Principles and Practices of management

Concept, Definition and Nature of Management

1. Principles and Practices of Management Presentation by Dr. Darshan Subherwal School of Commerce, SAGE University, Bhopal, India

2. Contents Presentation by Dr. Darshan Subherwal Management Concept Definition Nature

3. Concept Terminology used in synonym to Management Management Administration Organization Administration is concerned mainly with decision making, policy making and making necessary adjustments. Organisation is the frame work of management. Organisation is the function of putting together the different parts of an enterprise into working order Management implements/ executes the policies laid down by administration. Presentation by Dr. Darshan Subherwal

4. Terminology The task of administration is to determine the objectives, policies rules, regulations and principles of the enterprise. Therefore, it is determinative in nature. Administration may be compared to the brain of the human body; because its activities relate to thinking process like fixation of target, decision making etc . Presentation by Dr. Darshan Subherwal

5. Terminology The activity of management is to get the various works done by the employees to fulfill those objectives according to the policies determined by administration . Management implements those rules , regulations and principles. So, it is an executive function. Management may be regarded as the eyes as it observes if the work is being done according to rules and regulations and policies to achieve targets Presentation by Dr. Darshan Subherwal

6. Terminology The function of organisation is to set up a harmonious inter-relation among the employees and their work by delegating authority and responsibility among them . Establishment of organisation is one of the basic functions of management . Organisation may be compared to the hands of a human body; because it helps directly in performance of work . Presentation by Dr. Darshan Subherwal

7. Administration, Management & Organisation – In the opinion of Oliver Sheldon, Administration - Determination of Policy and Coordination Management - Execution of Policy and employment of Organisation Organisation - the combination of the work of individuals or groups with the faculties necessary for its implementation or execution According to Brech , Management in broad sense, comprises of Administrative management and Operative Management. Presentation by Dr. Darshan Subherwal

8. BRECH’s Interpretation Presentation by Dr. Darshan Subherwal

9. Concept Management= Manage men tactfully Traditionally, management means “managing men tactfully to get the things done through others ”. the modern concept of management is goal oriented and it creates an internal environment for attaining the goals efficiently Management can be conceived as A process (comprises of functions such as planning, organising , staffing, directing and controlling) a group of persons ( who are managing the affairs of the business enterprise) A discipline ( The knowledge of management is being developed by number of scholars and it is being formally taught to the students of management) An activity ( Management involves the activities for getting the work done through others) Presentation by Dr. Darshan Subherwal

10. Definition- Man a gement as a process Management as a process Harold Koontz and Heinz Weihrich , “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. ” Robert L. Trewelly and M. Gene Newport, “Management is defined as the process of planning, organising , actuating and controlling an organisation’s operations in order to achieve coordination of the human and material resources essential in the effective and efficient attainment of objectives.” G.R. Terry, ‘Management is a process of implementation to achieve certain goals implemented and supervised.’ Presentation by Dr. Darshan Subherwal

11. Management as a group of Persons (noun) Management as a group refers to all those persons who perform the task of managing an enterprise. Technically, management includes all managers from chief executive to the first - line managers (lower-level managers). But practically, management includes only top management i.e. Chief Executive, Chairman, General Manager, Board of Directors etc. i.e. those who are concerned with making important decisions, who enjoy the authority to use resources to accomplish organizational objectives as well as bear the responsibility to the efficient utilization of resources. Definition- Management as a group of Persons Presentation by Dr. Darshan Subherwal

12. Definition-Management as a discipline Management as a discipline Any branch of knowledge that fulfils following two requirements is known as discipline: There must be scholars & thinkers who communicate relevant knowledge through research and publications. The knowledge should be formally imparted by education and training programmes. Let’s see how Management fulfils these characteristics: Management is being evolved through series of research studies by thinkers and scholars Presentation by Dr. Darshan Subherwal

