Introduction to Management (BBA I)
- 1. Principle & Processes of Management By Durgesh Satpathy Asst. Professor in Management http://durgeshsatpathy.com
- 2. Management is essential for organized life.
- 3. Good management is the backbone of successful organizations.
- 4. Definition According to F.W. Taylor, ‘Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way‘. Kreitner’s definition of management: ‘Management is a problem solving process of effectively achieving organizational objectives through the efficient use of scarce resources in a changing environment.’
- 5. Management can be defined in detail in following categories : • Management as a Process • Management as an Activity • Management as a Discipline • Management as a Group • Management as a Science • Management as an Art • Management as a Profession
- 6. Nature/Charesterstics of Management A science & an art Universal Goal Oriented Group Activity Multi- disciplinary Dynamic Profession Integrated Force
- 7. Scope of Management Subject matter Functional areas Interdisciplinary Approach Universal Application Essentials of Management Agent of Change
- 8. 1. Subject-matter of management: • Planning, organizing, directing, coordinating and controlling are the activities included in the subject matter of management.
- 9. 2. Functional areas of management: • Financial management Accounting, budgetary control, quality control, financial planning and managing the overall finances of an organization. • Personnel management Recruitment, training, transfer, promotion, demotion, termination, labor-welfare and social security industrial relations. • Purchasing management • Inviting tenders for raw materials, placing orders, entering into contracts and materials control.
- 10. • Production management Production planning, production control techniques, quality control and inspection and time and motion studies. • Maintenance management Maintenance of the buildings, plant and machinery. • Transport management Packing, warehousing and transportation by rail, road and air. 2. Functional areas of management:
- 11. • Office Management Includes activities to properly manage the layout, staffing and equipment of the office. Simply basic administration. • Development management Involves experimentation and research of production techniques, markets, etc. • Distribution management Marketing, market research, price-determination, taking market risk, advertising, publicity and sales promotion. 2. Functional areas of management:
- 12. 3. Management - an inter-disciplinary approach: • For the correct implementation of the management, it is important to have knowledge of commerce, economics, sociology, psychology and mathematics.
- 13. 4. Universal application: • Can be applied to all types of organizations irrespective of the nature of tasks that they perform.
- 14. 5. Essentials of management: • Scientific method • Human relations • Quantitative technique
- 15. 6. Modern management is an agent of change: • The management techniques can be modified by proper research and development to improve the performance of an organization.
- 17. It helps in Achieving Group Goals: It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. Optimum Utilization of Resources: Management utilizes all the physical & human resources productively. This leads to efficacy in management.
- 18. Reduces Costs: It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Establishes Sound Organization No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship
- 19. Establishes Equilibrium It enables the organization to survive in changing environment. It keeps in touch with the changing environment. Essentials for Prosperity of Society Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource.
- 20. Management as an Art Practical Knowledge Personal Skill Creativity Perfection through practice Goal- Oriented
- 21. • Practical Knowledge: E.g. to become a good painter, the person may not only be knowing different color and brushes but different designs, dimensions, situations etc. to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also know how to apply various principles in real situations by functioning in capacity of manager. • Personal Skill: E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad.
- 22. • Creativity: Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. • Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing. • Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of pre-determined goals.
- 23. Management as a Science Universally acceptance principles Experimentation & Observation Cause & Effect Relationship Test of Validity & Predictability
- 24. • Universally acceptance principles - E.g. - law of gravitation which can be applied in all countries irrespective of the time. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization - business or non business. • Experimentation & Observation - E.g. the principle that earth goes round the sun has been scientifically proved. Management principles are also based on scientific enquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force.
- 25. • Cause & Effect Relationship - E.g. when metals are heated, they are expanded. The cause is heating & result is expansion. In management if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces productivity of organization. • Test of Validity & Predictability - E.g. H2 & O2 will always give H2O.Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd.
- 26. Management as a Profession Specialized Knowledge Formal Education & Training Social Obligations Code of Conduct Representative Association
- 27. • Specialized Knowledge - Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly a manager must have devotion and involvement to acquire expertise in the science of management. • Formal Education & Training - No one can practice a profession without going through a prescribed course. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary.
- 28. Social Obligations - Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. Their actions are influenced by social norms and values. Code of Conduct - Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it. Representative Association - For the regulation of profession, existence of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA however does not have any statuary powers to regulate the activities of managers.
- 29. Functional concept Human relation concept Leadership and decision making concept Productive concept Integration concept 5 concepts of management
- 30. Functional concept According to this concept, management is what a manager does (planning, executing, and controlling) Human relation concept According to this concept, Management is the art o getting things done through and with people in organized groups. Leadership and decision making concept According to this concept, management is the art and science of preparing, organizing, directing human efforts for the benefits to man.
- 31. Productive concept According to this concept, management may be defined as the art of securing maximum prosperity with a minimum effort so as to secure maximum prosperity and happiness and provide best services thereby. Integration concept According to this concept, management is the coordination of human and material resources towards the achievement of organizational objectives.
- 32. Drawbacks: • It has been realized by many that it will not be fair to define management based upon any one aspect. Management can be taken as process-managerial process or social process either engage in planning, organizing, staffing, directing and controlling or mobilizing the group activities to achieve the corporate goals.
- 34. • The individuals who manage the organization and departments are managers. As a noun, the term management is used as single name of managers, board of directors, managing directors, departmental managers etc are included in management. • Thus, Theo Haiman the leading management expert explained the meaning and concept of management
- 35. Assignment • Professionalization of Management in India