Unit-1

Introduction to Management
Concepts to be covered in Unit-1:
1.1 Definition of Management
1.2 Nature of Management
1.3 Process of Management
1.4 Significance of Management
1.5 Henry Fayol’s Principles of management
1.6 Role of managers
1.7 Managerial Skills
1.8 Evolution of Management Thought: Classical and Modern Schools of thought
1.9 Management as a Science or Art - Management as a profession
1.10 Differentiate Administration and Management
1.11 Functions of Management

1.1 Definition of Management

Management is the process of getting things done from others to achieve goals effectively
and efficiently.
According to George R. Terry, "Management is a distinct process consisting of planning,
organising, actuating and controlling, performed to determine and accomplish stated
objectives by the use of human beings and other resources".
According to Henry Fayol, "To manage is to forecast and to plan, to organise, to command,
to coordinate and to control".
According to Peter Drucker, "Management is a multi-purpose organ that manages business
and manages managers and manages workers and work".
According to Harold Koontz, "Management is the art of getting things done through and with
people in formally organized groups.
According to Mary Parker Fallett, "Management is the art of getting things done through
people"
Management is the process of getting things done through others with the help of some basic
activities like planning, organizing, directing, coordinating, and controlling to achieve the
desired goals and objectives. It is the basis for every organization. An organization cannot run
for a long time if its all devices are not suitably managed.

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In other words, management is the act of harmonizing the 5Ms men, money, materials,
machines, and methods towards the achievement of desired goals and objectives.
Efficiently:
To complete a task with minimum cost.
For example: – ‘A’ got a task of construction of the Flyover. The estimated target for the
same is 1000 crores and ‘A’ completed the construction of flyover in 900 crores. In this case,
‘A’ worked efficiently.
Effectively:
It is basically to complete the task on time.
For example: Keeping in mind the above example, suppose, ‘A’ got two years’ time period
for the construction of flyover. If ‘A’ completes his task within the span of two years. Here,
in this case, we can say A’s management is effective.
1.2 Nature of Management

1. Management is Universal:
Management is a pervasive function as it is applied to all kinds of organization.
It is applied in all types of organization irrespective of the following factors: –
Size (small scale, medium scale or large scale)
Purpose (profit earning or non- profit earning organizations)
Level (top, middle or lower level of organizations)
For example: – The lower level does day to day planning, the middle level does departmental
level planning and the top-level does organizational-level planning.
2. Goal-Oriented:
The main task of management is to achieve the goals of the organisation. An organization has
some goals, which are the basic reason for its existence. Goal means what the organisation
wants to achieve.

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For example: – Reliance Jio; It came up with a goal to capture whole telecommunication
industry and to get the highest market share. Here, in the above-mentioned example, the work
of management is to achieve goals set by ‘Reliance Jio’ with effectiveness and efficiency.
The goal should be clear and simply stated to each member working for the organization.
3. Management is a Continuous Process:
Management is a process of continuous activities, but separate functions i.e., planning,
organizing, staffing, directing and controlling.
Management starts with the organization and ends with organization.
4. Management is multi-Dimensional:
It is a complex activity with three main dimensions.
Management of work: – Management of work aims to manage the work i.e., which work to
be performed at what time.
Management of people: – Management of people includes management of individuals or to
group of people i.e., to allot authorities, responsibilities and their duties. Managing people has
two dimensions
Management of operations: – It is interlinked with both management of work and
management of people.
This has some basic products and services to provide in order to survive.
For example: – the main activity of banks is to provide loans and to take loans from the
public but they are providing other activities as well as online banking, ATM services at no
cost, etc
5. Management is a Group Activity:
Management is not a one-person activity.
It is a group activity and every individual working for the organization fully knows his
responsibilities and duties which he/she is expected to achieve within the time allotted.
Every individual joins the organization with different and multiple needs known as personal
objectives but works towards the achievement of organizational goals.
6. Management is a Dynamic Function:
In order to survive, management should make changes according to the business
environment. In order to ensure regular growth, managers should make changes in the
policies as per the needs of the stakeholders.
For example: – Paytm is making the ventures with all types of business units such as schools,
universities and other companies and professionals to provide a single platform for all
payment solutions.
7. Management is an Intangible Force:
Management cannot be touch or seen but its presence can be observed if its objectives are
achieved as per the set goal.

