Nature and scope of managment PDF

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Importance of management: 1). Management is critical in the economic growth of a country because it brings together the four factors of production. A country with enough capital, resources and manpower can still be poor, if it does not have competent managers to coordinate and combine these resources. Peter Drucker rightly observes that without management, a country’s resources of production remain resources and never become production. 2). Management is essential in all organised efforts, be it a business activity or any other activity. Principles of management are now universally used not just for business organizations; they are also applied to other types of organizations such as educational, social, military and government.

3). Management is dynamic, life-giving element. It coordinates all organisational activities. Definition of management: Mary Parker Follet: Management is art of getting things done through other people. This definition calls attention the fundamental difference between the manager and other personnel of an organization. A manager is one who contributes indirectly to organisation’s goals- by directing the efforts of others- not by performing the task himself. On the other hand, a person who is not a manager, makes the contribution directly, by performing the task himself. Art- application of knowledge. Science- Acquisition of knowledge.

Rule of thumb: A broadly accurate guide or principle, based on practice rather than theory. Management based on rules of thumb or intuition is not correct management. Management is both science as well as art. Hence, criticising of Mary Parker Follet’s Art management definition, Various management thinkers gave a more elaborate definition. George R Terry defined management as a process consisting of Planning, organising, actuating and controlling- a systematic way of doing things. Organising means managers coordinate the human and material resources of an organization. Actuating means managers motivate and direct subordinates.

Controlling means managers ensure ther is no deviation from the norm or plan. Whether performance is in conformity with the plans adopted, instructions issued, and principles established. Manager established the standards of performance. Control compels events to conform to plans. Management/Managers’ functions or the process of management: George R terry: Planning, organising, actuating and controlling. Newman and summer: Planning, organising, leading and controlling. Henry Fayol(5): Planning, organising, commanding, coordinating and controlling. Luther gulick(7): Planning , organising, staffing, directing, coordinating, reporting and budgeting.

Warren Haynes and Joseph massie: Decision making and communicating. Koontz O’Donnell: Planning, organising, staffing, directing and controlling. Ernest Dale: Innovation and representating. Overall, management functions are divided into 4 types- Planning, organising, directing and controlling. Planning is a function which is performed by managers at all levels- top, middle(foreman) and supervisory(first- line managers). To organise a business means is to provide it with everything useful to its functioning; personnel, raw material, tools and capital etc. All this broadly divided into human and material organisations. Staffing may also be considered as an important sub function involved in organising. Staffing obviously cannot be done once and for all.

Directing: After plans have been made and the organisation has been established and staffed, the next step is to move towards its defined objectives. This function can be called by various names: Actuating, leading and motivating. Directing thus involves three sub functions- communication, leadership and motivation. Two broad categories of motivation are: Financial and non- financial. Non financial motivation includes, job security, opportunity of advancement, recognition and praise etc.

Levels of management: top, middle and supervisory(Lower or first-line). The supervisory level is made up of foremen and men and women who are only one step above rand and file workers. Middle management - a vast and diverse group that includes sales manager, plant manager and personnel manager, finance manager and many other departmental heads. Don’t get confused management functions with Organisation or business functions. All

management functions has to be carried out in each organisational unit.

Roles(Behavioural expectations) of a senior manager: The idea of a role comes from sociology and is the pattern of actions expected of a person in his activities involving others. It arises as a result of a position he occupies in a group in a given situation. According to Mintzberg, there are 10 roles which are expected of a manager grouped into 3 categories.

1). Interpersonal roles (Figurehead, leader, liaison) 2). Informational roles (Monitor, Disseminator, spokesperson) 3). Decisional roles (Entrepreneur, Resource allocator, Disturbance handler, Negotiator). In his liaison role, manager cultivates contacts outside his vertical chain of command. In his monitor role: Manager has to scan his environment and what his competitors are doing and ask liaison contacts for information. Much of it as a result of the network of personal contacts he has developed. Managerial skills(translating knowledge into action): A skill is an individual’s ability to perform physical or mental tasks with a specified outcome. Skill is not necessarily inborn. It can be developed through practice

and through translating one’s knowledge and experience into action. 1). Conceptual skills – ideas- imp for top level. 2). Technical skills- things- imp for lower level. 3). Human relations skills- people- imp for all levels manager. For a good leader: human relations skill is imp For good decision making: Both conceptual and technical skills are important. Efficiency: is the ability of a manager to do sth correctly i.e., at the lowest possible cost. Effectiveness: is the ability of a manager to do correct things i.e., achieve high levels of value(quality divided by price). Maximising efficiency and effectiveness at the same time often creates conflicts. But manager needs to have both efficiency

(lowest, cheapest) and effectiveness (quality or value). Management and Administration: Sheldon, spriegal, milward- Administration involves thinking. It is a top level function. On the other hand, management involves doing. It is a lower level function. E F L Brech: management is a comprehensive generic term which includes administration. Administration is only a branch of management which includes only two of its functions- planning and controlling. According to this view, functions of management divided into- administrative management (upper level) and operative management (lower level). Peter Drucker: The difference between management and administration lies in the use of these words in different fields. The

governance of non business institutions(govt, church, army) is generally called administration while the governance of business institutions is called management. Thus, economic performance becomes the chief dimension of management whereas in administration economic consequences of decisions are secondary. That is why successful administrators sometimes fail as managers and vice- versa. Skill is not necessarily inborn but talent is inborn. Science is two types. 1). Exact or natural 2). Inexact or behavioural: because unlike exact sciences, we cannot keep other variables constant: Management belongs to this category.

management principles are not culturebound rather they are universally applicable principles. Art of a painter who seeks to achieve a desired effect. Management is not a profession- Mcfarland. Peter Drucker, however, is of the view that, holding an academic degree should not be a condition to get entry into the management profession. He says that no greater damage could be done to our economy or society than to attempt to professionalise management by licesing managers. Management priniciples( as distinguished from practice) are of universal application(theoretically)....