Note for Principles of Management - POM by Trishant srivastava

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PRINCIPLES OF MANAGEMENT MODULE-I Meaning and Concept of Management: Resources are very limited in supply. All resources are to be managed by human. However, human have unlimited wants. Therefore, there are limited resources and unlimited wants and desire. Complete satisfaction is very necessary for better functioning of every aspect of the society. Therefore, for complete satisfaction in life resources are to be managed properly in such a way that human achieve complete utility and benefit simultaneously. Thus, to manage all resources available in such a way that it gives complete satisfaction to human beings is the theoretical meaning of management. To go on a deeper level, management can be defined as art and skill of getting things done through others is called management. More elaboration is given by George R Terry. According to Terry-“management is the distinct process consisting of planning, organizing, activating, and controlling activities performed to determine and accomplishes the objectives by the use of people and resources.” If we give our attention towards the definition we find that terry perceives the management as a process a systematic way of doing things. The four management activities are included under the process and they are planning, organizing, activating and controlling. MANAGEMENT = MANAGE+MEN+T (TACTFULLY) Concept of Management Management: The process of achieving organizational objectives by engaging in the five major functions of planning, organizing, staffing, leading and controlling. The concept of management is not fixed. It has been changing according to time and circumstances. Different authors on management have given different concepts of management. The main concepts of management are as follows: Basically, there are 5 concepts of management. They are: 1. Functional concept Management basically is the task of planning, coordinating, motivating and controlling the efforts of other towards the goals and objectives of the organization. According to this concept, management is what a manager does (planning, executing, and controlling) 2. Human relation concept According to this concept, Management is the art o getting things done through and with people in organized groups. It is the art of creating an environment in which people can perform and individuals could cooperate towards attaining of group goals. It is an art of removing blanks to such performance a way of optimizing efficiency in reaching goals. 1

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3. Leadership and decision making concept According to this concept, management is the art and science of preparing, organizing, directing human efforts applied to control the forces and utilize the materials of nature for the benefits to man. According to this concept, "management is an art and science of decision-making and leadership." Most of the time of managers is consumed in taking decisions. Achievement of objects depends on the quality of decisions. Similarly, production and productivity both can be increased by efficient leadership only. Leadership provides efficiency, coordination and continuity in an organization. Leadership and decision-making concept as given by some authors is given below: I. Donald J. Clough, "Management is the art and science of decision-making and leadership". II. Ralph, C. Davix, "Management is the function of executive leadership anywhere." III. F.W. Taylor, "Management implies substitution of exact scientific investigation and knowledge for the old individual judgment or opinion, in all matters in the establishment." 4. Productive concept According to this concept, management may be defined as the art of securing maximum prosperity with a minimum effort so as to secure maximum prosperity and happiness for both employer n employee and provide best services thereby. According to this concept, "Management is an art of increasing productivity." Economists treat management as an important factor of production. According to them, "Management is also a factor of production like land, labor, capital and enterprise." The main followers of this concept of management are John F. Mee, Marry Cushing Niles, F.W. Taylor etc. The productivity concept, as given by the authors is given below: I. Jon, F. Mee, "Management may be defined as the art of securing maximum prosperity with a minimum of effort so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service." II. F. W. Taylor, "Management is the art of knowing what you want to do in the best and cheapest way." III. Marry Cushing Niles, "Good management achieves social objectives with the best use of human and material energy and time and with satisfaction of the participants and the public. 5. Integration concept According to this concept, management is the coordination of human and material resources towards the achievement of organizational objectives as well as the organization of the productive functions essential for achieving stated or accepted economic goal. 6. Universality concept According to this concept, "Management is universal". Management is universal in the sense that it is applicable anywhere whether social, religious or business and industrial. The followers of this concept are Henry Fayol, Lawrence A. Appley, F.W. Taylor, Theo Haimann etc. I. Henry Fayol, "Management is an universal activity which is equally applicable in all types of organization whether social, religious or business and industrial". II. Megginson, "Management is management, whether it is in Lisbon, or in London or in Los Angeles." III.Theo Haimann, "Management principles are universal. It may be applied to any kind of enterprises, where the human efforts are coordinated." 2

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Theo Haimann concept To overcome the limitations of the above concepts, Theo Haimann, the leading management expert has explained three basic concepts of management as under: (a)Management as a process: Management is a process. It includes the process of planning, controlling, coordinating, motivating, and staffing. These processes are the series of interrelated sequential functions. Processes refer to accomplish these mentioned activities. Management is the efforts of organizational members to accomplish the organizer’s objectives. This concept is very simple because:  It is very simple and very easy to understand  It indicates functions of management as a process  It recognizes management as a universal process (b)Management as a discipline: The term management is used as a subject of instructions. It is a specific branch of knowledge which is studied in campuses and schools like economics, sociology, mathematics, political science etc. the scholars of management have found that the information and management are used in practical life for better functioning. The scope of management is being increased day to day as a discipline. © Management as a noun: The word management itself refers as a noun. There are many kinds of employees in an organization. Some people are involved in managerial function and some are involved in operating functions. The individuals who manage the organization and departments are managers. As a noun, the term management is used as single name of managers, board of directors, managing directors; departmental managers etc are included in management. Features of Management: According to this concept 'management is what a manager does'. 3

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1. Continuous and never ending process: Management is a Process. It includes four main functions, viz., Planning, Organising, Directing and Controlling. The manager has to plan and organise all the activities. He has to give proper directions to his subordinates. He also has to control the activities. The manager has to perform these functions continuously. Therefore, management is a continuous and never ending process. 2. Getting things done through people: The managers do not do work themselves. They get the work done through the workers. The workers should be treated like slaves. They should not be tricked, threatened or forced to do the work. A favourable environment should be created and maintained. Under this concept, the workers are treated as a factor of production only and the work of the manager is confined to taking work from the workers. Modern management experts do not agree with this concept of management. Some of these authors have explained this concept in the following words: I. Mary Parker Follet, "Management is the art of getting things done through people." II. Harold Koontz, "Management is the art of getting things done through and with people in formally organized groups”. It is the art of creating environment in which people can perform as individuals and yet cooperate towards attaining of group goals. III. J.D. Mooney and A.C. Railey, "Management is the art of directing and inspiring people." 3. Result oriented science and art: Management is result oriented because it gives a lot of importance to "Results". Examples of Results like, increase in market share, increase in profits, etc. Management always wants to get the best results at all times. 4. Multidisciplinary in nature: Management has to get the work done through people. It has to manage people. This is a very difficult job because different people have different emotions, feelings, aspirations, etc. Similarly, the same person may have different emotions at different times. So, management is a very complex job. Therefore, management uses knowledge from many different subjects such as Economics, Information Technology, Psychology, Sociology, etc. Therefore, it is multidisciplinary in nature. 5. A group and not an individual activity: Management is not an individual activity. It is a group activity. It uses group (employees) efforts to achieve group (owners) objectives. It tries to satisfy the needs and wants of a group (consumers). Now days, importance is given to the team (group) and not to individuals. 6. Follows established principles or rules: Management follows established principles, such as division of work, discipline, unity of command, etc. These principles help to prevent and solve the problems in the organization. 7. Aided but not replaced by computers: Now-a-days, all managers use computers. Computers help the managers to take accurate decisions. However, computers can only help management. Computers cannot replace management. This is because management takes the final responsibility. Thus Management is aided (helped) but not replaced by computers. 8. Situational in nature: 4