Nature and Concept of

Management

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 Thats not my Job
This is a story about four people named Everybody, Somebody,
Anybody and Nobody. There was an important job to be
done and Everybody was sure that Somebody would do
it. Anybody could have done it, but Nobody did
it. Somebody got angry about that, because it was
Everybodys job. Everybody thought Anybody could do it,
but Nobody realized that Everybody wouldnt do it. It
ended up that Everybody blamed Somebody when Nobody
did what Anybody could have.

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 What is Management?
The force that runs an enterprise and is responsible for its
success and failure.

Management is the performance of conceiving and achieving

desired results by means of group effort consisting of utilizing
human talents and resources

Getting things done through people.

Planning and Implementing.

Satisfying the economic and social needs by being productive

for the human being, for the economy, and for society.

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 What is Management?
Management is a distinct process of planning, organizing,
staffing, directing, and controlling (POSDICON), performed to
determine and accomplish stated objectives by the use of
human being and other business resources.
Basic Fundamental Functions Stated
Resources Objectives
The Process of Management
6 Ms End-Results

Planning Organizing Staffing

Men
Money Social
Materials Responsibility
Machines
Methods Profit
Market
Directing Controlling

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 CONCEPT OF MANAGEMENT
A. TRADITIONAL CONCEPT
Management is the art of getting things done through others. (Mary
Parker Follett)
Management consists of getting things done through others. A
manager is one who accomplishes organizational objectives by
directing the efforts of others. (C.S. George)

B. MODERN CONCEPT
Management is establishing an effective environment for people
operating in formal organizational group. (koontz and opdonnel)
Management is the co-ordination of all resources through the
process of Planning, Organizing, Directing and Controlling in
order to attain stated objectives. (F.W.Taylor

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 Definition of Management
According to Harold Koontz,
"Management is the art of getting things done
through and with people in formally organized
groups."Harold Koontz gave this definition of management in his book "The
Management Theory Jungle".

According to Henri Fayol,

"To manage is to forecast and to plan, to
organize, to command, to co-ordinate and to
control. Henri Fayol gave this definition of management in his book
"Industrial and General Administration".

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 Definition of Management
According to F.W.Taylor
" Management is an art of knowing what to do, when to do and see
that it is done in the best and cheapest way."

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 Management can be defined in the
following categories :
1. Management as a Process
2. Management as an Activity
3. Management as a Discipline
4. Management as a Group
5. Management as a Science
6. Management as an Art
7. Management as a Profession

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 Importance of Management
1. Management is goal oriented
2. Management is associated with group efforts
3. Management is intangible
4. Management is an activity and not a person or group of
persons
5. Management is situational
6. Management is universal
7. Management is concern with people
8. Management is the combination of art, science and
profession

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 Universally Accepted Functions
of Management
Planning

Formulation of objectives, programs, policies,

procedures, rules and regulations, in order to achieve
the goals of the business.
Related to decision-making
Involves selecting the best course of action that a
business or other enterprises and every department
will follow.
Ranging from the company purpose and objective to
the most detailed individual action plan.
Involves forecasting, that is, making decisions in
advance.
Used to further accomplish the objectives today and it
relationship in the future.
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Thinking before doing.
 Universally Accepted Functions
of Management (cont)
Organizing

The grouping together of people, establishing

relationship among them, and defining the authority
and responsibility that the personnel have in the use
of the companys material resources to attain
predetermined goals and objectives.

Involves establishing an intentional structure of

roles for men to fill in an enterprise. Intentional that
it makes sure that all the tasks necessary to
accomplish goals are assigned to men who can do
them best.
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 Universally Accepted Functions
of Management (cont)
Staffing
Involves filling and keeping filled the positions
provided in the organization structure.
Includes recruiting and selecting candidates for
position, compensation, and training.

Directing
Involves motivation, leadership styles, and
approaches, and communication.
Leadership implies followership, and people tend
to follow the man on who they see a means of
satisfying their own needs, wishes, and desires.

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 Universally Accepted Functions
of Management (cont)
Controlling
The process of measuring and
correcting the activities of subordinates
and the company itself to assure
conformity to plans.

It measures performance against goals,

and plans where negative deviations
exist, and, by actions to correct
deviations and help assure the success of
plans.
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 Universally Accepted Functions
of Management (cont)
Communication
It provides the vital link in any organization. Every successful
manager has to develop an effective system of communication

Communication means exchange of facts, ideas, and information

between two or more person. It helps in building up high moral.

