WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &RESEARCH

PGDM-HB: E Learning Toolkit : Summary chapter1

Subject: Principles of Management
Developed by P.M.Bendre

Chapter 1: Nature of Management

 According to Peter F. Drucker, the emergence of Management as an

essential, a distinct and leading social institution is a pivotal event in social
history.
 Management is an art. It is in the sense of possessing managing skill by an
individual. Management is science too. It involves developing certain
principles or laws applicable in a place where a group of activities are
coordinated.
 The subject of Principles of Management is the backbone of your course.
Application of these principles into action in your life as well as on your
workplace, every day, correlating these principles with your personal life
situations is called internalization. The best way to learn any subject is to
internalize it.
 According to Ralph C. Davis, Management is the function of executive
leadership everywhere.
 Management involves a set of processes that come into play whenever we
want to achieve something, that is, our preset goal, by thinking process and
utilizing the inputs such as man, machine, materials, money etc. in a
coordinated fashion.
 The advantages of learning Principles of Management are:
 Our life gets focus and direction
 We know better how to plan and organize our life
 We have clarity of thinking and action
 Our stresses get reduced tremendously
 Our life becomes purposeful and joyous
 We start assuming responsibility and accountability for whatever we
do.
 Management is the art of getting things done by a group of people with the
effective utilization of available resources.

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WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &RESEARCH
PGDM-HB: E Learning Toolkit : Summary chapter1
Subject: Principles of Management
Developed by P.M.Bendre
 According to F.W.Taylor, Management is the art of knowing what you want
to do, and then seeing that it is done in the best and the cheapest way.
 According to Henry Fayol, to manage is to forecast and to plan, to organize,
to command, to coordinate and to control.
 Management is Optimum utilization of Available Resources To attain
certain pre-set GOALS/Objectives
 Management as a “Process”:
 McFarland defines management as “A process by which managers
create, direct, maintain and operate purposive organization through
systematic, coordinated, cooperative human efforts”.
 Management as “coordination”:
 Donally, Gibson and Ivancevich also support the view of management
as a Process but their stress in more on co-ordination. According to
them, “Management is a process by which individual and group
effort is coordinated towards group goals”.
 Management as a “Function”:
 Dunn, Stephens and Kelly contend that “Management is a role which
includes a set of duties, responsibilities, and relationships-involved in
work organizations”.
 Management is getting things done through other people:
 In getting things done through others, people have to be coaxed,
they have to be shown, they have to inspired, they have to be
motivated and this is what management means. These activities are
performed not only by the people at the top but also from the
chairman of the board to the front line supervisors and foremen.
They use the above-mentioned methods to get things done through
other people.
 We must ask ourselves:
 What are our objectives?
 What is our direction? Where do we want to go?
 What is the purpose of our business?
 Are we clear about our goals?

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WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &RESEARCH
PGDM-HB: E Learning Toolkit : Summary chapter1
Subject: Principles of Management
Developed by P.M.Bendre
 The thinking process and internalization must be continuous activity.
 Efficient management is the lifeboat of any developed business. There are
five M’s in the business, which can be called as the resources of the
business, viz. Man, machines, materials and money as tangible ones and
Method as intangible one. Methods form the competitive edge.
 Management is an essential activity of all organizational levels:
 (Low, middle and upper level)
 Management applies to:
 Small and large Organizations
 Profit and nonprofit Organizations
 Manufacturing Organizations
 Service rendering Organizations
 Management is everywhere. It is not restricted to only commercial
organizations, but it is also in schools, colleges, religious bodies, just about
anywhere.
 What it takes to become a good manager? If you are a person who is
capable of undertaking the tasks and functions of managing at any level, in
any kind of enterprise, you have leadership qualities, and you have qualities
of an administrator, you will become a good manager.
 To become a good manager, in addition to housekeeping and cleanliness
and orderliness, your mind also must be clean and clear.
 We find people fully tensed, confused, and so they take wrong decisions.
They cannot become good managers.
 A good manager is expected to have ability of four skills as given below:
 Technical skills:
 Technical skills that reflect both an understanding of and a
proficiency in a specialized field. For example, a manager may
have technical skills in accounting, finance, engineering,
manufacturing, or computer science.
 Human Skills:

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WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &RESEARCH
PGDM-HB: E Learning Toolkit : Summary chapter1
Subject: Principles of Management
Developed by P.M.Bendre
 Human skills are skills associated with manager’s ability to
work well with others, both as a member of a group and as a
leader who gets things done through other.
 Concept Skills:
 Conceptual skills related to the ability to visualize the
organization as a whole, discern interrelationships among
organizational parts, and understand how the Organization fits
into the wider context of the industry, community, and world.
 Conceptual skills, coupled with technical skills, human skills
and knowledge base, are important ingredients in
organizational performance
 Design Skills:
 It is the ability to solve the problems in ways that will benefit
the enterprise
 Managers must be able to solve the problems
 In order to become a good manager, he must have preset GOALS.
Remember: “No goal--no management”. We must have a direction and
purpose for our business. We must have a goal for everything we do. Goal
setting is sign of maturity.
 Any endeavor starts with end purpose-GOAL. When goal is set, steps
towards goal also become clear. One can become successful only if he has
preset goals.
 However, the goals must be S-M-A-R-T as explained below:
 Specific: We should be specific in our goal. E.g. I want to become a
manager is not a goal. What you want to accomplish in an
organization is a goal.
 Measurable: The goal must be measurable. E.g., I want to secure 95%
marks.
 Attainable: The goal must be achievable. Our resources are limited.
Therefore, if you want to buy a flat in Mumbai and you have only 10
Lakhs, it is not possible to buy a flat there.

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WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &RESEARCH
PGDM-HB: E Learning Toolkit : Summary chapter1
Subject: Principles of Management
Developed by P.M.Bendre
 Realistic: The goal must be realistic. We cannot dream to become a
prime minster when you have not yet become a corporator.
 Time bound: Your goal should have a time limit such as I want to get
admission to a medical college during next year.
 You should study the following management factors in order to become
good managers:
 Management meets the challenge of change:
 Accomplishment of group goals
 Effective utilization of resources
 Effective functioning of business
 Resource development
 Sound organizational structure
 Management directs the organization
 It integrates various interests
 It stabilizes the fluctuations
 It innovates
 Coordination and team spirit
 Tackling and solving problems
 Management is a tool for personality development