1.

Importance of Management
2. Definition of Management
3. Functions / Process of Management
4. Levels of Management
5. Managerial Skills/ Skills for efficient Management
6. Management and Administration
7. Management- A Science or An Art
8. Management- A Profession?
9. F.W. Taylor
10.Henry Fayol
11.Elton Mayo
➔IMPORTANCE / NEEDS OF MANAGEMENT
The importance of management may be traced in the following contexts:
1. Effective Utilization of Resources: Management tries to make effective
utilization of various resources. The resources are scarce in nature and to meet the
demand of the society, their contribution should be maximum for the general
interests of the society. The management not only decides in which particular
alternative a particular resource should be used, but also takes actions to utilize it in
that particular alternative in the best way.
2. Development of Resources: Management develops various resources. This is
true with human as well as non-human factors. Lawrence Appley has emphasized
that, management is the development of people. However, most of the researches for
resource development are carried on in an organized way and management is
involved in these organized activities. Thus, through the development of resources,
management improves the quality of lives of people in the society.
3. To Incorporate Innovations: Today, changes are occurring at a very fast rate in
both technology and social process and structure. These changes need to be
incorporated to keep the organizations alive and efficient. Business organizations
are moving from primitive to sophisticated. Therefore, they require high degree of
specialization, high level of competence and complex technology. All these require
efficient management so that organizations work in the most efficient way.
4. Integrating Various Interest Groups: In the organized efforts, there are various
interest groups and they put pressure over other groups for maximum share in the
combined output. For example, in the case of a business organization, there are
various pressure groups such as shareholders, employees, government, etc. These
interest groups have pressure on an organization. In a more advanced and complex
society, more such pressure is on the organization. Management has to balance these
pressures from various interest groups.
5. Stability in the Society: Management provides stability in the society by
changing and modifying the resources in accordance with the changing environment
of the society. In the modern age, more emphasis is on new inventions for the
betterment of human beings. These inventions make old systems and factors mostly
obsolete and inefficient. Management provides integration between traditions and
new inventions and safeguards society from the unfavorable impact of these
inventions so that continuity in social process is maintained.

➔MEANING AND DEFINITION OF MANAGEMENT

It is not easy to define the term management. There are as many definitions of
management for the following reasons:
Most definitions of the term “management‟ emphasize on one common idea: it is
concerned with the accomplishment of objectives through the conscious efforts of
the people performing certain functions.
Let us look into these definitions:
• Management is the accomplishment of results through the efforts of other people.
(Lawrence. A. Appley).
• Management is the art of getting things done through and with the people in
formally organized groups. (Koontz. H)
• Management is a process of planning, organizing, actuating and controlling to
determine and accomplish the objectives by the use of people and resources. (Terry
G)
• Management is the process by which managers create, direct, maintain and operate
purposive organizations through systematic, coordinated, cooperative human effort.
(Mc Fariand)
• It is the coordination of all resources through the process of planning organizing,
directing and controlling in order to attain stated objectives. (Sisk)
Some authorities on the subject have defined management as a decision making,
rule-making, and rule-enforcing body.
According to Prof. Moore, management means decision-making. Others like
Appley call it personnel administration.
For the sake of simplicity and convenience, we can broadly define it as:
"Management is concerned with resources, tasks and goals". It is the process of
planning organizing, staffing, directing and controlling to accomplish organizational
objectives through the coordinated use of human and material resources.
➔THE PROCESS OF MANAGEMENT: MANAGEMENT
FUNCTIONS
Management can be called off as a social process which is responsible for economic
and accurate arrangement along with rules of operation for a particular organization
in fulfilling desired request. This is a dynamic way as it contains several constituents
and activities that are different in terms of operations that could be in areas of
marketing, finance, purchase, etc. Instead, such activities are similar among each
other as per the different levels of manager status. Logically, it is easy to bifurcate
the function of management while practically such can place one above another in
nature. Every function will take the shape into other and further will affect the
performance.

