Introduction to Management PDF

Introduction to Management By Dr. Mahendra Parihar Associate Professor, MPSTME, NMIMS Mumbai  One of the most important human activities is managing. Take a close look at the society around you. You would find the existence of several organizations. To me...

Introduction to Management By Dr. Mahendra Parihar Associate Professor, MPSTME, NMIMS Mumbai  One of the most important human activities is managing. Take a close look at the society around you. You would find the existence of several organizations. To mention a few, the business organizations that produce goods or services, hospitals, religious and social institutions like charities, schools, colleges and universities. All these organizations exist to achieve pre-determined objectives. Management is understood in different ways by different people: In the words of Mary Parker Follet management is “the art of getting things done through people”. This definition throws light on the fact that managers achieve organizational goals by enabling others to perform rather than performing the tasks themselves. Thus, Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. This basic definition needs to be expanded:  As managers, people carry out the managerial functions of planning, organising, staffing, leading and controlling.  Management applies to any kind of organization.  It applies to managers at all organizational levels.  The aim of all managers is the same: to create a surplus.  Management is concerned with productivity, which implies effectiveness and efficiency. However, the definition given by James A.F. Stoner covers all the important facets of management. According to him: “Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals”. The definition suggests:  Management is a continuous process;  Several interrelated activities have to be performed by managers irrespective of their levels to achieve the desired goals;  Managers use the resources of the organization, both physical as well as human, to achieve the goals;  Management aims at achieving the organisation’s goals by ensuring effective use of resources in the best interests of the society. It is evident that the emphasis is on achieving the objectives by using material, machinery, money and the services of men (4 M). These inputs are drawn from the environment in which the organization exists.  Nature of Management: The practice of management is as old as human civilization. In fact, much of the progress of mankind over the centuries may be attributed to the effective management of resources. The irrigation systems, the public utilities, the construction of various monuments like Taj Mahal, and the Egyptian Pyramids of the bygone era amply demonstrate the practice of management in the olden days. Similarly, the ancient civilizations of Mesopotamia, Greece, Rome and Indus-valley displayed the finest practices of management of those periods. However, the study of management in a systematic way as a distinct body of knowledge is only of recent origin. That is why, management is often described as “oldest of the arts and youngest of the sciences”. Thus, the practice of management is not new. It has been practiced for thousands of years. But the science part of it ‘the systematic body of knowledge’ is, no doubt, a phenomenon of the present century. The traditional management practices remained quite stable through the centuries until the birth of industrial revolution in the mid-18th century. Industrial revolution had thus sown the seeds of modern management. No doubt, management as an academic body of knowledge has come a long way in the last few decades. It has grown in stature and gained acceptance all over the world. Yet, it is a paradox that the term ‘Management’ continues to be the most misunderstood and misused. Certain questions like whether management is a science or art or profession are yet to be answered in a satisfactory way. Nature of Management…….contd.. Management as Science: wide array of principles, enquiry and examination, cause-effect relationship, accuracy and universal applicability. Management is a dynamic subject in that, it has drawn heavily from economics, psychology, sociology, engineering and mathematics, to mention a few. It is multi-disciplinary in nature, but a word of caution. Though management considering its subject matter and the practical utility may be considered as ‘science’, it cannot be viewed as an ‘exact science’. In other words, it is a science, but an ‘inexact science Unlike the pure or exact sciences where the results are accurate in the case of management, the various factors discussed above may force even the excellent plans and the strategies go haywire. Too many complexities and uncertainties render management an ‘inexact science’. Nature of Management…….contd.. Management as an Art: Art refers to the ‘know-how’ – the ways of doing things to accomplish a desired result. The focus is on the skill with which the activities are performed. As the saying goes ‘practice makes a man perfect’, constant practice of the theoretical concepts (knowledge) contributes for the formation and sharpening of the skills. Therefore, what is required is the right blend of the theory and practice. In a way, the attributes of science and art are the two sides of a coin. Effective practice of any art requires a thorough understanding of the science underlying it. Thus science and art are not mutually exclusive, but are complementary. Executives who attempt to manage without the conceptual understanding of the management principles and techniques have to depend on luck and intuition. With a sound knowledge and the necessary skills to use such knowledge, they stand a better chance to succeed. Therefore, it may be concluded that ‘management is both a science and an art’. Management as a Profession: “whether managers are born or made”. Management is: Multidisciplinary, Dynamic in Nature, Situational based i.e. relative not absolute, and Management has Universality.  Levels of Management The three levels of management that are commonly found in any organisation are lower or front-line, middle and top management. Given below is the management levels and time spent in carrying out managerial functions: Skills and Management Levels: