History

The verb manage comes from the Italian

maneggiare (to handle especially tools),
which in turn derives from the Latin manus
(hand).
The French word mesnagement (later
mnagement) influenced the development in
meaning of the English word management
in the 17th and 18th centuries.
 Management is "A set of activities ( including planning
and decision making, organizing ,leading and controlling)
directed at an organization's resources ( human , financial,
physical and information), with the aim of achieving
organizational goals in an efficient and effective manner
(Griffin,2013 : 28)."
Efficient:
Using resources wisely and in a cost effective way.
Effective :
Making the right decisions and successfully implementing
them.
Manager :
Individuals who achieve goals through others (Stephen P.
Robbins, 1999 : 2 )
 Henri Fayol (18411925) considers management to
consist of six functions:
forecasting,
planning,
organizing,
commanding,
coordinating and
controlling.
He was one of the most influential contributors to
modern concepts of management.
 Mary Parker Follett (18681933), defined management as
"the art of getting things done through people". She
described management as philosophy.
 A group of people working together in
a structured and coordinated fashion
to achieve set of goals.
 Planning :Setting an organization's goals and deciding
how best to achieve them.
Decision making: Part of the planning process that
involves selecting a course of action from a set of
alternatives.
 Determining how activities and resources are
to be grouped.
 The set of processes used to get members of
organization to work together to further the
interest of the organization.
 Monitoring organizational process toward
goal attainment.
At first, one views management
functionally, such as measuring quantity,
adjusting plans, meeting goals. This applies
even in situations planning does not take
place. From this perspective, Henri Fayol
(18411925)[2] considers management to
consist of six functions: forecasting,
planning, organizing, commanding,
coordinating and controlling.
H

In profit work, management has as its primary function the satisfaction
of a range of stakeholders. This typically involves making a profit (for
the shareholders), creating valued products at a reasonable cost (for
customers) and providing rewarding employment opportunities (for
employees).
In nonprofit management, add the importance of keeping the faith of
donors. In most models of management/governance, shareholders vote
for the board of directors, and the board then hires senior management.
Some organizations have experimented with other methods (such as
employee-voting models) of selecting or reviewing managers; but this
occurs only very rarely.

In the public sector of countries constituted as representative

democracies, voters elect politicians to public office. Such politicians
hire many managers and administrators, and in some countries like the
United States political appointees lose their jobs on the election of a new
president/governor/mayor.
 Difficulties arise in tracing the history of management.
Some see it (by definition) as a late modern (in the sense
of late modernity) conceptualization. On those terms it
cannot have a pre-modern history, only harbingers (such
as stewards). Others, however, detect management-like-
thought back to Sumerian traders and to the builders of
the pyramids of ancient Egypt. Slave-owners through the
centuries faced the problems of exploiting/motivating a
dependent but sometimes unenthusiastic or recalcitrant
workforce, but many pre-industrial enterprises, given their
small scale, did not feel compelled to face the issues of
management systematically. However, innovations such as
the spread of Arabic numerals (5th to 15th centuries) and
the codification of double-entry book-keeping (1494)
provided tools for management assessment, planning and
control.
 While management has been present for
millennia, several writers have created a
background of works that assisted in modern
management theories.[4]
 Sun Tzu's The Art of War

Written by Chinese general Sun Tzu in the 6th

century BC, The Art of War is a military
strategy book that, for managerial purposes,
recommends being aware of and acting on
strengths and weaknesses of both a
manager's organization and a foe's.
 Chanakya's Arthashastra

Chanakya wrote the Arthashastra around

300BC in which various strategies, techniques
and management theories were written which
gives an account on the management of
empires, economy and family. The work is
often compared to the later works of
Machiavelli.
 Niccol Machiavelli's The Prince

Believing that people were motivated by self-

interest, Niccol Machiavelli wrote The Prince
in 1513 as advice for the city of Florence,
Italy.Machiavelli recommended that leaders
use fearbut not hatredto maintain
control.
 Adam Smith's The Wealth of Nations

Written in 1776 by Adam Smith, a Scottish moral

philosopher, The Wealth of Nations aims for
efficient organization of work through
Specialization of labor.
Smith described how changes in processes could
boost productivity in the manufacture of pins.
While individuals could produce 200 pins per
day, Smith analyzed the steps involved in
manufacture and, with 10 specialists, enabled
production of 48,000 pins per day.
 19th century

Classical economists such as Adam Smith (17231790)

and John Stuart Mill (18061873) provided a theoretical
background to resource-allocation, production, and
pricing issues. About the same time, innovators like Eli
Whitney (17651825), James Watt (17361819), and
Matthew Boulton (17281809) developed elements of
technical production such as standardization, quality-
control procedures, cost-accounting, interchangeability of
parts, and work-planning. Many of these aspects of
management existed in the pre-1861 slave-based sector
of the US economy. That environment saw 4 million
people, as the contemporary usages had it, "managed" in
profitable quasi-mass production.
 20th century

