UNIT- 1 POM (BBA 1st year)- BUSSINES MANAGEMENT NOTES
UNIT- 1 POM (BBA 1st year)- BUSSINES MANAGEMENT NOTES
UNIT- 1 POM (BBA 1st year)- BUSSINES MANAGEMENT NOTES
Introduction of Management:
Management is the first of the modern institutions to shape the society. It plays
a vital role in modern world. It regulates man’s productive energies. It organizes
factors of production.
Concept of Management:
The term ‘management’ has been used in different senses. Sometimes it refers
to the Management can be defined as the process of achieving organizational
goals through planning, organizing, staffing, directing, coordinating and
controlling; at other times it is used to describe it as a function of managing
people. It is also referred to as a body of knowledge, a practice and discipline.
There are some who describe management as a technique of leadership and
decision-making while some others have analyzed management as an economic
resource, a factor of production or a system of authority.
Definition of Management:
Scope of Management:
Objectives of Management:
4.Human betterment & Social Justice - Management serves as a tool for the
upliftment as well as betterment of the society. Through increased productivity
& employment, management ensures better standards of living for the society. It
provides justice through its uniform policies.
Importance of Management
3. Effective utilization of business: There are eight M’s in the business. These
are said to be man, money, materials, machines, methods, motivation, markets
and management. Management is the topmost of all other ‘Ms’. Management
has control over other remaining ‘Ms’.
8. Integrates various interests: Each person has his own interests these
interests are different in nature. Management takes steps to integrate various
interests to achieve the objectives of an organization.
10. Innovation: New ideas are developed by the management and implements
in the organization. Better performance is achieved through new ideas.
11. Co-ordination and Team-spirit: All the activities of business are grouped
department-wise. Management co-ordinates the activities of different
departments and establishes team-spirit to achieve the objectives.
Functions are the activities that a manager must perform as a result of the
position held in the organization. The best way to analyses the management
process is in terms of what a manager does. Generally the basic functions of
management are: planning, organizing, staffing, directing and controlling. As
managing is a dynamic and challenging activity, it includes three kinds of
functions and tasks which are common to all managerial jobs. The list of
management functions can be presented as follows:
Basic Functions
1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling
Dynamic Functions
1. Co-coordinating 2. Decision Making 3. Representation 4.
Innovation 5. Administration
Challenging Functions
1. Managing Work 2. Managing People 3. Managing Operations 4.
Managing Change 5. Managing Time 6. Strategy Formulation and
Action 7. Economic Performance 8. Making Work Productive and the
Worker Achieving 9. Managing Social Impacts and Social
Responsibilities
Basic Functions
1. Planning is one of the most important functions because it sets the pattern for
the other activities to follow. Planning function for the new era is more broadly
described as delivering strategic value. It is a primary and crucial function
which determines how to achieve an objective-deciding what is to be done and
when to do it. It is looking ahead and preparing for the future.
Contribution of Taylor
1. Scientific task setting: Taylor suggested that the task of every worker for
every day should be determined through scientific investigation. Taylor called it
“a fair day’s work”. Every manager must know in advance the fair day’s work
for each worker.
(i) Planning, consisting of activities for making plans to achieve goal of the
organisation. This function includes forecasting and decision-making.
4. Flexible and adaptable principles: Fayol made it clear that the principle of
management are flexible and adaptable to every need.
5. Unity of Direction Means that the there should be complete identify between
individual and organizational goals on one hand and between departmental
goals on the other i.e. one head & one plan for a group of acts having the same
objective. In other words the related acts should be put under one group, these
should be one plan of action for them & they should be under the control of one
particular manager.
9. Scalar chain: Scalar chain refers to the chain of superiors ranging from the
ultimate authority to lowest ranks. There should be clear line of authority
ranging from top to bottom of organization the line of authority is the route
followed via every link in the chain by all communication which start from as
go the ultimate authority Fayol suggested the concept ‘gang plank’ which is
used to prevent the scalar chain from bogging down action.
10. Order: To run well an organization should have a place of everything and
everything should be in its place. These should be an orderly rationally thought
out plan for arranging the things and material in their suitable places. There are
two order material and social
11. Equity: The organizations runs best when there is a feeling of kindliness
and justice among managers. Desire for equity & equality of treatment are the
common aspirations of employees.
13. Initiative: Initiative refers to the freedom to thinks out a plan and use
discretion in executing. It is a freedom to propose and to execute.
14. Esprit de corps: This principle says that “in union there is strength”
Harmony, teamwork and union among the employees is a great strength in a
concern the morale of an organization people is an asset Fayol exhorts that the
misguided motto ‘divide and rule and the abuse of written communication
should be avoided by manager rather they should strive to maintain cooperation
among employees.
Taylor’s work is primarily concerned with the operative level at the shop
level while Fayol’s work is concerned with management at top and
middle levels.
Taylor started from the bottom of the managerial hierarchy and had
worker upwards whereas Fayol started from the top executive position
and worked downwards.
Taylor was concerned with increasing efficiency of labour whereas Fayol
was concerned with with increasing efficiency of total organisation.
Taylor aimed at increasing productivity by eliminating or reducing
inefficiency and waste. On the other hand, Fayol aimed at organisational
efficiency through application of management principles.
Taylor described his philosophy as ‘Scientific management’ whereas
Fayol called his views as ‘General theory of administration’.
Taylor is known as the father of scientific management whereas Fayol is
recognised as the father of modern management theory.
Fayol recognized the need of education and training in schools and
colleges whereas Taylor did not so realize. Fayol was a top executive, and
therefore, was in a better position to look at the functions of a manager
than Taylor.
Management Approach of Max Weber also has some fault-lines and received
criticism for it.