Lecture One: Basic Concepts in Management PDF

Lecture one  Chapter One Basic Concepts in Management  Management is the art of maximizing efficiency, as a social process, a method of getting things done through others a plan of action and its direction by a co- operative group moving towards a common goal. Effective...

Lecture one  Chapter One Basic Concepts in Management  Management is the art of maximizing efficiency, as a social process, a method of getting things done through others a plan of action and its direction by a co- operative group moving towards a common goal. Effective utilisation of available resources to achieve same objective is management.  Management is a function of Planning, Organising, Forecasting Coordinating, Leading, Controlling, Motivating the efforts of others to achieve specific objectives.  Management is a vital aspect of the economic life of man, which is an organised group activity. It is considered as the indispensable institution in the modern social organization marked by scientific thought and technological innovations. One or the other form of management is essential wherever human efforts are to be undertaken collectively to satisfy wants.  Management is universal in the modern industrial world and there is no substitute for good management. It makes human effects more productive and brings better technology, products and services to our society.  The principles of management are the means by which a manager actually manages, that is, get things done through others—individually, in groups, or in organizations.  Formally defined, the principles of management are the activities that plan, organize, and control the operations of the basic elements of [people], materials, machines, methods, money and markets, providing direction and coordination, and giving leadership to human efforts, so as to achieve the sought objectives. Many management experts have tried to define management. Let us discuss some of the leading definitions of management:  "Management is an art of knowing what is to be done and seeing that it is done in the best possible manner." (Planning and controlling) – F.W. Taylor (father of scientific management)  "Management is to forecast, to plan, to organize, to command, to coordinate and control activities of others." – Henri Fayol (father of modern management)  According to Harold Koontz ―Management is the art of getting things done through and with formally organized groups ―.  According to Peter F. Drucker. ―A Multipurpose organ that manages a business and manages managers and manages workers and works ―.  According to J.Lundy ―Management is what management does. It is the task of planning executing and controlling ―.  Management is the process of planning, organizing, leading, and controlling an organization’s human, financial, physical, and information resources to achieve organizational goals in an efficient and effective manner. 1. Economic Resource: Management is one of the factors of production together with land, labour and capital. As Industrialization increases, the need for managers also increases. Efficient management is the most critical input in the success of any organized group activity as it is the force which assembles and integrates other factors of production, namely, labour, capital and materials. Inputs of labour, capital and materials do not by themselves ensure production; they require the catalyst of management to produce goods and services required by the society. Thus, management is an essential ingredient of an organization. 2. Management is a purposeful activity. It coordinates the efforts of workers to achieve the goals of the organization. The success of management is measured by the extent to which the organizational goals are achieved. It is imperative that the organizational goals must be well-defined and properly understood by the management at various levels. 3. Management is a process: Management is a distinct process consisting of such functions as planning, organizing, staffing, directing and controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. 4. Management and teamwork: The essence of management is integration of human and other resources to achieve the desired objectives. All these resources are made available to those who manage. Managers apply knowledge, experience and management principles for getting the results from the workers by the use of non- human resources. Managers also seek to harmonize the individuals' goals with the organizational goals for the smooth working of the organization.  5. System of Authority: Management as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels possess varying degree of authority. Generally, as we move down in the managerial hierarchy, the degree of authority gets gradually reduced. Authority enables the Managers to perform their functions effectively.  6. Universal Application: Management is universal in character. The principles and techniques of management are equally applicable in the fields of business, education, military, government and hospital. Henri Fayol suggested that principles of management would apply more or less in every situation. The principles are working guidelines which are flexible and capable of adaptation to every organization where the efforts of human beings are to be coordinated.