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MODULE-I

Concept of Management
Management is a universal phenomenon. It is a very popular and widely used term. All organizations business, political, cultural or social are involved in management because it is the management which helps and directs the various efforts towards a definite purpose. According to Harold Koontz, Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals. According to F.W. Taylor, Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way. Management is a process of planning organizing, actuating and controlling to determine and accomplish the objectives by the use of people and resources. (Terry G.)

Management is an interdisciplinary approach. For the correct and effective application of the principles of management, a study of various other subjects such as economics, sociology, mathematics, psychology, behavioral science, statistics etc. Features of Management
Management is an activity concerned with guiding human and physical resources such that organizational goals can be achieved. Nature of management can be highlighted as: 1. Management is Goal-Oriented: The success of any management activity is accessed by its achievement of the predetermined goals or objective. Management is a purposeful activity. It is a tool which helps use of human & physical resources to fulfill the pre-determined goals. For example, the goal of an enterprise is maximum consumer satisfaction by producing quality goods and at reasonable prices. This can be achieved by employing efficient persons and making better use of scarce resources. 2. Management integrates Human, Physical and Financial Resources: In an organization, human beings work with non-human resources like machines. Materials, financial assets, buildings etc. Management integrates human efforts to those resources. It brings harmony among the human, physical and financial resources. 3. Management is Continuous: Management is an ongoing process. It involves continuous handling of problems and issues. It is concerned with identifying the problem and taking appropriate steps to solve it. E.g. the target of a company is maximum production. For achieving this target various policies have to be framed but this is not the end. Marketing and Advertising is also to be done. For this policies have to be again framed. Hence this is an ongoing process. 4. Management is all Pervasive: Management is required in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose. Thus clubs, hospitals, political parties, colleges, hospitals, business firms all require management. When ever more than one person is engaged in working for a common goal, management is necessary. Whether it is a small business firm which may be engaged in trading or a large firm like Tata Iron & Steel, management is required everywhere irrespective of size or type of activity. 1
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5. Management is a Group Activity: Management is very much less concerned with individuals efforts. It is more concerned with groups. It involves the use of group effort to achieve predetermined goal of management of ABC & Co. is good refers to a group of persons managing the enterprise.

Objectives of Management
The main objectives of management are: 1. Getting Maximum Results with Minimum Efforts - The main objective of management is to secure maximum outputs with minimum efforts & resources. Management is basically concerned with thinking & utilizing human, material & financial resources in such a manner that would result in best combination. This combination results in reduction of various costs. 2. Increasing the Efficiency of factors of Production - Through proper utilization of various factors of production, their efficiency can be increased to a great extent which can be obtained by reducing spoilage, wastages and breakage of all kinds, this in turn leads to saving of time, effort and money which is essential for the growth & prosperity of the enterprise. 3. Maximum Prosperity for Employer & Employees - Management ensures smooth and coordinated functioning of the enterprise. This in turn helps in providing maximum benefits to the employee in the shape of good working condition, suitable wage system, incentive plans on the one hand and higher profits to the employer on the other hand. 4. Human betterment & Social Justice - Management serves as a tool for the upliftment as well as betterment of the society. Through increased productivity & employment, management ensures better standards of living for the society. It provides justice through its uniform policies.

Scope of management Management includes the following aspects: 1. Subject matter of management. It consists of various management functions such as planning, organizing, staffing, directing and controlling. 2. Functional areas of management. It consists of the following functional areas: 1. Financial management : it includes cost control, budgetary control, financial planning, management accounting, standard costing etc 2. Personnel management : it includes aspects such as recruitment, training, transfers, promotions, retirement, industrial relations, social security, etc 3. Purchasing management : it consists of purchasing of raw materials, maintaining of records, materials control, issuing materials to the departments, etc 4. Production management : it deals with aspects such as production planning, quality control and inspection, production control techniques, etc. 5. Marketing management : It includes marketing of goods and services, price determination, channel determination, market research, sales promotion, advertisement, publicity, etc. 6. Office management : it is concerned with office layout, staffing, equipment of office, etc. 7. Maintenance management : it relates to the proper care and maintenance of the building, plant and machinery, etc.
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8. Transport management : it includes packing, warehousing, transportation by rail, road, air etc

