BBM 105 Unit 1, Lesson 1
LESSON 1 MANAGEMENT AS A DISCIPLINE
We have often use the word Management in all the fields of our life whether it’s management
of a hospital, home or business, whether it’s management of men, money, material or time etc. As a
student of management several questions come into our minds like ‘What is Management?’, ‘Why is
management considered an important discipline?’, and ‘What are we going to learn in management
discipline?’ This chapter will answer these questions by explaining the concept, functions and
characteristics of Management as a discipline.
1.0 Objectives
This lesson attempts to provide the knowledge of:
Meaning of management
Management as a discipline
Management as a team
Management as a process
Characteristics of Management
1.1 Introduction
The verb manage comes from the Italian word maneggiare (to handle — especially a horse),
which in turn derives from the Latin word manus (hand). Leading by the hand implies giving direction
that is stronger than just a passing suggestion yet still fairly gentle in approach. Leading by the hand
also implies that the person doing the leading is first going where the follower is being lead.
The French word mesnagement (later ménagement) means “the art of conducting &
directing”. This influenced the development in meaning of the English word management which
characterizes the process of leading and directing all or part of an organization, often a business,
through the deployment and manipulation of resources (human, financial, material, intellectual or
intangible).
In a civilized society it is not possible to achieve a goal alone. One has to depend on the co-
operation of other resources to accomplish these goals. Whether it is a military organization, social
organization or a business organization it is essential that there be management –the task of creating
the internal environment for organized effort to accomplish group goals. In coordinating group activity
manager plans, organizes, staffs, leads and control the resources. Thus, management in all business
and human organization activity is simply the act of getting people together to accomplish desired
goals. Management comprises planning, organizing, staffing, leading and controlling an organization
(a group of one or more people or entities) or an effort for the purpose of accomplishing a goal.
Management also includes planning, organizing, deploying and controlling various resources
or the group of resources to accomplish a common goal. These resources can be human resources,
financial resources, technological resources and natural resources. Thus as a discipline, management
comprises the interlocking functions of formulating corporate policy and organizing, planning,
controlling, and directing the firm's resources to achieve the policy’s objectives.
Self-check Question
1. How will you explain the term ‘Management’ in your words?
1
, BBM 105 Unit 1, Lesson 1
In order to thoroughly understand the discipline of management, let us now learn about the
key concepts of management discipline.
1.2 Key Concepts of Management Discipline
Organizations: Group of two or more people working together and co-coordinating their
actions to achieve specific goals.
Resources: Resources are organizational assets and include:
o People,
o Machinery,
o Raw materials,
o Information,
o Talent
o Financial capital.
Goal: A desired future condition that the organization seeks to achieve. For example:
Organizations must provide a good or service desired by its customers.
o David Johnson of Campbell Soup manages his firm to provide quality food products.
o Physicians, nurses and health care administrators seek to provide healing from
sickness.
o McDonald restaurants provide burgers, fries and shakes that people want to buy.
Organizational Performance: Measures how efficiently and effectively managers use
resources to achieve goals.
o Efficiency: Doing things in a right way. It is a measure of how well resources are
used to achieve a goal. Usually, managers must try to minimize the input of resources
to attain the same goal.
o Effectiveness: Doing things in a right manner. It is a measure of the appropriateness
of the goals chosen (are these the right goals?), and the degree to which they are
achieved. Organizations are more effective when managers choose the correct goals
and then achieve them.
Managers: The people responsible for supervising the use of an organization’s resources to
meet its goals.
Self-check Question
2. How will you differentiate between efficiency and effectiveness?
2
, BBM 105 Unit 1, Lesson 1
1.3 Definition of Management
Based on the key concepts of management and the basic functions of management let us
now define the discipline of management as:
The process of setting and achieving organization’s goals efficiently and effectively through
the execution of five basic management functions: planning, organizing, staffing, leading, and
controlling; that utilize human, financial, and material resources.
1.4 Management as a Discipline
Management as a field of study includes management principles, techniques functions and
problems, as these imply a branch of knowledge. It comprises management theory and principles for
tackling management problems. It is taught as a specialized discipline in educational institutions.
Management is a multi-disciplinary aspect drawn from other disciplines like Anthropology,
Psychology, Sociology, etc. This approach, however fails to give the correct nature of management.
Management as a discipline includes:
Theory and principles
Techniques
Functions
1.5 Management as a team
Management as a group of people includes every individual who are working in the
organization. Every individual contributes to achieve the specified objectives of the organization.
When these individuals contribute as a group to achieve the objectives of the organization, this is
called management. Management as a team includes:
Group of managerial personnel;
Top management;
Managers;
Personnel who are looking the affairs of the organization.
1.6 Management as a Process
Management, as a process, includes a series of functions that lead to the achievement of
stated objectives. A manager has to perform various functions to achieve the desired objectives.
Management, as a process, has two features:
Management is a continuous process
The functions of management are inter-dependent and inter-related.
