MANAGEMENT FUNCTIONS AND

ORGANIZATIONAL BEHAVIOUR
PUSHKAR SOM
SESSION 1
 WHAT IS MANAGEMENT
MANAGEMENT

Manage Men Tactfully

DEFINITIONS OF MANAGEMENT
 Management is the art of getting things done
through others and with formally organized
groups. – Harold Koontz
 Management is a multipurpose organ that
manage a business and manages Managers and
manages Workers and work. – Peter Drucker
 Management is the art of knowing what you
want to do and then seeing that they do it in
the best and the cheapest way. - F.W. Taylor
 NATURE OF MANAGEMENT
 Multi-disciplinary: Concepts drawn from
various subjects.
 Dynamic principles: Flexible principles,
changing with environment.
 Relative, not Absolute principles: Different
principles in different organizations
 Universal phenomenon: Used in all companies
globally.
FEATURES OF MANAGEMENT
 Organized activities: Well planned activities
organized systematically
 Existence of Objectives: To provide direction to
the organized activities
 Relationship among resources: Integration of
man, money, material and machine.
 Working with and through people: Getting things
done by people while coordinating with them.
 Decision making: Selecting most appropriate
alternative out of all.
IMPORTANCE OF MANAGEMENT
 Effective Utilization of Resources: Satisfying
unlimited needs with limited resources
 Development of Resources: Both human and non-
human resources
 Encourage Innovations: Keep up with changes in
the society
 Integrating various Interest Groups: Shareholders,
Employees, Customers, Government
 Stability in Society: Modifying resources
according to societal changes
SESSION 2
 SCOPE OF MANAGEMENT
 Production/Operations: Purchasing, Materials
Management, R&D
 Marketing: Advertising, Sales Management,
Marketing Research
 Finance and Accounting: Financial and
Management Accounting, Costing, Investment,
Taxation
 HR: Recruitment and Selection, Training and
Development, Compensation, Industrial
Relations
FUNCTIONS OF MANAGEMENT
 Planning: Determining future course of action
 Organizing: Dividing work into smaller task
 Staffing: Selecting right people for the right job
at the right time
 Directing: Getting the work done by people
 Controlling: Identifying results, comparing
them with standards and pointing out
deviations
 VS

MANAGEMENT – SCIENCE OR ART?

MANAGEMENT AS A SCIENCE
 Universally accepted principles: Principles are
true irrespective of the situation in which they
are applied.
 Experimentation & Observation: Principles
are tested repeatedly before final approval.
 Cause and Effect Relationship: Principles have
a cause-effect relationship.
 Verifiable Principles: Principles are tested for
validity.
 MANAGEMENT AS AN ART
 Practical knowledge: Applicable in real world
 Personalized skills: Every person has unique
style of applying a skill.
 Creativity: Aims at producing something that
never existed before.
 Perfection through practice: Continuous
practice brings proficiency.
 Situational Application: Can be applied only
in a particular situation.
 MANAGEMENT IS BOTH ART AND
SCIENCE
 Combines features of both science as well as
art.
 Organized body of knowledge which contains
certain universal truth (Science)
 Requires certain skills which are personal
possessions of managers (Art)
 Science provides knowledge, Art deals with
application.
MANAGEMENT AS A PROFESSION
 CHARECTERISTICS OF A
PROFESSION
 Existence of knowledge: Used for instructing,
advising or guiding others
 Formal acquisition of knowledge: Entrance
possible only after gaining formal knowledge
 Professional association: Firms and individuals
regulating professional activities. Ex. Indian
Medical Council, Bar Council of India.
 Ethical codes: To ensure fair practices
 Service Motive: Social interest to be kept in mind
IS MANAGEMENT A PROFESSION?

POINTS IN FAVOUR POINTS AGAINST

 Well established body  No restriction on entry
of knowledge  Multiple associations
 Various associations to exist, but no compulsion
develop managerial to be a part of any of
proficiency them.
 Existence of ethical  Codes established by
codes various associations not
 Emphasis on serving enforceable.
social needs
 CONCLUSION

Management is
an EMERGING
PROFESSION.
SESSION 3
 VARIOUS MEANINGS OF
MANAGEMENT
 Management as an art of
getting things done.
 Management as a process.
 Management as a group of
managers.
 Management as a discipline.
 MANAGEMENT AS AN ART OF
GETTING THINGS DONE
 Management is a technique of
getting things done through others
by satisfying their needs and giving
them growth opportunities.
 Art of creating an environment in
which people can perform as
individuals and yet contribute
towards group goals.
 MANAGEMENT AS A PROCESS
 Management is that process by which managers
create, direct, maintain and operate purposive
organizations through systematic, coordinated
and cooperative human effort. – McFarland
 Why management is a process?
 Comprises of a series of steps to achieve certain
objectives.(Planning, Organizing, Staffing, Directing,
Controlling)
 Management does not end when the last step
(controlling) is over. Planning has to start again after
controlling.
 MANAGEMENT AS A PROCESS
 As a process, management has two
features:
 Continuous process: Planning is again
started after controlling.
 Interdependent and interrelated
functions: All functions are related to
each other.
 MANAGEMENT AS A GROUP OF
MANAGERS
 Management is the body or group of
people performing managerial
functions to achieve organizational
goals.
 People looking after the affairs of the
company.
 Generally used for Top
Management.
 MANAGEMENT AS A DISCIPLINE