1. Planning: Planning is the foremost feature of a management which behaves

with plans for future course of action and decides for the most correct course
of actions in getting fixed goals. According to Koontz, planning is the
advance preparation of action to be taken related to any work. This will link
from the starting of a phase to the implementation phase. It is a future direction
to be taken which could be worked in problem solving exercises and decision
 making. It is studied that planning shows related course of action to meet the
required goals which involves straight and clear thinking about ways and
means for doing fixed goals. Planning serves as a correct usage among human
as well as non-human resources.
2. Organizing: Organizing is related to involvement of physical, financial,
human resources as well as development of productive relationships which
appears amongst themselves for obtaining organizational criterion. Henry
Fayol relates organization as arranging a business which will give everything
required for working and functioning. Practically, organizing a business needs
finding and showing human and non-human constituents for organizational
arrangements. The process of Organizing includes:
• Exploring activities
• Classifying activity groups
• Declaration of responsibilities
• Delegating authority and responsibility
• Functioning with authority and coordination
3. Staffing: It involves association of manpower to support an organization
function. With the advent of new technologies and spreading of business
avenues, staffing play an important role in catering services rendered by
organizations. The idea of staffing is assigns right job for right people. Kootz
and O‟Donell explained staffing as manpower involvement in an
organization as per desired selection Staffing involves:
• Recruitments after planning
• Processes related to recruitment, selection along with placement
• Activities related to Training and development
• Basic remuneration to be offered
• Appraisals
• Promotions and transfers
4. Directing: This is the sector of managerial function which allows
organizational methods to work correctly and efficiently in obtaining
organizational challenges. This is an inter-personnel concern of a
management that influences, guide, supervise and motivate sub-ordinates for
obtaining organizational parameters. Direction has the following elements:
 • Supervision: Inspecting the work of sub-ordinates with the help of
superiors.
• Motivation: This involves the work of a superior to inspire, stimulate and
encourage with passion to work.
• Leadership: It is the capability which shows the guidance given by mangers
to his subordinate to work in certain direction.
• Communications: This involves sharing, communicating and passing of
related information from one person to another. This serves as a bridge of
understanding.
5. Controlling: It implies measurement of approach against particular standards
with alterations in deflection, if any, will make sure the approach of
organizational objectives. The idea behind controlling is to make sure that all
will come in conformity with particular standards. A good effective
mechanism will handle to think about deflection earlier at times when it
actually occurs. Controlling, as per Theo Haimann is basically a mechanism
of analyzing progress that happens towards particular aims and objectives if
required to correct any deflection. Koontz and O’Donell explained
controlling as mechanism that involves correction of activities of subordinates
to ensure about enterprise objectives with related plans to get them arrived.
Therefore, controlling has the following steps:
• Establishing constant measures
• Measure real performance
• Comparing performances with standards and locating deviations
• Corrective action
➔ LEVELS OF MANAGEMENT
In an organization, there are certain levels defined by the management
wherein each level is confined with its nature and activities involved.
The levels of management can be classified in three broad categories:
• Top level / Administrative level
• Middle level / Executor level
• Low level / Supervisory / Operative / First-line managers

It is seen that different levels have different work area and functions. The role
of managers at all the three levels is discussed below:

Top Management
• Determines objectives and policies.
• Designs the basic operating and financial structure of an organisation.
• Provides guidance and direction.
• Lays down standards of performance.
• Maintains good public relations.
Middle Management
• Interprets and explains the policies framed by the top.
• Issues detailed instructions.
• Participates in operating decisions.
• Trains other managers.
Lower Management
• Plans day-to-day operations.
• Assigns jobs to workers.
• Provides supervision and control over work
• Arranges material tools and equipment.
• Maintains discipline.

