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Principles and Practices of Management

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39 views29 pages

Principles and Practices of Management

Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Scope of Management – Explained with Examples

Scope of Management refers to all the functional areas where management is applied. It
covers every department and activity needed to run an organization effectively. Broadly, the
scope of management includes:

1. Production Management
Deals with planning, organizing, directing, and controlling production processes to ensure
efficient use of resources.
Activities include:
• Product design – Deciding what to produce
• Plant & building – Infrastructure setup
• Material management – Purchasing and storing raw materials
• Operations – Planning and controlling production
• Repairs and maintenance – Keeping machines in working condition
• Inventory control & quality control – Managing stock and ensuring product
standards
• Research and development (R&D) – Innovating and improving products
Example: A car company like Hyundai manages production from raw materials to final car
assembly, ensuring timely delivery and high quality.

2. Financial Management
Manages money-related aspects of the business to ensure financial health.
Activities include:
• Estimating funds – Predicting how much money is needed
• Source of funds – Arranging capital (loans, shares, etc.)
• Utilization of funds – Using money wisely for operations
• Allocation of funds – Distributing money to different departments
• Administration of earnings – Profit usage, reinvestment, or dividend payout
Example: A finance manager at Infosys ensures money is allocated for salaries,
investments, and expansion without waste.

3. Marketing Management
Focuses on selling the product or service and satisfying consumer needs.
Activities include:
• Marketing research – Understanding customer needs
• Product development – Creating products that match demand
• Pricing – Fixing price strategically
• Distribution – Ensuring goods reach the right place on time
• Promotion – Advertising and branding
Example: Coca-Cola’s marketing team studies trends, promotes the brand, and ensures the
drink is available in every region.

4. Personnel (Human Resource) Management


Deals with the management of people working in the organization.
Activities include:
• Manpower planning – Deciding how many and what kind of people are needed
• Recruitment & selection – Hiring the right people
• Training – Enhancing employee skills
• Appraisal – Evaluating performance
• Promotion & transfers – Career growth and role changes
• Compensation – Salary and benefits
• Employee welfare & records – Ensuring well-being and maintaining records
• Personnel research – Studying work patterns and improving HR policies
Example: IT companies like TCS invest heavily in HR for recruitment, training, and
motivation of their employees.

Conclusion:
The scope of management is vast and covers all departments that are essential for
running any organization—whether it is business, education, hospital, or
government. Every function—production, finance, marketing, and human resources—
requires effective management for success.
Importance of Management(Short)

1. Achievement of Group Goals


Management coordinates the efforts of all individuals to achieve the common objectives of
the organisation efficiently.

2. Increase in Efficiency
By using resources wisely (like time, money, manpower), management reduces wastage and
increases productivity.

3. Economic Growth
Effective management helps businesses grow, which boosts production, income,
employment, and the economy overall.

4. Human Development
It trains, motivates, and develops employees, helping them reach their potential and
contribute more meaningfully.

5. Helps Meet Challenges of Change


Management adapts the organisation to technological, social, and market changes, helping it
stay competitive.

6. Development of Society
By creating jobs, offering quality products/services, and promoting fairness, management
contributes to societal welfare.

7. Optimum Utilisation of Resources

Management ensures minimum wastage and maximum use of resources like materials,
machines, and manpower.

8. Maintains Discipline and Order


Through planning, control, and supervision, management brings structure and avoids
confusion in large organisations.

9. Brings Innovation
Encourages creativity and innovation by guiding employees and investing in new ideas,
products, and processes.

10. Direction and Leadership


Management gives direction and leadership so that people know what to do, how to do it,
and why it matters.

11. Maintains Balance Between Goals


It balances organisational goals like profit with social responsibilities like employee welfare
and customer satisfaction.
Importance of Management – With Examples(detailed)

1. Achievement of Group Goals

Meaning: Management unites the efforts of individuals and directs them toward common
organizational objectives.
Example: In a construction project, engineers, architects, workers, and suppliers all work
under the manager’s guidance to complete the building on time.

2. Increase in Efficiency
Meaning: Management ensures that resources are used properly without wastage, leading
to maximum output with minimum input.
Example: A manufacturing manager implements automation to increase daily output and
reduce labour costs.

3. Economic Growth

Meaning: Efficient management increases production and profits, which helps the
economy grow through taxes, employment, and investment.
Example: Reliance Industries expands to new markets under strong management, creating
more jobs and contributing to GDP.

4. Human Development
Meaning: Management develops the potential of employees through training, motivation,
and career growth opportunities.
Example: Infosys provides regular upskilling programs to its employees, improving their
skills and promoting them to higher roles.

