Basics of Management

Principles of Management

The objective of this post is explain main topic and highlighting them for preparing for the examination of the Basics of Management.

Meaning of Management

In simple words, management means act of getting people together yo accomplish the desired goal. It doesn’t mean to manage only people. We can manage ourselves and material too. Management is an organization function like sales management, marketing management, and finance management etc.

Management is the process of planning, organizing, leading and controlling, coordinating of the effort of organization members and using resources to achieve organization’s goal.

 

Definitions of Management

According to Harold Koontz,

“Management is the art of getting things done through and with people in formally organised groups.”

Harold Koontz gave this definition of management in his book “The Management Theory Jungle“.

According to Henri Fayol,

“To manage is to forecast and to plan, to organise, to command, to co-ordinate and to control.”

Henri Fayol gave this definition of management in his book “Industrial and General Administration“.

According to Peter Drucker,

“Management is a multi-purpose organ that manages business and manages managers and manages workers and work.”

This definition of management was given by Peter Drucker in his book “The Principles of Management“.

According to Mary Parker Follet,

“Management is the art of getting things done through people.”

 

Concepts of management

Management concepts may be classified into the following categories-

  1. Management as a process
  2. Management as a group of managers
  3. Management as a discipline
  4. Management as an art and science.

Management as a process-Management is a process. It includes the process of planning, controlling, coordinating, motivating, and staffing. Management is the efforts of organizational members to accomplish the organizer’s objectives. This concept is very simple because

i.            It is very simple and very easy to understand
ii.           It indicates functions of management as a process

Management as a discipline- Management is recognized as a discipline or a field of study. It is taught as a specialized branch of knowledge in educational institutions.

Management as an Art and Science- The art is in knowing how to accomplish the desired results. This implies that there exists a body of knowledge which management uses to accomplish the desired results in organization. Its principles, generalizations and concepts are formulated on the basis of observation, research, analysis and experimentation, as is the case with the principles of other sciences.

Management as a group of managers- The term management is frequently used to denote a Refers to managerial group of managerial personnel. When one says that personnel management of such and such company is efficient, he refers to the group of persons who are looking after the working of the enterprise. These persons individually are called managers.

 

Functions of Management

The following activities are covered under the scope of management:

(i) Planning = Determine objectives and choose methods to achieve them.

(ii) Organization = Establish a structure of authority for all work.

(iii)Directing = Make decisions, issue orders.

(iv) Staffing = Recruit, hire and train workers.

(v) Coordinating = Interrelate all sectors of the organization.

(vi) Reporting = Report to the top management.

(vii) Budgeting = An estimate of future needs.

 

Scope of Management

The scope of management is wide enough to cover all organized activities and processses. The scope of management is also known as branches of management-

1. Production Management

2. Marketing Management

3. Material Management

4. Financial Management.

5. Purchase Management

6. Personnel Management

1. Production Management:

Production means creation of utilities. This creation of utilities takes place when raw materials are converted into finished products. Production management, then, is that branch of management ‘which by scientific planning and regulation sets into motion that part of enterprise to which has been entrusted the task of actual translation of raw material into finished product.’

2. Marketing Management:

Marketing is a sum total of physical activities which are involved in the transfer of goods and services and which provide for their physical distribution. Marketing management refers to the planning, organizing, directing and controlling the activities of the persons working in the market division of a business enterprise with the aim of achieving the organization objectives.

3. Financial Management:

Finance is viewed as one of the most important factors in every enterprise. Financial management is concerned with the managerial activities pertaining to the procurement and utilization of funds or finance for business purposes.

The main functions of financial management include:

(i) Estimation of capital requirements;

(ii) Ensuring a fair return to investors;

(iii) Determining the suitable sources of funds;

(iv) Laying down the optimum and suitable capital

4. Personnel Management:

Personnel Management is that phase of management which deals with the effective control and use of manpower. Effective management of human resources is one of the most crucial factors associated with the success of an enterprise. Personnel management is concerned with managerial and operative functions.

 

Nature of Management

Management is having the following features or characteristics which highlight  the nature of the management:

(a) Economic Resources- Management is an important economic resource together with land, labour and capital for the success of an organisation.

(b) Goal Oriented- Management is an goal oriented activity. The organizational goals must be well defined and properly understood by the managers and coordinats of the efforts of workers to achieve that goals.

(c) Unseen force- Management has been called unseen force as it is the result oriented. People can’t observe it during observation.

(d) Universal application- Management is universal. The principals and techniques of management are equally applicable in all the fields.

 

Importance of Management

Management is very important in every organisation and this can be cleared by following points-

  • The objective or goal of an organisation is determined by the management.
  • Management is an important forces to complete objectives.
  • Management helps in increasing the efficiency of productivity.
  • Management provides leadership and guidance to the workers.
  • Management takes all the decisions in an enterprise.

 

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