THEORY OF MANAGEMENT STUDY NOTES
UNIT 1
MANAGEMENT
Management Definition
Management is the art of getting things done through others. Harold Koontz Def as “Management is
the process of designing and maintaining an environment in which individuals, working together in
groups efficiently to accomplish selected aims”
a. Managers carry out their managerial function
b. Applies to any kind of Organisation
c. Applies to managers at all Organisational levels
d. Aim is to create a surplus
e. Concerned with productivity, implies effectiveness and efficiency
f. Mgt of 4 M’s in the Orgn – Men, Machine, Materials & money
Characteristics of Management
o Mgt is Universal
o Mgt is dynamic
o Mgt is a group of managers
o Mgt is Purposeful
o Mgt is goal oriented
o Mgt is integrative Function
o Mgt is a Social process
o Mgt is a Multi-faceted discipline
o Mgt is a continuous process
o Mgt is a system of authority
o Mgt is a resource
o Mgt is intangible
o Mgt is profession, an art as well as a science
ADMINISTRATION VS MANAGEMENT
Basis of Administration Management
Distinction
Policy and Determination of objectives Implementation of Policies
objectives & policies
Legislative & determination Executive Function
Main function
Functions Planning, Organising staffing Directing, Motivating,
Coordinating Controlling
Provides a sketch of the Provides the entire body
enterprise
PREPARED BY MR ANTONY AMBIA Page 1
, Influence Influenced mainly by public Influenced mainly by
opinion & other outside force administrative function
Levels of Mainly top level function Mainly middle level function
Management involves thinking & planning involves doing and acting
Level of Owners/ Board of Directors MD, GM & Managers
Executives
Position Acts as a principal Acts as an agency
Knowledge Requires more admin ability Requires more technical
than technical ability ability than admin ability
Management as an Art
The main elements of an art are –
Personal Skills
Practical know-how
Application of knowledge
Result orientation
Creativity
Constant practice aimed at perfection
Management is basically an art because of the following reasons –
A manager applies his knowledge and skills to coordinate the efforts of his people
Mgt seeks to achieve concrete practical results
Mgt is creative. It brings out new situation and converts into output
Effective Mgt lead to realization of Organizational and other goals. Mastery in Mgt requires a
sufficiently long period of experience in, managing.
Management as Science
The essential elements of Science
Systematised body of Knowledge
Underlying principles and theories developed through continuous observation, inquiry,
experimentation and research.
Universal truth and applicability.
Organised body of knowledge can be taught and learnt in class room and outside.
Mgt is a social science. It contains all the essentials of science. It is an inexact science.
PERT, CPM, Cost A/C, Finance, MBO etc
Thus, the theory (Science) and practice (art) of Mgt go side by side for the efficient functioning of
an organisation.
PREPARED BY MR ANTONY AMBIA Page 2
,Management as a Profession
The essential attribute of a profession
A well-defined and organised body of knowledge
Learning and Experience
Entry restricted by qualification
Recognised national body
Ethical code of conduct
Dominance of service motive
Mgt is not a full fledged profession now due to the following shortcomings
Skills not fully developed
No uniform method of entry
Objective is monetary rather than service
Ethical code is not strict
Associations are not statutory bodies
But in India it is developing into a profession and it will be achieved in due course.
Managerial Skills
Conceptual skills
Human Skills
Technical Skills
Design Skills – Decision making
Need for Management
1. To increase efficiency
2. To crystallize the nature of Mgt job
3. To improve research in Mgt
4. To attain social goals
Levels of Management
1. Top Level Mgt –
Board of Directors, MD, Owners, Chief Executives
To analyse, evaluate and deal with th environmental forces
To establish overall long term goals and broad policies of the company including the
master budget
To appoint departmental and other key executives
To represent the company to the outside world
To coordinate the activities and efforts of different department
2. Middle Level Mgt –
PREPARED BY MR ANTONY AMBIA Page 3
, Sales Executives, Production Executives, Production executives etc.
To interpret and explain the policies framed by top management
To compile and issue detailed instruction regarding operations
To Cooperate among themselves so as to integrate various parts of the division or a
department
To motivate supervisory personnel to work for Orgn goals
To develop and train supervisory and operative personnel.
3. Supervisory / Operating / Lower Level Mgt –
Superintendents, Branch managers, General Foremen
To plan day to day production within the goals lay down by higher authority
To assign jobs to workers and to make arrangement for their training and development
To supervise and control workers and to maintain personal contact with them.
Roles of a manager ( Mintzberg)
1. Interpersonal Role - Interacting with people inside and outside the Orgn
Figurehead – as a symbolic head of an organisation, the manager performs routine duties of
a legal nature
Leader – Hiring, Training, motivating and guiding subordinates
Liason - Interacting with other managers outside the orgn to obtain favours and information
2. Informational Role – Serving as a focal point for exchange of Information
Monitor – Seeks and receive information concerning internal and external events so as to
gain understanding of the Orgn and its environment.
Disseminator – Transmits information to subordinates, peers and superiors within the
Organisation
Spokesperson – Speaking on behalf of the Orgn and transmitting information on Orgn
plans, policies and actions to outsiders.
3. Decisional Role – Makes important decision
Entrepreneur – Initiating changes or improvements in the activities of the Orgn
Disturbance handler- Taking charge and corrective action when Orgn faces unexpected
crises
Resource allocator – Distributing Orgn’s resources like money, time, equipment and labour
Negotiator – Representing the Orgn in bargaining and negotiations with outsiders and
insiders
Importance of Management
Management is the dynamic life –giving element in every business. Without it the resources of
production remain resources and never become production. Sound Management provides the
following benefits .