5. Helps Meet Challenges of Change


Meaning: Management helps organizations adapt to technological, social, and market
changes.
Example: Nokia’s failure to adapt to smartphone trends shows the need for proactive
management. In contrast, Apple quickly adapts to tech changes to remain a market leader.

6. Development of Society
Meaning: Management ensures corporate social responsibility (CSR) by contributing to the
welfare of society.
Example: TATA Group provides education, clean water, and healthcare facilities in rural
areas under its CSR initiatives.
7. Optimum Utilization of Resources
Meaning: Management ensures no resource is wasted—every rupee, machine, and person is
used effectively.
Example: Zomato uses data analytics to optimize delivery routes, saving fuel and time.

8. Provides Direction and Leadership


Meaning: A manager gives clear instructions and inspires the team to perform their best.
Example: Elon Musk sets bold visions for Tesla and SpaceX, motivating teams to innovate.

9. Balances Multiple Objectives


Meaning: Management balances goals like profit, employee satisfaction, customer needs,
and social responsibility.
Example: Hindustan Unilever balances good quality products, fair pricing, employee safety,
and sustainability.

10. Encourages Innovation


Meaning: Management supports new ideas and creativity for the company's growth.
Example: Google allows employees to spend 20% of their time on personal innovative
projects, leading to products like Gmail and Google Maps.

11. Maintains Order and Discipline


Meaning: Management introduces systems, rules, and policies to avoid confusion and
conflict.
Example: In the Indian Railways, managers ensure train schedules, staff, and ticketing
systems run in a disciplined manner across thousands of routes.

Conclusion:

Management plays a vital role in every organization — from achieving goals to driving
innovation and economic growth. It ensures that resources are used wisely, people are
motivated, and organizations can grow, survive, and contribute to society.

Here is a complete, easy-to-understand explanation of the Principles of Management —


especially Henri Fayol’s 14 principles, which are important for exams (suitable for 5, 10,
or even 15 marks):

Principles of Management

Meaning:
Principles of management are basic guidelines for decision-making and behaviour of
managers. They help in efficient planning, organizing, leading, and controlling of
organizational activities.

Henri Fayol’s 14 Principles of Management


Henri Fayol, a French management thinker, developed these principles based on his
experience. These are universal and widely used even today.

1. Division of Work

Work should be divided among individuals based on their specialization to improve


efficiency.
Example: In a hospital, doctors treat, nurses care, and clerks handle paperwork.

2. Authority and Responsibility


Managers must have the authority to give orders.
With authority comes responsibility and accountability.

Example: A team leader can assign tasks but is also responsible for team performance.

3. Discipline
Employees must obey rules and show respect to the organization. Discipline results from
good leadership and clear agreements.

Example: Following office timings, rules, and dress codes.

4. Unity of Command
Each employee should get orders from only one superior to avoid confusion and conflict.
Example: If an employee reports to both the HR head and Finance head, it leads to
confusion.

5. Unity of Direction
The Unity of Direction Principle states that all units of an organization should follow
the same objectives through a coordinated and focused effort.

6. Subordination of Individual Interest to General Interest


This principle argues that organizational interests should take precedence over individual
interests
Example: An employee shouldn’t use office time for personal calls.

7. Remuneration

Employees should be fairly paid according to their work and contribution as this is the chief
motivation for employees.
Example: Bonuses, fair wages, and recognition improve motivation.

8. Centralization
There should be a balance between central control (top management decisions) and
decentralization (employee involvement).
Example: A school principal may make major decisions, but teachers can decide how to
teach.

9. Scalar Chain
There should be a clear line of authority from top to bottom.
Example: CEO → Manager → Team Leader → Worker
Also includes Gang Plank: a shortcut allowed for urgent communication.

10. Order
Everything and everyone should be in their proper place.
Example: Files in filing cabinets, tools in toolkits, and people in suitable roles.

11. Equity
Managers should treat all employees fairly with kindness and justice.
Example: No bias in promotions, equal opportunities for all.

12. Stability of Tenure of Personnel


Frequent employee turnover is bad. Job security improves loyalty and efficiency.
Example: Long-term employees understand work better than frequently replaced ones.

13. Initiative
Employees should be encouraged to take initiative and try new ideas.
Example: A junior staff member suggests a cost-saving idea and is appreciated.

14. Esprit de Corps (Team Spirit)


Teamwork and harmony increase productivity. Managers should build unity and morale.
Example: Team outings, appreciation meetings, and shared goals.

