Chapter 1

Copyright © 2016 Pearson India Education Services Pvt. Ltd

Introduction to Management

Principles of Management Author: Pravin Durai

 After reading this chapter, you
should be able to

Copyright © 2016 Pearson India Education Services Pvt. Ltd

 Understand the meaning and characteristics of
management
 Enumerate the objectives, levels and functions of
management
 Discuss the roles of management
 Differentiate between management and
administration
 Debate whether management is science, art or
profession
 List the challenges facing management

Principles of Management Author: Pravin Durai

 What is management?

Management is all about managing people effectively and

Copyright © 2016 Pearson India Education Services Pvt. Ltd


dealing with people-centered problems professionally.

 Managers need to lead, inspire, direct and decide on

matters relating to employees in a way that facilitates the
accomplishment of short- and long-term goals of the
organization.

Principles of Management Author: Pravin Durai

 Definition of Management

 Management is a process concerned with effective

Copyright © 2016 Pearson India Education Services Pvt. Ltd

utilization of human and physical resources for attaining
organizational and individual goals through a facilitating
environment

Principles of Management Author: Pravin Durai

 Characteristics of management

 Management is a process,

Copyright © 2016 Pearson India Education Services Pvt. Ltd

 It is a goal-directed activity,
 It is a decision-making activity,
 It involves effective integration and utilization,
 It is practiced at different levels of an organization,
 It is universal in character and
 It is a group-based activity.

Principles of Management Author: Pravin Durai

 Objectives of Management

 To accomplish the predetermined performance and

Copyright © 2016 Pearson India Education Services Pvt. Ltd

productivity goals of the firm
 To develop an environment which facilitates minimum
use of physical and human resources to achieve
maximum output
 To build up a mutually beneficial relationship between
employers and employees
 To ensure stability and growth to the operations of the
organization
 To work continuously toward the betterment of the
society by satisfying organization’s social responsibilities
in an efficient and fair manner

Principles of Management Author: Pravin Durai

 Levels of Management

 Top Management- Managers who operate from the

Copyright © 2016 Pearson India Education Services Pvt. Ltd

highest level of an organization are usually called top
managers. These managers are generally few in numbers
but vested with enormous powers
 Middle Management- Managers belonging to this
category are located in between the top management and
front-line management. They get goals, orders and
directions from the top-level management and implement
them through front-line managers
 Frontline Management- These managers are positioned
at the bottom of the managerial hierarchy. They act as
the liaison between the management and the workers.

Principles of Management Author: Pravin Durai

 Functional classification of
management

Copyright © 2016 Pearson India Education Services Pvt. Ltd

 Production management
 Marketing management
 Financial management
 Human resource management

Principles of Management Author: Pravin Durai

 Managerial process or functions
 Planning: It forms the basis and provides direction for other
managerial functions Planning helps an organization in
formulating clear cut objectives and determining the best course

Copyright © 2016 Pearson India Education Services Pvt. Ltd

of action for achieving them
 Organizing: It involves arrangement and allocation of necessary
physical and human resources for achieving the goals of the firm
 Staffing: This function involves the selection of right person at
the right time for the right position at the right cost. Managers
may do staffing function jointly with the HR managers or alone in
the absence of an exclusive HR department.
 Leading(Directing): Leading aims at positively influencing the
behaviour of subordinates. It involves activities like directing,
communicating with and motivating the employees.
 Controlling: This function involves the verification of the
efficiency of the individuals and groups in accomplishing the
organizational plans and goals by means of follow up measures.

Principles of Management Author: Pravin Durai

 Managerial roles

i. Interpersonal roles- examples: Figure head, leader and

Copyright © 2016 Pearson India Education Services Pvt. Ltd

liaison roles
ii. Informational roles- examples: monitor, disseminator
and spokesperson,
iii. Decisional roles. Examples: Entrepreneur, Disturbance
handler, Resource allocator, Negotiator

Principles of Management Author: Pravin Durai

 Managerial Skill for Success

Human skills

Copyright © 2016 Pearson India Education Services Pvt. Ltd


 Conceptual skills
 Technical skill
 Political skills
 Diagnostic skills
 Digital skills

Principles of Management Author: Pravin Durai

 Administration vs. Management
Administration
 Determinative function
 Scope is wider
 Objectives and policies
formulations are the top
priorities
 It is a top level activity
 Planning and organizing are
the essential functions of
administration
 Conceptual skills
 It consists of people who act
on behalf of the capital
holders of the enterprises
 Influenced by external
factors
 Associated with non-business
enterprises
Principles of Management
Management
 Executive function
 Scope is limited
Copyright © 2016 Pearson India Education Services Pvt. Ltd
 Fulfillment of those objectives and
plans is the priority of the management
 Middle and supervisory level activity
 Controlling and employee motivation
are the important functions of
management
 Technical skills
 It Consists of people who are
professionals in their area of operations
and employed by the organization
 Influenced by internal factor
 Associated with business enterprises
Author: Pravin Durai
 CRITERIA Of A Profession

 An organized body of knowledge

Copyright © 2016 Pearson India Education Services Pvt. Ltd

 Formal Education and Training
 Existence of association
 Existence of an ethical code
 Charging of fees

Principles of Management Author: Pravin Durai

 Challenges Facing Management

Cultural diversity in work force

Copyright © 2016 Pearson India Education Services Pvt. Ltd


 Technological developments
 Interdependent nature of work
 Ethical dilemma in decisions
 Global perspectives
 Cross-Functional Excellence

Principles of Management Author: Pravin Durai

 Strategic Management

Strategic management is the systematic process of

Copyright © 2016 Pearson India Education Services Pvt. Ltd

determining goals to be accomplished in the future. It may
involve studying the internal and external environment of
an organization
Steps in the Strategic Management
Process
 Determination of Vision and Mission
 Analysing the Environment
 Strategy Formulation
 Strategy Implementation
 Performance Evaluation

Principles of Management Author: Pravin Durai