By about 1900 one finds managers trying to place their theories

on what they regarded as a thoroughly scientific basis (see
scientism for perceived limitations of this belief). Examples
include
Frederick Winslow Taylor's The Principles of Scientific
Management (1911),
Frank and Lillian Gilbreth's Applied motion study (1917), and
Henry L. Gantt's charts (1910s).
J. Duncan wrote the first college management textbook in 1911.
In 1912 Yoichi Ueno introduced Taylorism to Japan and became
first management consultant of the "Japanese-management
style". His son Ichiro Ueno pioneered Japanese quality assurance.
 21st century

In the 21st century observers find it increasingly difficult to subdivide

management into functional categories in this way. More and more
processes simultaneously involve several categories. Instead, one tends
to think in terms of the various processes, tasks, and objects subject to
management.

Branches of management theory also exist relating to nonprofits and to

government: such as public administration, public management, and
educational management. Further, management programs related to
civil-society organizations have also spawned programs in nonprofit
management and social entrepreneurship.

Note that many of the assumptions made by management have come

under attack from business ethics viewpoints, critical management
studies, and anti-corporate activism.
 I. Management is an activity: Management is an
activity which is concerned with the efficient
utilization of human and non-human resources of
production.
II. Invisible Force: Its existence can be felt through
the enterprise or institution it is managing.
III. Goal Oriented: to achieve some definite goals
and objectives. Managers and other personnel
officers apply their knowledge, experience and
skills to achieve the desired objectives.
 IV. Accomplishment through the efforts of
Others: Managers must have the necessary
ability and skills to get work accomplished
through the efforts of others.
V. Universal activity: Management are
universal and can be applied anywhere and in
every field, such as business, social, religious,
cultural, sports, administration, educational,
politics or military.
 VI. Art as well as Science: Management is
both an art and a science.
science as it has an organized body of
knowledge which contains certain universal
truths and an art as managing requires
certain skills which apply more or less in
every situation.
 VII. Multidisciplinary Knowledge: Though
management is a distinct discipline, it
contains principles drawn from many social
sciences like psychology, sociology etc.
VIII. Management is distinct from ownership:
In modern times, Today, big corporations are
owned by a vast number of shareholders
while their management is in the hands of
paid qualified, competent and experienced
managerial personnel.
 IX. Need at all levels: According to the nature
of task and scope of authority, management
is needed at all levels of the organization, i.e.,
top level, middle and lower level.
X. Integrated process: Management is an
integrated process. It integrates the men,
machine and material to carryout the
operations of the enterprise efficiently and
successfully. This integrating process is result
oriented.
 Henri Fayol's 14Principles of Management
1. Division of Work

The full work of the organisation should be

divided among individuals and departments.
This is because a division of work leads to
specialisation, and specialisation increases
efficiency, and efficiency improves the
productivity and profitability of the
organisation.

 2. Discipline

Discipline means a respect for the rules and

regulation of the organisation. Discipline may
be Self-discipline, or it may be Enforced
discipline. Self-discipline is the best
discipline. However, if there is no self-
discipline, then discipline should be enforced
through penalties, fines, etc. No organisation
can survive without discipline.

 3. Authority and responsibility

There should be a balance between Authority
(Power) and Responsibility (Duties). Authority
must be equal to Responsibility. If the
authority is more than responsibility then
chances are that a manager may misuse it. If
responsibility is more than authority then he
may feel frustrated.
 4. Subordination of Individual Interest to
General Interest

In an organisation, there are two types of

interest, viz., the individual interest of the
employees, and the general interest of the
organisation. The individual interest should
be given less importance, while the general
interest should be given most importance. If
not, the organisation will collapse.

 5. Remuneration

Remuneration is the price for services

received. If an organisation wants efficient
employees and best performance, then it
should have a good remuneration policy. This
policy should give maximum satisfaction to
both employer and employees. It should
include both financial and non-financial
incentives.

 6. Centralisation

In centralisation, the authority is concentrated

only in few hands. However, in decentralisation,
the authority is distributed to all the levels of
management. No organisation can be completely
centralised or decentralised. If there is complete
centralisation, then the subordinates will have no
authority (power) to carry out their responsibility
(duties). Similarly, if there is complete
decentralisation, then the superior will have no
authority to control the organisation. Therefore,
there should be a balance between centralisation
and decentralisation.
 7. Order

There should be an Order for Things and People

in the organization. Order for things is called
Material Order. Order for people is called Social
Order. Material Order refers to "a place for
everything and everything in its place." Social
Order refers to the selection of the "right man in
the right place". There must be orderly placement
of the resources such as Men and Women,
Money, Materials, etc. Misplacement will lead to
misuse and disorder.

