appropriate business
policies and practices with regard to
arguably controversial subjects.
•Some issues that come up in a
discussion of ethics include corporate
governance, insider trading, bribery,
discrimination, social responsibility,
and fiduciary responsibilities.
•The law usually sets the tone for
business ethics, providing a basic
guideline that businesses can choose
to follow to gain public approval.
 Significance of ethics in Management
1. Ethics lays the strategic decision-making. Leaders and workers of a business
characterized by ethical behavior make decisions that are socially acceptable.
They allow all the stakeholders to participate in the decision-making process.

2. They increase employee retention. Employees always want to stay longer in a

business where the employers value their rights and opinions. To them, their
basic needs are satisfied.

3. An ethical business attracts investors. A business that promotes ethics in its

management and operations creates an investment-friendly environment.
Investors like putting their money where they are sure it is safe.
 Significance of ethics in Management
4. Ethical practices help in building and maintaining reputation. A large part of
ensuring business success is down to maintaining a good reputation among your
customers. One of the main things that customers will scrutinize when they
decide whether they trust or want to engage with a business or not is that
business‟s ethics. If you can brand yourself explicitly as an ethical business, so
much the better!

5. An ethically oriented company is bound to avoid fines. They comply with the
law, file their tax returns in time, ensure quality of products and services, etc.
 Significance of ethics in Management
6. Ethics in a business attracts more employees. When your company is
reputable, more people will be interested to work for you.

7. Good Business ethics is the key to enhancing productivity. People will work
harder at their jobs if they believe that what they are doing is ethical. They will
not be held back by moral values, and they may feel extra motivated to work
because they feel that by doing so they are making the world a better place. So if
you want to make a normal profit rise and rise until you are making big bucks,
you need to keep your business totally ethical.
 Significance of ethics in Management
8. Ethics create customer loyalty. A reputation built on good ethics helps create
a positive image in the marketplace. This, in turn, makes customers trust your
products and services. They also pass information to their friends and family,
hence, creating more customers for you.

9. Ethics encourage teamwork. Employers and employees who trust one another
work together harmoniously and effectively.

10. A business that values ethics attracts more suppliers. A business without
suppliers is as good as a failed enterprise. Suppliers are attracted to a company
that appreciates what they supply and pay for them promptly.
 Significance of ethics in Management
11. Ethics in enhancing partnerships. Partnerships in the business world are very
crucial. They help expand your marketplace and improve business relations. In
order to get good partners, your reputation must be built on a strong business
ethics foundation.

12. Ethics reduces business risks. As trust and loyalty are built on ethics, chances
of losing potential customers, suppliers, employees and even the company itself
are minimal.

13. Ethics increases business profits. The decrease in risks and costs mean that
the output is likely to be higher than the input hence the company makes a profit.
 Significance of ethics in Management
14. Ethics lead to sustainable growth in sales. An increase in customers leads to an
increase in demand. Therefore, more goods and services are sold. It may seem that a
little selfishness might help your business, however this is never the case. Selfish or
unethical actions may seem to give your business a temporary boost, but they will
thwart your long term goals. Ethical action is the key to sustainability and success in
business.

15. Good ethics in a business boosts the morale of the employees. Good business
ethics involves rewarding your employees. When an employee is rewarded, he/she
works harder leading to more profits. An ethical working environment provides
equal work opportunities to all the employees. It is free for gender-inequality and
discrimination of any sort. Candidates are promoted solely on the basis of their
merit.
 Significance of ethics in Management
16. Ethics helps in building consumer confidence. Other than customer loyalty,
business ethics makes consumers believe in you even during difficult times. For
example, when a company‟s product is found to be faulty and the company takes
full responsibility, consumers are bound to trust that it was just a mistake.

17. Ethics in business allows for healthy competitions. It is common to find two
or more companies that offer similar services and goods. A company
characterized with ethical behavior will not engage in malpractices such as
spreading false information about the other company or lowering their prices.
Instead, they will allow the customers to choose where they like.
 Significance of ethics in Management
18. Ethics helps in maintaining quality. An ethical company will strive to deliver
goods and services of high quality to their customers even in times when the
demand is higher than supply.

19. Ethical practices foster community improvement. Ethics teaches the art of
giving back. Ethically oriented companies will help a community to be better
through things like road construction or schools construction.

