UNIT - I

Management refers to the process of planning,

organizing, staffing, directing, co-coordinating and
controlling. It is also referred to as a body of
knowledge, a practice and a discipline.
.Management is a distinct process consisting of
planning, organizing, activating and controlling
performed to determine and accomplish the objectives
by the use of human being and other resources.
George,R.Terry
Management is the art of knowing what you want to
do.in the best possible service-F.W.Taylor
Management is what a manager does -Louis Allen
Nature or Characteristics of Management
1.Management is a group activity
2.Management is goal-oriented
3.Management is a factor of production
4.Management is universal in character
5.Management is needed at all levels of the
organisation
6.Management is a distinct process
7.Management is a social process
8.Management is a system of authority
9.Management is a dynamic function
10.Management is an art as well as a science
11.Management is a profession

12.Management is intangible
Scope or Branches of Management
Managerial Aspects
Operational Aspects
1. Planning
1.Production
2.Organising
Management
3.Staffing
2.Marketing
4.Directing
Management
5.Co-ordinating
3.Financial Management
6.Controlling
4.Personnel Management
5.Office Management
1. Production Management
*Production policy
*Types of production
*Plant facilities
*Material handling
*Production planning & control
*Repair & Maintenance
*Research & Development
*Quality control & Value analysis, etc.,
2. Marketing Management
*Finding consumer needs
*Market analysis
*Marketing policy
*Brand name
*Pricing
*Channels of distribution

*Repair & Maintenance

*Advertising & Sales promotion
*After sales service & Market research, etc.,
3. Financial Management
*Estimation of capital requirements
*Ensuring a fair return to investors
*Determining the suitable source of funds
*Finding suitable capital structure for the enterprise
*Preparation and analysis of financial statements
*Laying down a proper dividend policy
*Negotiating for outside financing
*Preparation of budgets
*Maintenance of accounts on all expenses &profit, etc.,
4. Personnel Management
*Recruitment of employees
*Training & Development of employees.
*Determination of compensation
*Providing good working condition
*Providing Welfare services to employees
*Directing the employees, etc.,
5. Office Management
Functions / Process / Steps / Elements / Role of
Management
1. Planning
*When to do?
*When to do?

*Who is to do?
2. Organising
3.Staffing
*Manpower planning
*Recruitment, Selection, and Training
*Placement of manpower
*Development, Promotion, Transfer and Appraisal
*Determination of employee remuneration.
4.Directing
*Leadership
*Communication
*Motivation
*Supervision
5. Co-ordinating
6. Controlling
*Establishing standards of performance
*Measuring actual performance
*Comparing the actual performance with the standard
*Finding the deviations
*Taking corrective action
7. Motivating
8. Innovation
9. Representation
10. Decision making
11. Communication

Taylor and Scientific Management (1856-1915)

F.W.Taylor joined Midvale Steel Works, in
Philadelphia, U.S.A. in 1878 as Mechanist and soon
promoted as foreman and then as chief Engineer. He is
well acknowledged as father of Scientific
Management. He made efforts to replace the primitive
rule of thumb methods by modern scientific methods
based on investigation, analysis and measurement.
He wrote a number of books, notable among them are*Shop Management
*Principles of Scientific Management
*Piece rate system and so on.
Taylor's contributions to Scientific Management are
as follows.
(A) Principles / Nature/ Characteristics of Scientific
Mgt.
1. Replacing rule of thumb with science
2. Harmony in group action
3. Co-operation
4. Maximum output
5. Development of workers
Elements / features of Scientific Mgt.

1. Separation of planning and doing

2. Scientific task setting
3. Functional foremanship
4. Work study
5. Methods study
6. Motion study
7. Time study
8. Fatigue study
9. Rate setting
10. Standardisation
11. Scientific selection and training
12. Financial incentives
13. Mental revolution
14. Economy
Henry Fayol and Process or Administrative
Management.
Henry Fayol (1841-1925) started his career as a
junior engineer in a coalmine company in France and
became its general manger in 1880. He wrote a book on
General and industrial Management in 1916 which was
published in English in 1949. This book is considered
one of the best classics in management. His
contribution may be classified under three categories:
*Classification of Business Activities
*Functions of Management
*Principles of Management
Classification of Business Activities

1. Technical activities (production.)

2. Commercial activities (Buying, selling and
exchange)
3. Financial activities (relating to identification and
utilization of available funds.)
4. Security activities (protection of property and
persons)
5. Accounting activities (recording and maintaining of
accounts, stocktaking, cost sheets, balance sheets and
statistical data.)
6. Managerial activities (relating to planning,
organizing,
commanding,
co-coordinating
and
controlling.)
Elements / Functions of Management
Henry Fayol made deference between principles of
management and elements of management. According
to him, the following are the elements of management:
1. Planning.
2. Organizing.
3. Commanding.
4. Co-ordination.
5. Control.
Qualities of a Manager
Henry Fayol identified the managerial qualities of a
Manager. Which are given below?
1. Physical (health, vigor and address)

2. Mental (ability to understand and learn, judgment

mental vigor and adaptability)
3. Moral (energy, firmness, willingness to accept
responsibility, initiative, loyalty, tact and dignity)
4. General Education (general acquaintance with
matters not belonging exclusively to the function
performed)
5. Special knowledge (peculiar to the function, be it
technical, commercial, financial, managerial etc.)
6. Experience (knowledge arising formwork proper)
Fayol 14 Principles of Management
1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to group
interest
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure
13. Initiative
14. Esprit de corps

Similarity
1. Both of them realized the universality of
management.
2. Both applied scientific methods to the problems of
management.
3. Both realized the importance of personnel and its
management at all levels.
4. Both wanted to improve the management practice.
5. Both of them developed their ideas through
practical experience.
6. Both of them expressed their ideas through their
books.
7. Both of them emphasized mutual co-operation
between employers and employees.
Dissimilarity
1. Taylor focused his attention on the problems of
shop floor while Fayol concentrated on the functions of
managers at top level.
2. Taylor worked from the bottom of the industrial
hierarchy upwards, while Fayol concentrated on the
chief executive and worked downwards.
3. the main aim of Taylor was to improve
productivity of labour and eliminate wastages. Fayol
attempted to develop a universal theory of
management.
4. Taylor called his philosophy or work as Scientific
Management whereas Fayol described his work on
General Theory of Administration.

5. Taylor is known as father of Scientific

Management and Fayol as the Father of principles of
management.
6. Taylors philosophy has undergone a big change
under the influences of modern developments, but
Fayols principles of management have stood the test of
time and are well accepted even in the present days.
7. Fayol looks to the management in the wider
perspective as compared to Taylor.