Introduction to Management

Concepts and managerial

skill
By Mr. Patwari A.N.
Introduction
Each and every one of us is a manager and practice
of management is found in every human effort
institutions, business, government or non government
organizations, associations, and families.
The development of management is generally studied
under three categories
A) Functional approach includes work of Henry Fayol
B) Scientific Management includes work of F . W .
Taylor, Frank Gilberth and Henry Gantt
C) Human Behavior Management includes work of
Robert Owen, Elton mayo, Mery parker fellet
Definitions of Management
Management is the activity of getting things done
with the aid of people and other resources.
Management means effective utilization and
coordination of resources such as capital, plant,
material, and labour to achieve defined objective with
maximum efficiency.
The process of setting and achieving goals through
the execution of five basic management functions i.e.
planning, organizing, staffing, directing, and
controlling that utilize human financial and material
resources.
Management: Science or Art?
Science is a systematic body of knowledge, study of
area through collecting data, classifying and measure
it, hypotheses and testing these hypotheses.
If we applied above criteria to management then the
body of knowledge deals with people.
Its study involve over years and continuous careful
observation and experimentation.
Its principles are not fundamental truths and the
application of principles are not identical in each
industry so some aspect of management are
scientific but much of it remains an art.
Art uses the known rules and principles and uses the
skill, expertise, wisdom, experience to achieve the
desired result.
Management has got two faces like a coin; on one side
it is art and on the other it is science. Management has
got scientific principles which constitute the elements
of Science and Skills and talent which are attributes of
Art.

Management is both art and science.

Characteristics of Management
1) Management is purposeful
2) Management is action oriented
3)Management associated with group efforts
4) Management achieved through efforts of others
5) Management is intangible
6) Management can ensure better life
Fayol’s Principles of Management
Henri Fayol (1841-1925)
There are 14 Principles of Management described
by Henri Fayol.
: Work of all kinds must
be divided & subdivided and allotted to various
persons according to their expertise in a particular
area.
Authority refers to the
right of superiors to get exactness from their
sub-ordinates . Responsibility means obligation for
the performance of the job assigned. Note that
responsibility arises wherever authority is exercised
 Discipline means sincerity, obedience,
respect of authority & observance of rules and
regulations of the enterprise . Subordinate should
respect their superiors and obey their order.
A sub-ordinate should receive
orders and accountable to one and only one boss at a
time. He should not receive instructions from more
than one person.
People engaged in the same kind
of business or same kind of activities must have the
same objectives in a single plan . Without unity of
direction, unity of action cannot be achieved.
 An organization
is much bigger than the individual it constitutes
therefore interest of the undertaking should prevail in
all circumstances.
The interests of any one employee or group of
employees should not take precedence over the
interests of the organization as a whole.
Remuneration to be paid to the
workers should be fair, reasonable, satisfactory &
rewarding of the efforts. It should accord satisfaction
to both employer and the employees.
Centralization refers to the degree
to which subordinates are involved in decision
making. Whether decision making is centralized (to
management) or decentralized (to subordinates) is a
question of proper proportion. The task is to find the
optimum degree of centralization for each situation.
 Scalar chain is the chain of superiors
ranging from the ultimate authority to the lowest.
Communications should follow this chain. However, if
following the chain creates delays,
cross-communications can be allowed if agreed to by
all parties and superiors are kept informed.
This principle is concerned with proper &
systematic arrangement of things and people.
Arrangement of things is called material order and
placement of people is called social order.
Equity means combination of fairness,
kindness & justice. The employees should be treated
with kindness & equity if devotion is expected of
them.
 Employees should not be
moved frequently from one job position to another i.e.
the period of service in a job should be fixed.
Initiative means eagerness to initiate
actions without being asked to do so . Management
should provide opportunity to its employees to
suggest ideas, experiences& new method of work.
: It refers to team spirit i.e.
harmony in the work groups and mutual
understanding among the members.
Levels of Management
1. Top Level:
Top management sets the mission and goals, develops policies,
evaluates the overall performance of various departments,
responsible for the business as a whole and is concerned mainly with
long-term planning.

2. Middle Level:
Middle level management develops departmental goals, executes the
policies, plans and strategies determined by top management ,
develops medium- term plans and supervises and coordinate
lower-level managers’ activities.

