chapter -1 introduction of management

BBA SUBJECT

Principle of management notes
Chapter-1 
Introduction of management

Definition of management:-

Management is the process if getting things done with the aim of acheving organisational goal effectively and efficiently. Management is essential for all the organization.

Example, manager has to plan the object or goal of the firm, and organize resources to achieve that objective, appoint or select the employees who can implement these objective effectively and efficiently.

Effectively:- completion the task on time.

Efficiently:- completion the task with minimum cost.

Concept of management:-

There are four concept of management:-

1. Management as a process:- It is a process by which management create, operate, and direct purposive organization through systematic, coordinate and cooperated human effort. As a process, management consits of three aspects:- 

• Management is a social process:- it concerned with developing relationship among people. It is the duty of management to make interaction between people and productive and useful for obtaining organizational goal.

•  Management is an integrating process:- management undertakes the job of bringing together human, physical and financial resources so as to achieve organizational purpose. 

•  Management is a continuous process:- it is never ending process. It concerned with constantly identifying the problem and solving them by taking adequate step.

2. Management as an activity:- Like various other activities performed by human such as writing, playing, eating, cooking,etc. Management also an activity bwcausb a manager is one who accomplish the objective by directing the effort of others. Management as an activity include:-

• Informational activities:- A manager continuously give aur receive information orally or in written.
• Decisional activities:- pratically all the management activiteac are based on one or other type of decisions. The manger are continuously involve in decision of different kind since the decision are made by one manager.
• Inter-personal activities:- It involve achieving organizational goal through people. Manager should interact with superior as well as subordinate.

3. Management as a group:-  It refers to all those person who perform the task of managing an Enterprise. When we can say that, management of ABC company is good, we are referring to a group of people those who are managing.
4. Management as a discipline:- It refers to the branch of knowledge which is connected to study of principle and practice of basic administration. It specifices code of conduct to be followed by the manager and also various method for managing resources efficiently.

Characteristics of managemen:-
PIG GO MCD 
P - pervasive - Assumptions regarding future.
I - intangible forces - It cannot be seen but it's presence can be felt in the way of organization.
G - group activity - The work is to be done in group to achieve a organizational goal.
GO - goal oriented - It main aim to achieve the organizational goal.
M - multidisciplinary - management has been separate disciplinary but it draws knowledge and concept of various other disciplinary such as economic, society, statistics, etc.
C - continuous process - All the functions of management done by a manager in a continuous basis.
D - dynamic - It adopt when the changing takes place in environment.
Importance of management:- 
1. Management help in achieving group goal:- management helps in achieving group goal by giving a common direction to individual effort.
2. Management increase efficiency:- The main aim of every manager in any organization is to minimize the cost and to increase the output through effective planning, organising, staffing, directing and controlling, etc.
3. Management creates a dynamic organization:- The environment in which an organization works is subject to continuous changes and the peolpe who are working in the organization resist change because they don't want to move from a familiar and secure environment to a new environment.
4. Management helps in achieving personal objective:- With the help of self motivation and leadership technique, management helps individuals to develop spirit of cooperation, commitment and team Spirit, etc. that help them to achieve their personal goals as well.
5. Management helps in the development of the society:- An organization has many obligation towards different groups that constitute it. The process of fulfilling all the objective must helps in growth and development of the organization as well as society.

Nature of management:-
1. Management is a human activity:- It is an activity where human form the plan and implemented in human.
2. Management is a group activity:- It cannot be done by a single person, as it involve huge and wide variety of process. Not all people knows each and everything, as company is a huge Enterprise.
3. Management is needed at every level of the organization:- Manager at all these levels perform or needed management.
4. Management is all pervasive:- It required in all types of organization whether it is Political, social, cultural or business because it helps and directs various efforts towards a definite purpose.
5. Management is dynamic in nature:- Management has to make changes in goal, objective and other activities according to changes taking place in the environment.
6. Management is goal oriented process:- The success of any management activity is assessed by it's achievement of goal.
7. Management is a social obligation:-  
Purpose/ objective of management:-

1. Organizational objective:-

• To earn the reasonable profit.
• For survive of a firm.
• For the growth and expension.
• Improving a Goodwill of a firm.

