Principles of Management

MANAGEMENT

• Meaning of Management:

The term management has been used in different senses. Sometimes it is used to mean the group of managerial personnel in an organization. At other words management refers to the process of planning, organizing, staffing, directing, co. ordination and controlling.

• Concepts of Management:

Theo Haiman in his popular book Professional Management -Theory And Practice has used the term Management in there different senses:

• As a Noun
• As a process
• As a Discipline

5 M’s/Resources of Management:

                        1. Manpower

                        2. Money

                        3. Material

                        4. Machines

                        5. Methods

• Definitions of Management:

According to Harold Koontz

“Management Is the art of getting things done through and with people in formally organized group”.

According to Louis Allen “Management is what a manager does”

According to RossMore“ Management means decision making”

According to F.W.Taylor “Management is the art of knowing what you want to do in the best and cheapest way”.

Features of Management:

Management is a group activity:

Management is an essential part of a group activity. As no individual can satisfy all his desires himself, He unities with his fellow being and work in an organized group to achieve what he cannot achieve individually. Management makes the people realize the objectives of the group and directs their efforts towards the achievement of these objectives.

Management is universal in character

               Management is applicable in all types of organization wherever, there is human activity there is a Management. The basic principles of Management are to universal application and can be applied in all organization whether they are business, social, sports.

Management is an art well as science:

Management is science because it has developed certain principles, which are of universal application. But the results of Management depends up on the personal skill manager and in the sense Management is art .The art of manager is essential to make the best use of Management science Thus Management is art as well as science.

Management is intangible:

Management is intangible (i.e.) it can be felt in the form of results and not seen. For ex: When we are not able to produce the desired quantity we say it is the results of poor Management.

Management is continuous process:

Management is a dynamics and an on going process. The cycle of Management continues to operate so long as there is organized action for the achievements of group goals.

Management is multiple disciplinary:

Management has received rich contributions from various disciplines like psychology, sociology, anthropology etc. The insights obtained from these discipline greatly help managers in understanding the human mind much better.

Management And Administration:

Basis	Administration	Management
Nature of work	It is primarily concerned with the determination of objectives and boards policies.	It involves the implementation of plan and policies.
Meaning	Administration is the process and agency which is responsible for the determination of aims of which an organization is to operate.	Management is the process and agency, which directs & guides the operations of established aims.
Functions	It is a thinking functions	It is a execution functions.
Scopes	It takes major decisions and is a wider term than Management	It takes the decisions with in Administration.
Levels of       authority	It is a top management functions	It is a lower level Management functions.
Status	It consists of the owners of an enterprise.	It consists of managerial personnel with specialized knowledge who may be the employees
Influence	Its decisions are generally influenced by external factors such of social, political.	Its decisions are influenced by internal factors such as various opinion etc.

• Levels in Management:

On the basis of authority and responsibility we can identify three levels of Management

A) Top level Management: The main functions of top level Management includes:

•  Determining the objectives of the enterprise.
• Framing the policies and making plans to achieve the objectives laid.
• Exercising effective control.

B) Middle level Management:  The main functions of middle level Management includes:

• Selecting suitable operative personnel.
• Assigning duties and responsibilities for timely execution of the plan.
• Reporting to the top management.

            C) Lower level management:

It is the lowest level in the hierarchy of management and actual operations are the responsibility of this level of    management.

Functions of management

Operational	Managerial
Production	Planning
Marketing	Organizing
Financial	Staffing
Personnel	Directing
Office	Coordinating
	Controlling

Planning: It is a decision in advance what to do, when to do, how to do, and who will do a     particular task. Planning is a process which involves thinking before doing.

Organizing: The management sets up the objectives or goals to be achieved by its personnel The energy of every individual is channelized to achieve the enterprise objectives. The function of organizing is to arrange guide, the activities of the other factors of production Viz  Men, Material. So as to achieve the organization goals.

Staffing: Is filing and keeping filled positions in the organization structure through defining work force requirement selecting and training.

Staffing consists of :

• Recruitment
• Selection
• Promotion

Directing: is moving to action & supplying stimulative power to the group.

Coordinating: is the orderly arrangement of group efforts to provide unity of action in the persuit of common objectives . Coordinating creates a team spirit and helps in achieving goals through collective efforts.

Controlling: is the process which enables management to get its policies implemented and take corrective actives if performance is not according to the predetermined standard.

Operational Function

• Production management: production means creation of utilities. This creation of utilities takes place when raw materials are converted into finished products. Production management then is that branch of management.
• Marketing management: is a some total of physical activities which are involved in the transfer of goods and services and which provides for their physical distribution. Marketing management refers to the planning, organizing, directing, controlling the activities of the person working in the marketing divisions of as business enterprise with the aim of achieving the organizational goals.
• Financial management: is concerned with the managerial activities pertaining to the procurement and utilization of funds for business purpose.

Functions Includes: Ensuring fair return to investors.

• Personnel management: is concerned with managerial& operative function.

Functions Includes:  Directing the Employee, Training, Providing good working condition

• Office management: Office management when applied to office it is called office management.It is a technique of planning, coordinating the office activities with a view to achieve common business objectives.