Conclusion:
Fayol’s principles are universal, flexible, and practical. They guide managers in running
organizations smoothly, improve discipline, coordination, and employee satisfaction.

Steps in management process

Planning
Planning is the primary step in the management process. It refers to deciding in advance. It
involves setting objectives, forecasting future conditions, and deciding the best course of
action to achieve organizational goals. It gives direction and reduces uncertainty.

Organizing
Organizing is the process of arranging resources and activities in a structured way to
accomplish the plans. It includes identifying tasks, grouping them, assigning responsibilities,
and allocating authority to ensure coordination. Establishing horizontal and vertical
authority relationship.

Staffing
Staffing involves recruiting, selecting, training, and developing the people required for the
organization. It ensures that the right people are in the right roles to achieve maximum
efficiency and productivity.

Directing

Directing is about guiding, supervising, motivating, and leading employees towards


achieving organizational goals. It includes communication, leadership, and maintaining
discipline and morale.

Communication
Communication is the lifeline of management. It ensures that information flows freely
between managers and employees. Effective communication keeps everyone informed,
clarifies doubts, encourages feedback, and supports decision-making. Whether it's giving
instructions, listening to concerns, or sharing ideas, communication helps the organization
function smoothly.
Controlling
Controlling involves monitoring and evaluating actual performance against planned
objectives. It ensures that everything is going as per plan and, if not, corrective actions are
taken to stay on track.

Here are the 5 Main Steps of the Management Process explained simply with emojis:

Steps of Management Process

Planning

Thinking in advance about what to do, how to do it, and when to do it.
It sets goals and prepares a roadmap to achieve them.

"What do we want to achieve, and how?"

Organizing

Arranging resources (people, money, materials) to carry out the plan.


It includes assigning tasks, grouping activities, and allocating resources.

"Who will do what, and with what resources?"

Staffing

Recruiting, selecting, and training the right people for the right jobs.
Ensures the organization has skilled and motivated employees.

"Let’s find the best people for each role."

Directing

Leading, guiding, and motivating employees to work efficiently.


Involves communication, leadership, and motivation.

"Let’s work together and stay motivated!"

Controlling

Monitoring performance and making corrections if needed.


Compares actual performance with plans to ensure goals are met.
"Are we on track? If not, how can we improve?"

Communicating

Exchanging information between individuals or groups to ensure understanding and


coordination.

Helps everyone in the organization stay informed, aligned, and motivated. It


includes verbal, written, and non-verbal messages.

Good communication builds trust, improves teamwork, and prevents confusion or


errors.

"Let’s keep everyone in the loop and ensure clarity."

Management is a cycle!
Once you control and evaluate, you go back to planning again for future improvements.

Principles of Scientific Management by F.W. Taylor

1. Science, Not Rule of Thumb


Traditionally, managers and workers used personal experience or old methods (rule of
thumb) to do tasks. Taylor suggested that every job should be studied scientifically to
find the most efficient way of performing it. This helps eliminate guesswork and increases
productivity.

Example: Instead of each worker using a different method to lift boxes, management
should study the best posture, speed, and technique, then train all workers in that method.

2. Harmony, Not Discord


There should be good relations and mutual understanding between workers and
management. Conflicts, strikes, and misunderstandings reduce efficiency. Taylor promoted
cooperation and respect to replace bitterness and opposition in the workplace.

Key Point: If managers treat workers fairly and workers trust management, then the
organization will run smoothly and productively.

3. Cooperation, Not Individualism


Taylor opposed the practice of working in isolation or ignoring team goals. He said that
managers and workers should work together like partners, not as boss and servant. This
reduces laziness and increases responsibility.
Key Point: Both sides should contribute ideas and support each other, which results in
better outcomes than working alone.

4. Development of Each Worker to Their Greatest Efficiency and Prosperity


Taylor emphasized that workers should not be overworked or underused. Each worker has
unique abilities, and it is the manager’s responsibility to train them properly, assign
suitable jobs, and help them reach their full potential.

Key Point: A well-trained and happy worker will work faster, better, and stay longer in
the job, benefiting both employee and employer.

5. Mental Revolution (Core of Taylor’s philosophy)


This is about changing the mindset of both workers and management. Instead of fighting
for more pay (workers) or more profit (owners), both should understand that they
depend on each other and aim for common goals. Managers should focus on worker
welfare, and workers should be loyal and hardworking.

Key Point: Trust, teamwork, and mutual benefits must replace competition and
complaints.

Conclusion:
Taylor's scientific management is all about efficiency, cooperation, and improvement.
These principles changed how organizations are managed even today and form the base for
modern management practices.