2. Personal objective:-

• Opportunity of employees training and development.
• Fair remuneration or salary.
• Resonable secure services.
• Resonable working condition or good working condition.

3. Social objective:-

• Quality goods and services at reasonable price.
• Payment of tax to the government.
• Fair dealing with the consumer, supplier and competitor.
• Following the ethical values of society.

Management As A Science, As An Art and As A Profession---
              Management As A Science:-
1. Systematic body of knowledge:- Systematic study is available which is used to acquire the knowledge of science. So this feature is present in management.
2. Scientific principles are derived on the basis of logical and scientific observation:- They are very objective while doing observation but when manager are observing they have to observation of human being cannot be purely logical. So this feature is not present.
3. Principle are based on repeated experiment:- Scientist test these principle under different conditions and places. Manager also test and experiment managerial principle under different conditions and places. So this feature is present in management.
4. Universal validity:- Scientific principle have universal validity and application. Management principles are not exact like scientific principles, so it is not universal valid. So this feature is not present in management.
                          Conclusion:-
In the above discussion, we see that out of four feature  of Science only two features are present in Management. We can say that management is inexact or pseudo.
             Management As A Art:-
1. Systematic body of knowledge:- In every art there is systematic body and organized study material available to acquire theoretical knowledge of art. So this feature is present in Management.
2. Personalized application:- Every artist must have personal skill and creativity to apply that knowledge. So this feature is present in Management.
3. Based on practice and creativity:- The artist requires regular practice of art to became more fine and perfect. Without practice artist lose their perfection. So this feature is present in Management. 
                         Conclusion:-
In the above discussion, we see that all three feature of art is present in management. So we can say that Management is pure art or exact art.
         Management As A Profession:-
1. Well define body of knowledge:- A profession has a certain bases set of knowledge that acts as intructions and can be aquired by practice. So this feature is present in Management.
2. Restricted entry:- One cannot simply just enter into a profession. Instead, there are some eligibility criteria like an examination which the person needs to pass in order to enter into the professional domain. So this feature is not present in management.
3. Presence of professional association:- Every profession is further the lookout of their respective association. So this feature is not present in management.
4. Ethical code of conduct:- There are certain ethics which the torch bearer of evrev profession has to abide by. These guide the behavior of the member. So this feature is not present in Management.
5. Service motive:- The aim of every profession is to serve the clients. This further means that a professional is required to render committed and dedicated and service to insure fulfillment of clients interest. So this feature is not present in management.
                       Conclusion:-
We can conclude that presently all the feature of profession are not present in Management except one. We can say, that management is full fledged management.
Level of management:-
1) Top level management:- It consists of chairman, board of director, managing director, president, C.E.O, C.F.O, etc.
2) Middle level management:- It consists of department heads such as purchase department heads, finance manager, executive official, etc.
3) Lower level management:- It consists of supervisor, superintendent, foreman, etc.
Function of management:-
(a) Planning:- It refers to deciding in advance what to do, how to do, when to do, and who is going to do it.
(b) Organising:- Every manager is to organise the activity and establishing an organization structure to execute the plan.
(c) Staffing:- It refers to selection of employees and assinging duties.
(d) Directing:- It gives intructions to employees by motivating them.
(e) Controlling:- Try to match the actual performance with planned performance.
                      Classical Approach
Classical approach is based on the belief that workers only have physical and economic needs. It does not take into account social needs or job satisfaction, but instead advocates a specialization of labor, centralised leadership and decision making, and profit maximization.
  Prons and cons of classical approach:-
Contribution:-

• Identify management as an important element of organised society.
• Acknowledge the importance of manager.
• It provides basis of training of new manager.

Limitations:-

• Two simplistic for today's complex organization.
• More appropriate for stable and predictable environment.
• Shallow understanding of human and how people intract.