➔MANAGERIAL SKILLS / SKILLS FOR EFFICIENT

MANAGEMENT

The American Management Association, has identified important skills for

managers that encompass conceptual, communication, effectiveness and
interpersonal aspects. These are briefly described below:
• Technical skills:
Adequate Knowledge of and proficiency in a certain specialized field, such as
engineering, computers, financial and managerial accounting or
manufacturing is essential.
• Human skills:
This includes ability to serve well individually or in group since the idea is
that managers interact directly with people.
• Conceptual Skills:
This involves using logic to solve problems, locating opportunities, finding
problems and locating faults. This skill will help in selecting critical
information among a lot of data by understanding technology and business
structure.
• Communication Skills:
This skill involves transposing thoughts into words or action. It serves to
improve image among colleagues and subordinates with interaction involved
among various grounds.
• Effectiveness Skills:
This involves contribution or sharing missions or objectives with focus on
customer relation, project management and setting and maintaining
performance levels.
• Interpersonal Skills:
It involves regulation and mentoring with diversified factors related to people
and culture, to help cultivate a network inside an establishment along with
commitment and cooperation. In today's demanding and dynamic workplace,
employees who are invaluable to an organization must be willing to constantly
upgrade their skills and take on extra work outside their own specific job
areas. There is no doubt that skills will continue to be an important way of
describing what a manager does. An up gradation of individual skills helps in
the overall improvement of the organization as a whole. It gives it the cutting
edge over all other contemporaries.
• Design skill:
Design skill is the ability to solve problems in ways that will help the
organization. At higher levels, managers should be able to move beyond
perceiving a potential problem. They are expected to design a workable
solution to a problem in the light of realities they face. If managers merely see
a problem and become problem watchers, they will fail.
➔ NATURE OF MANAGEMENT
Management is related to regulating human and physical resources in order to
achieve organizational goals. The nature of management can be highlighted
as:
1. Management is Goal-Oriented:
The accomplishment of several management activities advances by its
appearance of its planned aims or objective. Management is involved in
descriptive action. It continues a facility which supports the operation of
communal as well as corporal revenues to fulfil the pre-determined
approaches. For simulation, the objective of a business is to claim maximum
customer engorgement by developing specialty article additionally at feasible
charges. This can be apprehended by exercising desirable persons furthermore
bringing about favorable usage connectedly minimal reserves.
2. Management integrates Human, Physical and Financial Resources:
In an organization, communal presence functions with non-human reserves
like instruments, components, financial inventories, frameworks etc. The
entire establishment sticks together communal actions with those reserves. It
carries about a conspicuous consonance among the communal, corporal as
well as financial reserves.

3. Management is Continuous:
Management is basically an on-going approach which encompasses
responding of difficulties as well as handling Nature and Functions of
Management 8 Introduction to Management various consequences. It exists
while considering the determination of difficulties which will achieve
adequate grades to recognize it. It is analyzed that the objective of an
establishment continues as utmost development mechanism. For arresting this
destination, complex mechanisms are to be conveyed away furthermore which
endures without conclusion. Marketing and broadcasting continue
furthermore to be endeavored for comprehension generally which instructions
acquire to be arranged, so this is called as an on-going mechanism.
4. Management is all Pervasive:
Management continues imperative in conclusive categories of organizations
whether it continues political, communal and cultural or business which will
handle and commands complex behaviors towards a perfect approach. We see
that clubs, hospitals, political parties, colleges, hospitals, business firms all
require management. If more that an individual person is engaged in common
work, then under such situation, management plays an important role. It is
immaterial of the small firm in trading or large firm, all requires management.

5. Management is a Group Activity:

Management is not as concerned with individual efforts as it is about groups
and team work. It involves the use of teamwork to achieve predetermined goal
of management.

6. Principles are Dynamic in Nature:

Principle is a fundamental truth, which establishes cause and effect
relationships of a function within a set- up. Based on integration and supported
by practical evidences, the management has framed certain principles.
However, these principles are flexible in nature and keep changing with the
environment in which the organization exists. Because of the continuous
development in the field, many older principles are replaced by new
principles. Continuous researches are being carried out to establish principles
in changing society and no principle can be regarded as a final truth. In fact,
there is nothing permanent in the landslide of management.