13. Definition-Management as a discipline As a discipline, it is that branch of knowledge which is connected to the study of principles & practices of basic administration. It specifies certain code of conduct to be followed by the manager & also various methods for managing resources efficiently. Management is a course of study which is now formally being taught in the educational institutions and after completing a prescribed course, obtaining degree or diploma in management, a person can be employed as a manager . Since, management satisfies necessary characteristics, therefore, it qualifies to be a discipline. Presentation by Dr. Darshan Subherwal

14. Definition- Management as an Activity Management as an Activity Van Fleet and Peterson define management,  ‘ as a set of activities directed at the efficient and effective utilization of resources in the pursuit of one or more goals .’ 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   ’ According to Koontz, “Management is what a manager does”. Presentation by Dr. Darshan Subherwal

15. Definition- Management as an Activity Management as an activity includes - Informational activities -   While Managers perform their functions, they continuously receive and give information, oral or written, since a communication link has to be maintained with subordinates as well as superiors for effective functioning of an enterprise. Decisional activities -   Decision making is probably the first function if we see management as an activity. Managers have to take strong decisions while making plans so that these plans can be implemented flawlessly. Presentation by Dr. Darshan Subherwal

16. Definition- Management as an Activity Management as an activity includes - Inter-personal activities -  Management involves achieving goals through people. Therefore, managers have to interact with superiors as well as the sub-ordinates. They must maintain good relations with them. For fruitful implementation of plan, overall direction and coordination between teams and individuals is expected from managers. Presentation by Dr. Darshan Subherwal

17. Characteristics of Management Presentation by Dr. Darshan Subherwal Management is a Purposeful activity a Continuous process a Group not individual activity Universal Dynamic All pervasive Separate from ownership Multidisciplinary in nature Both an art and a science An art of getting things done from others Adheres to established principles or rules Intangible but impactful Aided but not replaced by computers

18. Nature of Management Management experts and scholars have different views on the nature of management. Some are of the opinion that management is a science, some others hold the view that it is an art and yet others say that it is a profession. Considering all these views, the nature of management can be determined. Presentation by Dr. Darshan Subherwal

19. Nature of Management Management is a Science Features of science are:- Science is systematically defined branch of knowledge Science is systematically defined branch of knowledge Its principles are evolved through experiments and observations and they are combined and preserved in different study materials. This holds good with management also. Management principles are also evolved through experiments and observations and they are also combined and preserved. Presentation by Dr. Darshan Subherwal

20. Nature of Management  Principles are formed from continuous research: Scientists develop scientific principles after numerous experiments carried out in different places and under different circumstances. This approach is true of management as well. Principles of Management are being developed after numerous experiments in different companies at different places. Presentation by Dr. Darshan Subherwal

21. Nature of Management Principles are universally applicable: Scientific principles are universally applicable. For example, two parts of hydrogen mixed with one part of oxygen gives water and this is true if done anywhere in the world. However, management principles cannot be applied universally and in the same way. Since management is related to man, its principles are related to human behaviour, his culture, education and life style and human behaviour varies from person to person. Therefore , universal applicability of science may not be compatible with management principles. Presentation by Dr. Darshan Subherwal

22. Nature of Management Scientific principles are formulated on the basis of observation and logic: Scientific principles are defined after logical observation. Moreover, observation of scientists will be hundred percent objective. But managers observe human beings and observation of managers may not be cent percent objective. Therefore this principle of science is also not compatible with management principles. Presentation by Dr. Darshan Subherwal

23. Nature of Management When scientific principles and management principles are compared, we can conclude that some of the features of Science are not there, so management is not an exact science. As management is related to man, we can say, management is a social science. Presentation by Dr. Darshan Subherwal

24. Nature of Management Management is an ART A group of management scholars are of the view that management is an art. So, lets examine the features of art and see whether they are compatible with the characteristics of management. Presentation by Dr. Darshan Subherwal