 Widely recognized field of

study.
 Draws concepts from various
subjects like Anthropology,
Psychology, Sociology, etc.
 Both an art and a science.
MANAGEMENT VS ADMINISTRATION
 DIFFERENT VIEWS REGARDING
ADMINISTRATION AND MANAGEMENT
 Administration is higher than
management.
 Management is a generic term
encompassing administration.
 Management and Administration
are synonymous.
ADMINISTRATION IS HIGHER THAN
MANAGEMENT
 Administration is decisive function and
management is executive function.
 Admin deals with laying down policies, setting
objectives etc.
 Management deals with getting work done
through people.
 Proponents of this view: William Newman,
Oliver Sheldon, Ordway Tead.
MANAGEMENT IS A GENERIC TERM
 Management is a social process entailing
responsibility for the effective and economical
planning and regulation of the operation of an
enterprise in fulfillment of a given purpose. –Brech
 Administration is the part of Management
concerned with installation and carrying out of the
procedures by which the programme is laid down
and communicated, and the progress of activities
is regulated and checked against plans.
 Proponents of this view: Brech, Kimball and
Kimball
MANAGEMENT AND ADMINISTRATION
ARE SYNONYMOUS
 No difference between Management and
Administration in modern viewpoint.
 Management is used for higher level
functions like formulating policies,
planning, organizing, controlling in
business circles.
 Administration is used for the same set of
functions in the government circles.
 Both the terms can be used interchangeably.
 AVOIDING THE CONTROVERSY

 Two parts of management

 Administrative Management: Laying
down policies and determination of
goals
 Operative Management: Implementing
policies to achieve goals
 Both the functions performed by
same set of individuals called
managers
SESSION 4
 MANAGEMENT FUNCTIONS
 Henry Fayol: Forecasting and Planning, Organizing,
Commanding, Coordination and Control
 Ralph Davis: Planning, Organizing, Control
 Luther Gulik: PODSCORB (Planning, Organizing,
Directing, Staffing, Controlling, Reporting, Budgeting)
 Joseph Massie: Decision Making, Organizing, Staffing,
Planning, Controlling, Communicating and Directing.
 G. R. Terry: Planning, Organizing, Actuating,
Controlling
 Koontz and O’Donnell: Planning, Organizing,
Staffing, Directing, Controlling
 PLANNING
 Determining a course of action to achieve the
desired result
 Mental process requiring use of intellectual faculties,
foresight and sound judgement.
 Deciding in advance what to do, when to do it, how
to do it, and who will do it.
 Also determines how to evaluate results.
 Goals and Objectives need to be clarified before
taking any other decision.
 Bridges the gap between where we are and where
we want to be.
 STEPS IN PLANNING
 Determining goals and objectives.
 Forecasting future environment.
 Searching alternative courses of action.
 Evaluating various alternatives.
 Choosing an alternative as the plan.
 Formulation of policies and procedures.
 Preparing schedules, programmes and
budgets.
 ORGANIZING
 Bringing together human and material
resources to achieve pre-determined objectives.
 Establishes relationships between members of
the company
 Establishes authority and responsibility
relationships
 Organizing involves identification and
grouping the activities to be performed and
dividing them for the accomplishment of
organizational objectives. – Louis A Allen
 STEPS IN ORGANIZING
 Identifying activities required for
achievement of activities and
implementation of plans.
 Grouping of activities to create well
defined jobs.
 Assignment of jobs to employees.
 Delegation of authority to employees.
 Establishment of authority-responsibility
relationships.
 STAFFING
 Recruitment, Selection, Training and
Development, and Appraisal of personnel.
 Every manager manages Human Resources,
thus he performs staffing function.
 Some authors consider it a function of
Organizing, as it involves filling vacant
positions.
 Some also consider it as a function of Directing,
as it deals with leadership, communication and
motivation.
 DIRECTING
 Directing involves determining the
course, giving orders and instructions,
and providing dynamic leadership. -
Marshall
 Deals directly in motivating, influencing,
guiding and supervising employees.
 Directing means moving to action and
supplying stimulative power to a group
of persons. – G. R. Terry
 SUB-FUNCTIONS OF DIRECTING
 Communication: Passing of information
and understanding from one person to
another.
 Leadership: Process by which a manager
guides and influences the behaviour of
his subordinates.
 Motivation: Inspiring subordinates with
a zeal to do work for the accomplishment
of organizational objectives.
 CONTROLLING
 Measurement and correction of the
performance of subordinates against pre-
determined standards.
 The process of checking the actual performance
against the agreed standards with a view to
ensure satisfactory performance. – EFL Brech
 Verifying whether everything occurs in
conformity with the plans adopted, the
instructions issued, and principles established.
- Fayol
 STEPS IN CONTROLLING
 Establishment of standards: To compare
the performance of the employees
 Measurement of performance: In terms
of quantity, quality, cost and time.
 Appraisal of performance: Comparing
actual performance with the standards
set.
 Taking corrective action: To avoid
deviations in future.
ASSIGNMENT