Chapter 1
Nature Of Management
Objectives
• Understand the Meaning and the definitions of
Management
• Features of , Functions and importance of
management
• Know and Understand the relation between
Administration and Management
Introduction
• With the increasing complexities, managing the
business concern becomes difficult.
• Every business unit has objectives of its own.
• The need of existence has increased
tremendously.
Meaning and Definition Of Management
• Meaning of Management:
– Management if the art of getting things done by a
group of people with the effective utilization of
available resources
• Definitions of Management:
– According to various experts like Peter F. Drucker,
Ralph C. Davis etc.
Definition of Management
• Joseph L. Massie: Management is the process by
which a cooperative group directs actions
towards common goal
• James D. Monny: Management is the art of
directing and inspiring the people
Definition of Management
• G.E. Millward: Management is the process and
the agency through which execution of policy is
planed and supervised
• Management is the process consisting the
functions of:
– Planning
– Organizing
– Staffing
Characteristics of Management
Three common characteristics of the organization
Organizations are made up of
people. Making a goal into
reality entirely depends on
people’s
decisions and activities in the
organization.
purpose
Every organization has its distinct
purpose, which is typically
expressed in terms of a goal or
set of goals.
Organization
People
All organizations develop
a systematic structure
that defines and limits the
behavior of its members.
Structure
Characteristics of Management
• Art as well as Science
• Management is an activity
• A continuous Process
• Management achieving Pre-defined objectives
Characteristics of Management
• Organized Activities
• Management is a Factor of Production
Characteristics of Management
• Management as system of activity
• Management is a discipline
Characteristics of Management
• Management is a purposeful activity
• Management is a distinct entity
• Management aims at maximizing profit
• Decision making
• Management is a profession
Characteristics of Management
• Universal Application
• Management is getting things done
• Management as a class of a team
• Management as a career
Characteristics of Management
• Direction and control
• Dynamics
• Management is needed at all levels
• Leadership activity
Functions of Management
Planning
Organizing
Leading
1.Defining goals
2.Establishing
strategy
3.Developing
sub plans
coordinate
activities
1.Determining 1.Directing
what needs to 2.Motivating
done
all involved
2.How it will parties
be to done 3.Resolving
3.who is to do conflicts
it
Controlling
Monitoring
activities to
Achieving the
ensure that
Resulting in organization’s
they are
stated purpose
accomplished
as planned
Functions of Management
• Planning:
– Primary function of Management
– specifying the goals to be achieved and deciding in
advance the appropriate actions taken to achieve
those goals
– delivering strategic value - planning function for
the new era
• a dynamic process in which the organization uses the
brains of its members and of stakeholders to identify
opportunities to maintain and increase competitive
advantage
• process intended to create more value for the customer
Functions of Management
• Organizing:
– Distribution of work in Group wise or section wise
for effective performance.
– Assembling and coordinating the human, financial,
physical, informational, and other resources needed
to achieve goals
– The future requires building flexible organizations
Functions of Management
• Staffing:
– Activities of selection and placement of competent
personnel.
– Filling and keeping filled with qualified people all
positions in the business.
– Managers must be good at mobilizing people to
contribute their ideas
Functions of Management
• Directing:
– The actual performance of a work starts with this.
– Stimulating people to be high performers.
– Influencing people's behavior through motivation,
communication, group dynamics, leadership and
discipline.
Functions of Management
• Co-coordinating :
– All the activities are divided group wise or section
wise under organizing function
– Such activities are co-ordinated towards the
accomplishment of objectives of the organization.
– monitors progress and implements necessary
changes
– makes sure that goals are met
– new technology makes it possible to achieve more
effective controls
Functions of Management
• Motivating or actuating:
– All the goals are achieved
– Increasing the speed of performance
Functions of Management
• Controlling:
– Ensures the confirmation of the achieved objectives
to preplanned objectives
Functions of Management
• Innovation:
– The presentation of personnel and organization to
face the changes made in the business world
• Representation:
– Manager is the representative of the company
• Decision-making:
– Helps in the smooth functioning of an organization
Functions of Management
• Communication:
– The transmission of human thoughts
• Classification of functions of management
according to Luther Gullik
– POSDCORB
Importance of Management
• Management meet the challenges of change
• Accomplishment of group goals
• Effective utilization of business
Importance of Management
• Effective functioning of business
• Resource development
• Sound organization structure
Importance of Management
• Management directs the organization
• Integrates the various interests
• Stability
Importance of Management
• Innovation
• Co-ordination and team-spirit
• Tackling problems
• A tool for personality development
Administration & Management
Board of Directors
Administration
General Managers
Department
Supervisor
Workers
Top Level
Manager
Management
Difference between Administration & Management
• Oliver Sheldon: Administration is concerned with
the determination of the corporate policy.
Management is concerned with the execution of
policy within the limits set up by administration
• William R. Spiregal: Administration is concerned
with overall determination of industrial
objectives. Management is concerned with
carrying out of the broad policies laid down by
administration
Difference between Administration & Management
• E.F.L. Brech: Management is a social process
entailing responsibilities for the effective and
economical planning. Administration is a part of
management concerned with installation and
carrying out of he procedures.
• Theo Heimann: each manager performs both
activities and spends part of his time
administrating and part of the time managing.
Difference between Administration & Management
S. No.
Basis of
distinction
Administration
Management
1.
Policy and objectives Determines policy to be
followed and decide the
objectives to be achieved
Implements the policy and
achieves the objectives
2.
Directing of human
efforts
Not directly involves in the
execution of plan and
achievements of objectives
Directly involves in the execution
of plan and achieving objectives
3.
Main function
4.
Levels of executives
Planning organizing and staffing Direction, motivation and
control
Top level executives
Lower level executives
5.
Position
Acts as a Principal
Acts as an agency
6.
Knowledge
Requires administrative ability
more that technical ability
Requires technical ability more
that administrative ability
Summary
• A business develops in course of time with
complexity
• Management aims at maximizing profit
• Many times the terms administration and
management are used synonymously
End of Chapter 1
Nature Of Management