3. Lower (, frontline) Level:

Lower level management takes charge of day-to-day operations, is
involved in preparing detailed short-range plans, is responsible for
smaller segments of the business, executes plans of middle
management , guides staff in their own subsections and keep close
control over their activities.
 T op
M an agem en t
Presi dent, C E O ,
E x ecuti v e
V i ce Presi dents

M i d d le M an agem en t
Pl ant M anagers, D i v i si on M anagers,
D epartm ent M anagers

F ir st- L i n e M an agem en t
F orem an, S uperv i sors, O ffi ce M anagers
Non- Managerial Employees
Functions of management
1 is the process of setting goals, and charting the best way of action for
Planning achieving the goals. This function also includes, considering the various steps to be
taken to encourage the necessary levels of change and innovation.

2 Organizing is the process of allocating and arranging work, authority and

Organizing resources, to the members of the organization so that they can successfully
execute the plans.

3 A: Staffing is the process of filling the positions in the organization and keeping
them filled.
Staffing B: Staffing is the process of recruiting and selecting the right person for the right
job at the right time in the right place.

4 Leading involves directing, influencing and motivating employees to perform

essential tasks. This function involves display of leadership qualities, different
Leading leadership styles, different influencing powers, with excellent abilities of
communication and motivation.

5 Controlling is the process of devising various checks to ensure that planned

performance is actually achieved. It involves ensuring that actual activities
Controlling conform to the planned activities. Monitoring the financial statements, checking
the cash registers to avoid overdraft etc., form part of this process.
ORGANIZATIONAL
MANAGEMENT
An organization is the rational coordination of the
activities of a number of people for the
achievement of common goal, through division of
labour and function and through a hierarchy of
authority and responsibility.
STEPS IN FORMING AN
ORGANIZATION
1) Determine the objectives:
It includes various activities of shop floor such as receiving
of material, storing of material ,operating machines ,
maintenance of machines, welding, housekeeping ,
inspection, packaging etc.
2) Group the Activities:
Similar activities are combined and grouped into
departments. It includes recruitment, training of
employees, placing them in the right job.
3) Assign grouped activities to individuals :
Assign the various activities to different employees
according to their skill, experience, ability, knowledge.
4) Delegate authority and fix responsibility :
Once the departments are made delegate powers to the
managers and fix the responsibility, which helps in effective
working of teams, improving efficiency, and avoid wastage
of time ,effort, money.
5) Coordinate authority and responsibility
relationships :
Each individual is made aware of whom he has to take
orders from, to whom he has to report.
6) Provide physical facilities and proper environment :
physical facility : equipment, tools, safety device, machines
Environment: proper light, ventilation, rest hours, job security.
 TYPES OF ORGANIZATION
1) LINE ORGANIZATION
GENERAL MANAGER

MARKETING PRODUCTION HRD MANAGER FINANCE

MANAGER MANAGER MANAGER

Accountant
SUPERITENDENT 1 SUPERITENDENT 2 SUPERITENDENT 3

WORKERS
Advantages:
1) simple structure, easy to understand & implement.
2) flexible easy to expand and contract ,allows quick
decision making .
Disadvantages:
1) Executives are overloaded with too many duties,
2) because of multiplicity of tasks the executives
become jack of all but master of none.
3) communication is insufficient, large enterprises
cannot adopt this structure.
Application :
It is suitable for all small organizations eg. Sugar
factory, small workshop, paper industries.
2) LINE AND STAFF
ORGANIZATION
SECRETARY CEO LEGAL ADVISER

HRD MANAGER GENERAL MANAGER MARKETING

MAMAGER

WORKS MANAGER

SUPERITENDENT 2
SUPERITENDENT 1

FOREMAN

WORKER WORKER WORKER

Advantages:
It relieve the load of line manager.
It offers advice from specialist which improve quality of
decision.
Productivity improved ,scope for research and
development.
Disadvantages :
1)High salaries of staff executives result in high overhead
cost.
2) conflict between staff and line cause harm to
organization.
3)staff executive have no authority to control foreman and
workers so expertise may not reach to lower level.
Application :
Automobile, power generation, pharmaceutical industries.
 FUNCTIONAL ORGANIZATION

PRODUCTION SUPERITENDANT

GANG BOSS SPEED BOSS INSPECTOR

WORKER WORKER WORKER WORKER WORKER WORKER

Advantages :
1) Firm is benefited by specializations as specialist give
advice to worker.
2) workers have higher degree of efficiency sine they
perform single operation. Quality work improved.
3) one executive is responsible for one function.
4) accidents are reduced.
Disadvantages :
1) Every worker receive instruction from different
supervisors he may get confused.
2) difficult to maintain discipline, lack of
coordination ,expert blame each other for mistakes,
workers will not try to learn themselves.
Application:
It is used organizations where highly specialized work to
be performed by subordinate. Eg. college
 PROJECT TYPE ORGANIZATION

