Chapter 1
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Introduction to Management
Principles of Management Author: Pravin Durai
After reading this chapter, you
should be able to
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Understand the meaning and characteristics of
management
Enumerate the objectives, levels and functions of
management
Discuss the roles of management
Differentiate between management and
administration
Debate whether management is science, art or
profession
List the challenges facing management
Principles of Management Author: Pravin Durai
What is management?
Management is all about managing people effectively and
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dealing with people-centered problems professionally.
Managers need to lead, inspire, direct and decide on
matters relating to employees in a way that facilitates the
accomplishment of short- and long-term goals of the
organization.
Principles of Management Author: Pravin Durai
Definition of Management
Management is a process concerned with effective
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utilization of human and physical resources for attaining
organizational and individual goals through a facilitating
environment
Principles of Management Author: Pravin Durai
Characteristics of management
Management is a process,
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It is a goal-directed activity,
It is a decision-making activity,
It involves effective integration and utilization,
It is practiced at different levels of an organization,
It is universal in character and
It is a group-based activity.
Principles of Management Author: Pravin Durai
Objectives of Management
To accomplish the predetermined performance and
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productivity goals of the firm
To develop an environment which facilitates minimum
use of physical and human resources to achieve
maximum output
To build up a mutually beneficial relationship between
employers and employees
To ensure stability and growth to the operations of the
organization
To work continuously toward the betterment of the
society by satisfying organization’s social responsibilities
in an efficient and fair manner
Principles of Management Author: Pravin Durai
Levels of Management
Top Management- Managers who operate from the
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highest level of an organization are usually called top
managers. These managers are generally few in numbers
but vested with enormous powers
Middle Management- Managers belonging to this
category are located in between the top management and
front-line management. They get goals, orders and
directions from the top-level management and implement
them through front-line managers
Frontline Management- These managers are positioned
at the bottom of the managerial hierarchy. They act as
the liaison between the management and the workers.
Principles of Management Author: Pravin Durai
Functional classification of
management
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Production management
Marketing management
Financial management
Human resource management
Principles of Management Author: Pravin Durai
Managerial process or functions
Planning: It forms the basis and provides direction for other
managerial functions Planning helps an organization in
formulating clear cut objectives and determining the best course
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of action for achieving them
Organizing: It involves arrangement and allocation of necessary
physical and human resources for achieving the goals of the firm
Staffing: This function involves the selection of right person at
the right time for the right position at the right cost. Managers
may do staffing function jointly with the HR managers or alone in
the absence of an exclusive HR department.
Leading(Directing): Leading aims at positively influencing the
behaviour of subordinates. It involves activities like directing,
communicating with and motivating the employees.
Controlling: This function involves the verification of the
efficiency of the individuals and groups in accomplishing the
organizational plans and goals by means of follow up measures.
Principles of Management Author: Pravin Durai
Managerial roles
i. Interpersonal roles- examples: Figure head, leader and
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liaison roles
ii. Informational roles- examples: monitor, disseminator
and spokesperson,
iii. Decisional roles. Examples: Entrepreneur, Disturbance
handler, Resource allocator, Negotiator
Principles of Management Author: Pravin Durai
Managerial Skill for Success
Human skills
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Conceptual skills
Technical skill
Political skills
Diagnostic skills
Digital skills
Principles of Management Author: Pravin Durai
Administration vs. Management
Administration Management
Determinative function Executive function
Scope is wider Scope is limited
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Objectives and policies
Fulfillment of those objectives and
formulations are the top
plans is the priority of the management
priorities
It is a top level activity Middle and supervisory level activity
Planning and organizing are Controlling and employee motivation
the essential functions of are the important functions of
administration management
Conceptual skills Technical skills
It consists of people who act It Consists of people who are
on behalf of the capital
professionals in their area of operations
holders of the enterprises
and employed by the organization
Influenced by external
factors Influenced by internal factor
Associated with non-business Associated with business enterprises
enterprises
Principles of Management Author: Pravin Durai
CRITERIA Of A Profession
An organized body of knowledge
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Formal Education and Training
Existence of association
Existence of an ethical code
Charging of fees
Principles of Management Author: Pravin Durai
Challenges Facing Management
Cultural diversity in work force
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Technological developments
Interdependent nature of work
Ethical dilemma in decisions
Global perspectives
Cross-Functional Excellence
Principles of Management Author: Pravin Durai
Strategic Management
Strategic management is the systematic process of
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determining goals to be accomplished in the future. It may
involve studying the internal and external environment of
an organization
Steps in the Strategic Management
Process
Determination of Vision and Mission
Analysing the Environment
Strategy Formulation
Strategy Implementation
Performance Evaluation
Principles of Management Author: Pravin Durai
