Perspective
Management
LECTURE NOTES
, CONTENTS
Chapter Title Page No.
I PERSPECTIVE OF MANAGEMENT: AN OVERVIEW 5
II MANAGEMENT PLANNING AND OBJECTIVES 15
III STRATEGIC BUSINESS PLANNING 38
IV ORGANIZATION TO PLANNING 44
V DEVELOPMENT OF MANAGEMENT 55
VI MANAGEMENT OF INNOVATION: THE CHALLENGE 67
, CHAPTER - I
PERSPECTIVE OF MANAGEMENT: AN OVERVIEW
OBJECTIVE
Management is as old as mankind and needed at all the places wherever there is an organized
activity. The practice of management was known to the people since the earliest time living in different
parts of the world. Management practices in business with the birth of industrial Revolution in England
in the mid 18th century. By the end of 19th century much had been written, practiced and preached
about management. Numerous schools of management thought have evolved. With the advent of
Frederic W. Taylor and the scientific management school of thought began the formal study of
management as a discipline for evolving the concept of scientific management.
Management is an art of knowing what you want to do and then observing that they do it in
the best and cheapest way to secure maximum results with the minimum of efforts with a view to
securer maximum prosperity and happiness for both employer and employee and give the best possible
service to the society. It is concerned with creating the conditions and relationship, which bring about
the full utilization of all resources of an organization. Inadequacies of management have been among
the most important factors for the delay and inefficiency in the implementing of projects and under
utilization of capacity. Management is an interesting subject as it deals with setting, seeking and reaching
objectives. Management can be defined as working with people to determine, interpret and achieve
organizational objectives by performing the functions of planning, organizing, staffing, leading and
controlling. Management provides a way to reach on organizational and personal objectives. The
need of management in an organization is nicely expressed by Lawrence A. Appley, past President
of American Management Association, when he observed, “The basic function of management is to
attain objectives through action taken by the members of the organization. Since dynamics are the
forces which produce the action and demotion, it follows that the dynamics of management are those
forces which produces the action which is required…(Those) forces of management do not just happen.
They must be given impetus by…. (managers)”.
INTRODUCTION
An analysis of the definitions of management clearly shows that management is a scientific
process of activities relating to planning, organizing, actuating and controlling. These activities are
performed to determine and accomplish stated objectives with the use of human and other resources.
Luther Gulick suggested one useful breakdown by formulating the word POSDCRB from the initial
letters of management function: planning, organizing, staffing, directing, coordinating, reporting and
budgeting.
Basically, MANAGEMENT is management of the six Ms or basic resources. We may call
these Ms as fundamental function of management-Planning, organizing, actuating and controlling –to
achieve stated objectives.
5
, Owners
Consumer The Public
Management
Trade Union
Employees
Government
Management Balance between Conflicting Goals
Every person is manager of his own lives and the practice of management is found in almost
all almost all facets of human activity. John Mee defines management as the art of securing maximum
results with minimum of efforts so as to secure maximum prosperity and happiness both for employer
and employee and give the people the best possible service.
Management is a vital aspect of the Economic life of man, which is an organized group activity.
It is considered as the indispensable institution in the modern social organization marked by scientific
thought and technological innovations. One or the other form of management is essential wherever
human efforts are to be undertaken collectively to satisfy wants through some productive activity,
occupation or profession. It is management that regulates man’s productive activities through co-
ordinate use of material resources. Without the leadership provided by management, “ the resources
of production remain resources and never become production”. As Drucker said, that manager is the
life giving dynamic element in every business. Productive resources men, money, material are entrusted
to the organizing skill, administrative ability and enterprising initiative of the management.
Management is no longer considered as and organizes and would seem to be acquiring
increasing duties in real of budgeting and finance:
6
Management
LECTURE NOTES
, CONTENTS
Chapter Title Page No.
I PERSPECTIVE OF MANAGEMENT: AN OVERVIEW 5
II MANAGEMENT PLANNING AND OBJECTIVES 15
III STRATEGIC BUSINESS PLANNING 38
IV ORGANIZATION TO PLANNING 44
V DEVELOPMENT OF MANAGEMENT 55
VI MANAGEMENT OF INNOVATION: THE CHALLENGE 67
, CHAPTER - I
PERSPECTIVE OF MANAGEMENT: AN OVERVIEW
OBJECTIVE
Management is as old as mankind and needed at all the places wherever there is an organized
activity. The practice of management was known to the people since the earliest time living in different
parts of the world. Management practices in business with the birth of industrial Revolution in England
in the mid 18th century. By the end of 19th century much had been written, practiced and preached
about management. Numerous schools of management thought have evolved. With the advent of
Frederic W. Taylor and the scientific management school of thought began the formal study of
management as a discipline for evolving the concept of scientific management.
Management is an art of knowing what you want to do and then observing that they do it in
the best and cheapest way to secure maximum results with the minimum of efforts with a view to
securer maximum prosperity and happiness for both employer and employee and give the best possible
service to the society. It is concerned with creating the conditions and relationship, which bring about
the full utilization of all resources of an organization. Inadequacies of management have been among
the most important factors for the delay and inefficiency in the implementing of projects and under
utilization of capacity. Management is an interesting subject as it deals with setting, seeking and reaching
objectives. Management can be defined as working with people to determine, interpret and achieve
organizational objectives by performing the functions of planning, organizing, staffing, leading and
controlling. Management provides a way to reach on organizational and personal objectives. The
need of management in an organization is nicely expressed by Lawrence A. Appley, past President
of American Management Association, when he observed, “The basic function of management is to
attain objectives through action taken by the members of the organization. Since dynamics are the
forces which produce the action and demotion, it follows that the dynamics of management are those
forces which produces the action which is required…(Those) forces of management do not just happen.
They must be given impetus by…. (managers)”.
INTRODUCTION
An analysis of the definitions of management clearly shows that management is a scientific
process of activities relating to planning, organizing, actuating and controlling. These activities are
performed to determine and accomplish stated objectives with the use of human and other resources.
Luther Gulick suggested one useful breakdown by formulating the word POSDCRB from the initial
letters of management function: planning, organizing, staffing, directing, coordinating, reporting and
budgeting.
Basically, MANAGEMENT is management of the six Ms or basic resources. We may call
these Ms as fundamental function of management-Planning, organizing, actuating and controlling –to
achieve stated objectives.
5
, Owners
Consumer The Public
Management
Trade Union
Employees
Government
Management Balance between Conflicting Goals
Every person is manager of his own lives and the practice of management is found in almost
all almost all facets of human activity. John Mee defines management as the art of securing maximum
results with minimum of efforts so as to secure maximum prosperity and happiness both for employer
and employee and give the people the best possible service.
Management is a vital aspect of the Economic life of man, which is an organized group activity.
It is considered as the indispensable institution in the modern social organization marked by scientific
thought and technological innovations. One or the other form of management is essential wherever
human efforts are to be undertaken collectively to satisfy wants through some productive activity,
occupation or profession. It is management that regulates man’s productive activities through co-
ordinate use of material resources. Without the leadership provided by management, “ the resources
of production remain resources and never become production”. As Drucker said, that manager is the
life giving dynamic element in every business. Productive resources men, money, material are entrusted
to the organizing skill, administrative ability and enterprising initiative of the management.
Management is no longer considered as and organizes and would seem to be acquiring
increasing duties in real of budgeting and finance:
6