A Good Manager Is Born, Not Made

Now a days, there are two side of opinion regarding a good manager is born or made. Some people who support the first reason believe that there is no room for everyone to become a good manager but it is already selected by nature since a person was born with characteristics which make one to become a good manager. However, the others who support the second reason think that there is another way which can make a person to become a good manager without innate characteristics because everyone who intends to be a good manager can be developed by learning and training to change to the appropriate characteristic, which is required for a good manager. Therefore, the consulting firm such as Hay Group or Hewitt Company, which is expert in developing knowledge and skills to become a good manager, can provide the curriculums for developing these knowledge and skills.
A

People who believe in an inborn manager claim that charisma or trait is the main factor to make anyone to become a good manager. According to Weber (1947), charisma is a certain quality of an individual personality by virtue of which he is considered extraordinary and treated as endowed with supernatural and exceptional forces or qualities. In this sense, it means that charisma is a quality which is generated from inside a person, and it derives from the capacity of particular people to arouse and maintain belief in themselves as the source of knowledge and authority and this can makes a person to manage people effectively. It is assumed that a good manager with leadership skills always come from charisma and can not be learned or trained to be a good manager. Early research on this assumption, which is based on the psychological focus, a person who becomes a good manager already possessed inherited characteristics or traits. Researchers discovered these traits which is a main factor for leading and managing on many successful leaders. They mentioned that if people could be found with these traits, then, they could also become a great leader or a great manager. Stogdill (1974) identifies traits and skills as it is important to manager which includes flexible, alertness, ambitious and achievement orientated, assertive, cooperative, decisive, dominant, self-confident, interpersonal and communicational skill, creative, and fluent in speaking, knowledgeable about group task, organized, persuasive, and socially skilled. However, the research is only done with some successful leaders and lacks of considering the external environment such as a co-worker, a boss, a training class which is considered to be a big part to make good manager today. A manager can be learned some skill or technical knowledge from his co-worker or boss by an on-the-job training or he can develop his characteristics, skill, and knowledge from an external consulting firm which provide a training class. Although, most of people believe that innate characteristics and managerial skills can not be learned or trained for becoming a good manager, it is an evidence that many researches today try to explain that manager in a big or small organization can developed characteristics and managerial skills to become a good manager through a wide variety of learning opportunities, ranging from seminars to college classes and in-house management development programs to informal on-the-job mentoring. Moreover, a Chartered Management Institute (CMI) states that the belief in "manager is born, not made" is already out of date. A research which is based on
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interviewing with 1000 managers and looking for the changing patterns of Management and Leadership Development over an eight year periods confirms that line managers are currently focusing on job-related development more than before including in-house development program and job-specific qualifications. Thus, a person who is willing to be in a management level must learn these skills and become knowledgeable in applying them to real-life business situations. These managerial skills include delegation, project staffing, planning and management, setting objectives for teams and individuals, scheduling, budgeting, evaluating individual, team, and project development, presenting idea to individuals and groups, inspiring and guiding individuals and teams, performance evaluation and critique, human relations, dealing with problems within operations and with individual employees, working within the corporate structure, decisionmaking, and risk management. There is a evidence to prove that good manager can be trained. Therefore, it is not always necessary to be a natural born manager but she can become a good manager by learning, training, and improving her knowledge and skills instead. As the assumption above, the research is conduct by interviewing one of successful managers in United State of America. Ms. Theresa F. Anderson is currently working as a Corporate Equipment Manager at Parsons Company, which is a national engineering firm in Pasadena, Calif. When she came to this company, she had to prove herself among her boss, co-workers, and subordinates that she can work effectively as a management position. She said that at that time it was very difficult to become the manager and manager her employee because the company which she was working is completely dominated by male employees and they assumed that she had not the managerial skill enough to control other peoples. For this reason, she tried to develop technical knowledge in mechanical and improve leadership and managerial skills such as generating and sustaining a sense of trust, building and communicating a guiding vision, knowing your staff, or taking care of her people. She mentioned that before she became a manager in this company, she had to work hard and get a lot of training and studying like you are studying in Bachelor degree. Furthermore, she believe that it is very important for manager here to take the training course at least three courses to improve knowledge and managerial skills. For example, she got training directly from the OEMs (Outsourcing Engineering Manufacturers), Caterpillar training, John Deere training, Grove training, administration classes, and also technical training classes, she mentioned. She thinks that learning and training is very important to managers and employee today so she is now helping others to grow up in their career by getting training as much as possible. She sent her employees to take a lot of training schools and sometime she is teaching her employees by herself. In conclusion, it is obvious that it is no needs to born a good manager there are several ways to make a person to achieve in management position. Although, it is true that a good manager is required some special characteristics, skills, and technical knowledge, these requirements can be developed or improved through various methods. Some managers chose to develop himself by taking a training class with the consulting firm or a trailer-made school, which provide a specific lesson for a learners need. Therefore, in my opinion, it is not always born to be a good manager but we can make ourselves to become a good manager by learning and training.

