SpElective 1 – Lecture 1:

Management process
Management defined:
“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 can cooperate towards
attainment of group goals”. Harold Koontz
“Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest
way”. F.W. Taylor
“Management is a distinct process consisting of planning, organizing, actuating and controlling,
performed to determine and accomplish stated objective by the use of human beings and other resources”.
George R. Terry
Management as a Process
1. Management is a social process - concerned with developing relationship among people
2. Management is an integrated process - undertakes the job of bringing together human physical
and financial resources so as to achieve organizational purpose
3. Management is a continuous process - concerned with constantly identifying the problem and
solving them by taking adequate steps
4. Management is an iterative process.
Management functions
George Terry, “There are four fundamental functions of management i.e. planning, organizing, actuating
and controlling”
Henry Fayol, “To manage is to forecast and plan, to organize, to command, & to control”
Koontz and O’Donnel - Planning, Organizing, Staffing, Directing and Controlling.
 Planning: GULLICK, “Planning is working out in broad outline the things that need to be done
and the methods for doing them to accomplish the purpose set for the enterprise.” KOONTZ,
“Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from
where we are & where we want to be”.
o 3 basic steps in planning
 Formulating objectives – states precisely what results are to be accomplished and
when
 Taking action – follows predetermined plans of actions to fulfill the objectives.
 Analyzing results – measures the results achieved.

 Organizing: It is the establishment of a formal structure of authority through which the work
subdivisions are arranged, defined, and coordinated for the defined objective. In organizing,
structures are created, relationships are established and resources are allocated for the
accomplishment of activities. According to Henry Fayol, “To organize a business is to provide it
with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”
o Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority and creation of responsibility.
 Coordinating authority and responsibility relationships.

 Staffing: The whole personnel action of bringing in and training the staff and maintaining
favorable conditions of work. It is also known as Human Resource Management. Koontz &
O’Donell, “Managerial function of staffing involves manning the organization structure through
proper and effective selection, appraisal & development of personnel to fill the roles designed
into the structure”.
o Staffing involves:
 Manpower Planning
 Recruitment, selection & placement.
 Training & development.
 Remuneration.
 Performance appraisal.
 Promotions & transfer.
 Directing: It is a part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise
which sets in motion the action of people because planning, organizing and staffing are the mere
preparations for doing the work. It involves guiding and motivating other people to work for a
common
o Elements of Directing
 Supervision - implies overseeing the work of subordinates by their superiors
 Motivation - inspiring, stimulating, or encouraging the subordinates with zeal to
work.
 Leadership – the process by which manager guides and influences the work of
subordinates in desired direction
 Communication - process of passing information, experience, opinion from one
person to another.