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MANAGEMENT
CONCEPTS
AND FUNDAMENTALS
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Management Key Concepts

 Organizations: People working together
and coordinating their actions to achieve
specific goals.

 Goal: A desired future condition that the

organization seeks to achieve.

 Management: The process of using

organizational resources to achieve the
organization’s goals.
 Resources are organizational
assets and include:
• Man,
• Machinery,
• Materials,
• Money

Managers - to meet its goals.

 Organizational Performance
Managers use resources effectively and
efficiently to satisfy customers and to achieve
goals.
Efficiency: A measure of how well resources
are used to achieve a goal.

Effectiveness: A measure of the

appropriateness of the goals chosen and
the degree to which they are achieved.
 INTRODUCTION

 One of the most important human

activities is managing.

 Managing has been essential to ensure the

coordination of individual efforts.

 Task of managers has been rising in

importance.
 CONCEPT OF MANAGEMENT

The term management is used in three

alternative ways:
• Management as a discipline,

• Management as a group of people, and

• Management as a process.
 WHAT IS MANAGEMENT?

1.Field of Study -Management principles,

techniques, functions, etc. -Profession

2.Team or Class of people- Individual who

performs managerial activities or may be a
group of persons

3.Process-Managerial activities -planning,

organizing, staffing, directing, controlling.
DEFINITION - MANAGEMENT

• F.W. Taylor -“Art of knowing what you want to do and

then seeing that it is done the best and cheapest way”.
• Henry Fayol -“To Manage is to forecast, to plan, to
organise, to command, to co-ordinate and to control”.
• Peter F. Drucker -”Management is work and as such it
has its own skills, its own tools and its own
techniques”.
• “Management is the art of getting things done
through and with people”.
Different context of defining
management:
There are four such orientations have been
adopted in defining management process:
• Production-or efficiency-oriented,
• Decision-oriented,
• People-oriented, and
• Function-oriented.
Production- or Efficiency-oriented

“Management is the art of knowing what you

want to do and then seeing that it is done in the

best and cheapest way”

 Decision-oriented Definitions:

“Management is simply the process of

decision making and control over the action

of human beings for the expressed purpose

of attaining predetermined goals”

 People oriented Definitions:

“Management is the accomplishment

of

results through the efforts of other people”

Function oriented Definitions:

“To manage is to forecast and to plan, to

organize, to coordinate and to control”

 NATURE AND SCOPE OF
MANAGEMENT
The nature of management can be described as
follows:
• Multidisciplinary – it includes knowledge/information from various disciplines
• Dynamic nature of principles – it’s not fixed but need a relationship
between cause and effects

• Relative, not absolute principles – implemented according to needs

• Management: Science or Art - Know how to do it, yet the manager can
work better by using organized knowledge about management.

• Management as profession
• Universality of management - is essential for the effective performance
of any organized activity.
 IMPORTANCE OF
MANAGEMENT
The importance of management may be traced
in the following contexts:
• Effective Utilisation of Resources
• Development of Resources
• To incorporate Innovations
• Integrating Various Interest Groups
• Stability in the Society
MANGEMENT IS AN ART AND
SCIENCE

Art Science

•Practical know how •Empirically Derived

•Technical skills •Critically tested

•General principles
•Concrete results
•Cause and effect relationship
•Creativity
•Universal
•Personalised nature applicability
Functions of Management

The following are the functions of

management:
Planning,

Organizing,
Staffing,
Directing or Leading and
Controlling.
 Management Process
PLANNING
Select goals and ways to
Performance attain them
Attain goals
Efficiency
Effectiveness

CONTROLLING ORGANIZING
Monitor activities and Assign responsibility for
make correction task accomplishment
Resources
Men
Money
Machines

DIRECTING STAFFING
Use influence to motivate
Employment
employees
 Planning

Planning means “the determination of what is

to be done, how and where it is to be done, who

is to do it, and how the results are to be

evaluated.”
 Organising

Organising refers to the systematic

arrangement

of different aspects of the business operations to

achieve the planned objectives.

 Staffing

Staffing involves “man in the organisational

structure through proper and effective selection,
appraisal and development of personnel to fill the
roles designed into the structure.”
 Directing

In Directing, managers determine direction, state

a clear vision for employees to follow, and help
employees understand the role they play in
attaining goals.
 Controlling

In controlling, managers evaluate how well the

organization is achieving its goals and takes

corrective action to improve performance.

 Management Levels

Organizations often have 3 levels of

managers :
Lower Level Managers

Middle Managers

Upper Managers
Three Levels of Management

Top
Managers
Middle
Managers

First-line Managers

Non-management
 Roles of Manager
A role is a set of specific tasks a person performs
because of the position they hold.
Roles are directed inside as well as outside the
organization.
There are 3 broad role categories:
1. Interpersonal
2. Informational
3. Decisional
 Interpersonal Roles
Pertains to the relationship with others and are
related to the human skills:

1. Figurehead role – performs ceremonial and

symbolic duties such as receiving visitors, signing
legal documents.
2. Leader role – Directs and motivates
subordinates; trains, counsels and communicates
with subordinates
3. Liaison role – maintains information links
both inside and outside organization; using
internet access, mail phone calls and meetings.
 Informational Roles
Associated with the tasks needed to obtain and
transmit information for management of the
organization.

1. Monitor role – seeks and receives

information, scan periodicals and reports,
maintain personal contacts.

2. Disseminator – forwards information to other

organization members; send memoranda and
reports, make phone calls
 Decisional Roles
Associated with the methods managers use to plan
strategy and utilize resources to achieve goals.

1. Spokesperson – transmits information to outsiders through

speeches, reports, memoranda.

2. Entrepreneur – Initiates improvement projects; identifies new

ideas, delegates responsibilities to others.

3. Disturbance Handler– take corrective action during

disputes or crises; resolves conflicts among subordinates;
adapts to environmental crises.
4. Resource Allocator– take Distributes resources, sets
budgets and priorities.
5. Negotiator – represents department or company during
negotiation contracts, sales purchases, budget determination.
 Managerial Skills
There are three skill sets that managers need to
perform effectively.

Relative Importance Skills Needed by

by Management Level Manager
CONCEPTUAL SKILLS
FOCUS Ability to solve long term problems and
view the total organization as an
interactive system.

HUMAN RELATIONS SKILLS

FOCUS Ability to work effectively, lead and assure
harmonious interpersonal relations

TECHNICAL SKILLS
Ability to use tools apply specialized
knowledge, and techniques.
FOCUS
Skill Type Needed by Manager
Level

Top
Managers

Middle
Managers

Line
Managers

Conceptual Human Technical

Thank you