Principles of Scientific Management – F.W. Taylor(Short)


F.W. Taylor, known as the Father of Scientific Management, introduced principles to
improve industrial productivity through science-based work methods. His approach focused
on efficiency, cooperation, and training.

Science, Not Rule of Thumb

Replace traditional guesswork with scientific study of each task.


Aim: Find the "one best way" to do a job.
Example: Study the best way to load goods, rather than each worker using their own
method.

Harmony, Not Discord


Maintain a peaceful relationship between management and workers.
Avoid conflicts through mutual understanding and respect.
Example: Managers should treat workers fairly; workers should cooperate in return.

Cooperation, Not Individualism

Promote team spirit and avoid working in silos.


Managers and workers must work together to reach common goals.
Example: Encourage workers to share ideas and take part in decisions.

Development of Each Worker to His/Her Greatest Efficiency

Identify the strengths of each worker and train them properly.


Assign jobs according to their skills and ensure they grow.
Example: A worker skilled in machines should not be given clerical work.

Mental Revolution – Important Concept

Taylor believed in a change in attitude or mindset of both employers and employees.


Both should respect each other and work towards common objectives rather than
individual profits.
It involves:
• Managers giving fair wages and training
• Workers giving their best without resistance
Example: If both sides trust each other, strikes and dissatisfaction reduce.

Here’s a detailed explanation of the key techniques of Scientific Management


introduced by F.W. Taylor, tailored for [Link] students:

1. Time Study
Time study involves measuring the time taken by a skilled worker to perform a particular
job under normal working conditions. A stopwatch is used to record the time for each
element of a task. The goal is to set a standard time for completing that task.
• It helps in setting performance standards, planning work, and calculating wages.
• For example, if a worker takes 10 minutes to pack a box, then that becomes the
standard for all.

2. Motion Study
Motion study analyzes the movements involved in doing a job—like bending, lifting, and
reaching. The idea is to eliminate unnecessary or unproductive motions to make the work
easier and faster.
• It increases efficiency and reduces fatigue.
• For instance, rearranging tools in a workshop so that workers don’t have to walk long
distances repeatedly.

3. Scientific Task Planning

This technique involves planning the tasks scientifically instead of relying on trial and
error or personal judgment. It includes determining:
• What work is to be done,
• How it is to be done,
• When it should be done,
• And by whom.
It ensures a systematic approach to work with clear instructions and minimal confusion,
improving overall productivity.

4. Standardization and Simplification of Work


These are two related concepts:
• Standardization means setting uniform specifications for tools, equipment,
materials, methods, and working conditions. It ensures consistency in output and
quality.
• Simplification means reducing the variety of products, parts, and processes to
eliminate unnecessary diversity.
Together, they lead to cost savings, better quality, and efficiency.

5. Differential Piece Rate System


Under this system, workers are paid based on their performance:
• Efficient workers who produce more than the standard output are paid at a higher
rate.
• Those who produce less than standard are paid at a lower rate.
This technique encourages workers to be more productive and rewards efficiency.
Or

5. Differential Piece Wage System


This wage system rewards efficient workers with higher pay and penalizes slower ones.
Based on the standard time set for a job, workers completing tasks faster than standard
receive a higher piece rate; others receive lower wages. This motivates productivity and
encourages improvement.

Sure! Here's a detailed explanation of Functional Foremanship, with each side heading
presented as a paragraph, especially suitable for [Link] students:

Introduction
Functional Foremanship is a concept developed by F.W. Taylor, the father of scientific
management. It aims to increase efficiency by dividing the work of supervision among a
group of experts rather than assigning all responsibilities to a single foreman. According to
Taylor, no single person can be an expert in all aspects of work, so specialized foremen
should supervise different functions. This system is especially useful in large factories where
both planning and execution need to be handled separately for better productivity and
control.

🗂 Planning Department
The Planning Department is responsible for all the work that needs to be done before actual
production begins. It focuses on preparing instructions, determining the best way to perform
the task, setting timelines, and ensuring discipline. There are four foremen under this
department:
• Route Clerk decides the path that the raw material or job will follow through the
factory.
• Instruction Card Clerk prepares detailed written instructions on how each job is
to be carried out.
• Time and Cost Clerk determines the time each task should take and estimates the
cost of completion.
• Disciplinarian ensures workers follow company rules, maintain punctuality, and
avoid absenteeism.
Together, these foremen ensure the work is well-organized and ready before it reaches the
workers.

