MODULE I BASIC MANAGERIAL CONCEPTS FEATURES OF MANAGEMENT Organized Activities Where a group of people are working towards a common

objective mgmt comes to existence Organized activities takes different form in different organizations eg highly structureed and other org But all org have one thing in common They want to progress efficiently towards the achievement of objectives through coordinated effect of people Existence of Objectives To direct organizational activities set of objectives must be there Without objective it is difficult to direct organized activities Relationship among resources Resources may money,people,m/c,material etc All these resources are made available to those who manage,and they apply knowledge experience principles on these resources to get desired results Essence of management is integration of various organizational resources So management is concerned with proper utilization of human resources which inturn utilize other resources Working with and through the people Working through the people means assigning activities to subordinates Superior subordinate relationship is created bcz of organized activities Through the process of assignment and reassignment activities actual work is done at operative level which is lowest level in an organization Decision Making Involves setting most appropriate alternatives out of several If only one alternative there is no need of taking decision Quality of alternative which a manager selects determines the organizations perofrmance and future Success and failure of managers can be judged by the quality of decisions that they make IMPORTANCE OF MANAGEMENT Effective utilization of resources Contribution of resources should be maximum for the general interest of the society Management deternines which resource must be used and also in the best way Development of resources Mgmt develop both human and nonhuman resources Through the development of resources management improves the quality of lives of people in the society To incorporate Innovations Changes occuring in the technology and social process must be incorporated to keep the

organization efficient and alive They require high degree of specialization,high level of competence and most complex technology Integrating various interest groups Eg in an bussiness org. there are various pressure groups such as shareholders,employees,etc These interest groups have pressure on an organization Management has to balannce these pressure from various interest groups Stability in the society Mgmt provides stability in the society by changing and modifying resources in accordance with the changing environment of the society In modern age emphasis on new inventions for betterment of human beings Mgmt provides integration between tradition and new inventions and safeguards society from the unfavourable impact of these inventions so that continuity in social process is maintained NATURE OF MANAGEMENT Multi disciplinary Mgmt draws knowledge and concepts from various disciplines such as statistics,operation research,sociology,economics etc Mgmt integrates concepts and ideas taken from these disciplines and presents newer concepts and put into practice for managing organizations Dynamic Nature of Principles Principles are flexible in nature and change with the changes in the environment in which org.exist Bcz of continuous devopt in field older principles are changed by new principles There is nothing permenant in management Relative not absolute principles Mgmt principles should be applied according to the need of organization Each organization is different from others Difference in ,place,individual working etc So mgmt principle has different strength in different conditions Management:Art or Science Mgmt is both art and science Management as profession Mgmt Regarderd as a profession but many suggested that it has not achieved status of a profession Universality of a management Mgmt is a universal phenomenon but mgmt principles are not universally applicable but are to be modified according to the needs of the organization MANAGEMENT:ART OR SCIENCE Management as an art Art is defined as use of skills to bring a desired result

Skills refers to ones proficiency to do a work Art has following features 1.Practical Knowledge 2.Personalized application of knowledge 3.Improvement through continuous practice 4.Situational Application 5.Emphasis on creativity 1.Practical Knowledge Knowledge refer to possesion of facts and techniques of a particular field Earned through study or practical experience In art knowledge acquired through practical and experience In mgmt knowledge is acquired through study and experience Thus mgmt is an art Personalized application of knowledge In art personalized application of knowledge can be applied to get desired results Same set of results can be achieved through a no. of different ways In mgmt also each manager has his own way to achieve desired results So mgmt is an art Improvement through continuous practice In art improvement is done through continuous practice This practice eliminates those activities which are not relevent for achieveing results and improving those activities that are relevent In this way a person engaged in any art tends to move towards perfection This is also done in management Situational Application An art appriciated in one situation may not be appriciated in other situation In mgmt also,one mgmt practice that is effective in one organization may not be effective in other bcz of change in situation or context Emphasis on creativity Art puts emphasis on creativity through which new things or ways of working are created In management too Managers create new product,new ways of working,new means of financing,new ways of marketing etc Management as a science Science has following features Systemized body of knowledge Principles based on experimentation Verifiable principles Universal application Systemized body of knowledge In science a particular factor has been caused by what factor can be explained in a defenite way Eg. gravitational force

In mgmt there is lack of such a cause effect relationship So mgmt is not a true science Principles based on experimentation In science principles are evolved based on experiments conducted in laboratories Such principles are tested again and again for final approval But in mgmt it is not done in all cases In mgmt principles are based on personal observations and experience Though experiments are conducted their findings are not tested like science So mgmt is not a true science Verifiable principles Scientific principles can be verified by any one Such verifications give same results again and again Mgmt principles are not verifiable So mgmt is not a true science Universal Application Principles of science have universal application But mgmt principles are situation bound Mgmt principles works on one country may not be works on other Bcz of situational difference between different countries Mgmt principles working effectively on one org.in one country may not work on other org in same country So mgmt is not a true science And mgmt can be called as a in exact science or pseudeo science SCOPE OF MANAGEMENT Specifies the organizational functions in which management is relevent These organizational functions are called functional areas of management The areas are Production/Operation Area kept under control of production operation manager Sub activities under this area are Purchasing Purchase of various things required by the org,managing transportation etc Materials management Deals with storing of materials,materials control,issue of materials to depts Research and development Deals with research and development of products in manufacturing organization Objective is to bring refinement in an existing product or develop entirely new product Marketing Involves distribution of org.product to buyers Sub areas are Advertising Advertising of products giving information about the products to buyers Marketing research Related with systematic collection,recording and analysing of data relating to marketing of goods and services

Sales management Involves managerial efforts directed towards the movement of goods Finance and accounting Deals with record keeping of various transactions Sub areas are Financial accounting Relates to reocrd keeping of various financial transactions,their classification,preparation of various statements to show financial position of organization Management accounting Deals with analysis and interpretation of financial records so that management can take decisions Costing Deals with recording of costs,their classification,analysis,interpretation Investment management Takes care of how financial resources are applied to various alternatives Taxation Deals with the varous taxes that the management has to pay Human resource Deals with management of human resources in org. Sub areas are Recruitment and selection Deals with hiring and employing of human resource in org Training and development Deals with process of making employees in org more efficient Wage and salary administration Deals with job evaluation,merit rating ,incentives Industrial relations Deals with maintenance of overall employee relation functions