Chapter -1
Notes
Meaning of Management:
Management refers to a set of activities required when two or more individuals work together to achieve a common goal. It involves planning, assigning responsibilities and authority, guiding actions, and ensuring everything is completed efficiently and on time. These collective activities form the core of what we call Management.
Definitions of Management:
Koontz and O’Donnell:
“Management is the art of getting things done through others.”
Dr. George R. Terry:
“Management is the process that plans and controls men, machines, materials, methods, money, and markets. It provides leadership, coordination, and direction to human efforts to achieve business goals.”
Nature of Management:
Universal Process – Applicable in all types of organizations.
Goal-Oriented – Aimed at achieving specific objectives.
Group Activity – Involves two or more people working together.
Continuous Process – Ongoing and never-ending.
Human Activity – Performed by and for human beings.
Decision-Making – A core function of management.
Science, Art, and Profession – Combines systematic knowledge, skill, and professional ethics.
Importance of Management:
Essential in every field.
Ensures optimal use of resources.
Vital for achieving business objectives.
Determines the success or failure of an organization.
Creates job opportunities.
Increases profits through efficient functioning.
Helps provide goods/services at reasonable rates.
Crucial for the economic and social progress of the nation.
Management as a Science, Art, and Profession:
As a Science: Involves systematic study, principles, and cause-effect analysis.
As an Art: Involves personal skill, judgment, and experience.
As a Profession: Requires specialized knowledge (e.g., BBA/MBA), code of conduct, and professional ethics.
Levels of Management:
Top Level (e.g., CEO, Directors):
Sets overall goals and policies.
Approves budgets and strategies.
Takes strategic and legal decisions.
Analyzes reports and ensures plan implementation.
Middle Level (e.g., Department Heads, Managers):
Implements top-level instructions.
Prepares departmental budgets.
Develops policies and procedures.
Coordinates with other departments.
Motivates and supervises staff.
Bottom Level (e.g., Supervisors, Foremen):
Directly oversees workers.
Plans daily tasks and ensures discipline.
Arranges materials and equipment.
Executes decisions and sends feedback to higher levels.
Functions of Management:
Planning – Setting objectives and deciding in advance the actions to achieve them.
Organizing – Structuring work and resources to accomplish plans.
Staffing – Recruiting, training, and developing the workforce.
Directing – Leading and motivating employees.
Controlling – Monitoring and correcting performance to ensure goals are met.
Coordination: Meaning and Importance
Meaning:
- Coordination ensures harmony and cooperation among various functions and departments, making the management process effective from planning to controlling.
Characteristics:
Essential at all levels.
Relies on effective communication and cooperation.
Enables proper use of resources.
Present in every managerial activity.
Importance:
Enhances efficiency of all management functions.
Avoids work duplication and ensures timely task completion.
Maintains harmony across departments.
Helps achieve pre-set objectives smoothly.
Functional Areas of Management:
Marketing Management:
Meaning: Ensuring goods/services reach consumers through research, distribution, pricing, and promotion.
Functions:
Product development and packaging.
Pricing decisions.
Distribution strategy.
Promotion through advertising, publicity, and sales.
Human Resource Management (HRM):
Meaning: Managing employee skills, development, and integration with business goals.
Functions:
Recruiting and training.
Job evaluation and placement.
Performance appraisal.
Retention and employee satisfaction.
Importance:
Increases efficiency, job satisfaction, and profitability.
Enhances reputation and reduces turnover.
Maintains high product/service quality.
Financial Management:
Meaning: Managing funds efficiently by arranging, planning, and controlling financial resources.
Functions:
Financial need assessment.
Budget preparation and planning.
Fund allocation and capital structuring.
Investment and taxation planning.
Controlling and monitoring fund usage.
Production Management:
Meaning: Planning and controlling the process of converting raw materials into finished goods.
Functions:
Production planning and scheduling.
Product research and development.
Technology and machinery selection.
Quality and cost control.
Maintenance and productivity enhancement.
Simplification and innovation in production processes.