1.nature Of Management

Principles of Management

Basics of Management        

Concept of Management Management – Definitions Features of Management Importance of Management Management – Art, Science and Profession Professionalisation of Management Traditional vs. Professional Management Levels of Management

Principles of Management

Concept of management

 New concept, used in 3 alternative ways1. 2. 3.

as a discipline as a group of people as a process

Principles of Management

… as a discipline

 Discipline is a field of study with well defined concepts and principles  Management refers to (includes) various concepts and principles  Knowledge of these principles, aid in managing

Principles of Management

… as a group of people

 People who perform managerial functions  E.g. relationship between management and labour  Here management refers to a group of people

Principles of Management

… as a process

 Process is a systematic method of handling an activity  Managing consists of different activities  Thus it’s referred to as a process

Principles of Management

Definitions  Management is the accomplishment of results through and with people in formal organised groups - Harold Koontz  Management is a multi purpose organ that manages business, managers, workers and work - Peter Drucker  To manage is to forecast and to plan, to organise, command, coordinate and control - Philip Kotler

Principles of Management

 Management is nothing but getting work done, by organized use of resources, to achieve desired goals  It is a process involving planning, organising, staffing, directing and controlling human efforts to achieve stated objectives in an organisation

Principles of Management

Features of Management  Organised activities  Existence of objectives  Relationship among resources  Working with and through people  Decision making

Principles of Management

Importance of Management

       

Effective utilisation of resources Development of resources Incorporates innovation Motivates employees Expansion of business Reduces turnover/absenteeism Integrating various interest groups Brings stability in the society

Principles of Management

Management- a Science?

 Management provides principles/laws, just like science  Scientific principles/laws consistent; management principles are in a young state and not absolutely exact  Management is a body of knowledge  Mgmt collects info through observation/experiments  Science is universal- it can be tested multiple times to give same results  Management principles give different results under varying conditions  Management theories get affected by bias of researchers, unlike those of science

Principles of Management

Management- an Art?

 Management uses skills and knowledge  Creativity is a common factor among both  Scope of further improvement always present in both- no ‘one best way’ to do it

Principles of Management

Art and science - Both!

Art

Science

Advances by Practice

Advances by Knowledge

Feels

Proves

Guesses

Predicts

Describes

Defines

Opines

Measures

Principles of Management

Management as profession

What is profession? Profession is in which one professes to have acquired a specialised knowledge which is used in instructing, guiding or advising others. For Management to be a profession, all the characteristics of a profession must hold good for it. Let us have a look at the characteristics of profession

Principles of Management

Characteristics of a profession  Existence of Knowledge – developed over 5-6 decades  Acquisition of knowledge – Mgmt knowledge can be acquired (though not restricted to mgmt graduates only)  Specialised skills needed as in every other profession  Professional association – All India Management Association etc  Ethical codes – exist, but not widely publicised/practiced  Service motive – mgmt professional keep social interests in mind

Principles of Management

Professionalisation of Management

 Professional managers need to have a certain set of qualities, to excel in the field  Obtaining professional qualifications though study of business at B-schools  Not a compulsory requirement, though formal education prepares managers in several ways

Principles of Management

Qualities of a manager

      

Self motivation Knowledge of aspects of management Self discipline Innovation/creativity Enthusiasm Empathy Commitment

Principles of Management

Traditional vs. professional mgmt

Traditional

Professional

Family owned

Shareholders

Autocratic

Democratic

Centralised decision making

Participative mgmt

Popular in India

Popular in the west

Downward communication

Two way communication

Promotion-loyalty basis

Promotion –merit basis

Principles of Management

Levels of management

T o p le v e l m g m t (C E O /C O O /M D )

M id d le m g m t H O D -M k tg

S a le s M a n a g e r s

M a r k e t in g t e a m

M id d le m g m t H O D - F in a n c e

A c c o u n ta n ts

M id d le m g m t H O D - P ro d u c t io n

S u p e r v is o rs

W o rk e rs