          Classical Approach are:-

1. Scientific management (F.W. Taylor)
2. Administrative management (Henry Fayol)
3. Bureaucratic management (Max Webber)

               (A) Scientific Management
Scientific Management given by F.W. Taylor and scientific principles are:-

1. Replacing rule of thumb with science:- We focus on scientific method rather than traditional. Decisions are made on the basis of facts and by the application of scientific decision.
2. Harmony, not discord:- Both the management and the worker should realize the importance of each other. Taylor, suggested complete mental revolution on the part of both.
3. Cooporation between management and worker:- Proper linkage between organizational objective and individual objective.
4. Maximum output in place of restricted output:- Employees should focus only the maximum output of an organization and optimum utilisation of resources.
5. Development of worker through scientific selection and training:- There should be scientifically designes procedure for the selection of workers. According to taylor, efforts should be made to develop each employee to his greatest level and efficiency and prosperity.
6. Division of responsibility:- Division of responsibility is based on skill, experience, qualification, etc.

Critical Evaluation Of Scientific Management:-

• This approach is more focus on agressive, mechnical view rather than human aspect.
• Work is perform under close and strick supervision based on authoritarian approach.
• Scientific standards are set by mangemmana(that was only to rise the production) worker had to follow strickly.

     (B) Administrative management
It is given by Henry Fayol and principles are:-

1. Division of labor:- The whole work must be divided into small units or task. The work should be assigned to a person according to their capabilit, skill, etc.
2. Discipline:- It means developing commitment in the employees towards organization as well as towards each other.
3. Unity of command:- According to this,"one boss means one unit", every subordinate get the order from one superior.
4. Unity of direction:- According to this, "one unit means one plan", all the members and employees of the organization must be directed towards one coordination.
5. Authority and Responsibility:- Authority means power to take decision. Responsibility means obligation to complete the job assigned on time. Excess aithoauth may bring negative result and excess responsiblity will not allow worker to complete his job on time.
6. Subordinate of individual interest towards general interest:- In organization all the employees are working with some objective and there is always an objective of organization. Try to achieve personal objective with organizational objective not by scarifying organizational goal.
7. Remuneration:- The employees and workers will get maximum wages or salary or remuneration and their remuneratio, wages or salary must be fair.
8. Centralisation and decentralisation:- Centralisation refers to concentration of authority in Few hands at the top level. All the industry (small or large) should need the combination of both centralised and decentralise.
9. Principle of order:- All the employees of an organization must have work station, cabinet, etc. and tools and raw material also have their fixed place.
10. Principle of equity:- Equality between all the employees who are working in an organization.
11. Principle of scalar chain:- Scalar chain means line of authority. The employees communicate their problem to their superior and to the different position superior.
12. Stability of tenure:- All the employees feeling job security. If employees feel that their job is not sure then they shift to the other organization.
13. Initiative:- Initiative means self - motivation. The employees get motivated time to time. The manager should motivate their employees by giving them training and provinding them good working condition.
14. Espirit De Crops:- The organization should work on team. ''I" should replace with "We".

          (C) Bureaucratic Management

There are five principles of bureaucratic management:- 

1. Well - defined hiearchy:- Officers are organised in an hierarchy in which higher officer controls lower position holder.
2. Division of labor:- The whole work divided into small units, tasks or job units. The work should be assigned to a person according to their capability, skill, specialization, qualification, etc.
3. Effective standards:- Guidelines objective should be clearly led down by top level management policy objective decision taken by top management should be rational.
4. Competency:- Selection of employees in an organization is based on skill, knowledge and competency.
5. Record:- It maintain the record and it I'd the wastage of time and delay in decision making.

   MANAGEMENT AND ADMINISTRATION

Management:-

Management involves conceiving, intiating and bringing together the various element; coordination, actuating, integrating the diverse organization components while sustaining the viability of the organization towards some pre - determined goals.

Administration:-

Administration means overall determination of policies, setting of major objectives, the identification of general purposes and laying down of board programmes and projects.

DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION:-