Professional Documents
Culture Documents
Unit – I:
INTRODUCTION TO MANAGEMENT AND ORGANIZATION
The term ‘Management’ is derived form Latin i.e., Manum agere – means ‘lead by the
hands’ and from Old French literally means that “the art of conducting and directing.”
Management can be defined as a process consisting of all those factions required in
‘getting work done through others’ without confusion, overlap and without wasting
resources.
Professor Theo Haimaun in his popular book is ‘Professional Management Theory and
Practice’ the term management is used in three different senses i.e. Management is as a
Noun, a Discipline and a Process.
Management is as a Noun: - It refers all those persons who manage in an organized group
those are Board of Directors, Managing Directors, Chief Executives, Functional
Managers, and Supervisors etc.
• Management is personalized since the manager has his own approach problems.
Management Science is generally referred as ‘social science’ or ‘inexact science’.
The entire management environment is a laboratory and the whole process is an
experiment backed by experience.
Is Management is an Art, or Science?
• An art implies practical knowledge, how the application knowing by
practice.
Characteristics S Characteristics
A C
Practical knowledge ISystemized body of knowledge
R Personal skill EContinues observation
Regular practice NCause and effect relation
T Creativity and CValidity and predictability
Value additions in practice EUniversal application
Limitations:
• Management does not consist fundamental truths
• Management lacks certainty about results
• Behaviour of human science management cannot predict.
Thus, management is not pure science; it is inexact science or social science.
Most of the eminent management thinkers and practitioners are opinioned that
management is ‘an art as well as science’.
Management is a Profession:
One who have specialized knowledge in a particular filed for instructing, guiding
and advising etc. is known as professional. Hence, management is also called as
professions because
• Body of specialized knowledge and techniques
• Formulated methods of acquiring training and experience
• Cone of conduct – rules and regulation, norms of hones and morality
• Priority of service over economic considerations
Introduction to Organization:
Modern society man called as an organizational society. We are born and brought
up in an organization (family), we receive our education in organizations (Schools and
Colleges) and we buy most of our daily requirements form organizations (Retail stores).
Each one or use belongs to several groups which may called as organizations e.g. family
sports club, business firm, Government, hospitals etc.
What one cannot do two can do together. What one can do two can do it better.
Hence, human beings realized that cooperative activity of living together and working
together was better than isolated individual existence and effort. Such a realization led to
the formation of any organization. Generally organization refers to a social group
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(manmade) involves creating a structure of relationships among them working for the
desired results or certain goals.
What is an organization?
A. “…social units (or human groupings) deliberately constructed an
reconstructed to seek specific goals.” Etzioni, in Scott, 1998
B. “…systems of interdependent activities linking shifting coalitions of
participants; the systems are embedded in – dependent on continuing
exchanges with and constituted by – the environments in which they
operate.” Scott, 1998
The following definitions give more insight into the concept of organization:
• ‘Organization is a system of consciously coordinated activities or forces of
two or more persons’. - Chester Barnard.
• ‘An organization is a structured process in which persons interact for
objectives’.
- Hicks and Gullett.
• ‘An organization is a collection of interacting and interdependent
individuals who work towards common goals whose relationships are determined
according to a certain structure’. - W. J. Duncan
• ‘Organizations are social units (human groupings) deliberately constructed
and reconstructed to seek specific goals’. - Amitai Etizioni
• Organizations are intricate human strategies designed to achieve certain
objectives.’ - Argyris, 1960.
• Organization is the framework of the management process’. -
Brech, 1965.
• ‘Organizations are systems of behaviour crated for better results. So
organization form must be joint function human characteristics and the nature of
the task environment’. - Simon, 1976.
• ‘Organizations are systems of interdependent human beings.’ -Pugh,
1990.
• ‘Organizations facilitate cohesive performance directed towards
achievement of goals. Organizations are more known for their complexity’.
-Stewart, 1994.
• According to James D. Moony ‘organization is the form of every human
association for the attainment of common purpose.’ Thus, an organization
structure is ‘the skeleton or framework of business. The lines of authority that
hold this framework together at the same time communication channels through
which flow the elements of authority and responsibilities.
• According to Koontz O’ Donnel “the establishment of authority
relationships among people, with provision for coordination between them both
vertically and horizontally in the enterprise.”
These above definitions bring out essential features common of all organizations:
o An organization is always composed of people who have their own needs,
goals sentiments and values. It is man made, and people form the backbone of
the organization.
o These are all interacting with one another and deliberately work together
o These interactions can always be ordered or specified by some sort of
structure, according to that organization structure interactions are described
o People interact to achieve some common objectives
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The third school of thought – led by Henry Fayol explains that the terms
“Management and Administration are both one and the same”. Hence, both
are interchangeable. When Fayol’s work was translated, the French word
administration is translated into English as management.
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Basis of
Administration Management
Difference
It is thinking function. It is doing functions, involves
1) Nature of work Formulating polices, plans, and the implementation of plans and
determining the objectives policies.
It takes major decisions and is a It takes the decisions within
2) Scope
wider term than management frame of administrations
3) Level of It is lower level management
It is top management function
authority function
It consists of managerial
It consists of the owners of personnel with specialize
4) Stratus
enterprise knowledge who may be the
employees.
Generally it is used in It is used mainly in business
5) nature of
Government, military and firms which have economic
origination
educational organization motives
Its decisions are influenced by
Its decisions are influenced by
external factors such as political,
6) influence internal factors such as values,
economical, social,
beliefs, opinions etc.
technological etc.
