MCA 109

PRINCIPLES AND PRACTICES

OF MANAGEMENT

CONCEPT OF MANAGEMENT
Traditional Concept: Management is an art

1.
2.
3.
4.

of getting things done from others.

Traditional Concept: Criticism
No specific work of managers is defined.
It may be manipulative character of the
practice of management.
Employees are merely treated as means for
getting results.
The need of the workers have been ignored.
They are supposed to work like machine.

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Modern Concept: Management is a process of

accomplishing certain objectives through the
utilization of human and other resources.
Management is the process of getting things done with
the aim of achieving organizational objectives
effectively and efficiently.
The basic elements are:
1. It is a process
2. Effectiveness is described as doing activities that will help the
organization reach its goals (doing the right things). It is a measure of
the appropriateness of the goals chosen and the degree to which they
are achieved.

3.

Efficiency

4.

Organizational goals

refers to getting the most output from the least amount

of inputs (doing things right). Is a measure of how well resources are
used to achieve a goal.

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MANAGEMENT AS PROCESS
A

process can simply be defined

systematic method of handling activities.

as

As a process, management is a set of

activities (including planning and decision

making, organizing, leading, and controlling)
directed at an organizations resources
(human, financial, physical, and information)
with the aim of achieving organizational goals
in an efficient and effective manner.

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MANAGEMENT AS PROCESS
Management can also be defined as the

process of achieving organizational goals

through planning, organizing, leading and
controlling the human, physical, financial and
information resources of the organization in an
effective and efficient manner.
In contemporary organizations, the managers
role is to guide, train, support, motivate and
coach employees and not tell them what to do
as it used to be the case in the past.
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Management in Organizations

Organizing

Inputs from the

environment

Planning &
decision
making

Controlling

Human resources
Financial resources
Physical resources
Information resources

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Goals attained

Leading

Efficiently
Effectively

Management as a discipline
Discipline refers to a field of study having well

established concepts and principles.

As a discipline management can therefore
be used to refer to knowledge i.e. relevant
concepts and principles, that aids in managing
organizations or firms.
More specifically, management refers to the
study of activities performed in organizations
with the aim of achieving organizational goals
in an efficient and effective manner.

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Management as a group of people

As a group of people management refers to

all those organizational members (employees)

who perform managerial functions in
organizations.
More precisely, management is that group of
organizational members responsible for
creating an environment that that enables
organizational activities to be performed with
the aim of achieving organizational goals in an
efficient and effective manner.

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Management as a group of people

Managers are those members of organizations

whose primary responsibility is to carry out the

management process by planning, making
decisions, organizing, leading, and controlling
human, financial, physical, and information
resources to achieve organizational goals in an
effective and effective manner.

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Nature and Characteristics of Management

Management is goal oriented.
Management is a continuous process.
Management is a coordinative force.
Management is an intangible force.
Management is a part of group efforts.
Management accomplishes results through the
cooperation of others.
7. Management balances effectiveness and efficiency.
8. Management is a science as well as an art.
9. Management is a dynamic discipline.
10. Management is pervasive or universal.
1.
2.
3.
4.
5.
6.

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Importance of Management
It helps in:
1. Accomplishment of goals.
2. Effective utilization of resources.
3. Sound organization.
4. Providing vision and foresight.
5. Harmony in work.
6. Helping the employees in achieving personal
objectives.
7. Development of society and nation.
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Management: An Art Or Science?

Science is a systematized body of knowledge

based on logical consistency, systematic

explanation,
critical
evaluation
and
experimental analysis.
There is more to management than just
organizing people and work.
An organization needs to set objectives,
formulate plans, direct people and control
operations.

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Management: An Art Or Science?

As a science management entails the use of

organized knowledge i.e. information obtained

through formal research studies.

For example, by using certain mathematical

formula we can often control inventory.
Inventory can be controlled and demand
can be projected more accurately than by
merely using trial and error.

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Management: An Art Or Science?

Art refers to the bringing of desired result

through the application of skills.

As an art, management involves the
application of experience and intuition to
develop a judgment, which is useful in
evaluating situations.
E.g., a manager is required to choose
between two strategies, A and B. In these
strategies, research study indicates neither
of them is good but yet he/she has to
choose. Here
experience and intuition
becomes important.
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Management: An Art Or Science?

An art is useful in managing people.

Effective managers know when to talk

friendly to their subordinates and when to be
strict.
Management is therefore both a science and
an art.
Effective management is a combination of
art and science.
Managers must seek the right blend of art
and science to have organizational goals
attained in an efficient manner.

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Management: An Art Or Science: Both

A manager to be successful must acquire the
knowledge of science of management and learn to
apply this knowledge. A manager should be an
applied scientist. Management is as old as the
civilization, but its emergence as a scientific field of
enquiry is comparatively new.

Management is the oldest of arts and the youngest of sciences.

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Management as a Profession
The essential requirements of a profession are
as follows:
1. Specialised field of knowledge.
2. Restricted entry based on education and
training.
3. Representative or professional association.
4. Ethical code of conduct for self-regulation.
5. Social responsibility.
6. Professional fee
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Management as a Profession
The application of the above criteria to management is examined
below:
1.
Specialised knowledge: Yes it has well defined principles,
concepts, theories and techniques which can be put into
practice by managers.
2.
Restricted entry based on education and training: Entry to
management profession is not restricted as there is no
prescribed qualification. MBAs are preferred for managerial
jobs but not necessary.
3.
Representative Association: Though some organisations
such as All India Management Association (AIMA) has been
set up for the professionalization of management, but none of
these has any authority to prescribe minimum qualification for
taking up managerial post or regulate the functions of
managers.
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Management as a Profession
4. Ethical Code: No universally accepted code of conduct for the
practicing managers. AIMA has prescribed a code for
managers, but it has no right to take action against any
manager who does not follow this code.
5. Social Responsibility: There is a growing concern for social
responsibility of management.
6. Professional Fee: Most of the managers are salaried.

