Concept of Management
Definition of Management
 “Management is the art of getting things done through
and with people in formally organized groups”.
 “Management is the process by which managers
create, direct, maintain and operate purposive
organizations through systematic, coordinated,
cooperative human effort”.
Meaning of Management
 Management of Ideas
 Management of Things
 Management of People
Concepts of Management
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Management as an Economic Resource
Management as a Group
Management as a System of Authority
Management as a Separate Discipline
Management as a Process
 Management is a social process
 Managements is an integrating process
 Managements is a continuous process
 Management as an Activity
 Informational activities
 Decisional activities
 Interpersonal activities
Importance of Management
 Effective Utilization of Resources
 Development of Resources
 To Incorporate Innovations
 Integrating Various Interest Groups
 Stability in the Society
 Working for society
 Working for people
 For overall growth & development
Characteristics of Management
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Management is a Universal Process
Management is Purposeful
Management is Creative
Management is an Integrative Force
Management is a Group Phenomenon
Management is a Social Process
Management is Multidisciplinary
Management is Continuous Process
Management is Intangible
Management is Both a Science and an Art
Management as Science
 Science may be viewed in terms of its structure, its
goals, and its methods. In terms of its structure, it is a
number of scientific disciplines: physics, biology,
psychology, economics, management and many
others.
Management as Art
 The process of management does involve the use of
know-how and skills like any other art such as music,
painting, sculpture, etc.
 The process of management is directed to achieve
certain concrete results as other fields of art do.
 Management is creative like any other art.
Levels of Management
Board
Chief
Top
Management
Executive
Departmental
Divisional Heads
Plant Superintendent
Branch Managers
Foreman Supervisors
Upper
Middle
Management
Middle
Management
Operating
Management
Skills of management
 Technical Skill
 Human Skill
 Conceptual Skill
Importance of management
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Growing size and complexity of business
Increasing specialization of work
Cut throat competition in the market
Growing unionization of labour
Sophisticated and capital intensive technology.
Increasing complexity of business decisions
Growing regulation of business by the Government
Need for research and development
Turbulent environment of business
Need for reconciling the interests of various groups, e.g,
owners, workers, customers and the public
 Need for optimum utilization of scarce resources.
Managing in present completive
environment
 Knowledge
 Skills to performance
 Environment awareness
 Competitiveness
 Vision
Taylor Scientific management
 Separation of Planning and Doing
 Functional Foremanship
 Job Analysis
 Standardization
 Scientific Selection and Training of Workers
 Financial Incentives
 Economy
 Mental Revolution
Principles of Scientific
Management
 Replacing Rule of Thumb with Science
 Harmony in Group Action
 Cooperation
 Maximum Output
 Development of Workers
Fayol General Principles of
management
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Division of Work
Authority and Responsibility
Discipline
Unity of Command
Unity of Direction
Subordination of Individual to General Interest
Remuneration of Personnel
Centralization
Scalar Chain
Order
Equity
Stability of Tenure of Personnel
Initiative
Esprit de Corps
Bureaucratic management
 Traditional Authority
 Charismatic Authority
 Rational-legal Authority
Features of bureaucracy
 A set of written rules and work procedures
 Specialization
 Hierarchy of Authority
 Impersonal Relations
 Trained Personnel
 Organizational freedom
Behavioral approach
 The 1920s was turning decade in the development of
management thought because the individualistic
concern of the classical approach began to give way to
‘group philosophy’ and social attitudes.
Hawthorne experiments
 The test room study
 Relay Assembly Room Study
 Mass Interviewing Programme
 Bank wiring observation Room study
Implications of Hawthorne
experiment
 Social Factors in Output
 Group Influence
 Conflict
 Leadership
 Supervision
 Communication
Management science
approach
 Management is regarded as the problem-solving
mechanism with the help of mathematical tools and
techniques.
 Management problems cab be described in terms of
mathematical symbols and data.
 This approach covers decision-making, system analysis,
and some aspects of human behaviour.
 Operations research, mathematical tools, simulation,
models, etc., are the basic methodologies to solve
managerial problems.
Human behavior approach
 People do not dislike work. If they have been helped to
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establish objectives, they will want to achieve them.
Most people can exercise a great deal of self-direction, selfcontrol, and creativity than are required in their current job.
The manager’s basis job is to use the untapped human
potential in the service of the organization.
The manager should create a healthy environment wherein all
subordinates can contribute to the best of their capacity.
The manager should provide for self-direction by
subordinates and they must be encouraged to participate fully
in all important matters.
Operating efficiency cab be improved by expanding
subordinate influence, self-direction, and self control.
Work satisfaction may improve as a ‘by-product’ of
subordinates making full use of their potential.
Systems approach
 Perhaps systems approach has attracted the
maximum attention of thinkers in management
particularly in the present era. Though this
approach is of comparatively recent origin,
starting late 1960, it has assumed considerable
importance in analyzing the phenomena of
management.
Contingency approach
 A review of the earlier schools of management helps us
to place the current approach to management in
perspective. The performance results of the
management process school’s universalist assumptions
were generally disapproving.