Management

It is an art of getting work done through people,

with satisfaction for employees and public.
For getting the work done through efforts of
other people ,it is necessary to guide, direct,
coordinate & control human efforts towards
fulfillment of objectives.
It is an art as well as science.
As management techniques are
measurable
and having factual
determination management is science .
As management means coordinating and
getting work done through others so it is an art.

It is an executive function which directs human

efforts towards common goal.
Characteristic of management is to integrate
and apply knowledge & analytical approach.
Management does not frame policies ,it only
implement/executes policies laid by
administration.
Management uses organization for achieving
goals of enterprise.
Planning ,organizing ,staffing, motivating,
directing, coordination and control are the
functions of management.

Characteristics of management

It is goal oriented. It achieves the

organizational goals through
coordination of efforts of personnel.
It works as catalyst to produce goods
using labor, materials and capital.
It is distinct process, as it performs
function like planning ,organizing,
motivating, directing, controlling etc..
It represents system authority.

It is unifying force .it integrates human &

other resources to achieve objectives.
It is multidisciplinary as it takes help of
engineering, psychology, sociology,
operational research etc
It is universal as the principles and
techniques of management are equally
applicable to business, education ,army
etc.

Importance of management

Management guides & controls activities of

manpower.
It coordinates activities of different dept. in
enterprise.
It provides new ideas & vision to organization.
It tackles business problems and provides
best way of doing things.
It provides stability to enterprise by changing
& modifying resources.
It helps in personality development &
increasing efficiency and productivity.

Functions of management
1)Forecasting
It

is necessary preliminary to
planning.
It estimates the future work
It begins with future forecast and is
followed by production forecast.

2)planning It is rational , economic, systematic way of

making decisions today which will affect future.
It is very basic activity of management. This
function also includes what must done to
encourage necessary levels of change &
innovation.
It also provides basic for other activities like
organizing , leading , controlling etc..
Based on function there are two types of planning
a) Strategic planning-which addresses long
range goals.
b)Operational planning- planning-which

3)organizing It is process by which structure &

allocation of jobs is determined.
It involves determining activities required
to achieve the established company
objectives ,grouping these activities in
logical basis for handling by subordinates ,
managers etc
Organizing means organizing people , jobs
, time etcand establishing framework in
which responsibilities are defined.

4) Staffing
It is the process by which managers
select, train, promote, & retire their
subordinates.
It involves the developing & placing
qualified people in various jobs in
organization.
It is continuous process .the aim is to
have appropriate persons to move into
vacant positions.

5)Directing It is process by which actual performance of

subordinates is guided towards common goal.
It involves motivating , guiding and supervising
subordinates towards company goals.
It involves function like
a)

b)

Leadership-it is quality of behavior of person where by they

inspire confidence & trust in their subordinates . get max
cooperation from them.
Communication-

-is process by which ideas are transmitted ,

received ,and understood by others.
-it may be verbal, written, instructions etc..
-an ineffective communication leads to confusion ,
misunderstanding etc
c)
d)

Motivation- inspiring subordinates to do work.

Supervision-it is necessary to ensure whether work is going
on as per plan or not.

6)coordinating it means achieving harmony of individual

efforts towards goal.
It involves making plans that coordinate
the activities of subordinates ,regulate
their activities on job.

7)controlling

Is the process that measures current

performance and guides it towards same goal.
Checks and examinations are required on
periodic basis to ensure that the things are
proceeding as per plans
It is required to ensure that orders are not
misunderstood ,rules are not violated etc..
It is process which measures progress of
operations,
It sets standards ,measures job performance ,
takes corrective actions

Levels of management
1)top management It includes Board of directors ,Managing
directors, Chief executives ,General manager ,
Owners
Functions
a) setting basic goals and objectives
b) expanding and contracting activities
c) Establishing policies
d)Monitoring performance
e)Shouldering financing responsibilities.

2)Upper middle management

It includes manager, production executives,

finance executives, R & D executives,
accounts executives.
Functions are
a)Establishment of organization
b)Selection of staff for lower level of
management
c)Installing different departments
d)Designing operating policies
e)Assigning duties to their subordinates.

3)Middle management

It includes superintendents , branch

manager etc..
Functions area)To cooperate to run organization
smoothly
b)To achieve coordination between
different parts of organization
c)To conduct training for employee
development
d)To built efficient company team spirit

4) Lower management

It includes foremen, supervisor, inspector etc

Functions are
a)Direct supervision of workers and their work.
b)Developing and improving work methods
c)Inspection function
d)Imparting instructions to worker
e)To act as link between top management and
operating force
f)To communicate feelings of worker to top
management.

5)Operating force
It includes worker.
Functions are
a)To work on machineries or manually
b)To work independently or under the
guidance of supervisor.

