Unit-1
Introduction to Management
1.0 Objectives of the Unit.
1.1 Introduction to Management.
1.2 Presentation of Subject Matter.
1.2.1 Meaning and Definitions of Management.
1.2.2 Characteristics and Significance.
1.2.3 Functions of Management.
1.2.4 Administration and Management.
1.2.5 Management as a Science or an Art.
1.2.6 Professional Management : The Concept.
1.2.7 Characteristics and Need of Professional Management.
1.3 Summary.
1.4 Terms to remember.
1.5 Check your progress.
1.6 Answers to check your progress.
1.7 Exercise.
1.8 Books for further reading.
1
,1.0 Objectives of the unit
After studying this unit, you will be able to:
Understand the meaning and definitions of Management.
Know the characteristics, significance and functions of Management.
Find relationship between Administration and Management.
Familiar with Management as a Science or an Art.
Acquaint with Professional Management.
Explain the characteristics and need of Professional Management.
1.1 Introduction to Management
In any business organization one of the most important activities is
management. It has its place not only in business organizations but also in charitable
trusts, religious bodies, politics, military, financial institutions, hospitals, hostels,
social and educational institutions etc. In fact, it has its place in any organized
activity. It is a group activity and not a one man show. Every organization has
objectives/goals of its own. These goals can be achieved with the group efforts of
several employees. The work of a number of persons is properly co-ordinated to
achieve the objectives through the management process. So, management can be
considered as the proper utilization of people and other factors of production in an
organization to attain the predetermined goals and objectives.
Management is a universal process. In the present era of increasing global
competition, rapid changes in technology, changes in business practices as well as
increasing social responsibility of business concerns, importance of management has
increased. Management plays an important role in the welfare of any organization,
people and the destiny of the country. This has been rightly stated by Marshall E.
Demock, “The management is not a matter of pressing a button, pulling a lever,
issuing orders, scanning profit and loss statements, promulgating rules and
regulation. Rather it is the process to determine what shall happen to the personalities
and happiness of entire people, the power to shape the destiny of a nation and all the
nations which make up the world.”
2
,1.2 Presentation of Subject Matter
Management is an essential activity of every organization. It is considered to be
the brain of business, which plans, co-ordinates resources of production, gets the
things done through other people and accomplishes objectives and predetermined
goals.
In the present era of globalization and changes in economic and business world
the real success of management lies in applying the professional management
techniques in all activities of management. Hence, success in management hinges on
thorough understanding of principles and practices of business management.
1.2.1 Meaning and Definitions of Management
Meaning of Management : No organization can run successfully unless there is
management. Harold Knoots says, “Management is the art of getting things done
through and with people.” It indicates that management is the essential part of any
group activity. It is important activity to control/manage men, machines, material and
money in direction towards predetermined objectives. Management is concerned
with planning, policy formulation and co-ordinating functions. It also includes
quality control of product. According to E.F.L. Brech “Management is the process of
controlling the whole productive machinery.”
So, management is an important factor in the business. It is considered as
important as brain in human body. Without brain human body is only collection of
bones and flesh which is of no use; likewise if management is not in business it is
only collection of money, machines, material and men which is not useful in
achieving the objectives.
From the above information we can understand the meaning of management that
it is the art of getting things done by a group of people with the effective utilization
of available resources.
The management is thus the dynamic life-giving element in each and every
organization. Without it the resources of production will remain resources only and
never change in the production.
3
, * Definitions of Management
The term ‘Management’ can be interpreted differently in different contexts. To
know a better and detail meaning of management, let us refer various definitions of
management contributed by different scholars.
A) According to the Theo Haimann the term management is used in three different
senses, viz. i) Management as a Noun. ii) Management as a Discipline and
iii) Management as a Process or group of functions.
i) Management as a Noun– In this sense the term ‘Management’ refers to the
‘group of persons’ managing the affairs of the organization. (i.e.- The governing
body of any Institution, Board of Directors of a company, Executive council or
Managerial council of an Institution etc.)
ii) Management as a Discipline– In this sense the term ‘Management’ is
described as a subject or faculty, which can be taught and learnt. Various
universities, commerce colleges, Business schools and Management Institution offer
the diplomas and degrees in the management discipline, e.g. BBA, BCA, B.Com.,
M.Com., MBA, C.A, C.S, DBM, DMM, DIT etc.
iii) Management as a Process / functions– In this sense the term ‘Management’
relates to the process of managing or managerial functions like planning, organizing,
staffing, directing, co-ordinating, communicating, reporting, budgeting and
controlling.
B) Functional Concept of Management – The management process/functions, has
been defined by different management experts in different ways, They are:
1) ‘Management is what management does’.
According to many management experts, management is the sum of all those
functions concerned with the working of an enterprise.
* Dr. James Lundy. * Stanley vance.
* Ordway Tead. * Henry Fayol.
* George Terry. * Mcfarland.
* Peter F. Drucker.