25. Nature of Management Theoretical knowledge is systematically arranged in the field of Art The theoretical knowledge of art is systematically arranged and documented in the books so that people may get to know and learn various aspects of art. For example, several books are a available which give about different aspects of dance, music or cooking. In management also several books have been published giving knowledge about different aspects of management. Thus, systematic arrangement of theoretical knowledge is an aspect common to both art and management. Presentation by Dr. Darshan Subherwal

26. Nature of Management Individual Differences are significant in Art An artist becomes perfect in his work of art by combining the knowledge he has gained with his own inherent talents. For example, even though different actors are trained by the same trainer, some of them excel by adding their natural talents. In management also, all managers learn same theories and principles, but their efficiency depends on how well they use these principles under different situations by applying their own personal creativity and skill. So, this feature of art is also present in management. Presentation by Dr. Darshan Subherwal

27. Nature of Management Regular Practice is the pre requisite for an Art to be recognized : An artist gains perfection through constant practice The managers become more perfect from their experience they have gained from the different circumstances. That means art and management have this characteristics in common. Conclusion: As management has all the features of art in common, we can say that management is an art. Presentation by Dr. Darshan Subherwal

28. Nature of Management Management is both SCIENCE and ART Management is a systematically arranged collection of knowledge. Management principles are gained through constant research. Art is a collection of theoretical knowledge. Individual differences are important in art. An artist gains perfection through constant practice. We can conclude that , As management is systematically arranged body of knowledge, it is a science. As this collection of knowledge is practically applied, it is also an art. Presentation by Dr. Darshan Subherwal

29. Management as a Profession Profession means a paid occupation, especially one that involves prolonged training and a formal qualification. Occupation means engaging or occupying one’s time to earn a livelihood. A profession has a certain basic set of knowledge that acts as instruction and can be acquired by practice. Earlier there were only 3 occupations considered as profession:-Bishop, lawyers and doctors but in the present era of specialization many occupations are covered under the term profession. Presentation by Dr. Darshan Subherwal

30. Management as a Profession Features of a Profession Well-defined Body of knowledge: A profession has a certain basic set of knowledge that acts as instruction and can be acquired by practice. Restricted Entry: One cannot simply just enter into a profession. Instead, there are some eligibility criteria like an examination which the person needs to pass in order to enter into the professional domain.  Presentation by Dr. Darshan Subherwal

31. Management as a Profession Features of a Profession Professional Association: Each profession is affiliated to a body, council or association that carries out function like regulating entries, maintaining the code of conduct, grants certificates and so on. For example, the Bar Council of India controls the activities of all lawyers. MCI, Medical Council of India… Ethical Code of Conduct: There are certain ethics which the torchbearer of every profession has to abide by. These guide the behaviour of the members. Presentation by Dr. Darshan Subherwal

32. Management as a Profession ( Features….) Features of a Profession Service Motive: The purpose of every profession is to serve the clients. So, a professional is required to provide committed and dedicated services to fulfill or satisfy client’s interests. Let us see whether Management contains features of Profession Presentation by Dr. Darshan Subherwal

33. Management as a Profession Substantial Body of accumulated Knowledge : Management consists of well defined and systematic knowledge, that is imparted to people aiming to be a manager. This knowledge has developed over time and is ever changing and increasing. Compulsory acquisition of Management Knowledge to pursue career as a mange r: The knowledge of management is taught at various institutes, colleges and can also be acquired through books and journals. For example, the IIM is an institute for acquiring management knowledge.  Presentation by Dr. Darshan Subherwal

34. Management as a Profession Restricted entry:   Entry to any management role is possible only for candidates with certain set entry criteria. These criteria include educational qualifications, experience, efficiency, knowledge of specific software, etc. Code of conduct and associations:   Management, like any other profession, contains a code of conduct and ethics that every manager has to abide by. The presence of various management associations is there, which regulates and certifies managers for specific skills. Presentation by Dr. Darshan Subherwal

35. Presentation by Dr. Darshan Subherwal