🛠 Production Department
The Production Department works on the execution side, directly dealing with the workers
and machines. It ensures the work is carried out smoothly on the shop floor. This
department also consists of four foremen:
• Speed Boss makes sure the workers maintain the right speed of production and
avoid delays.
• Gang Boss arranges all tools, machines, and materials in advance to prevent
wastage of time.
• Repair Boss takes care of machine maintenance, preventing breakdowns and
ensuring efficiency.
• Inspector checks the quality of the final product and ensures that it meets the
desired standards.
This department helps maintain the workflow, prevents errors, and ensures high-quality
output.

Advantages

Functional Foremanship has several benefits. By dividing responsibilities, it allows each


foreman to specialize in one function, which leads to greater efficiency and expert
supervision. Since planning and execution are handled separately, it also improves
coordination and clarity in roles. Workers get better guidance, and the system ensures
that quality, speed, and discipline are maintained at every step. It also reduces the workload
on a single supervisor, making the overall process more structured and productive.

Limitations
Despite its advantages, Functional Foremanship also has a few limitations. Having eight
bosses can confuse workers, especially if instructions from different foremen clash. It also
requires strong coordination and communication among all the foremen. This system
is not suitable for small organizations, as they may not have enough staff or resources to
implement such specialization. Moreover, it may increase the cost of supervision due to
the number of foremen involved.

Conclusion
Functional Foremanship is a systematic and scientific approach to supervision in large
organizations. It separates the planning and doing functions and distributes responsibilities
among eight specialized foremen. While it brings about efficiency, better quality, and
improved organization, it also demands good communication and is best suited for large-
scale production. It reflects Taylor's belief in “the right man for the right job” and
remains an important concept in the study of management.

Functional Foremanship – By F.W. Taylor(Easy)


Functional Foremanship is a technique introduced by Frederick Winslow Taylor
under his Scientific Management Theory to improve efficiency, productivity, and
supervision in large-scale production units.

Meaning:
In traditional methods, one supervisor was expected to manage all aspects of a worker’s job.
Taylor believed this was ineffective because one person cannot be an expert in all areas. So,
he introduced a division of supervisory roles—where the responsibility of supervising
workers is split among eight specialists, each focusing on a particular aspect of the work.
The Eight Foremen: Divided into Two Main Departments
I. Planning Department (Office Work / Thinking Function)
This department focuses on preparing and organizing work before it reaches the shop
floor.

1. 🛤 Route Clerk
o Decides which path/route the work should follow in the production
process.
o Ensures the workflow is smooth and logical.

2. Instruction Card Clerk


o Prepares written instructions for each job.
o Specifies how the task should be done, tools to use, and procedures to follow.

3. ⏱ Time and Cost Clerk


o Sets the time limit for each job and keeps records of the costs incurred.
o Helps in standardizing and controlling expenses.

4. Disciplinarian
o Responsible for maintaining order and discipline among workers.
o Looks after absenteeism, punctuality, and adherence to company rules.

II. Production Department (Shop Floor / Execution Function)


This team works directly with workers and ensures that the job is executed properly.

5. Speed Boss
o Ensures that work is done at the right pace without delays.
o Monitors worker efficiency.

6. Gang Boss

o Arranges machines, tools, and materials for the workers.


o Makes sure everything is in place before work begins.

7. Repair Boss
o Responsible for the maintenance of machines and equipment.
o Prevents technical breakdowns and ensures smooth working.

8. Inspector
o Checks and verifies the quality of output.
o Ensures that work meets the required standards and specifications.

Key Features of Functional Foremanship:


• Division of work based on specialization
• More supervision, leading to better control and coordination
• Increases efficiency and quality
• Encourages team-based supervision
• Relieves a single foreman from excessive pressure

Advantages:

• Specialization leads to expert guidance in each area

• Increased productivity as tasks are better managed

• Improved quality control due to the inspector’s role

• Better planning and execution coordination

Limitations:

• Workers may get confused due to multiple bosses

• Needs high level of coordination

• Suitable only for large factories or big businesses

• Might be difficult to implement in small organizations

Conclusion:
Functional Foremanship represents Taylor’s belief in scientific and efficient work processes.
It separates planning from execution and assigns specific roles to specialists. Though
effective in large industries, it requires proper communication and coordination to succeed.

Here is an explanation of the concepts of management based on the images you've


provided:

Concepts of Management
Management can be understood from five different perspectives:
1. Management as an Economic Resource
Management is considered one of the important factors of production, alongside
land, labor, capital, and entrepreneurship. It coordinates other resources (money,
manpower, materials, machinery, markets) for efficient use. Efficient management
ensures productivity and economic growth.