Management as a Science 4
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Science is a systematic body of knowledge pertaining to a specific field of study that contains general facts which explains a phenomenon. It establishes cause and effect relationship between two or more variables and underlines the principles governing their relationship. These principles are developed through scientific method of observation and verification through testing. Science is characterized by following main features: 1. Universally acceptance principles - Scientific principles represents basic truth about a particular field of enquiry. These principles may be applied in all situations, at all time & at all places. E.g. law of gravitation which can be applied in all countries irrespective of the time. Management also contains some fundamental principles which can be applied universally like the Principle of Unity of Command i.e. one man, one boss. This principle is applicable to all type of organization - business or non business. 2. Experimentation & Observation - Scientific principles are derived through scientific investigation & researching i.e. they are based on logic. E.g. the principle that earth goes round the sun has been scientifically proved. Management principles are also based on scientific enquiry & observation and not only on the opinion of Henry Fayol. They have been developed through experiments & practical experiences of large no. of managers. E.g. it is observed that fair remuneration to personal helps in creating a satisfied work force. 3. Cause & Effect Relationship - Principles of science lay down cause and effect relationship between various variables. E.g. when metals are heated, they are expanded. The cause is heating & result is expansion. The same is true for management, therefore it also establishes cause and effect relationship. E.g. lack of parity (balance) between authority & responsibility will lead to ineffectiveness. If you know the cause i.e. lack of balance, the effect can be ascertained easily i.e. in effectiveness. Similarly if workers are given bonuses, fair wages they will work hard but when not treated in fair and just manner, reduces productivity of organization. 4. Test of Validity & Predictability - Validity of scientific principles can be tested at any time or any number of times i.e. they stand the test of time. Each time these tests will give same result. Moreover future events can be predicted with reasonable accuracy by using scientific principles. E.g. H2 & O2 will always give H2O. Principles of management can also be tested for validity. E.g. principle of unity of command can be tested by comparing two persons - one having single boss and one having 2 bosses. The performance of 1st person will be better than 2nd. It cannot be denied that management has a systematic body of knowledge but it is not as exact as that of other physical sciences like biology, physics, and chemistry etc. The main reason for the inexactness of science of management is that it deals with human beings and it is very difficult to predict their behavior accurately. Since it is a social process, therefore it falls in the area of social sciences. It is a flexible science & that is why its theories and principles may produce different results at different times and therefore it is a behavior science. Ernest Dale has called it as a Soft Science. 5
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Management as an Art Art implies application of knowledge & skill to trying about desired results. An art may be defined as personalized application of general theoretical principles for achieving best possible results. Art has the following characters 1. Practical Knowledge: Every art requires practical knowledge therefore learning of theory is not sufficient. It is very important to know practical application of theoretical principles. E.g. to become a good painter, the person may not only be knowing different colour and brushes but different designs, dimensions, situations etc to use them appropriately. A manager can never be successful just by obtaining degree or diploma in management; he must have also know how to apply various principles in real situations by functioning in capacity of manager. 2. Personal Skill: Although theoretical base may be same for every artist, but each one has his own style and approach towards his job. That is why the level of success and quality of performance differs from one person to another. E.g. there are several qualified painters but M.F. Hussain is recognized for his style. Similarly management as an art is also personalized. Every manager has his own way of managing things based on his knowledge, experience and personality, that is why some managers are known as good managers (like Aditya Birla, Rahul Bajaj) whereas others as bad. 3. Creativity: Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination. Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner. 4. Perfection through practice: Practice makes a man perfect. Every artist becomes more and more proficient through constant practice. Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing. 5. Goal-Oriented: Every art is result oriented as it seeks to achieve concrete results. In the same manner, management is also directed towards accomplishment of pre-determined goals. Managers use various resources like men, money, material, machinery & methods to promote growth of an organization.

