Principles of Management

1
 Chapter 1:
Nature of Management

2
According to Peter F. Drucker,
the emergence of Management
as an essential, a distinct and
leading social institution is a
pivotal event in social history
3
Management is an art
It is in the sense of possessing
managing skill by an individual

4
Management is science too
It involves developing certain
principles or laws applicable in a
place where a group of
activities are coordinated
5
 According to Ralph C. Davis,
Management is the function of
executive leadership
everywhere

6
Application of Principles of
Management into action in
your life as well as on your
workplace every day and
correlating these principles with
your personal life situations is
called internalization
7
Learn this subject,
put it into your system,
convert the concept into experience,
convert abstract into concrete
by systematic approach:
It will improve your thinking
process
8
You should ask yourself:
“Am I managing my life daily?”,
“Have I added values to myself?”,
“Have I set up any goals for me to
achieve?”
This thinking process will take you
a long way
9
 Management involves a set of
processes that come into play
whenever we want to achieve
something:
that is, our preset goal
by thinking process and
utilizing the inputs such as man,
machine, materials, money etc. in a
coordinated fashion 10
Our life is full of activities through
which we constantly try to achieve
something: e.g.
• to get admission to school for our
children,
• to get into a better job,
• to find our life partner etc.
11
 While doing this, due to lack of
systematic approach, many times,
we are in a chaotic situation

12
 The advantages of learning
Principles of Management are:
• Our life gets focus and direction
• We know better how to plan and
organize our life

13
 The advantages of learning
Principles of Management are:
• We get clarity of thinking and
action
• Our stresses get reduced
tremendously
14
The advantages of learning
Principles of Management are:
• Our life becomes purposeful and
joyous
• We start assuming responsibility
and accountability for whatever
we do
15
 The advantages of learning
Principles of Management are:
• Our behavior towards others and
the world improves drastically
• We are not scared of taking
decisions

16
 The advantages of learning
Principles of Management are:
• By applying what we learn into
skills and actions we grow in our
career
• We know methods of correcting
our mistakes
17
The advantages of learning
Principles of Management are:
• By knowing,
• internalizing,
• becoming a role model
we take our people to achieve
our goals 18
 Management is the art of
getting things done
by a group of people
with the effective utilization
of available resources
19
 Management is the group of
activities, which
• drafts plans,
• prepares policies, and
• arranges men, money, machines
and materials required to
achieve the objectives
20
Management is the activity of
man who struggles for better
living in the complex and
competitive world

21
 Management is an organized
effort of people whose purpose
is to achieve the
Objectives and Goals of an
organization

22
F.W.Taylor

23
 According to F.W.Taylor,
Management is the art of
knowing what you want to do,
and then seeing that it is done
in the best and the cheapest
way
24
Henry Fayol

25
 According to Henry Fayol, to
manage is to forecast and to
plan, to organize, to command,
to coordinate and to control

26
 Management is:
Optimum utilization of
Available Resources
In order to attain
certain pre-set
GOALS/Objectives
27
 Optimum utilization means:
best possible utilization under
given circumstances

28
 Management as a “Process”
McFarland defines management as
“A process by which managers create,
direct, maintain and operate purposive
organization through:
systematic, coordinated, cooperative
human efforts”
29
The term Process emphasizes
the dynamic
or ongoing nature of
management, an activity over
varying span of time.
30
The dynamic nature implies
that change is reality of
organizational life

31
 Businesses fail and become
bankrupt because managers fail
in their attempt to cope with
the change

32
Management as “coordination”
Donally, Gibson and Ivancevich
also support the view of
management as a Process
but their stress in more on
co-ordination.
33
 Management as a “Function”
Dunn, Stephens and Kelly say that:
“Management is a role which includes
a set of duties, responsibilities, and
relationships-involved in work
organizations”.
These duties and responsibilities
constitute the function a manager
performs 34
Management is getting things
done through other people

Efficient management is the

lifeboat of any developed
business
35
 There are five M’s in the
business, which can be called as
the resources of the business:
1. MAN:
Availability of qualified, trained, skilled,
experienced and competent people is the
most important factor in any management,
anywhere
36
 There are five M’s in the
business, which can be called as
the resources of the business:
2. MACHINES
Availability of capable machines and
equipment is a must to do the things in the
best and the cheapest way

37
 There are five M’s in the
business, which can be called as
the resources of the business:
3. MATERIALS:
Quality, quantity, availability, cost/market
price and transportation of raw materials,
semi-finished goods and finished goods is a
clearly a very vital factor in success of
management. 38
 There are five M’s in the
business, which can be called as
the resources of the business:
4. MONEY:
Availability of funds for running the
business is extremely important
particularly for procuring capital goods,
raw materials, tools and consumables, and
availability of working capital 39
 There are five M’s in the
business, which can be called as
the resources of the business:
5. METHODS:
If we have to do things in the best and
cheapest way, it is also important how the
things are processed. That is, by which
method the things are processed
40
Methods form the competitive
edge:
• The proper method will ensure
required quality, quantity and in-
time delivery
• It will ensure the accomplishment of
management objectives

41
Management is an essential
activity of all organizational
levels
Lower, middle and upper level

42
Management applies to:
• Small and large Organizations
• Profit and nonprofit Organizations
• Manufacturing Organizations
• Service rendering Organizations

43
 If you are a person who is:
• capable of undertaking the tasks and
functions of managing at any level,
in any kind of enterprise;
• you have leadership qualities;
• and you have qualities of an
administrator;
You will become a good manager
44
A good manager is expected to
have ability of four skills as
given below:
• Technical skills
• Human Skills
• Concept Skills
• Ability to solve problems
45
• Any endeavor starts with end
purpose, i.e. “GOAL”
• When goal is set, steps
towards goal also become
clear
• One can become successful
only if he has preset goals
46
 However, the goals must be
S-M-A-R-T as explained below:
--------------------------------
Specific:
We should be specific in our goal.
E.g. I want to become a manager is not a
goal. What you want to accomplish in an
organization is a goal. 47
 However, the goals must be
S-M-A-R-T as explained below:
--------------------------------
Measurable:
The goal must be measurable. E.g., I want
to secure 95% marks.

48
 However, the goals must be
S-M-A-R-T as explained below:
--------------------------------
Achievable
Our resources are limited. Therefore, if you
want to buy a flat in Mumbai and you have
only Rs 10 Lakhs, it is not possible to buy a
flat there. 49
 However, the goals must be
S-M-A-R-T as explained below:
--------------------------------
Realistic:
The goal must be realistic. We cannot
dream to become a prime minster when
you have not yet become a corporator
50
 However, the goals must be
S-M-A-R-T as explained below:
--------------------------------
Time bound:
Your goal should have a time limit such as I
want to get admission to a medical college
during next year.
51
Importance of Management:

• Management meets the challenge of

change
• Accomplishment of group goals
• Effective utilization of resources
• Effective functioning of business
52
Importance of Management:

• Resource development
• Sound organizational structure
• Management directs the
organization
• It integrates various interests
53
Importance of Management:
• It stabilizes the fluctuations
• It innovates
• Coordination and team spirit
• Tackling and solving problems
• Management is a tool for personality
development
54
THANK YOU

55