2. Management as a Class or Group


Sociologists view management as a distinct group in society that leads and directs
organizations. These are professional managers responsible for achieving goals and
making decisions. They include family managers, civil servants, professional
managers, etc.

3. Management as a System of Authority


In administrative science, management is seen as a system of authority where a
hierarchy exists. Authority flows from top to bottom, ensuring that tasks and goals
are achieved through well-defined superior-subordinate relationships.

4. Management as a Separate Discipline


Management is treated as an academic discipline. It has its own principles,
theories, and practices. Taught in universities, it's a young but rapidly growing field.
This concept emphasizes that management is a specialized body of knowledge.

5. Management as a Process
Management is viewed as a process involving planning, organizing, staffing,
directing, and controlling human efforts to achieve goals. This is the most
common understanding. It focuses on what managers do as a continuous, rational,
and dynamic process.

Conclusion: These concepts are not contradictory. They offer different ways to
understand management. Together, they form a comprehensive view of what
management truly is.
Sure! Here's a complete and fun emoji-filled explanation of the Concepts of
Management from your images:

Concepts of Management

Management can be understood from five perspectives. Each view shows a unique role
that management plays in an organization or society:

Management as an Economic Resource


Management is one of the factors of production (like land, labor, and capital).
It helps combine resources such as:
• Money

• Manpower

• Materials

• Machinery

• Markets

Efficient management = Better productivity and economic growth!

Management as a Class or Group


Here, management refers to a group of people who make decisions and guide others.
These people may include:

• Family managers

• Government officials

• Professional managers

They hold authority and are responsible for achieving organizational goals.

Management as a System of Authority

Management is also a hierarchical system.


There’s a chain of command where:

• Authority flows from top → bottom

• Tasks are assigned through formal positions

It helps coordinate actions through a clear line of control and accountability.

Management as a Separate Discipline


Management is now a field of study, just like science or economics.

• It has its own theories, principles, and techniques

• Taught in colleges and universities

• It’s a young but growing discipline

Many students now choose management as a career path!

Management as a Process
Management is a continuous process involving:
• Planning

• Organizing

• Staffing

• Directing

• Controlling

These steps help in achieving goals by guiding human efforts effectively.

Conclusion
All these concepts complement each other. Together, they give a complete picture of
what management is — both as a science and as a practice!

Characteristics of Management
1. Management is a Universal Process
Management is needed in all types of organizations—businesses, government offices,
schools, hospitals, etc. It applies to all levels and departments. Henry Fayol said that
management principles are universal. Whether you're a CEO or a shop supervisor, you're still
managing. That means the basic functions of management (planning, organizing, staffing,
directing, and controlling) are used everywhere, regardless of your position.

2. Management is Purposeful
Management always works to achieve goals. It helps an organization move towards its set
objectives. These objectives can be related to profit, social service, development, etc.
Management is not done just for the sake of it—it has a goal to achieve. If there are no goals,
then there is no need for management.

3. Management is Creative
Management helps get things done in a smart way. It tries to complete work using minimum
time and resources. Managers think creatively to solve problems and improve results. Their
role is to make the best use of people, materials, money, and machines to achieve efficiency
and effectiveness.

4. Management is an Integrative Force


Management brings people and resources together. It coordinates the efforts of different
departments and individuals to work toward one common goal. Like the conductor of an
orchestra, management ensures that everyone works in harmony, leading to the success of
the organization.
5. Management is a Group Phenomenon
Management is not about working alone—it involves teamwork. A manager works with and
through people. Group activity is at the heart of management, and the success of any task
depends on how well the team works together. That’s why leadership and communication are
very important in management.

6. Management is a Social Process


Management deals with people. It's all about managing human relationships,
communication, and interaction. Managers don’t produce goods themselves; they guide and
help others to do it. A good manager understands people, motivates them, and builds a
positive environment.

7. Management is Multidisciplinary
Management is based on knowledge from various subjects like economics, psychology,
sociology, engineering, and more. This is because understanding people, finances,
technology, and operations are all necessary for effective management.

8. Management is a Continuous Process


Management is not a one-time activity. It is ongoing, involving continuous planning,
organizing, and decision-making. As long as an organization exists, management is needed
to keep it running smoothly.

9. Management is Intangible
You cannot see management like a product, but you can feel its results. Good management
leads to a smooth workflow, happy employees, and higher profits. Although it's invisible, its
presence is reflected in outcomes.

10. Management is Both a Science and an Art


Management is a science because it has principles, rules, and techniques. It is also an art
because managers need creativity, experience, and skill to apply these principles in real
situations. Just like an artist uses tools to create a painting, a manager uses principles to
solve business problems.