Management can be considered as profession

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Management Vs. Administration

Administration is concerned with laying down objectives of the
enterprise, formulating its policies, determining the broad
organization structure and overall control of the undertaking.
Administration is a top level function which includes
determination of objectives and policies and overall control of
business operations.
Administration defines the goal, management strives towards it
-Oliver Sheldon
There is often a debate as to whether or not there is a difference
between management and administration. The debate over
the use of the terms management and administration given
rise to three viewpoints:
1.
American viewpoint: Administration is higher level function
whereas management is a lower level function.
2.
British viewpoint: Management is generic term and includes
administration.
3.
Modern Viewpoint: Both the terms are used interchangeably.
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Management Vs. Administration

Basis

Management

Administration

1. Definition

Management means getting the work

done through and with others by
leading and motivating them.

Administration is concerned with

the formulation of objectives, plans
and policies of the organization.

2. Nature

Management refers to execution of

decisions.

Administration relates to decision

making.

3. Stage of
performance

It is concerned with implementation of

policies laid down by administration.

It is concerned with determination

of major objectives and policies.

4. Leading of
human efforts

It is actively concerned with direction of

human efforts at operational level.

It is not directly concerned with

direction of operational personnel.

5. Type of
authority

Management has operational authority

to execute administrative decisions.

Administration has authority to

take strategic and policy decision.

6. Level in
organization

Lower level

Higher level

7. Decision
making

Only in implementation

In planning

8. Usage

Term management is used in business

organizations in pvt. Sector

Used in non-business such Govt.,

public, military, etc

9. Designation

GM, MD, Branch manager, controller,

etc

Minister, secretary, commissioner,

Director, V.C., Registrar, etc

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Managerial Skills
The job of a modern manager has become very
complex. He requires different types of skills to
manage a large organization in the fast
changing environment and to perform the
functions and roles, managers need the
following essential categories of skills as
classified and given by R. L. Katz:
1. Conceptual (analytical) skills
2. Human relation skills
3. Technical skills

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Conceptual (analytical) skills

1.
2.
3.
4.

5.

It means the ability to see the organisation as a

whole.
It recognise how the various functions of the
organisation depend on one another.
It makes the individual aware how changes in one
part of the organisation affect the others.
It extends to visualising the relationship of the
individual business to the industry, the community
and the political, social and economic forces of the
nation as a whole.
Thus, manager gains insight into improving the
overall effectiveness of the organisation.

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Human Skills
1. Human relations skills refer to ones ability to work

2.
3.
4.
5.

well with others on a person-to-person basis and to

build up cooperative group relations to accomplish
organizational goals.
It means knowing how to communicate, motivate,
and inspire enthusiasm and trust among people.
Human skills are critical and equally important at all
levels of management because of the high
interpersonal nature of managerial work.
Such skills require a sense of feeling for others and
capacity to look at things from others point of view.
With human skills, managers can resolve intra and
inter-group conflicts.

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Technical Skills
1. Also referred to as hard skills, they are

concerned with knowledge and proficiency in

processes,
procedures,
methods
and
techniques which are used if doing a work.
2. Give managers the ability to perform tasks in a
specific discipline or department and are
acquired through formal education and later
developed through training and job experience.
3. Are more important for lower level managers
because they deal with employees who are in
the actual production process.
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Skill mix at different levels

ManagerialSkills byLevels
Top
Managers
Middle
Managers
Line
Managers
Conceptual

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Human

Technical

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Levels Of Management
Management levels signify the hierarchy of
management in any organisation. Managers
can be divided into a number of levels
depending upon their activities, size of
business, number of workers and effective
span of control. In a typical organization
managers are divided into three levels:
1. Top management,
2. Middle management, and
3. Supervisory or Lower management
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Top management
Top management include managers at the upper level
of the organization structure responsible for making
organization-wide decisions and establishing plans
that affect the entire organization.
Common job titles for top managers include
Board of Directors,
President,
Chairperson,
Vice President
Chief Executive Officer (CEO),
Chief Operating Officer (COO), etc.
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Middle management
These are in charge of relatively large departments or

divisions consisting of several smaller units and they

report to top managers.
Middle managers develop and implement action or
business plans consistent with company objectives
such as increasing market presence.
They also perform the management functions of
POSDC.
E.g. Departmental Heads
Regional managers
Plant Managers
Deans in Universities, etc.
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Lower (first-line) management

Include those who supervise people performing the

activities required to make the products or services.

They ensure that their work units or teams meet
performance objectives which must be consistent
with the plans of middle and top management.

First-line managers often have job titles of

supervisors,
but may also be called heads of sections, group
leaders,
foremen, etc.

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Levels of Management
Top managers
Middle managers
First-line managers
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Functional areas of management

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Characteristics of Quality Manager

1.
2.
3.
4.
5.
6.
7.
8.
9.

Ability to think
Broad vision
Clear expression
Technical ability
Human relations skills
Organisational ability
Dynamic personality
Emotional stability
Integrity

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