Achievement of group goals
PREPARED BY MR ANTONY AMBIA Page 4
UNIT 1
MANAGEMENT
Management Definition
Management is the art of getting things done through others. Harold Koontz Def as “Management is
the process of designing and maintaining an environment in which individuals, working together in
groups efficiently to accomplish selected aims”
a. Managers carry out their managerial function
b. Applies to any kind of Organisation
c. Applies to managers at all Organisational levels
d. Aim is to create a surplus
e. Concerned with productivity, implies effectiveness and efficiency
f. Mgt of 4 M’s in the Orgn – Men, Machine, Materials & money
Characteristics of Management
o Mgt is Universal
o Mgt is dynamic
o Mgt is a group of managers
o Mgt is Purposeful
o Mgt is goal oriented
o Mgt is integrative Function
o Mgt is a Social process
o Mgt is a Multi-faceted discipline
o Mgt is a continuous process
o Mgt is a system of authority
o Mgt is a resource
o Mgt is intangible
o Mgt is profession, an art as well as a science
ADMINISTRATION VS MANAGEMENT
Basis of Administration Management
Distinction
Policy and Determination of objectives Implementation of Policies
objectives & policies
Legislative & determination Executive Function
Main function
Functions Planning, Organising staffing Directing, Motivating,
Coordinating Controlling
Provides a sketch of the Provides the entire body
enterprise
PREPARED BY MR ANTONY AMBIA Page 1
, Influence Influenced mainly by public Influenced mainly by
opinion & other outside force administrative function
Levels of Mainly top level function Mainly middle level function
Management involves thinking & planning involves doing and acting
Level of Owners/ Board of Directors MD, GM & Managers
Executives
Position Acts as a principal Acts as an agency
Knowledge Requires more admin ability Requires more technical
than technical ability ability than admin ability
Management as an Art
The main elements of an art are –
Personal Skills
Practical know-how
Application of knowledge
Result orientation
Creativity
Constant practice aimed at perfection
Management is basically an art because of the following reasons –
A manager applies his knowledge and skills to coordinate the efforts of his people
Mgt seeks to achieve concrete practical results
Mgt is creative. It brings out new situation and converts into output
Effective Mgt lead to realization of Organizational and other goals. Mastery in Mgt requires a
sufficiently long period of experience in, managing.
Management as Science
The essential elements of Science
Systematised body of Knowledge
Underlying principles and theories developed through continuous observation, inquiry,
experimentation and research.
Universal truth and applicability.
Organised body of knowledge can be taught and learnt in class room and outside.
Mgt is a social science. It contains all the essentials of science. It is an inexact science.
PERT, CPM, Cost A/C, Finance, MBO etc
Thus, the theory (Science) and practice (art) of Mgt go side by side for the efficient functioning of
an organisation.
PREPARED BY MR ANTONY AMBIA Page 2
,Management as a Profession
The essential attribute of a profession
A well-defined and organised body of knowledge
Learning and Experience
Entry restricted by qualification
Recognised national body
Ethical code of conduct
Dominance of service motive
Mgt is not a full fledged profession now due to the following shortcomings
Skills not fully developed
No uniform method of entry
Objective is monetary rather than service
Ethical code is not strict
Associations are not statutory bodies
But in India it is developing into a profession and it will be achieved in due course.
Managerial Skills
Conceptual skills
Human Skills
Technical Skills
Design Skills – Decision making
Need for Management
1. To increase efficiency
2. To crystallize the nature of Mgt job
3. To improve research in Mgt
4. To attain social goals
Levels of Management
1. Top Level Mgt –
Board of Directors, MD, Owners, Chief Executives
To analyse, evaluate and deal with th environmental forces
To establish overall long term goals and broad policies of the company including the
master budget
To appoint departmental and other key executives
To represent the company to the outside world
To coordinate the activities and efforts of different department
2. Middle Level Mgt –
PREPARED BY MR ANTONY AMBIA Page 3
, Sales Executives, Production Executives, Production executives etc.
To interpret and explain the policies framed by top management
To compile and issue detailed instruction regarding operations
To Cooperate among themselves so as to integrate various parts of the division or a
department
To motivate supervisory personnel to work for Orgn goals
To develop and train supervisory and operative personnel.
3. Supervisory / Operating / Lower Level Mgt –
Superintendents, Branch managers, General Foremen
To plan day to day production within the goals lay down by higher authority
To assign jobs to workers and to make arrangement for their training and development
To supervise and control workers and to maintain personal contact with them.
Roles of a manager ( Mintzberg)
1. Interpersonal Role - Interacting with people inside and outside the Orgn
Figurehead – as a symbolic head of an organisation, the manager performs routine duties of
a legal nature
Leader – Hiring, Training, motivating and guiding subordinates
Liason - Interacting with other managers outside the orgn to obtain favours and information
2. Informational Role – Serving as a focal point for exchange of Information
Monitor – Seeks and receive information concerning internal and external events so as to
gain understanding of the Orgn and its environment.
Disseminator – Transmits information to subordinates, peers and superiors within the
Organisation
Spokesperson – Speaking on behalf of the Orgn and transmitting information on Orgn
plans, policies and actions to outsiders.
3. Decisional Role – Makes important decision
Entrepreneur – Initiating changes or improvements in the activities of the Orgn
Disturbance handler- Taking charge and corrective action when Orgn faces unexpected
crises
Resource allocator – Distributing Orgn’s resources like money, time, equipment and labour
Negotiator – Representing the Orgn in bargaining and negotiations with outsiders and
insiders
Importance of Management
Management is the dynamic life –giving element in every business. Without it the resources of
production remain resources and never become production. Sound Management provides the
following benefits .
Achievement of group goals
PREPARED BY MR ANTONY AMBIA Page 4