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The satisfaction of stakeholders is a guiding force of good management. The decision making
of managers should be in the light of objectives to be achieved.
Secondly, the implementation of such decisions such target both efficiency and effectiveness.
1.3 Process of Management

The management process is described in the above figure such as putting inputs such as:Men
and women;Machinery;Materials;Money and [Link] process takes place in the middle
like functions as planning,organizing,directing and controlling and finally End Results i.e
Goals and output is [Link] is how mangement process undergoes in the organization.
1.4 Significance of Management
The importance of principles of management are as follows:

1. Optimal Use of Resources

2. Effective Leadership and Motivation

3. Sound Industrial Relations

Significance of Management
4. Achievement of Goals

5. Improvement in Living Standards

6. Establishing a Sound Organization

7. Reduces Cost

1. Optimal Use of Resources:

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The manager eliminates wastage of resources that leads to efficiency in all business
functions.
2. Effective Leadership and Motivation:
It helps employees to work in harmony and achieve goals in a coordinated manner. It
provides effective leadership and motivation for employees to work hard.
3. Sound Industrial Relations:
A manager maintains a balance between employees’ demands and organizational needs,
helping to reduce industrial disputes.
4. Achievement of Goals:
It helps in realizing goals with maximum efficiency by minimizing unnecessary deviations,
overlapping efforts and waste motions.
5. Improvement in Living Standards:
It improves the standard of living of people by ensuring optimum utilization of scarce
resources and survival of the firm in a dynamic environment.
6. Establishing a Sound Organization:
Managers help to establish a sound organization through effective authority and
responsibility relationships.
7. Reduces Cost:
A manager uses cost-effective techniques to reduce production costs and increase
production.

1.5 Henry Fayol’s Principles of Management

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 1. Division of Work

2. Balancing Authority and Responsibility

3. Discipline

4. Unity of Command

5. Unity of Direction

6. Subordination of Individual Interests to the General Interest

7. Remuneration
Henry Fayol’s Principles

8. Centralization

9. Scalar Chain

10. Order

11. Equity

12. Stability of Tenure of Personnel

13. Initiative

14. Esprit De Corps

1. Division of Work:
Dividing the full work of the organization among individuals and creating departments is
called the division of work. Division of work leads to specialization, and specialization helps

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to increases efficiency and efficiency which results in improvements in the productivity and
profitability of the organization.
2. Balancing Authority and Responsibility:
Authority must be equal to Responsibility. According to Henri Fayol, there should be a
balance between Authority (Power) and Responsibility (Duties). The right to give orders
should not be considered without reference to responsibility. If the authority is more than
responsibility then chances are that a manager may misuse it. If responsibility is more than
authority then he may feel frustrated.
3. Discipline:
Discipline means respect for the rules and regulations of the organization. Discipline may be
Self-discipline, or it may be Enforced discipline. No slacking or bending of rules is allowed
in any organization. The works must respect the rules that run the organization. To establish
discipline, good supervision and impartial judgment are needed.
4. Unity of Command:
According to this principle, a subordinate (employee) must have and receive orders from only
one superior (boss or manager). To put it another way, a subordinate must report to only one
superior. It helps in preventing dual subordination. This decreases the possibilities of “Dual
subordination” which creates a problem is a function of managers.
5. Unity of Direction:
Unity of direction means activities aimed at the same objective should be organized so that
there are one plan and one person in charge. All activities which have the same objective
must be directed by one manager, and he must use one plan. This is called the Unity of
Direction. For example, all marketing activities such as advertising, sales promotion, pricing
policy, etc., must be directed by only one manager.
6. Subordination of Individual Interests to the General Interest:
The interest of one individual or one group should not prevail over the general good. The
individual interest should be given less importance, while the general interest should be given
the most importance. If not, the organization will collapse. The interest of the organizational
goal should not be sabotaged by the interest of an individual or on the group.
7. Remuneration:
Remuneration is the price for services received. Pay should be fair to both the employee and
the firm. If an organization wants efficient employees and best performance, then it should
have a good remuneration policy. This policy should give maximum satisfaction to both
employers and employees. It should include both financial and non-financial incentives.
Remuneration should be based on a systematic attempt to reward good performance.