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 Management as a Science and as an Art
Art
It results to the accomplishment of objectives through
the use of human efforts.
Requires skill and careful study in the management of
any endeavor.

Science
It is a systematic body of knowledge.
gathers and analyzes facts and formulates general laws
or principles from these facts.

*** Management seeks to integrate into a unified,

coordinated whole the essential factors that makes up an
organization personnel, finance, production, sales or
marketing, purchasing, and procurement, administration,
and advertising.
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 Evolution of Management Theories
The Classical or Traditional School
Concept of management is not new, it has been practiced for thousand of years.
The classical theory of management is built on principles.
14 Principles of Management by Henri Fayol

1. Division of Work assignment of specialized jobs to various departments and/or positions.

When work is specialized, people learn the task more easily and perform them more
effectively.
2. Authority and Responsibility both to be related and inseparable. Authority as the power
or the right entrusted to make the work possible and responsibility as the duty or work
assigned to a particular position.
3. Unity of Command employees should receive orders from one superior/manager only.
4. Subordination of Individual Interest to General Interest interest of one employee
or group of employees should not prevail over the interest of the business.
5. Remuneration remuneration and method of payment should be fair and afford the
maximum possible satisfaction to employees and employer. Sometimes called Compensation.
equal pay for equal work.
6. Centralization extent to which authority is concentrated. Major policies are made only by
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the top management.
 Evolution of Management Theories (cont)
14 Principles of Management by Henri Fayol (cont)

7. Scalar Chain chain of superiors from the highest to the lowest ranks.
8. Stability of Tenure unnecessary labor turnover could be the cause and the effect of
bad management. Employees should be given enough time and period to prove his worth
to the company. probationary appointment
9. Esprit de Corps in union there is strength. Need for teamwork and the
importance of communication in obtaining it.
10. Span of Control refers to the specific and limited number of subordinates that a
manager can effectively handle and control. Effective supervision.
11. Simplicity unnecessary elements should be eliminated from all activities
12. Unity of Direction one boss and one plan for a group of activities having the
same objective.
13. Order ensures a place for everything.
14. Equity results from kindness and justice.

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 Evolution of Management Theories (cont)
4 Principles of Scientific Management by Frederick Taylor

1. Develop a science for each element of a mans work, to replace the old
rule-of-thumb method.
2. Scientifically select and then train the worker
3. Heartily cooperate with the men to ensure that all the work done is in
accordance with the principles of the science develop for the work.
4. Divide the work and the responsibility equally between the
management and the workers. Management should take over from the
workmen all work for which it is better fitted.

Taylors scientific management stresses the following:

The need for developing the best way of performing each job,
Training and preparing workers to perform that job, and
Establishing harmonious cooperation between management and
workers.

18**Piece-Rate Incentive System andTime-And-Motion Study

 Evolution of Management Theories (cont)
Frank and Lillian Gilbreth and Motion Study

Emphasized the ideal motions required to perform a job in an optional fashion

Developed the concept of the therblig, an elemental hand or arm motion
17 therbligs suitable for a particular job.

MOTION STUDY - detailed analysis of motions in an operation

Goal: To eliminate ineffective motions, to produce faster or more effective motions

A. Effective therbligs - directly advance progress of work, may be shortened but difficult to
eliminate completely
1) Reach (RE) - movement of empty hand to or from object
2) Move (M) - movement of loaded hand
3) Grasp (G) - closing fingers around an object, depends on type of grasp
4) Release (RL) - relinquish control of object
5) Pre-Position (PP) - positioning object in predetermined location for later use
6) Use (U) - manipulating tool for intended use
7) Assemble (A) - two mating parts brought together
8) Disassemble (DA) - opposite of assemble, mating parts separated
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 Evolution of Management Theories (cont)
Frank and Lillian Gilbreth and Motion Study

Emphasized the ideal motions required to perform a job in an optional fashion

Developed the concept of the therblig, an elemental hand or arm motion
17 therbligs suitable for a particular job.