“Management is defined for conceptual, theoretical and analytical purposes as that process
by which managers create, direct, maintain and operate purposive organization through systematic,
coordinate, co-operative human effort.” Dalton E. Mc Farland. As a process, management refers to a
series of inter-related elements or functions. It involves
Planning,
Organizing,
3
LESSON 1 MANAGEMENT AS A DISCIPLINE
We have often use the word Management in all the fields of our life whether it’s management
of a hospital, home or business, whether it’s management of men, money, material or time etc. As a
student of management several questions come into our minds like ‘What is Management?’, ‘Why is
management considered an important discipline?’, and ‘What are we going to learn in management
discipline?’ This chapter will answer these questions by explaining the concept, functions and
characteristics of Management as a discipline.
1.0 Objectives
This lesson attempts to provide the knowledge of:
Meaning of management
Management as a discipline
Management as a team
Management as a process
Characteristics of Management
1.1 Introduction
The verb manage comes from the Italian word maneggiare (to handle — especially a horse),
which in turn derives from the Latin word manus (hand). Leading by the hand implies giving direction
that is stronger than just a passing suggestion yet still fairly gentle in approach. Leading by the hand
also implies that the person doing the leading is first going where the follower is being lead.
The French word mesnagement (later ménagement) means “the art of conducting &
directing”. This influenced the development in meaning of the English word management which
characterizes the process of leading and directing all or part of an organization, often a business,
through the deployment and manipulation of resources (human, financial, material, intellectual or
intangible).
In a civilized society it is not possible to achieve a goal alone. One has to depend on the co-
operation of other resources to accomplish these goals. Whether it is a military organization, social
organization or a business organization it is essential that there be management –the task of creating
the internal environment for organized effort to accomplish group goals. In coordinating group activity
manager plans, organizes, staffs, leads and control the resources. Thus, management in all business
and human organization activity is simply the act of getting people together to accomplish desired
goals. Management comprises planning, organizing, staffing, leading and controlling an organization
(a group of one or more people or entities) or an effort for the purpose of accomplishing a goal.
Management also includes planning, organizing, deploying and controlling various resources
or the group of resources to accomplish a common goal. These resources can be human resources,
financial resources, technological resources and natural resources. Thus as a discipline, management
comprises the interlocking functions of formulating corporate policy and organizing, planning,
controlling, and directing the firm's resources to achieve the policy’s objectives.
Self-check Question
1. How will you explain the term ‘Management’ in your words?
1
, BBM 105 Unit 1, Lesson 1
In order to thoroughly understand the discipline of management, let us now learn about the
key concepts of management discipline.
1.2 Key Concepts of Management Discipline
Organizations: Group of two or more people working together and co-coordinating their
actions to achieve specific goals.
Resources: Resources are organizational assets and include:
o People,
o Machinery,
o Raw materials,
o Information,
o Talent
o Financial capital.
Goal: A desired future condition that the organization seeks to achieve. For example:
Organizations must provide a good or service desired by its customers.
o David Johnson of Campbell Soup manages his firm to provide quality food products.
o Physicians, nurses and health care administrators seek to provide healing from
sickness.
o McDonald restaurants provide burgers, fries and shakes that people want to buy.
Organizational Performance: Measures how efficiently and effectively managers use
resources to achieve goals.
o Efficiency: Doing things in a right way. It is a measure of how well resources are
used to achieve a goal. Usually, managers must try to minimize the input of resources
to attain the same goal.
o Effectiveness: Doing things in a right manner. It is a measure of the appropriateness
of the goals chosen (are these the right goals?), and the degree to which they are
achieved. Organizations are more effective when managers choose the correct goals
and then achieve them.
Managers: The people responsible for supervising the use of an organization’s resources to
meet its goals.
Self-check Question
2. How will you differentiate between efficiency and effectiveness?
2
, BBM 105 Unit 1, Lesson 1
1.3 Definition of Management
Based on the key concepts of management and the basic functions of management let us
now define the discipline of management as:
The process of setting and achieving organization’s goals efficiently and effectively through
the execution of five basic management functions: planning, organizing, staffing, leading, and
controlling; that utilize human, financial, and material resources.
1.4 Management as a Discipline
Management as a field of study includes management principles, techniques functions and
problems, as these imply a branch of knowledge. It comprises management theory and principles for
tackling management problems. It is taught as a specialized discipline in educational institutions.
Management is a multi-disciplinary aspect drawn from other disciplines like Anthropology,
Psychology, Sociology, etc. This approach, however fails to give the correct nature of management.
Management as a discipline includes:
Theory and principles
Techniques
Functions
1.5 Management as a team
Management as a group of people includes every individual who are working in the
organization. Every individual contributes to achieve the specified objectives of the organization.
When these individuals contribute as a group to achieve the objectives of the organization, this is
called management. Management as a team includes:
Group of managerial personnel;
Top management;
Managers;
Personnel who are looking the affairs of the organization.
1.6 Management as a Process
Management, as a process, includes a series of functions that lead to the achievement of
stated objectives. A manager has to perform various functions to achieve the desired objectives.
Management, as a process, has two features:
Management is a continuous process
The functions of management are inter-dependent and inter-related.
“Management is defined for conceptual, theoretical and analytical purposes as that process
by which managers create, direct, maintain and operate purposive organization through systematic,
coordinate, co-operative human effort.” Dalton E. Mc Farland. As a process, management refers to a
series of inter-related elements or functions. It involves
Planning,
Organizing,
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