CEO

MARKETING MANAGER HRD MANAGER

MANAGER PROJECT A MANAGER PROJECT B

Mfg Engg Sub Mfg manager Procurement Sub contractors

manager manager contractors manager

Fabrication Software Contractor s Fabrication assembly Contractors

assembly civil
Advantages :
1) quick decision making, problem reorganization
simple.
2) manager has full control over team & team has full
control over resources.
Disadvantages:
To meet deadline employees get overloaded.
There may be tendency stretch out work during sloe
periods.
Application :
L&T ,TCS, WIPRO, INFOSYS.
Planning
Planning is deciding in advance what to do ,when to
do and hoe to do . It involves selection of objectives,
policies, procedures, and programs from all
alternatives.
Types of plan
1) On the basis of nature :
a) Operational plan : These are usually developed by
managers, supervisors, team leaders. They govern
day to day operations of an organization. It is short
period plan of span up to 1 year.

b) Tactical plan : These are usually developed by

middle level managers. It is about action plan to
implement strategic plan by units within each division.
It ensure implementation of strategic plan on the day
to day basis.
c) Strategic plan: These plan are formulated by the
top level management for a long period of time of five
years or more. It is determination of long term
objective of enterprise, the action plan to be adopted
and the resources to be mobilized to achieve the goal.
2) On the basis of management level :
a) Top level plans : These plans are long term plans
and are about the objective, budget, policies of
organization. It is planed by general managers and
directors.
b) Middle level plans: The plans formulated by the
departmental level manager.
c) Lower level plans : These plans are formulated by
supervisors they work on actual problem related to
job and prepared for short period of time.
3) On the basis of time :
a) Long term plans : These plans are normally made
for a minimum period of 5 years. It determines the
path for business owner to reach their business goal.
b) Intermediate plans : Intermediate plans are six
months to two years. These plans relate to tactical
plan.
c) Short term plans : The short term plans are
generally for few weeks to most a year. It allocates
resources for day to day business development within
strategic plan.
Steps in Planning
Planning is the fundamental process in management
which moves gradually and step-by step approach is
usually adopted.

Considering Finding
Setting planning alternative
objective/goal environment

Implementing Selecting the best Evaluating

plan alternative alternative
Functional Areas of Management
1) Finance and Accounting : All business related activities like
production, marketing, or personal requires continuous flow of
funds.
a) Management accounting : It deals with analysis and
interpretation of financial records so that management can
take certain decision.
b) Financial Accounting : It deals with record keeping of
various transaction.
c) Costing : It deals with recording of costs, classification and
analysis for cost control.
d) Investment Management: It deals with how financial
resources can be invested in various alternatives to maximize
profit.
2) Production : Production is related to both goods
and services. Production management is also called
Operation management.
a) Purchasing : It is related with purchase of various
material required by organization.
b) Material management : It involves storing of
material and issue of material.
c) Research and development : It deals with
improving the product and process and developing
new product.
3) Marketing : marketing involves the distribution of
product to end user.
a) Marketing Research: It is related with systematic
collection, analysis of data related to marketing of
goods.
b) Advertising: It involves giving information about
product through different media.
c) Sales management : It deals with movement of
products and services to customers.
d) Personal selling : The seller directly contact with
buyer and convince them to by the goods.
4) Human Resource Management : It deals with the
management of human resources.
a) Human resource planning: It deals with identifying
the demand of employee in qualitative and
quantitative terms.
b) Recruitment and Selection: It deals with
Recruitment and selection of employee on various
position through internal and external sources.
c) Training and development : It deals with training
and development of employee for making them more
efficient.
Managerial skill
1) Conceptual Skill : It refers to the ability of a
manager to think in abstract, ability to analyze the
forces working in a situation, creative and innovative
ability .
It is his ability to conceptualize the environment, the
organization and his own job so that he can set
appropriate goals for his organization.
2) Technical Skill : It refers to a person’ s knowledge
and proficiency in any process or technique. This type
of skill is more important at the lower level.
3) Human Relation Skill : It is the ability to interact
effectively with people at all level.
Other skill of Managers
1) Diagnostics skill
2) Analytical skill
3) Technology
4) E – commerce
5) E- business
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