7. Principles are Relative, not absolute:

Management principles are relative, not absolute and they should be applied
according to the need of the organization. The organizational difference
between organizations may exist because of time, place, socio-cultural
factors, etc. However, individuals working within the same organization may
also differ. Thus, a particular management principle has different strengths in
different conditions. Therefore, principles of management should be applied
in the light of prevailing conditions. Allowance must be made for different
changing environment.
8. Management is a Science, Art and Profession:
There is a controversy whether management is science or art. However,
management is both a science and an art because it follows principles of
science and requires the skills of an art. Management has been regarded as a
profession by many while many have suggested otherwise.

9. Management is Decision-Making:
Management process involves decision making at various levels. This usually
includes delegation of work. Decision-making basically involves selecting the
most appropriate alternative out of the several alternatives available. If there
is only one alternative, the question of decision-making does not arise. The
quality of the alternative that a manager selects determines the organization’s
performance and the future of the entire organization rests on the degree of
right decisions are made by this class of executives. Therefore, the success or
failure of managers can be judged by the quality of decisions that they make.
The nature of management suggests that:
• It is a multidisciplinary phenomenon.
• Its principles are flexible, relative and not absolute.
• It is both science and art.
• It can be taken as a profession.
• Finally, it is universal.
• It is an organized activity involving decision making, with existence of
objectives. It is working with the people, through establishing goals by
utilising available resources.
➔MANAGEMENT- A SCIENCE OR AN ART?
Management as a Science
The hallmarks of a science are not the test tube or the lab coat. Instead, they are
implicit in the method of inquiry used by a discipline for gathering the data.
We can call a discipline is scientific if its
1. Methods of inquiry are systematic and empirical
2. Information can be ordered an analyzed
3. Results are cumulative and communicable
Being systematic means being orderly and unbiased. The attempt to gain knowledge
must be without taint of personal or other prejudgment. Further, the inquiry must be
empirical and not merely an armchair speculation or a priori approach.
All scientific information collected first as raw data is finally ordered and analyzed
with the help of statistical tools. It thus becomes communicable and intelligible.
Communication of results also permits repetition of the study, if needed, by the
original investigator or others. When the study is replicated and the second try
provides results similar to the original, one derives much more confidence in those
results.
Science is also cumulative in that what is discovered is added to that which has been
found before. We learn from past mistakes and obtain guides for the future. We build
upon the base that has been left by others.
On the basis of above definition of science, we may presume that management is
also a science.
But Science is used to denote two types of systematic knowledge:
• Natural or exact science
• Behavioral or inexact science
We must remember that management is not like the exact or natural science (such
as physics, chemistry). In physics, it is possible for anyone to study in a laboratory,
say, the effect of heat on the density of air by holding other factors (such as humidity)
constant for the duration of the experiment.
But the same thing is not possible in management where we have to study man and
a multiplicity of factors affecting him. For example, it is not possible to study the
effect of only monetary incentives on a worker’s productivity. Because, this effect
will always be found to be mixed with and inseparable from other effects such as
leadership style of the worker’s supervisor, worker’s need hierarchy, the pressure of
his coworkers, etc. They are going to tell us about tendencies and probabilities only.
Therefore, we may place management in the category of behavioral science or
inexact science.
Management is an Art
Art is concerned with the understanding of how a particular work can be
accomplished. Management in this sense is more an art. It is art of getting done
through others in dynamic and mostly non-repetitive situations.
A theoretical body of lessons and principles which a manager has learnt in a
classroom will not secure for him the aimed results unless he has also the art of
applying such principles and body of knowledge to his special problem.
Knowledge of management theory and principles is indeed a valuable aid and kit of
the manager but it cannot replace his other managerial skills and qualities. This
knowledge has to applied and practiced by the manager. In this sense, management
in an art.
It is like the art of a musician or the art of a painter who seeks to achieve the desired
effect with color or instruments, but mainly with his own skill. He does not copy the
skills of others.
We may conclude that management involves both elements- those of a science and
an art. While certain aspects of management make it science, certain others which
involve application of skill make it an art.