Here's a fun and simple explanation of the Characteristics of Management with


emojis and examples:

1. Management is a Universal Process


Meaning: Management is needed everywhere—big companies, small shops, hospitals,
schools, etc.
Example: Whether it’s Tata Group or your local bakery, both need good management
to run properly.

2. Management is Purposeful

Meaning: Management always works towards achieving goals.


Example: A clothing brand like Zara aims to launch new designs every season.
Management helps make that happen.

3. Management is Creative

Meaning: Managers find smart ways to do work faster and better using less time and
money.
Example: Apple used creativity in management to launch unique products like the
iPhone.

4. Management is an Integrative Force

Meaning: Management brings people and resources together to work as a team.


Example: In a hotel, the kitchen, housekeeping, and reception departments must all
work together to satisfy guests.

5. Management is a Group Phenomenon

Meaning: Management always involves teamwork.


Example: In a cricket team, the captain (manager) needs the team to cooperate to win
the match.

6. Management is a Social Process

Meaning: It involves people and relationships. Managers must motivate, guide, and
support employees.
Example: A manager at Infosys helps team members by listening to their problems and
encouraging them.

7. Management is Multidisciplinary

Meaning: Management uses ideas from many subjects—like economics, psychology, and
law.
Example: A business manager uses math to prepare budgets and psychology to
understand employee behavior.
8. Management is a Continuous Process

Meaning: It never stops—planning, organizing, controlling, and improving go on every


day.
Example: Even after launching a product, companies like Samsung keep managing
marketing, customer feedback, and updates.

9. Management is Intangible

Meaning: You can’t touch or see it directly, but you can feel its effect.
Example: A well-managed restaurant has happy staff, quick service, and smiling
customers—even if you don’t see the manager.

10. Management is Both a Science and an Art

Meaning:
• It is a science because it has rules and principles.
• It is an art because managers need creativity and experience.
Example: Like a chef (artist) follows a recipe (science), a manager at Amul uses
principles to lead but also uses experience to handle challenges.

Difference Between Administration and Management


There are three main viewpoints regarding the relationship between administration and
management:
Thank you! Here's the detailed explanation of the relationship between
Administration and Management based on your uploaded image content, presented
clearly and without emojis:

1. Administration is Different from Management (American School of Thought)


According to the American viewpoint, Administration and Management are considered
separate and distinct functions:
• Administration:
o Deals with setting policies, formulating objectives, and planning major
activities.
o It involves deciding what is to be done.
o It is mostly done by top-level executives, such as the board of directors,
chief executive officers, etc.
• Management:
o Deals with implementing the policies and plans made by the
administration.
o It involves deciding how to do a particular task.
o It is mostly done by middle and lower-level managers, like departmental
heads, supervisors, etc.
Key Difference:
• Administration is concerned with policy formulation.
• Management is concerned with policy execution.

2. Administration is a Part of Management (British School of Thought)


According to the British viewpoint, management is a broader term, and
administration is a part of it.
• Management includes:
o Policy formulation (administration).
o Execution of policies (management in action).
In this view:
• The difference is not about function but about scope.
• Management includes both planning and implementation.
Key Point:
• Management = Administration + Execution

3. Administration and Management are the Same (Modern View)


The modern thinkers do not draw a strict line between administration and management.
They believe:
• Both terms are used interchangeably in practice.
• Both are concerned with achieving organizational objectives.
• Both involve functions like planning, organizing, directing, and controlling.
Examples:
• In a small enterprise, one person may handle both administrative and managerial
functions.
• Even in large organizations, top executives may be involved in both policy-making
and its execution.
Conclusion:
• The differences are theoretical and mostly semantic.
• In the real world, the distinction is often blurred.
Reference
1. Administration is Above Management (American View)
• Administration: Higher-level function. Focuses on setting objectives, policies,
and plans.
• Management: Lower-level function. Concerned with implementing policies and
managing day-to-day operations.
• Supported by thinkers like Oliver Sheldon, Ordway Tead, Florence,
Lansburg, etc.
• Example:
o Admin = deciding “what to do”
o Mgmt = deciding “how to do it”

2. Administration is a Part of Management (British View)


• Management is a broad term that includes both planning and
administration.
• Administration is only a technical process within management.
• Focus is more on the execution and operational control.
• Supported by Brech, Kimball, and Simon.
• In this view, management includes administration as one of its parts.