Thus, we can say that management is an art therefore it requires application of certain principles rather it is an art of highest order because it deals with moulding the attitude and behavior of people at work towards desired goals. Management as both Science and Art Management is both an art and a science. The above mentioned points clearly reveal that management combines features of both science as well as art. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers. Science provides the knowledge & art deals with the application of knowledge and skills. A manager to be successful in his profession must acquire the knowledge of science & the art of applying it. Therefore management is a judicious blend of science as well as an art because it proves the principles and the way these principles are applied is a matter of art. Science teaches
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to know and art teaches to do. E.g. a person cannot become a good singer unless he has knowledge about various ragas & he also applies his personal skill in the art of singing. Same way it is not sufficient for manager to first know the principles but he must also apply them in solving various managerial problems that is why, science and art are not mutually exclusive but they are complementary to each other (like tea and biscuit, bread and butter etc.). The old saying that Manager are Born has been rejected in favor of Managers are Made. It has been aptly remarked that management is the oldest of art and youngest of science. To conclude, we can say that science is the root and art is the fruit

Managerial Skills
Management is a challenging job. It requires certain skills to accomplish such a challenge. Thus, essential skills which every manager needs for doing a better management are called as Managerial Skills. According to Professor Katz, there are three managerial skills, viz. 1. Conceptual Skills, 2. Human Relations Skills, and

3. Technical Skills. According to Prof. Katz, all managers require above three managerial skills. However, the degree (amount) of these skills required varies (changes) from levels of management and from an organisation to the organization.

The above picture or diagram shows the managerial skills which are required by managers working at different levels of management. The top-level managers require more conceptual skills and less technical skills. The lower-level managers require more technical skills and fewer conceptual skills. Human relations skills are required equally by all three levels of management. 1. Conceptual Skills
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Conceptual skill is the ability to visualise (see) the organisation as a whole. It includes Analytical, Creative and Initiative skills. It helps the manager to identify the causes of the problems and not the symptoms. It helps him to solve the problems for the benefit of the entire organisation. It helps the manager to fix goals for the whole organisation and to plan for every situation. According to Prof. Katz, conceptual skills are mostly required by the top-level management because they spend more time in planning, organising and problem solving. 2. Human Relations Skills Human relations skills are also called Interpersonal skills. It is an ability to work with people. It helps the managers to understand, communicate and work with others. It also helps the managers to lead, motivate and develop team spirit. Human relations skills are required by all managers at all levels of management. This is so, since all managers have to interact and work with people. 3. Technical Skills A technical skill is the ability to perform the given job. Technical skills help the managers to use different machines and tools. It also helps them to use various procedures and techniques. The low-level managers require more technical skills. This is because they are incharge of the actual operations.Apart from Prof. Katz's three managerial skills, a manager also needs (requires) following
additional managerial skills.