FREDRICK WINSLOW TAYLOR

[1856-1915]
In 1871 he started his career as
apprentice machinist and turner at
Cramp Shipyard in Philadelphia.
In 1874 he joined the Midvale Steel
Works as a machine shop-worker
He got promoted to Chief Engineer at
28.
He also obtained his M.E from Stevens
Institute.
He joined the Bethlehem Steel Co.
from 1898 to 1901.

Contribution of F. W. Taylor

During his carrier as machinist or

Foreman ,he saw much disorder & wastage
of human & other resources at work places.
The workers did not produce more than 1/3
rd of days work. The workmen did not want
management to know how much work they
could do.
Moreover , the management did not had
any idea about capacity of workers and
didnt want to pay more to workers .

He tried to work some system whereby the

interest of management and workers might be
same.
Contribution of taylorHe breaking the task into elements.
He kept himself involved in exploring the causes
of inefficiency and labour difficulties in industry.
He stated principles of investigating work on
scientific basis , selecting the best workers for a
task & train him to acquire desired skill,
developing cooperation bet management and
workers.

Meanwhile he undertook studies on fatigue incurred

by workers & time required to complete that task.&
also he suggested that to increase production rate,
the work of each person should be planned.
He developed functional organization in which atleast
one foreman was made incharge for each function.
He devoted his maximum attention towards time
studies and establishing work standards.
He introduced and operated various costing systems.
He also suggested wage incentive scheme.

HENRY FAYOL
[1841-1925]

Henri fayol, the father of

management was born in 1841
in France

Graduated as Mining Engineer

in 1860 from the National School
of Mining
In 1860 he joined the mining &
metallurgical field as Engineer.
He was promoted to Manager &
later as General Manager.
He concentrated on principles of

In contrast to taylors emphasis on supervision in

production areas, fayols work was concentrated with
higher levels of organization.
He conclude that all the work done in business
enterprise can be divided into six groups
1)technical activities(production ,manufacture)
2)commercial activities(buying, selling)
3)financial activities
4)security activities(protection of property and persons)
5)accounting activities(stock taking, balance sheet ,
costs)
6)managerial activities(planning , organising ,
command, coordination and control)

He believed that to any business was to operate

successfully ,six functions has to be performed.
The principles laid down by him wereDivision of work , discipline, unity of command,
units of direction, order , stability, initiative etc
The functions of manager by him were1) forecasting
2)organizing
3)command
4)control
5)coordination

Elton mayo

Born in australia ,elton mayo was father of

human relations approach.
He led a team which conducted a study to
evaluate the attitudes and psychological
reactions of workers on the job situation.
He saw that emotional factors are very imp in
production efficiency
He concluded that work arrangements in
addition to meeting the objective requirement of
production must satisfy the employees
subjective requirement of social satisfaction.

He was of opinion that the cause of

increase in productivity of workers is not
only depends on changing the factors
like working hours or work pauses , but
the combination of these & several other
factors such as
1)less restrictive methods of supervision,
2)giving autonomy to workers
3)cooperation bet workers and
management
4)participation in decision making etc..

Administration

Any enterprise controlled through administration

and management.
It decides goals and policies of enterprise.
It is mainly concerned with decision making,
policy making, & making necessary adjustments.
The 3 main elements of administration are
1)formulation of goals
2)choice of ways
3)direction of people in some group purpose.
it does not need technical ability.

It coordinates finance, production &

distribution.
It frames organizational structure .
It maintain relationship bet top
management and worker.
An administrator
A) organizes subordinators work
B) delegates responsibilities and
authority
C)measures , controls, activities.

Difference bet administration &

management
administration

management

It is concerned with policy making

It is concerned with policy

implementation.

It gives proper direction so it is

directing function

It properly executes .so it is an

executive function.

Controlling management and

organization by making policies.

It is servant of administration

It is concerned with planning and

organising

Motivation & controlling functions are

related to management.

It is related with top level only.

There are five levels of management

It does not require technical ability.

It is concerned with technical ability

Organization structure

No organization can work without people.

It is the systematic arrangement of people
working for the organization in order to
achieve predecided goals.
It is related with establishment of positions
and relation bet positions.
It provides appropriate structure framework
for authority.
it is having two dimensions i.e. horizontal
and vertical.

The horizontal dimensions provides basic

departmentation . Departmentation is
process of division of enterprise into
different parts.
The vertical aspects are of structure
relate to creation of hierarchy of
superiors and sub coordinates.

Need
It is designed by management to achieve
specific goals.
Necessary for establishment of authority.
It helps in achieving desired level of
coordination.
It promotes division of work.
It facilitates flow of info. And decision making
from one level to another.

Principles of organization
A principle is a general rule to be applied
for any particular condition exit.
Considering different needs of different
organizations many principles are
identified as follows:
1) Consideration of objective:
since the objectives of enterprise have
an imp bearing ,only those objectives
should be taken up for which there is
real need in organization.

