BASIC CONCEPTS OF MANAGEMENT

INTRODUCTION
Why study Organisations and Management ?
Members of one organisation or another
A college
A Sports team
a business, etc.
Basic element of any organisation-GOAL OR
PURPOSE.
Some programs or methods for achieving goals - a
PLAN.
Allocate and acquire the resources necessary to achieve
goals.
Need people responsible for helping in achieving the
goals-
MANAGERS



WHAT IS MANAGEMENT?
DEFINITION I
For the purpose of study-
Management is the process of planning,
organizing, leading, and controlling the
resources of an organisation in the efficient
and effective pursuit of specified
organisational goals.
- Burton & Thakur
EFFICIENCY AND EFFECTIVENESS
EFFICIENCY- Ability to maximize the use of
resources in achieving organisational
objectives- doing things right
Input- output concept.
EFFECTIVENESS- Ability to determine
appropriate objectives: doing the right
things
Involves choosing right goals.

PRODUCTIVITY

Surplus is created through productive
operations.
Definition:
Productivity is the output-input ratio
within a time period with due consideration
for quality.
Productivity = output
inputs
(within a time period and quality
considered)
DEFINITION II

Management is the process of designing
and maintaining an environment in
which individuals , working together in
groups, efficiently accomplish selected
aims.

- Harold Koontz & Heinz Weihrich

EXPLANATION
Following managerial functions are carried out
Planning
Organizing
Staffing
Leading
Controlling
Applies to any kind of organisation.
Aim of all managers is the same- TO CREATE
SURPLUS.
Applies to managers at all organisational levels.
Concerned with productivity (effectiveness and
efficiency).

DEFINITION III
Management is the process of functions,
and there are five major functions
To forecast and plan
To organize
To command
To co-ordinate
To control
- Henri Fayol

Management As A Science
Systematized body of knowledge covering
general truths or the operation of general
laws.
Better work by using the organized
knowledge about management.
Organized knowledge underlying the
practice.

MANAGEMENT AS AN ART
Managing as practice.
Learning from mistakes and polishing
managing art.

Science and art are not mutually exclusive;
they are complementary.
MANAGEMENT AS A PROFESSION
Occupation for which specialized knowledge,
skills, and training are required.
Use of these skills for larger interests of the
society not for self- satisfaction.
Success is measured not in terms of money
alone.
Certain Characteristics of Profession
Missing in Management
1. No formal education requirements for entry into
management.
2. No system of accreditation or licensing for
managers.
3. Managers do not have specific clients.
4. No clear code of managerial ethics.
5. No common body of knowledge required for
understanding someone to be a manager.

Thus, Management is moving closer to the state of
professionalism.
Management Functions at Different
Organisational Levels
Management Levels
1. First- Line Managers:
Responsible for the work of operating
employees only and do not supervise other
managers.
First or lowest level managers in the
organisational hierarchy.


2. Middle Managers:
Managers in the midrange of the
organisational levels.

Responsible for other managers and
sometimes for some operating employees.

Report to more senior managers.


3. Top Managers:

Responsible for the overall management of
the organisation.

Establish operating policies.

Guide the organization's interaction with its
environment.

Management Functions
1. PLANNING
Process of establishing goals and a
suitable course of action for achieving
those goals.
Actions are based on some method, plan or
logic.
Plans are the guides by which
The organisation obtains and commits
the resources.
Members of the organisation carry on
activities consistent with the chosen
objectives and procedures.
Progress toward the objectives is
monitored and measured to take
corrective actions.

2. ORGANIZING
Process of engaging two or more people
in working together in a structured way to
achieve a specific goal or set of goals.
Different goals require different
structures.
Bridge connecting the conceptual idea
in creating and planning to the specific
means for accomplishing ideas.
3. LEADING
Process of directing and influencing the task-
related activities of group members or an entire
organisation.
Management of human resources.
Interpersonal task of motivating the individual
employee.
Motivate the work unit, work group or
department as a complexity of individuals.
Management of organizational power, political
forces and organizational culture.
Management of organizational communication
processes.
4. CONTROLLING
Process of ensuring that actual activities
conform to planned activities.
Main Elements:
Establishing standards of performance.
Measuring current performance.
Comparing this performance to the established
standards.
Taking corrective actions if deviations are
detected.
PLANNING
Managers use logic &
methods to think
through goals and
actions.
ORGANIZNG
Managers arrange &
allocate work, authority,
and resources to achieve
organizational goals.
LEADING
Managers direct,
influence and motivate
employees to perform
essential tasks.
CONTROLLING
Managers make sure
an organisation is
moving towards
organizational
objectives.
THE INTERACTIVE NATURE OF THE MANAGEMENT FUNCTIONS
0
10
20
30
40
50
60
70
80
90
Planning Organizing Leading Controlling
First line
Managers
Middle
managers
Top
managers
IMPORTANCE OF MANAGEMENT FUNCTIONS AT DIFFERENT LEVELS