Management is concerned with Ideas, Things and People

Management involves judicious deployment of resources for the achievement of certain goals. It is concerned with ideas, things and people in the following ways: Management of ideas: Management of ideas is very crucial for economic and social development. It is the job of management to generate, organize and articulate creative ideas and transform them into operating results. These ideas relate to new products, new markets, and improvements in existing products and markets. Management of ideas is very relevant in the context of rapidly changing technologies, consumer preferences, product market configurations, social values and government involvement in business. Management of ideas involves intellectual, creative and innovative processes. Ideas provide the basic inputs and inspiration in the management process. Decision making process involves conversion of ideas and information into action. Ideas help management in ensuring the survival and growth of organizations. Management theory is the major source of ideas for management practice. Thus, management of ideas has three main implications: (a) it requires a practical philosophy of management to regard management as a distinct and scientific approach, (b) it involves the planning phase of management, (c) it requires innovation and creativity. Implies generating of new ideas and innovation means transforming ideas into viable realities and utilities.
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Management of things: Management of things refers to the mobilization, allocation and deployment of materials, machinery, technology and other facilities to convert ideas into results and performance. It is the conversion of resources into outputs efficiently and effectively that determines the success of management. Ideas will remain ideas unless they are converted into results through the conversion process. Management of people: Management of people refers to the procurement, development, maintenance and integration of human beings working in the organization. It is the most important task of a manager because without people no manager can manage ideas and things. In the early stages of the evolution of management people were treated as part of things. But after the House Thorne Experiments it has been realized that people are the most critical factor in management. Since then there has been growing concern for people inside the organization as employees and outside the organization as customers, investors, suppliers and the general public. Management must understand and fulfill the needs, aspirations and values of people. Management is the direction of men, not of things. Thus, management may be defined as the process of converting ideas into results by getting things done through people in an organized setting.
Common Types of Management

Autocratic Management Paternalistic Management Democratic Management Laissez-faire Management Management by Walking Around

Different Management Styles

1. Autocratic Style of Working In such a style of working, the superiors do not take into consideration the ideas and suggestions of the subordinates. The managers, leaders and superiors have the sole responsibility of taking decisions without bothering much about the subordinates. The employees are totally dependent on their bosses and do not have the liberty to take decisions on their own. 9
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The subordinates in such a style of working simply adhere to the guidelines and policies formulated by their bosses. They do not have a say in managements decisions. Whatever the superiors feel is right for the organization eventually becomes the companys policies. Employees lack motivation in autocratic style of working. Paternalistic Style of Working In paternalistic style of working, the leaders decide what is best for the employees as well as the organization. Policies are devised to benefit the employees and the organization. The suggestions and feedback of the subordinates are taken into consideration before deciding something. In such a style of working, employees feel attached and loyal towards their organization. Employees stay motivated and enjoy their work rather than treating it as a burden. Democratic Style of Working In such a style of working, superiors welcome the feedback of the subordinates. Employees are invited on an open forum to discuss the pros and cons of plans and ideas. Democratic style of working ensures effective and healthy communication between the management and the employees. The superiors listen to what the employees have to say before finalizing on something. Laissez-Faire Style of Working In such a style of working, managers are employed just for the sake of it and do not contribute much to the organization. The employees take decisions and manage work on their own. Individuals who have the dream of making it big in the organization and desire to do something innovative every time outshine others who attend office for fun. Employees are not dependent on the managers and know what is right or wrong for them. Management by Walking Around Style of Working In the above style of working, managers treat themselves as an essential part of the team and are efficient listeners. The superiors interact with the employees more often to find out their concerns and suggestions. In such a style of working, the leader is more of a mentor to its employees and guides them whenever needed. The managers dont lock themselves in cabins; instead walk around to find out what is happening around them.

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ASSIST PROF. SACHIDANANDA SAHOO, IIIT, BBSR