MANAGEMENT- DEFINITION

 Management is the art of securing maximum results

with the minimum of efforts so as to secure maximum
prosperity and happiness for both the employer and
the employees and give the public the best possible
service.

 Management is the art of getting things done through

and with the people in formally organized groups.
- Harold, Koontz and O’Donnell
MANAGEMENT IN 3 SENSES

 Management as a Noun
- Group of Managerial persons

 Management as a Process
- Planning, organizing, staffing, directing, controlling

 Management as a Discipline
- Separate field of study
OBJECTIVES OF MANAGEMENT

 Protecting the owner’s interest.

 Helpful in achieving the predetermined objectives.
 Helpful in the development of labour force.
 Getting maximum results through minimum efforts.
 To increase the efficiency of the factors of
production.
 To maintain cordial relationship between Capital
and Labour.
 Maximum utilization of all the available resources .
 NATURE/ CHARACTERISTICS OF
MANAGEMENT

 Goal Oriented Process

 It is all Pervasive
 Multidimensional
 Continuous Process
 It is a Group Effort
 Dynamic Function
Contd..

 Intangible Force
 Distinct Entity
 It is a Process
 It is an Inborn & Acquired Ability
 It involves Social Responsibility
 It is Multidisciplinary.
IMPORTANCE OF MANAGEMENT

 Reduce Costs
 Establishes a sound organization
 Maintains Equilibrium
 Generation of employment
 Essential for prosperity of an organization.
 Management helps to overcome
competition
Contd…

 Survival & growth of an organization

 It shoulders social responsibilities
 Management helps in research &
investigation
 Development of the nation.
Management & Administration

3 views-
 Administration is wider than management.
 Management is wider than administration
 Management and administration are same.
Administration is above management
(American Concept)
 Supported by Oliver Sheldon, William Spriegal etc.

 Administration is the function in the industry

concerned with the determination of the corporate
policy, the coordination of finance, production and
distribution, the settlement of the compass of the
organization under the ultimate control of the
executive.
Relationship b/w Admin. & Mgt. as per
American Concept.

Top-level BOD & Determining the Adminis-

Functions G.M Policy & object tration

Middle-Level General
Functions Manager Accomplishment
Of Management
Pre-determined
Lower-Level objectives
Functions Supervisor
Management is wider than Administration
(The English Concept)

o Supported by, E.F.L. Brech, F.W. Taylor

o Management is connected with top-level

functions while administration is only a part of
it which follows the policies decided by the
management.
Relationship b/w Admin. & Mgt. as per
English Concept

 Policy Making
Administrative
 Planning
Management
 Laying down standard for work
performance
 Comparing determined objectives
with actual achievements
Management

 Utilizing man, material, machine &

money
Operative  Giving practical shape to policies
Management  Directing daily activities

 Making efforts to achieve results

Management and administration are same

(The Modern Concept)

 Supported by Henry Fayol.

 Term Administration- used in Government
organizations
 Term Management is used in Business
activities.
Relationship b/w Admin. & Mgt. as per
Modern Concept

Top Level Management

Administrative

functions Middle Level Management

Managerial

Functions Lower Level Management

ORGANISATION
Distinction b/w Administration & Management
 Administration
 Thinking Function
 Top Level
 Policy formulation and
Objective determination
 Broad and Conceptual
 Factors affecting- Mostly
external
 Quality required-
Administrative
 Functions are performed by
the owner of the enterprise
 Management
 Executive Function
 Middle and lower level
 Policy execution and objective
achievement
 Narrow and operational
 Mostly internal
 Technical
 Performing managerial
functions work as
subordinates of administrators