2)Relationship of basic components of

organization

objectives as decided above

determine the work to be performed and
type of work says selection
of personnel
personnel
decides
& physical facilities.
objectiv
es

determin
e

Type of
work
Physical
facilities

3)Responsibility and authority

Responsibility represents obligation of
subordinates to his boss to do a work
given to him.
Authority means right and power to act.

since the top man in organization cant

do each & everything himself alone , a
chain of responsibility and authority is
provided from top executive to worker .

4)Span of control
It refers to number of subordinates that
report to executive. It indicates the no.
of people that manager can control.
proper span of control should be allowed
to manager. If the span is small, the
manager may tend to over supervise.
When span is large, the manager may
not be able to supervise subordinates
efficiently.

5)Dividing and grouping work Proper division of work in organization is

necessary.
It provides greater sense of
responsibility.
Every person should be assigned the
work according to efficiency.
Grouping is important for coordination.

6)Communication
It is linking process by which parts of
organization are tied together.
Communication means transmitting
information and instructions within
organization & to customer.
Since the employees in organization
possesses different levels of education &
ability ,so ineffective communication will
causes confusion.

7)Line and staff functions

All activities of an organizations can be
classified into 2 categoriesa)Primary objectives/line functions-are those
which contribute directly to objectives of
organization.
Eg. Line functions are production sale etc
B)Supporting activities/staff function-that are
auxiliary to line function.
Eg. accounting, administration ,maintanance

8)Balance ,stability & flexibility

a)balance -in the absence of balance ,
the goals of organization cant be
achieved economically & effectively.
b)stability-it refers to capacity to
withstand the losses without serious loss
of organization in performing work.
c)flexibility-it specifies the capacity to
adjust work assignments .

Types of organization
A) Line, military or scalar organization
It is simplest form of organization structure.
It was also called military organisation
because it resembled to olden military
organization.
It is based on authority and responsibility &
not on operation /activities.
The authority flows directly from manager to
superintendent to foreman & from them to
worker.

manag
er

SUPTD

F/M

SUPTD

F/M

F/M

WORKERS

F/M

Advantages1. It is simple & easy to understand.

2. It is flexible , easy to expand and contract.
3. It makes clear division of authority.
4. It is strong in discipline as it fixes
responsibility on an individual.
. Disadvantages1. It neglects specialist
2. It overloads a few key executives.
3. Due to lack of specialization perhaps there
is more wastage of material.

B)Functional organization F W taylor suggested functional organization

because it is difficult to find all rounder
persons qualified to work.
It is also line type organization with difference
that instead of one foreman there are 8
functional foreman ;four of them located on
shop floor and remaining four in office.
Each functional foreman who is specialist in
an activity is incharge of one function.

1.

2.

3.
4.
5.

6.
7.

8.

Route clerk incharge of issuing work orders and

routing jobs.
Instruction clerk provides instructions related to
jobs to worker.
Time & cost clerk keeps records pertaining to time.
Disciplinarian keeps personal record of worker.
Gang boss has charge of preparation of all work up
to time.
Speed boss ensures proper speed of production.
Repair boss is responsible for repair and
maintenance work.
Inspector which is responsible of quality of product.

SUPTD

office
Rou
te
cler
k

Instru
ction
clerk

Time
&
cost
clerk

shop
disci
plina
rian

Repa
ir
boss

workers

Gan
g
boss

insp
ecto
r

Spee
d
boss

Advantages
1. Since foreman is responsible for one function ,he
can perform his duties in better manner.
2. It makes use of specialist
3. Expert guidance reduces the number of accidents
and wastages of materials, man & m/c hours.
4. Quality of work is improved.
. Disadvantages1. Workers always remain confused about authority
and activities of each foreman.
2. It makes industrial relationships more complex.
3. Workers not getting opportunity to make use of
initiative.

c)Line and staff organization Line organization gradually developed as line & staff
organization.
As industry grew in size , line executives could not
perform properly all other functions such as R&D
,planning, distribution , public relations etc.. This
necessitated the employing of special executives to
assist line executives & they were known as staff .
The line executives retain supervisory authority and
control over the work of their subordinates whereas
staff executives relive line executives of certain
specialized work & advice them

Secretary

Legal
advisor
Sales engg

BOD

Accounts
officer

GM

Purchase
engg
Industrial
engg
Stores
officer

Personal
manager
WM

Design
Engg.

SUPTD-B

SUPTD-A

F/M

F/M

F/m
Workers

F/M

1.

2.
3.
4.

The final decision whether to accept or not of

staff executive remain in hands of line executive.
Line executives marked vertically whereas staff
executives marked horizontally.
Advantagesthere is no confusion as exists in functional
oraganisation.
Quality of product is improved.
Less wastage of man material..
It possess all advantages of line & line and staff
organization

Disadvantages1. Product cost will increase due to high

salaries of staff executives.
2. Line executives if they start depending
too much on staff executives may lose
their initiatives.