MOTION STUDY - detailed analysis of motions in an operation

Goal: To eliminate ineffective motions, to produce faster or more effective motions

B. Ineffective therbligs - do not advance progress of work, should be eliminated

9) Search (S) - eyes or hands groping for object
10) Select (SE) - choosing one item from several
11) Position (P) - orienting object during work
12) Inspect (I) - compare object with standard
13) Plan (PL) - pause to determine next action
14) Unavoidable delay (UD) - beyond operator's control
15) Avoidable delay (D) - operator responsible for idle time
16) Rest to overcome fatigue (R) - appears periodically, not every cycle
17) Hold (H) - one hand support object while other does useful work
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 Levels of Management
The level of management determines a chain of command, the amount
of authority & status enjoyed by any managerial position. The levels of
management can be classified in three broad categories:

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Levels of Management
Middle Level of Management
The branch managers and departmental managers constitute middle level.

They are responsible to the top management for the functioning of their
department.
They devote more time to organizational and directional functions.
They execute the plans of the organization in accordance with the policies
and directives of the top management.
They interpret and explain policies from top level management to lower
level.
It also sends important reports and other important data to top
level management.
They evaluate performance of junior managers.
They are also responsible for inspiring lower level
managers towards better performance.
Levels of Management
Middle Level of Management
The branch managers and departmental managers constitute middle level.

They are responsible to the top management for the functioning of their
department.
They devote more time to organizational and directional functions.
They execute the plans of the organization in accordance with the policies
and directives of the top management.
They interpret and explain policies from top level management to lower
level.
It also sends important reports and other important data to top
level management.
They evaluate performance of junior managers.
They are also responsible for inspiring lower level
managers towards better performance.
Levels of Management
Lower Level of Management is also known as supervisory / operative level of
management. It consists of supervisors, foreman, section officers, superintendent etc.
According to R.C. Davis, Supervisory management refers to those executives whose
work has to be largely with personal oversight and direction of operative employees. In
other words, they are concerned with direction and controlling function of management.

Assigning of jobs and tasks to various workers.

They guide and instruct workers for day to day activities.
They are responsible for the quality as well as quantity of production.
They are also entrusted with the responsibility of maintaining good
relation in the organization.
They communicate workers problems, suggestions, and recommendatory appeals
to the higher level and higher level goals and objectives to the workers.
Levels of Management
Lower Level of Management

They help to solve the grievances of the workers.

They arrange necessary materials, machines, tools etc for getting
the things done.
They prepare periodical reports about the performance of the
workers.
They ensure discipline in the enterprise.
They motivate workers.
They are the image builders of the enterprise because they are in direct
contact with the workers.
Who are Managers?
Someone who works with and through other people by
coordinating their work activities in order to accomplish
organizational goals.

A manager is responsible for planning and directing the work

of group of individuals, monitoring their performance and
taking corrective action when necessary for the
accomplishment of organizational goals and objectives.
Managerial Skills
Conceptual Skills
- The abilities to think about the creative terms understand
and visualize the future, to organize and translate
observation into ideas and concepts.

Analytical Skills (Decision Making)

- The ability to work out a complex problem or situation into
component. Analytical skills are required for solving problems
and decision.
Managerial Skills
Human Relation Skills
- The ability to understand the behavior of people, their
problems, their needs, working conditions and motivation
to people.

Administrative Skills
- It involves the implementation of plan and use of available
resources to get the desired output that is profit and to
regularize a performance in orderly manner.
Managerial Skills
Technical Skills
- These skills are essential for the first line managers. He
requires knowledge of a job, ability to apply the methods
and techniques of job.

Computer Skills
- Computer knowledge is essential for todays manager i.e
knowledge of hardware and software. Hardware is technical
term and software is ability to adopt the system in an
organization to attempt goals.
Managerial Skills
Communication Skills
- It is a systematic process of telling, listing and
understanding. This skills requires the ability of listening and
speaking in an effective manner.
 Distinguish between Management and Organization
Points Management Organization
Meaning It is an executive function which is It is an organic function of putting together
primarily concerned with getting the the different parts of an enterprise into
things done by others working order
Types Planning, organizing, staffing, Organization is one of the important
motivation, direction, coordination and functions of management
control are the functions of
management
Nature It is like the entire body of human being It is like a nervous system of human body
Levels There are different levels in There are no such levels in organization
management i.e Top, Middle, Lower
Level
Scope Management uses the organization Organization is the machine organization

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 Evaluation:
Explain the different Functions of Management. 30 pts

Assignment:
1. Define Management.
2. Explain Management as an Art and as a Science.

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