3. Administration and Management are the Same


• No difference in practice; both are used interchangeably.
• Supported by Henry Fayol, Koontz, O'Donnell, Newman, etc.
• Both involve:
o Planning
o Organizing
o Directing
o Controlling
• In business: "Management" is preferred.
In government/education: "Administration" is more common.

Conclusion:
The difference between administration and management depends on context.
In theory, they may differ, but in practice, they are often used interchangeably,
especially in business.

Let me know if you'd like a table or diagram to simplify it further!


Here's a short and clear summary of the differences between Administration and
Management based on the image:

1. Administration is Above Management (American View)


• Administration: Sets goals, policies, and major decisions.
• Management: Implements those policies, handles day-to-day work.

• Example Thinkers: Oliver Sheldon, Ordway Tead

• Admin = “What to do”, Mgmt = “How to do it”

2. Administration is a Part of Management (British View)

• Management is a broader term; it includes administration.


• Administration is just one function inside management (mainly planning).

• Example Thinkers: Brech, Kimball, McFarland

• Focus: Practical operation, execution, control.

3. Administration = Management (Same Thing)

• No real difference; both involve planning, organizing, controlling.


• Terms are used interchangeably in many organisations.

• Example Thinkers: Henry Fayol, Koontz, O’Donnell

• In business: called management


In government/NGOs: called administration

Final Tip (Easy to Remember):

Basis Administration Management

Level Top Level (Policy-making) Middle/Lower (Execution)

Focus What to do How to do it

Scope Wider in govt, public org Wider in business


Basis Administration Management

Key Function Planning & Decision Execution & Supervision

Here is a clear and detailed explanation of the Skills of a Manager—covering technical,


human, conceptual, and diagnostic skills, with examples and relevance at different
levels of management:

1. Technical Skills
Definition:
Technical skills are the abilities and knowledge needed to perform specific tasks using tools,
techniques, equipment, and procedures.
Explanation:
These skills are directly related to the specific domain or field the manager is in. For
example, a manager in an IT company needs to understand programming basics, system
architecture, or data analysis. It doesn’t mean the manager must code daily—but they should
understand enough to guide their team and ask the right questions.
Key Points:
• Know which technical skills are relevant to your field.
• Understand the role and relationship of different technical activities.
Example:
A production manager must understand how machinery works to supervise workers
effectively.
Level of Management:
Most important at the lower/operating level, like supervisors and team leaders, who
are directly involved with workers and machines.

2. Human Skills
Definition:
Human skills refer to the ability to interact effectively with people—understanding their
behavior, motivating them, and working cooperatively.
Explanation:
These skills involve empathy, communication, leadership, and teamwork. Managers must
understand employee needs, resolve conflicts, and encourage group participation.
Key Points:
• See things from others’ perspectives.
• Build relationships and trust.
• Inspire, guide, and communicate effectively.
Example:
A manager who listens to employee concerns and addresses them in a respectful, supportive
way demonstrates strong human skills.
Level of Management:
Equally important at all levels—top, middle, and lower—because every manager deals
with people.

3. Conceptual Skills
Definition:
Conceptual skills are the ability to see the “big picture”—understanding the organization as a
whole and how its parts are connected.
Explanation:
These skills allow managers to think abstractly, analyze complex situations, solve strategic
problems, and plan for the future. They involve creativity, vision, and strategic thinking.
Key Points:
• See beyond day-to-day tasks.
• Understand interrelationships across departments.
• Handle abstract and complex issues.
Example:
A CEO visualizing how a shift in customer trends may affect company operations and
designing a new business model accordingly.
Level of Management:
Most important at the top level (e.g., CEO, directors), where strategic decisions are
made.

4. Diagnostic Skills
Definition:
Diagnostic skills involve identifying the core of a problem, analyzing it, and developing
possible solutions.
Explanation:
It’s more than just spotting what’s wrong—it’s about understanding why it went wrong and
how to fix it efficiently. Diagnostic skills combine analytical thinking with practical
judgment.
Key Points:
• Pinpoint root causes of issues.
• Predict possible outcomes and solutions.
• Prioritize what really matters.
Example:
If productivity drops in a department, a manager with diagnostic skills will analyze employee
feedback, system reports, and workflows to find the real issue—maybe outdated software or
poor communication.
Level of Management:
Crucial at all levels, but especially useful for middle managers who connect top
management decisions with ground-level operations.

Summary of Skills by Level of Management

Skill Top Management Middle Management Operating Management

Technical Low Medium High

Human High High High

Conceptual High Medium Low

Diagnostic High High Medium

If you'd like, I can also prepare a chart or infographic for quick revision or a short
mnemonic to help remember these four skill types.

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