8. Centralization:

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In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organization. Henri Fayol
stressed on the point that there should be a balance between the hierarchy and division of
power.
9. Scalar Chain:
The chain of command, sometimes called the scalar chain, is the formal line of authority,
communication, and responsibility within an organization. The chain of command is usually
depicted on an organizational chart, which identifies the superior and subordinate
relationships in the organizational structure. Or it is the line of authority from top to bottom
of the organization. This chain implements the unity-of-command principle and allows the
orderly flow of information. Under the unity of command principle, the instructions flow
downward along the chain of command and accountability flows upward.
10. Order:
A company should maintain a well-defined work order to have a favourable work culture.
The positive atmosphere in the workplace will boost more positive productivity. There must
be an orderly placement of the resources such as Men and Women, Money, Materials, etc.
Human and material resources must be in the right place at the right time. Misplacement will
lead to misuse and disorder.
11. Equity:
All employees should be treated equally and respectfully. It’s the responsibility of a manager
that no employees face discrimination. It creates loyalty and devotion in the employees
toward the organization. The equity principle suggests that the managers must be kind as well
as equally fair to the subordinates.
12. Stability of Tenure of Personnel:
An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees. The employees should have job security
because instability leads to inefficiency. Successful firms usually had a stable group of
employees.
13. Initiative:
The management should support and encourage the employees to take initiatives in an
organization. It will help them to increase their interest and make then worth. Management
should encourage initiative. That is, they should encourage the employees to make their own
plans and to execute these plans. This is because an initiative gives satisfaction to the
employees and brings success to the organization.
14. Esprit De Corps:
Esprit de Corps means “Team Spirit”. Therefore, the management should create unity, co-
operation, and team-spirit among the employees. They should avoid dividing and rule policy.
Harmony, cohesion among personnel. It’s a great source of strength in the organization. It is a
quality in every successful business. It is the responsibility of the management to motivate
their employees and be supportive of each other regularly. Developing trust and mutual
understanding will lead to a positive outcome and work environment.
Link for Team Work: [Link]

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1.6 Role of Managers

Mintzberg's Set of Ten Roles

Professor Henry Mintzberg, a great management researcher, after studying managers for
several weeks concluded that, to meet the many demands of performing their functions,
managers assume multiple roles.
He propounded that the role is an organized set of behaviours. He identified the following ten
roles common to the work of all managers. These roles have been split into three groups as
illustrated in the following figure.

This is the general idea behind Mintzberg's Management Roles. These ten management roles were
published as part of Mintzberg's book in 1990, and they cover the spectrum of tasks and
responsibilities that a manager must take on at one point or another.

In order to better organize a long list of ten roles, they have been divided up into three categories -
interpersonal, informational, and decisional. Below we will look at each of the ten roles, what they
mean for the manager, and which of the three categories they fit into.

Figurehead
One of the important roles of a leader is simply to be a figurehead for the rest of the group. This is one
of the interpersonal roles, because so much of it is about being someone that people can turn to when

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they need help, support, etc. A good leader will project confidence so that everyone involved feels a
sense of security and reassurance that the job will be done right.
Leader
Another interpersonal role, this one should be obvious. A manager needs to lead the people that he or
she is in charge of guiding toward a specific goal. This can include telling them what to do and when
to do it, organizing the structure of the team members to highlight specific skills that each possesses,
and even offering rewards for a job well done.
Liaison
The final role within the interpersonal category, acting as a liaison means that the manager must
successfully interface with a variety of people - both within the organization and on the outside - to
keep things running smoothly. This point is all about communication, and it is one of the main things
that determines the ultimate success or failure of a manager. Being able to properly communicate with
a range of people in such a way that the project remains on track is a crucial skill to develop.