 8. Equity

The managers should use the equity while

dealing with the employees. Equity is a
combination of kindness and justice. Equity
creates loyalty and devotion in the
employees.


9. Initiative

Management should encourage initiative.

That is, they should encourage the employees
to make their own plans and to execute these
plans. This is because an initiative gives
satisfaction to the employees and brings
success to the organization.
 10. Esprit De Corps (Team Spirit.)

Management should create unity, co-

operation and team-spirit among the
employees. They should avoid the divide and
rule policy.

 11. Stability of Tenure

An employee needs time to learn his job and

to become efficient. Therefore, he should be
given time to become efficient. When he
becomes efficient, he should be made
permanent. In other words, the employees
should have job security.


12. Unity of Direction

All activities which have the same objective

must be directed by one manager, and he
must use one plan. This is called Unity of
Direction. For example, all marketing
activities such as advertising, sales
promotion, pricing policy, etc., must be
directed by only one manager. He must use
only one plan for all the marketing activities.
 13. Scalar Chain

Scalar Chain is a line of authority. This line joins

all the members (managers and employees) from
top to bottom. Every member must know who is
his superior. He must also know who is his
subordinate. Scalar Chain is necessary for good
communication. Scalar Chain must not be broken
in norm circumstances. However, if quick action
is necessary, then this chain can be broken. This
is done using "Gang Plank" / "Bridge" / "Direct
Contact".
Scalar Chain is shown in diagram below with
Gang plank as dotted line FP.
 The Scalar Chain is shown by a double ladder
A to G and A to Q. A is the head of the
organisation. B and L are the next level, and
so on. If quick action is necessary, then a
"Gang Plank" "FP" is made. Now F and P can
contact each other directly but they should
inform E and O about their decisions.

 14. Unity of Command

According to this principle, a subordinate (employee)

must have only one superior (boss or manager). A
subordinate must receive orders from only one
superior. In other words, a subordinate must report
to only one superior. According to Fayol, if one
subordinate receives orders from more than one
superior then there will be disorder. This will affect
the discipline, efficiency, productivity and profitability
of the organisation.
Unity of Command is a very important principle of
management. This principle is based on the rule "Too
many cooks spoil the soup."
 Henri Fayol (18411925)[2] considers
management to consist of six functions:
forecasting,
planning,
organizing,
commanding,
coordinating and
controlling.
 Planning: Deciding what needs to happen in
the future (today, next week, next month,
next year, over the next five years, etc.) and
generating plans for action.
 Organizing: (Implementation)pattern of
relationships among workers, making
optimum use of the resources required to
enable the successful carrying out of plans.
 Staffing: Job analysis, recruitment and hiring
for appropriate jobs.
 Leading/directing: Determining what needs
to be done in a situation and getting people
to do it.
 Organizing: (Implementation)pattern of relationships
among workers, making optimum use of the resources
required to enable the successful carrying out of plans.
Staffing: Job analysis, recruitment and hiring for
appropriate jobs.
Leading/directing: Determining what needs to be done in
a situation and getting people to do it.
Controlling/monitoring: Checking progress against plans.
Motivation: Motivation is also a kind of basic function of
management, because without motivation, employees
cannot work effectively. If motivation does not take place
in an organization, then employees may not contribute to
the other functions (which are usually set by top-level
management.
 Controlling/monitoring: Checking progress
against plans.
Motivation: Motivation is also a kind of basic
function of management, because without
motivation, employees cannot work
effectively. If motivation does not take place
in an organization, then employees may not
contribute to the other functions (which are
usually set by top-level management.
 Motivation: Motivation is also a kind of basic
function of management, because without
motivation, employees cannot work
effectively. If motivation does not take place
in an organization, then employees may not
contribute to the other functions (which are
usually set by top-level management.
 Consists of board of directors, president, vice-
president, CEOs, etc
controlling and overseeing the entire
organization, develop goals, strategic plans,
company policies, and make decisions
mobilization of outside resources ,
accountable to the shareholders and general
public.
 Middle-level managers
Consist of general managers, branch
managers and department managers
accountable to the top management
executing organizational plans
inspire and provide guidance to lower level
Lower(First)-level managers