20. Ethics promote Corporate Governance in an organization. Good corporate

governance ensures that the company is working according to the prescribed rules
and regulations. The state of affairs of the company is transparently reported to its
stakeholders such as shareholders, management, creditors, and the government
 IMPORTANCE OF MANAGEMENT
1. Optimum utilization of resources: Management facilitates optimum utilization of
available human and physical resources, which leads to progress and prosperity of a
business enterprise. Even wastages of all types are eliminated or minimized.
2. Competitive strength: Management develops competitive strength in an enterprise.
This enables an enterprise to develop and expand its assets and profits.
3. Cordial industrial relation: Management develops cordial industrial relations, ensures
better life and welfare to employees and raises their morale through suitable incentives.
4. Motivation of employees: It motivates employees to take more interest and initiatives
in the work assigned and contribute for raising productivity and profitability of the
enterprise.
5. Introduction of new techniques: Management facilitates the introduction of new
machines and new methods in the conduct of business activities. It also brings useful
technological developments and innovations in the management of business activities.
 IMPORTANCE OF MANAGEMENT
6. Effective management: Society gets the benefits of efficient management in
terms of industrial development, justice to different social groups, consumer
satisfaction and welfare and proper discharge of social responsibilities.
7. Expansion of business: Expansion, growth and diversification of a business unit
are possible through efficient management.
8. Brings stability and prosperity: Efficient management brings success, stability
and prosperity to a business enterprise through cooperation among employees.
9. Develops team spirit: Management develops team spirit and raises overall
efficiency of a business enterprise.
10. Ensures effective use of managers: Management ensures effective use of
managers so that the benefits of their experience, skills and maturity are
available to the enterprise.
 IMPORTANCE OF MANAGEMENT
11. Ensures smooth functioning: Management ensures smooth, orderly and
continues functioning of an enterprise over a long period. It also raises the
efficiency, productivity and profitability of an enterprise.

12. Reduces turnover and absenteeism: Efficient management reduces labour

turnover and absenteeism and ensures continuity in the business activities and
operations.

13. Creates sound organization: A dynamic and progressive management

guarantees development of sound Organisation, which can face any situation -
favourable or unfavourable with ease and confidence.
 FUNCTIONS OF MANAGEMENT- Organizing
Organizing requires a formal structure of authority and the direction and flow of such authority
through which work sub-divisions are defined, arranged and coordinated. Each part relates to other
parts in a united and coherent manner so as to attain the prescribed objectives.

The function of organizing is primarily concerned with the following:

• Identifying the tasks that must be performed and grouping these tasks wherever necessary
• Assigning these tasks to personnel while defining their authority and responsibility
• Delegating the necessary authority to these employees
• Establishing a relationship between such authority and responsibility
• Coordinating all these activities.