Monitor
Acting as a monitor is the first managerial role within the informational category. Just as the word
would indicate, being a monitor involves tracking changes in the field that your organization works in,
as well as changes on your team that might be signs of trouble down the road. Things are never static
in business, so the successful manager is one who will constantly monitor the situation around them
and make quick changes as necessary.
Disseminator
It does no good as a manager to collect information from a variety of internal and external sources if
you are only going to keep it for yourself. The point of gathering that information is so that your team
can benefit from it directly, so the next informational role is dissemination - getting information out
quickly and effectively to the rest of your team. Wasted time by the team members on a certain part of
a project often has to do with them not possessing all of the relevant information, so make sure they
have it as soon as possible.
Spokesperson
As the head of a team of any size or role within the organization, you will be the representative of that
team when it comes to meetings, announcements, etc. Being a spokesperson is the final informational
role on the list, and it is an important one because perception is often a big part of reality. Even if your
team is doing great work, it might not be reflected as such to other decision makers in the organization
if you aren't a good spokesperson.

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Entrepreneur
In some ways, being a manager within a larger organization is like running your own small business.
While you will have managers above you to answer to, you still need to think like an entrepreneur in
terms of quickly solving problems, thinking of new ideas that could move your team forward, and
more. This is the first role within the decisional category on the list.
Disturbance-Handler
It is almost inevitable that there will be disturbances along the way during any kind of project or task
that involves more than one person. The second item in the decisional section of the list is being a
disturbance handler, because getting back on track after a problem arises is important to short-term
and long-term productivity. Whether it is a conflict among team members or a bigger problem outside
of the group, your ability to handle disturbances says a lot about your skills as a manager.
Resource-Allocator
Every project is tackled using resources that are limited in some way or another. As a resource
allocator, it is your job to best use what you have available in order to get the job done and meet your
defined goals and objectives. Resources can include budget that has been made available for a project,
raw materials, employees, and more. This is the third item within the decisional category, yet it is one
of the most important things a manager must do.
Negotiator
Business is all about negotiation, and that is especially true for managers. The final role on the list,
being a negotiator doesn't just mean going outside of the organization to negotiate the terms of a new
deal. In fact, most of the important negotiation will take place right within your own team itself.
Getting everyone to buy in to the overall goal and vision for a project likely will mean negotiating
with individual team members to get them to adopt a role that suits their skills and personal
development goals. A good manager will be able to negotiate their way through these challenges and
keep the project on track for success
1.7 Managerial Skills
Henri Fayol, a famous management theorist also called as the Father of Modern
Management, identified three basic managerial skills - technical skill, human skill and
conceptual skill.

1. Conceptual Skills

Managerial Skills 2. Human Skills

3. Technical Skills

1. Technical Skill
Knowledge and skills used to perform specific tasks. Accountants, engineers, surgeons all
have their specialized technical skills necessary for their respective professions. Managers,
especially at the lower and middle levels, need technical skills for effective task performance.
Technical skills are important especially for first line managers, who spend much of their
time training subordinates and supervising their work-related problems.
2. Human Skill
Ability to work with, understand, and motivate other people as individuals or in groups.
According to Management theorist Mintzberg, the top (and middle) managers spend their
time: 59 percent in meetings, 6 percent on the phone, and 3 percent on tours.