4
Introduction to Management
1.0 Objectives of the Unit.
1.1 Introduction to Management.
1.2 Presentation of Subject Matter.
1.2.1 Meaning and Definitions of Management.
1.2.2 Characteristics and Significance.
1.2.3 Functions of Management.
1.2.4 Administration and Management.
1.2.5 Management as a Science or an Art.
1.2.6 Professional Management : The Concept.
1.2.7 Characteristics and Need of Professional Management.
1.3 Summary.
1.4 Terms to remember.
1.5 Check your progress.
1.6 Answers to check your progress.
1.7 Exercise.
1.8 Books for further reading.
1
,1.0 Objectives of the unit
After studying this unit, you will be able to:
Understand the meaning and definitions of Management.
Know the characteristics, significance and functions of Management.
Find relationship between Administration and Management.
Familiar with Management as a Science or an Art.
Acquaint with Professional Management.
Explain the characteristics and need of Professional Management.
1.1 Introduction to Management
In any business organization one of the most important activities is
management. It has its place not only in business organizations but also in charitable
trusts, religious bodies, politics, military, financial institutions, hospitals, hostels,
social and educational institutions etc. In fact, it has its place in any organized
activity. It is a group activity and not a one man show. Every organization has
objectives/goals of its own. These goals can be achieved with the group efforts of
several employees. The work of a number of persons is properly co-ordinated to
achieve the objectives through the management process. So, management can be
considered as the proper utilization of people and other factors of production in an
organization to attain the predetermined goals and objectives.
Management is a universal process. In the present era of increasing global
competition, rapid changes in technology, changes in business practices as well as
increasing social responsibility of business concerns, importance of management has
increased. Management plays an important role in the welfare of any organization,
people and the destiny of the country. This has been rightly stated by Marshall E.
Demock, “The management is not a matter of pressing a button, pulling a lever,
issuing orders, scanning profit and loss statements, promulgating rules and
regulation. Rather it is the process to determine what shall happen to the personalities
and happiness of entire people, the power to shape the destiny of a nation and all the
nations which make up the world.”
2
,1.2 Presentation of Subject Matter
Management is an essential activity of every organization. It is considered to be
the brain of business, which plans, co-ordinates resources of production, gets the
things done through other people and accomplishes objectives and predetermined
goals.
In the present era of globalization and changes in economic and business world
the real success of management lies in applying the professional management
techniques in all activities of management. Hence, success in management hinges on
thorough understanding of principles and practices of business management.
1.2.1 Meaning and Definitions of Management
Meaning of Management : No organization can run successfully unless there is
management. Harold Knoots says, “Management is the art of getting things done
through and with people.” It indicates that management is the essential part of any
group activity. It is important activity to control/manage men, machines, material and
money in direction towards predetermined objectives. Management is concerned
with planning, policy formulation and co-ordinating functions. It also includes
quality control of product. According to E.F.L. Brech “Management is the process of
controlling the whole productive machinery.”
So, management is an important factor in the business. It is considered as
important as brain in human body. Without brain human body is only collection of
bones and flesh which is of no use; likewise if management is not in business it is
only collection of money, machines, material and men which is not useful in
achieving the objectives.
From the above information we can understand the meaning of management that
it is the art of getting things done by a group of people with the effective utilization
of available resources.
The management is thus the dynamic life-giving element in each and every
organization. Without it the resources of production will remain resources only and
never change in the production.
3
, * Definitions of Management
The term ‘Management’ can be interpreted differently in different contexts. To
know a better and detail meaning of management, let us refer various definitions of
management contributed by different scholars.
A) According to the Theo Haimann the term management is used in three different
senses, viz. i) Management as a Noun. ii) Management as a Discipline and
iii) Management as a Process or group of functions.
i) Management as a Noun– In this sense the term ‘Management’ refers to the
‘group of persons’ managing the affairs of the organization. (i.e.- The governing
body of any Institution, Board of Directors of a company, Executive council or
Managerial council of an Institution etc.)
ii) Management as a Discipline– In this sense the term ‘Management’ is
described as a subject or faculty, which can be taught and learnt. Various
universities, commerce colleges, Business schools and Management Institution offer
the diplomas and degrees in the management discipline, e.g. BBA, BCA, B.Com.,
M.Com., MBA, C.A, C.S, DBM, DMM, DIT etc.
iii) Management as a Process / functions– In this sense the term ‘Management’
relates to the process of managing or managerial functions like planning, organizing,
staffing, directing, co-ordinating, communicating, reporting, budgeting and
controlling.
B) Functional Concept of Management – The management process/functions, has
been defined by different management experts in different ways, They are:
1) ‘Management is what management does’.
According to many management experts, management is the sum of all those
functions concerned with the working of an enterprise.
* Dr. James Lundy. * Stanley vance.
* Ordway Tead. * Henry Fayol.
* George Terry. * Mcfarland.
* Peter F. Drucker.
4