The entire process of organizing and coordinating the various activities requires an understanding
of human behaviour and group dynamics that are integral parts of organizational behaviour.
 FUNCTIONS OF MANAGEMENT- Directing
Directing. The directing function is concerned with leadership, communication,
motivation and supervision so that the employees perform their activities in the
most efficient manner possible in order to achieve the desired goals. The
leadership element involves issuing of instructions and guiding the subordinates
about procedures and methods in a manner so that the employees follow
willingly and with enthusiasm. The communication must be open both ways so
that the information can be passed on to the subordinates and the feedback
received from them. Motivation is very important, since highly motivated people
show excellent performance with less direction from superiors. Supervising
subordinates in a friendly but firm manner would give continuous progress
reports as well as assure superiors that directions are being properly carried out.
All components of the function of leading are important ingredients of
organizational behaviour.
 FUNCTIONS OF MANAGEMENT- Directing
Coordinating: The function of coordination can be described as the integration
and synchronization of the efforts pooled in by a group of people in order to
accomplish common targets. Coordinating plays an important role of binding the
other functions of management and therefore is considered key to management.
According to Mooney and Reelay, “Coordination is orderly arrangement of group
efforts to provide unity o action in the pursuit of common goals.” According to
Charles Worth, “Coordination is the integration of several parts into an orderly
hole to achieve the purpose of understanding.” Management strives to seek
coordination through its remaining functions of planning, organizing, leading, and
controlling and thus is not considered to be a separate function of management.
Successful management can only take place when there is a sincere effort to
achieve a common targetf
 FUNCTIONS OF MANAGEMENT- Coordinating
Controlling. The function of control consists of those activities that are
undertaken to ensure that the events do not deviate from the pre-arranged
plans. The activities consist of establishing standards for work performance,
measuring performance and comparing it to these set standards and taking
corrective actions as and when needed to correct any deviations. Again
behavioural processes and characteristics are embedded in this function since
control involves performance evaluation, reward and recognition systems and
motivation
 PRINCIPLES OF MANAGEMENT
(i) Universal applicability: The principles of management are intended to apply to
all types of organizations, business as well as non-business, small as well large,
public sector as well as private sector, manufacturing as well as the services
sectors. However, the extent of their applicability would vary with the nature of
the organization, business activity, scale of operations and the like. For example,
for greater productivity, work should be divided into small tasks and each
employee should be trained to perform his/her specialized job. This principle is
applicable to a government office where there is a diary/despatch clerk whose
job is to receive and send mail or documents, a data entry operator whose task is
to input data on the computer, a peon and an officer etc. This principle is also
applicable to a limited company where there are separate departments like
Production, Finance, Marketing and Research and Development etc. Extent of
division of work, however, may vary from case to case.
 PRINCIPLES OF MANAGEMENT
(ii) General guidelines: The principles are guidelines to action but do not provide
readymade, straitjacket solutions to all managerial problems. This is so because
real business situations are very complex and dynamic and are a result of many
factors. However, the importance of principles cannot be underestimated
because even a small guideline helps to solve a given problem. For example, in
dealing with a situation of conflict between two departments, a manager may
emphasise the primacy of the overall goals of the organisation.
 PRINCIPLES OF MANAGEMENT
(iii) Formed by practice and experimentation: The principles of management are
formed by experience and collective wisdom of managers as well as
experimentation. For example, it is a matter of common experience that
discipline is indispensable for accomplishing any purpose. This principle finds
mention in management theory. On the other hand, in order to remedy the
problem of fatigue of workers in the factory, an experiment may be conducted to
see the effect of improvement of physical conditions to reduce stress.
 PRINCIPLES OF MANAGEMENT
(iv) Flexibile: The principles of management are not rigid prescriptions, which
have to be followed absolutely. They are flexible and can be modified by the
manager when the situation so demands. They give the manager enough
discretion to do so. For example, the degree of concentration of authority
(centralisation) or its dispersal (decentralisation) will depend upon the situations
and circumstances of each enterprise. Moreover individual principles are like
different tools serving different purposes, the manager has to decide which tool
to use under what circumstances.
 PRINCIPLES OF MANAGEMENT
(v) Mainly behavioural: Management principles aim at influencing behaviour of
human beings. Therefore, principles of management are mainly behavioural in
nature. It is not that these principles do not pertain to things and phenomenon at
all, it is just a matter of emphasis. Moreover, principles enable a better
understanding of the relationship between human and material resources in
accomplishing organisational purposes. For example, while planning the layout of
a factory, orderliness would require that workflows are matched by flow of
materials and movement of men.
 PRINCIPLES OF MANAGEMENT
(vi) Cause and effect relationships: The principles of management are intended
to establish relationship between cause and effect so that they can be used in
similar situations in a large number of cases. As such, they tell us if a particular
principle was applied in a particular situation, what would be its likely effect. The
principles of management are less than perfect since they mainly apply to human
behaviour. In real life, situations are not identical. So, accurate cause and effect
relationships may be difficult to establish. However, principles of management
assist managers in establishing these relationships to some extent and are
therefore useful. In situations of emergencies, it is desirable that someone takes
charge and others just follow. But in situations requiring cross-functional
expertise, such as setting up of a new factory, more participative approach to
decision-making would be advisable.
 PRINCIPLES OF MANAGEMENT
(vii) Contingent: The application of principles of management is contingent or
dependent upon the prevailing situation at a particular point of time. The
application of principles has to be changed as per requirements. For example,
employees deserve fair and just remuneration. But what is just and fair is
determined by multiple factors. They include contribution of the employee,
paying capacity of the employer and also prevailing wage rate for the occupation
under consideration.