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Ability to work with others and get co-operation from people in the work group. For
example, knowing what to do and being able to communicate ideas and beliefs to others and
understanding what thoughts others are trying to convey to the manager.
3. Conceptual Skill
Ability to visualize the enterprise as a whole, to envision all the functions involved in a given
situation or circumstance, to understand how its parts depend on one another, and anticipate
how a change in any of its parts will affect the whole.
Creativity, broad knowledge and ability to conceive abstract ideas. For example, the
managing director of a telecom company visualizes the importance of better service for its
clients which ultimately helps attract a vast number of clients and an unexpected increase in
its subscriber base and profits.
Other Managerial Skills
Besides the skills discussed above, there are two other skills that a manager should possess,
namely diagnostic skill and analytical skill.
1. Diagnostic Skill − Diagnose a problem in the organization by studying its symptoms.
For example, a particular division may be suffering from high turnover. With the help
of diagnostic skill, the manager may find out that the division’s supervisor has poor
human skill in dealing with employees. This problem might then be solved by
transferring or training the supervisor.
2. Analytical Skill − Ability to identify the vital or basic elements in a given situation,
evaluate their interdependence, and decide which ones should receive the most
attention. This skill enables the manager to determine possible strategies and to select
the most appropriate one for the situation.
For example, when adding a new product to the existing product line, a manager may analyze
the advantages and risks in doing so and make a recommendation to the board of directors,
who make the final decision.
Diagnostic skill enables managers to understand a situation, whereas analytical skill helps
determine what to do in a given situation.
1.8 Evolution of Management Thought: Classical and Modern
Schools of thought

Classical School of Management Thought:

Scientific Management and F. W. Taylor

Classical School of Management Thought

Behavioural and Human Relations Approach

1. Scientific Management and F. W. Taylor

Scientific management, according to an early definition, refers to that kind of management
which conducts a business or affairs by standards established by facts or truths gained
through systematic observation, experiment, or reasoning. Advocators of this school of

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thought attempted to raise labor efficiency primarily by managing the work of employees on
the shop floor.
Frederick Winslow Taylor, who is generally acknowledged as the father of scientific
management believed that organizations should study tasks and prepare precise procedures.
His varied experience gave him ample opportunity to have firsthand knowledge and intimate
insight into the problems and attitude of workers, and to explore great possibilities for
improving the quality of management in the workplace.
Formulating his theory based on firsthand experience, Taylor’s theory focused on ways to
increase the efficiency of employees by molding their thought and scientific management.
Henry Gnatt, an associate of Taylor, developed the Gnatt Chart, a bar graph that measures
planned and completed work along with each stage of production. This visual display chart
has been a widely used control and planning tool since its development in 1910. Following is
a sample of Gnatt Chart.

Frank Gilbreth and his wife, Lillian Moller Gilbreth further improvised on Taylor’s time
studies, devising motion studies by photographing the individual movements of each worker.
They carefully analyzed the motions and eliminated unnecessary ones. These motion studies
were preceded by timing each task, so the studies were called time and motion studies.
Applying time and motion studies to bricklaying, the Gilbreths devised a way for workers to
lay bricks that eliminated wasted motion and raised their productivity from 1,000 bricks per
day to 2,700 bricks per day.

2. Behavioural and Human Relations Approach

The criticism of scientific and administrative management approach as advocated by Taylor

and Fayol, respectively gave birth to the behavioral approach to management. One of the
main criticisms leveled against them are their indifference to and neglect of the human side of
the enterprise in management dealings.
A good number of sociologists and psychologists like Abraham Maslow, Hugo Munsterberg,
Rensis Likert, Douglas McGregor, Frederick Herzberg, Mary Parker Follet, and Chester
Barnard are the major contributors to this school of thought, which is further subdivided by
some writers into the Human Relations approach and the Human Behavioral approach.
Elton Mayo and Hawthorne Studies

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Elton Mayo and Hugo Munsterberg are considered pioneers of this school. The most
important contribution to this school of thought was made by Elton Mayo and his associates
through Hawthorne plant of the Western Electric Company between 1927 and 1932.
Following are the findings of Mayo and his colleagues from Hawthorne studies −
Human/social element operated in the workplace and productivity increases
were as much an outgrowth of group dynamics as of managerial demands and
physical factors.
 Social factors might be as powerful a determinant of worker-productivity as
were financial motives.
 Management with an understanding of human behavior, particularly group
behavior serves an enterprise through interpersonal skills such as motivating,
counseling, leading and communicating − known as Hawthorne effect.
 Employees or workers are social beings, so it is very important to fit them into
a social system, resulting in a complete socio-technical system in an
organization.
Modern School of Thought:

Chester Barnard and Social Systems Theory

Contingency Approach and Recent Contributions

Modern School of Thought

Kaizen Approach

Re-engineering Approach

This school of thought primarily focuses on the development of each factor of both workers
and the organization. It analyzes the interrelationship of workers and management in all
aspects.
System Approach and Contingency Approach are the two approaches by this school of
thought.
1. Chester Barnard and Social Systems Theory
One of the most important contributions to this school has been made by Chester I. Barnard.
His classic treatise entitled The Functions of the Executive, published in 1938, is considered
by some management scholars as one of the most influential books published in the entire
field of management. Like Fayol, Barnard based his theories and approach to management on
the basis of his first-hand experience as a top-level executive.

2. Contingency Approach and Recent Contributions

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The Contingency Management theory evolved out of the System Approach to managing
organizations. According to the Contingency approach, management is situational; hence
there exists no single best approach to management, as situations that a manager faces is
always changing.
However, situations are often similar to the extent that some principles of management can be
effectively applied by identifying the relevant contingency variables in the situation and then
evaluating them.
Peter F. Drucker, W. Edwards Deming, Laurence Peter, William Ouchi, Thomas Peters,
Robert Waterman, and Nancy Austin are some of the most important contributors to
management thought in recent times. This has emerged perhaps as the best approach as it
encourages management to search for the correct situational factors for applying appropriate
management principles effectively.

3. Kaizen Approach

Kaizen means that everyone is involved in making improvements. Kaizen (pronounced ky-
zen) is based on the Japanese management concept for incremental change and improvement.
The idea of continuous improvement suggests that managers, teams, and individuals learn
from both their accomplishments and their mistakes. It is a long-term approach to work that
systematically seeks to achieve small, incremental changes in processes in order to improve
efficiency and quality.
While the majority of changes may be small, the greatest impact may be improvements or
changes that are led by senior management as transformational projects, or by cross-
functional teams as Kaizen events.

4. Reengineering Approach

Reengineering Approach sometimes called Business Process Reengineering (BPR),

involves a complete rethinking and transformation of key business processes, leading to
strong horizontal coordination and greater flexibility in responding to changes in the
environment. The reengineering approach focuses on sensing the need to change, anticipating
changes, and reacting effectively when it happens.
1.9 Management as a Science or Art - Management as a
profession

Management as an Art

Management as a Science
Management

Management as a profession

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Management as an Art:
Art is the experienced and personal utilisation of subsisting information to accomplish
solicited outcomes. It can be procured via education, research and practice. As art is involved
with the personal utilisation of data some kind of inventiveness and creativity is needed to
follow the fundamental systems acquired. The essential characteristics of art are as follows:

 The presence of theoretical knowledge: Art assumes the presence of specific

academic knowledge. Specialists in their particular fields have obtained specific
elementary postulates which are appropriate to a specific sort of art. For instance, the
literature on public speaking, acting or music, dancing is publicly acknowledged.
 Personalised application: The application of this primary information differs from
person to person. Art, hence, is a highly personalised notion.
 Based on custom and creativity: Art is practical. Art includes the creative practice of
subsisting intellectual knowledge. We know that music is based on 7 notes. However,
what makes the style of a musician different or distinctive is his performance of these
notes in an artistic way that is uniquely his own solution.

Management as a Science:
Science is an organised collection of knowledge that emphasises definite universal truths or
the action of comprehensive laws. The central characteristics of science are as follows:

 The organised body of knowledge: Science is a precise entity of knowledge. Its

systems are based on a purpose and consequence association.
 Universal validity: Scientific conventions have global genuineness and application.
 Systems based on experimentation: Scientific conventions are originally formed via
research and then tested via repeated trial and error under the regulated situations.

Management as a Profession:
The profession can be described as an occupation upheld by specific education and practice,
in which entry is limited. A profession has the following features:

 The well-defined theory of knowledge: All services are based on a well-defined

form of education that can be procured through education.
 Restricted entry: The entrance to a profession is defined through an examination or
through obtaining an educational degree. For instance, to become a chartered
accountant in India an aspirant has to clear a detailed examination regulated by the
Institute of Chartered Accountants of India (ICAI).
 Professional community: All professions are affiliated to a professional association
which controls entry, presents a certificate of training and expresses and supports a
system of government. To be qualified to study in India, lawyers have to become
members of the Bar Council which monitors and regulates their actions.

