MANAGEMENT- DEFINITION

Management is the art of securing maximum results with the minimum of efforts so as to secure maximum prosperity and happiness for both the employer and the employees and give the public the best possible service.

Management is the art of getting things done through and with the people in formally organized groups.

- Harold, Koontz and O’Donnell

MANAGEMENT IN 3 SENSES

Management as a Noun - Group of Managerial persons

Management as a Process

- Planning, organizing, staffing, directing, controlling

Management as a Discipline - Separate field of study

OBJECTIVES OF MANAGEMENT

Protecting the owner’s interest. Helpful in achieving the predetermined objectives. Helpful in the development of labour force. Getting maximum results through minimum efforts. To increase the efficiency of the factors of

production. To maintain cordial relationship between Capital

and Labour. Maximum utilization of all the available resources.

NATURE/ CHARACTERISTICS OF MANAGEMENT

Goal Oriented Process It is all Pervasive Multidimensional Continuous Process It is a Group Effort Dynamic Function

Contd..

Intangible Force Distinct Entity It is a Process It is an Inborn & Acquired Ability It involves Social Responsibility It is Multidisciplinary.

IMPORTANCE OF MANAGEMENT

Reduce Costs Establishes a sound organization Maintains Equilibrium Generation of employment Essential for prosperity of an organization. Management helps to overcome

competition

Contd…

Survival & growth of an organization It shoulders social responsibilities Management helps in research &

investigation Development of the nation.

Management & Administration

3 views- Administration is wider than management. Management is wider than administration Management and administration are same.

Administration is above management(American Concept)

Supported by Oliver Sheldon, William Spriegal etc.

Administration is the function in the industry concerned with the determination of the corporate policy, the coordination of finance, production and distribution, the settlement of the compass of the organization under the ultimate control of the executive.

Relationship b/w Admin. & Mgt. as per American Concept.

Top-level Functions

Middle-LevelFunctions

Lower-LevelFunctions

BOD &G.M

GeneralManager

Supervisor

Determining the Policy & object

Adminis-tration

AccomplishmentOf

Pre-determinedobjectives

Management

Management is wider than Administration (The English Concept)

o Supported by, E.F.L. Brech, F.W. Taylor

o Management is connected with top-level functions while administration is only a part of it which follows the policies decided by the management.

Relationship b/w Admin. & Mgt. as per English Concept

AdministrativeManagement

Management

OperativeManagement

Policy Making Planning

Laying down standard for work performance

Comparing determined objectives with actual achievements

Utilizing man, material, machine & money Giving practical shape to policies

Directing daily activities

Making efforts to achieve results

Management and administration are same

(The Modern Concept)

Supported by Henry Fayol. Term Administration- used in Government

organizations Term Management is used in Business

activities.

Relationship b/w Admin. & Mgt. as per Modern Concept

Administrative functionsManagerial

Functions

ORGANISATION

Top Level Management

Middle Level Management

Lower Level Management

Distinction b/w Administration & Management

Administration

Thinking Function Top Level Policy formulation and

Objective determination Broad and Conceptual Factors affecting- Mostly

external Quality required-

Administrative Functions are performed by

the owner of the enterprise

Management

Executive Function Middle and lower level Policy execution and objective

achievement Narrow and operational Mostly internal Technical Performing managerial

functions work as subordinates of administrators