No MANAGEMENT ORGANIZATION
1 It is an executive function concerned It is organic function of putting together
primarily with getting things done. the different part of an enterprise into
working order
2. It consists of planning, organizing, Organization is an important part of the
staffing, direction and controlling. The management.
scope of management wider than
organization
3. Management functions are executed by Organization is the frame work of
bringing into being and organization management
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4. It is like the entire body of human being It is like the nervous system of human
body
5 There are different levels of There are no such levels – it exists at all
management levels of authority.
6. Management uses organization Organization is the mission of the
determined by administration management is achieving the goal
determined by administration.
7. It is carried out through an organization It is the framework or edifice of
structure management.
Functions of Management:
There is no consensus on the list of the management functions but broadly these
functions cab be divided into two categories. They are ‘Managerial’ and ‘Operative’
functions.
Forecasting Reporting
Investigating Budgeting
Other behavioural scientists such as Elton Mayo, Douglas McGregor and Chester
I Barnard considered motivation, leadership, and communication respectively as
indispensable functions of the manager. The above all different viewpoints by different
theorists can be generalized that functions of manager are:
Function
Sub-functions
Planning Forecasting, Decision-making, Strategy formulation, Policymaking,
Programming, Budgeting, Problem solving, Innovation and Research.
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Planning:
The word plan is derived from Latin word ‘Paradox’ means against or opposite action for
uncertain conditions. Planning and a Plan both is similar in usage but the difference is a
‘Plan’ is a commitment to particular course of action where as ‘Planning’ is a activity
consisting of a process. Planning is essential in preset economic, technological, political
social setups etc.
Planning is deciding in advance, what is to be done in future or thinking before
doing. It is the bridge form preset to the nearest future. Planning is the ‘process of
determining the best course of action for a particular period to achieve desired results’.
Planning gives answers for What to do? When to do? Where to do? How to do? By
Whom to do?
According to Koontz O’ Donnel: - The selection among the alternatives for future course
of action for the enterprise as a whole and each department with it.
According to Alfred and Beauty: - Planning is the thinking process, the organized
forecast, the vision based on fact and experience is require for intelligent action.
If organizational activities are not properly planned, it is quiet unlikely that the
given goals would be achieve. The complexity of business environments adds fuel to the
fire. The feature is so uncertain that no plan at times may really come to the rescues of
the manager! To protect the organization from such an uncertainty, the primary function
of planning make vital and it should be more flexible to consider the continuously. The
planning function is performed all through the organization at all levels, and hence, it is
said to be all pervasive (all encompassing).
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Elements of Planning:
Forecasts Estimates or prediction of future based on the past and present data
Objectives These are open-ended attributes denoting to achieve future state or out
come that an organization or an individual. These are set for every
individual and department in the organization.
Policies Specify what can be done or what cannot be done to achieve the given
objectives.
Strategies Refers to the course of action and decisions to follow and how the
resources are being developed to achieve the given objectives.
Programmes Specify what is to be done. Complex of goals, policies, procedures, rules ,
tasks, steps, resources to be employed and others necessary to carry out a
given actions
Procedures Out line how a task is to be carried out.
Schedules Indicate what is to be done at a given point of time
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Budgets The plan statement for a given period of time expressed in quantifiable
details such as sales budget, expenses budget and so on.
Planning Process:
1. Identify uncertain condition and gather information
2. Laying down objectives
3. Developing premises
4. Examining alternative course of actions
5. Evaluating of action pattern
6. Reviewing limitation and selection best course of action
7. Implementation of plan
8. Controlling
Organizing:
Organizing is the process of designing the structure of organizational activities,
authority and responsibility relationship among the members. It consists of the following
activities:
• Determining and defining the activities required to achieve the established
objectives
• Grouping these activities into logical and convenient units
• Assigning the activities and duties to specific positions
• Delegating adequate authority to the concerned persons
• Fixing responsibility for proper performance
• Coordinating horizontal and vertical relationships throughout the structure
Organizing refers the process of identifying and grouping the related activities as a
unit or division and assigning them to a manager with authority to supervise it.
Delegating the authority responsibility through established relationship for the purpose of
enabling people to work most effectively together in accomplishing objectives.
Organizing is an essential function that makes the plans operational be identifying
and classifying necessary activities. Fayol explains organization as a structure of
relationships. It explains superior subordinate relation ships. Organizing is how the task
can be achieved with given resources. Organizing is paves way for formal
communication.
Staffing:
Staffing is the process of determining the work force requirements of the
organization and o filling the various managerial and non-managerial positions with
competent people. It involves fitting the right person to the right job on a sustained basis
and strengthening the human resources of the organization.
and fill up these positions with the right men at right time and in the right number. In
small organization, all these staffing activities are taken care by the manager alone.
However, in large scale organizations have a separate department known as Personnel
that will looks after these functions and a qualified professional manager headed as
Personnel Manager.
Directing:
After filling the positions in the organization with the right kind of people, the
next task is to guide and enable them to achieve the common goals. Directing is a process
of activating the efforts of employees by issuing the orders and instructions to guide and
advise the proper methods of work towards the achievement of organizational objectives.
In the process of directing, the manager has to perform the following sub-factions while
directing the members of his group. These are leading, communicating, guiding and
advising, motivating etc.