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1.10 Differentiate Administration and Management
[Link] MANAGEMENT ADMINISTRATION
.
1. Management is defined as the process of On the other hand, the administration is defined
administering an organization. as the process of managing the roles and
responsibilities provided to the employees.
2. A manager controls and guides the An administrator inspires and motivates the
employees to achieve the tasks assigned to employees to achieve their goals.
them.
3. Management can be considered as a skill Administration can be considered as a process
wherein the people are organized, and the wherein the policies are set up and followed.
resources are put to work in an efficient way.
4. The authority of a manager is from the lower The authority of an administrator is only to the
to middle level. upper level.
5. A manager makes sure that the employees On the other hand, an administrator makes sure
follow the policies. that the policy is effectively formulated.
6. A manager has an executive role. An administrator has a decisive role.
7. A manager works under an administrator. An administrator does not work under anyone;
rather, he/ she has complete control over the
activities.
8. A manager manages the work of the An administrator is responsible for creating
employees. policies and following them.
9. Management is applied to business The administration is applied to several areas
organizations. like government offices, enterprises, hospitals,
educational organizations, etc.
10. A manager decides that who has to do the An administrator decides that what must be done
work and how they will do it. and when it must be done.

1.11 Functions of Management

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1. Planning

It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals.

According to KOONTZ, “Planning is deciding in advance - what to do, when to do &

how to do. It bridges the gap from where we are & where we want to be”. A plan is a
future course of actions. It is an exercise in problem solving & decision making.

Planning is determination of courses of action to achieve desired goals. Thus,

planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals. Planning is necessary to ensure proper utilization of human & non-
human resources. It is all pervasive, it is an intellectual activity and it also helps in
avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals.

According to Henry Fayol, “To organize a business is to provide it with everything

useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize
a business involves determining & providing human and non-human resources to the
organizational structure. Organizing as a process involves:

1. Identification of activities.
2. Classification of grouping of activities.
3. Assignment of duties.
4. Delegation of authority and creation of responsibility.

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 5. Coordinating authority and responsibility relationships.

3. Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancement of
technology, increase in size of business, complexity of human behavior etc.

The main purpose of staffing is to put right man on right job i.e. square pegs in square
holes and round pegs in round holes. According to Kootz & O’Donell, “Managerial
function of staffing involves manning the organization structure through proper and
effective selection, appraisal & development of personnel to fill the roles designed un
the structure”. Staffing involves:

1. Manpower Planning (estimating man power in terms of searching, choose the

person and giving the right place).
2. Recruitment, Selection & Placement.
3. Training & Development.
4. Remuneration.
5. Performance Appraisal.
6. Promotions & Transfer.

4. Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes. It is considered life-
spark of the enterprise which sets it in motion the action of people because planning,
organizing and staffing are the mere preparations for doing the work.

Direction is that inert-personnel aspect of management which deals directly with

influencing, guiding, supervising, motivating sub-ordinate for the achievement of
organizational goals. Direction has following elements:

1. Supervision
2. Motivation
3. Leadership
4. Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the

act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal

to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.

Leadership- may be defined as a process by which manager guides and influences

the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from

one person to another. It is a bridge of understanding.

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 5. Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in conformities with the standards. An
efficient system of control helps to predict deviations before they actually occur.

According to Theo Haimann, “Controlling is the process of checking whether or not

proper progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”.

According to Koontz & O’Donell “Controlling is the measurement & correction of

performance activities of subordinates in order to make sure that the enterprise
objectives and plans desired to obtain them as being accomplished”. Therefore
controlling has following steps:

1. Establishment of standard performance.

2. Measurement of actual performance.
3. Comparison of actual performance with the standards and finding out
deviation if any.
4. Corrective action.

***************************************The End***********************************

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