Consist of supervisors, section leads,

foremen, etc. Focus on controlling and
directing. They assigning employees tasks,
guide and supervise employees on day-to-
day activities, ensure quality and quantity
production, make recommendations,
suggestions, and up channel employee
problems, etc. First-level managers are role
models for employees that provide:
 Basic supervision.
Motivation.
Career planning.
Performance feedback.
 Interpersonal: roles that involve coordination
and interaction with employees.
Informational: roles that involve handling,
sharing, and analyzing information.
Decisional: roles that require decision-
making.
 Broadened understanding of how: competition, world
economies, politics, and social trends effect
organizational effectiveness .
 Political: used to build a power base and
establish connections.
Conceptual: used to analyze complex
situations.
Interpersonal: used to communicate,
motivate, mentor and delegate.
Diagnostic: the ability to visualise most
appropriate response to a situation .
 Technical - referred to production department.
Commercial - relates to buying, selling and
exchange.
Financial concerned with maximum utilization of
capital.
Security concurred with protection of property
and person. According concerned with
maintenance of accounts, presentation and
statistics and
Management concerned to planning, organizing,
commanding, coordinating and controlling.
 Mangers require four main kinds of skills, namely:
technical, human, conceptual and design. What do each of
these skills mean?
Technical skill is knowledge of and proficiency in activities
involving methods, processes, and procedures. Thus, it
involves working with tools and specific techniques.
Human skill is the ability to work with people; it is
cooperative effort; it is teamwork; it is the creation of an
environment in which people feel secure and free to
express their opinions.
Conceptual skill is the ability to serve the big picture. It
is also about recognizing significant elements in a
situation, and to understand the relationships among the
elements.
Design skill is the ability to solve problems in ways that
will benefit the enterprise.
. To be effective, particularly at upper
organizational levels, managers must be able to
do more than see a problem. In addition, they
must have the skill of a good design engineer in
working out a practical solution to a problem.
Managers must also have that valuable skill of
being able to design a workable solution to the
problem in the light of the realities they face. It
has, however, got to be mentioned that the
relative importance of these skills may differ at
various levels in the organization hierarchy.
 technical skills --supervisory level
and less at the middle-management level,
human skills in the frequent interactions with
subordinates at all levels,
conceptual skills not critical for lower-level
supervisors but gain in importance at the
middle-management level.
design abilities and conceptual and human
skills are especially valuable At the top
management level,, but there is relatively
little need for technical abilities.
 . Attracting and retaining enough employees at all levels to meet
the needs of natural and innatural growth.
All three companies are facing a talent crunch. Essar, for
example, has grown from 20 thousand employees to a
staggering 60 thousand in the past 3 years. Fifty-five percent of
their employees have less than two years of tenure.
2. Creating a value proposition that attracts to multiple
generations. With four generations in today's workplace, most
companies are struggling to create an employee experience that
attracts to individuals with diverse needs, preferences and
assumptions. The Gap, for example, has 153,000 people in its
workforce. The stores have a high percentage of Gen Y
employees, while corporate roles and leadership ranks are
primarily made up of Gen X'ers and Boomers. How does one
create a compelling employee value proposition for the
organization?
 3. Developing a strong leadership pipeline. I believe
one of the biggest potential threats to many
corporations is a lack of a robust talent pool from
which to select future leaders.
4. Rounding out the capabilities of hires who lack the
breadth of necessary for global leadership. It's
relatively straightforward to identify and assess
experts in specific functional or technical arenas, but
much more difficult to determine whether those
individuals have the people skills, leadership
capabilities, business breadth, and global diversity
sensibilities required for the nature of leadership
today. Increasingly, the challenge of developing these
broader skill sets falls to the corporations.
 5. Transferring key knowledge and relationships. The
looming retirement of a significant portion of the
workforce challenges all companies, but particularly
those who are dependant on the strength of tacit
knowledge, such as that embedded in customer
relationships, a key to Mercer's business success.
6. Stemming the exodus of Gen X'ers from corporate
life. A big threat in many firms today is the exodus of
mid-career talentpeople in whom the organization
has invested heavily and in whom it has pinned it
hopes for future leadership. For example, developing
talent management practices and programs
calibrated to leverage technology and create greater
work/life balance has been a priority for Mercer over
recent years.
 7. Redesigning talent management practices to attract and
retain Gen Y's. The challenge of calibrating talent
management practices and programs to attract and
engage our young entrants is critically important to all
firms and particularly so for firms that depend on a strong
flow of top talent, such professional service firms like
Mercer. All three panelists agreed that making the
business infrastructure more attractive to Gen Y is a high
priority.
8. Creating a workplace that is open to Boomers in their
"second careers." Age prejudice still exists, but smart
companies are looking for ways to incorporate the talents
of Boomers and even older workers in the workforce. In
many cases, this requires rethinking roles and work
relationships.
 9. Overcoming a "norm" of short tenure and frequent
movement. Some industries, such as specialty retail, are
known for having a very disposable view of talent.
Companies intent on changing that norm, such as The
Gap, must address both external influences in the
marketplace and an internal mindset. The Gap believes
retaining employees in roles for 3+ years will be a key to
their future earnings growth.
10. Enlisting executives who don't appreciate the
challenge. Many talent executives complain that business
leaders still believe that people are lined up outside the
door because of the power of the company's brand. The
challenge of enlisting the support of all executives for the
transition from a talent culture that has traditionally
operated with a "buy" strategy to one that places more
emphasis on "build" is widely shared.