➔DEVELOPMENT OF MANAGEMENT THOUGHTS
During the last hundred years, management has become a more scientific
discipline with certain standardized principles and practices. The evolution of
management thought during this period can be studied in three parts as under:
1. Early classical approaches, represented by scientific management,
administrative management, and bureaucracy.
2. Neo-classical approaches, represented by human relations movement and
behavioral approach
3. Modern approaches, represented by quantitative approach, systems approach
and contingency approach
The contributions made by all these approaches to management serve as a
foundation for modern management.
EARLY CLASSICAL APPROACH
A. Scientific Management (Frederick Winslow Taylor):
F. W. Taylor is considered to be the Father of Scientific Management. Taylor made
several important contributions which are classified under scientific management.
1. Time and Motion Study
• Since Taylor had been a mechanist himself, he knew how piece-work
employees used to hold back production to its one-third level because they
feared that their employers would cut their piece rate as soon as there was a
rise in production.
• The real trouble, Taylor thought was that no one knew how much work it
was reasonable to expect a man to do. Therefore, he started time and motion
study, under which each motion of a job was to timed with the help of a stop
watch and shorter and fewer motions were developed. Thus, the best way of
doing a job was found. This replaced the old rule-of-thumb-knowledge of
the workman.
2. Differential Payment
• Taylor introduced a new payment plan called the differential piece work, in
which he linked incentives with production.
 • Under this plan, a worker received low piece rate if he produced the standard
number of pieces and higher rate if he surpassed the standard.
• Taylor thought that the attraction of high piece rate would motivate to increase
production.
3. Drastic Reorganization of Supervision
Taylor Suggested two new concepts:
• Separation of planning and doing and
• Functional foremanship
In those days, it is used to be customary for each worker to plan his own work. The
worker himself used to select his tools and decide the order in which the operations
were to be performed. The foreman simply told the worker what jobs to perform,
not how to do them.
Taylor suggested that the work should be planned by a foreman and not by the
worker.
Further, he said that there should be as many foremen as there are special functions
involved in doing a job and each of these foremen should give orders to the worker
on his specialty.
4. Scientific Recruitment and Training
Taylor emphasized the need for scientific selection and development of the worker.
He said that the management should develop and train every worker to bring out his
best skills and to enable him to do a higher, more interesting and more profitable
class of work than he has done in the past.
5. Intimate Friend Cooperation between the Management and Workers
Taylor said that for the above suggestion to succeed, “a complete mental revolution”
on the part of management and labor was required. It involves complete mental
change of employees towards their work, towards their fellow-men and their
employers. Taylor believed that management and labor had a common interest in
increasing productivity.
Contribution of Scientific Management
• The Time and Motion studies have made us aware that the tools and physical
movements involved in a task can be made more efficient and rational.
• The Scientific Selection of Workers has made us recognize that without ability
and training a person cannot be expected to do his job properly.
• The scientific management gave us to work design that encouraged managers
to seek that “one best way” of doing a job. Both blue-collar production jobs
and white-collar office and service jobs have become specialized and
standardized. This makes workers more efficient and managers control over
them easier.
Limitations of Scientific Management
• Taylor’s scientific management emphasizes the management of only
muscular tasks and neglects the areas of problem-solving and decision-
making, which are of key importance at other managerial levels.
• Taylors belief that economic incentives are strong enough to motivate workers
for increased production is wrong. No man is entirely an “economic man”,
that is, a man behavior is not always dictated by his financial needs. He has
many other needs also, such as security needs, social needs or egoistic needs
which motivate him far more potentially than his desire for money.

• Taylor’s time and motion study is not entirely scientific. This is because two
times studies done by two separate individuals may time the same job entirely
differently. There is n such thing as “one best way” so far as the component
motions are concerned, because no two individuals can be expected to work
in the same way at the rhythm, with the same intention and the same learning
speed.
• Separation of planning and doing and the greater specialization inherent in the
system tend to reduce the need for skill and produce greater monotony of
work. Having a man take order from 7 to 8 different bosses results in
confusion, besides increasing the overhead cost.
B. Administrative Management (Henri Fayol):
Henri Fayol is considered to be the Father of Administrative Management. Fayol
made several important contributions which are classified under administrative
management.