“Introduction to Management”

MODULE_1
Principles Of Management
Book: Principles and Practices of Management by
L M Prasad

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Principles Of Management
MODULE-1
WEEK 1
 Lecture_1

“Without Institution there is no

management.
But without Management there is no
Institution” Peter Drucker  

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Concept of Management
▶ A Discipline
-Discipline refers to a field of study having well-defined
concepts and principles.
▶ Group of people
▶ Include all those personnel who perform managerial
functions in organizations
▶ Example: Communicating HR Interventions (managerial
and non-managerial members)
▶ A process
▶ “A process is defined as systematic method of handling
activities.”
▶ Complex interrelated activities for achieving goals and
objectives.
▶ A dynamic process 4
Definition: Management
People Oriented
‘Management is an art of getting things
done through and with the people in
formally organized groups. It is an art of
creating an environment in which people
can perform and individuals and can co-
operate towards attainment of group
goals.’ Harold Koontz
Production or efficiency oriented:
“Management is the art of knowing what
you want to do and then seeing that it is
done in the best and cheapest way.”
Taylor
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 Definition: Management
Decision oriented :
‘’Management is simply the process of decision
making and control over the action of human
beings for the expressed purpose of attaining
pre determining goals’’ Stanley Vance
Function oriented (more relevant definition)
“Management is a process involving planning,
organizing, staffing, directing and controlling
human efforts to achieve stated objectives in an
organization.’’

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Features of Management
1) Management is Goal-Oriented (includes
decision making at all stages)
2) Management is multidimensional involving
task, men and processes.
3) Management integrates Human, Physical and
Financial Resources
4) Management is Continuous
5) Management is Pervasive
6) Management is a Group Activity
7) Management is Dynamic involving social,
economical, technical and political
environment
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Objectives of Management
▶ Getting Maximum Results with Minimum
Efforts.
▶ Increasing the Efficiency of factors of
Production.
▶ Maximum Prosperity for Employer &
Employees.
▶ Human betterment and social justice.

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NATURE OF MANAGEMENT
A. Multidisciplinary
B. Dynamic nature of principles
C. Relative and not Absolute Principles
D. Science/Art
E. As Profession
F. Universality of Management

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Cont..
A)Multidisciplinary
- draws and integrates knowledge and concepts from
various disciplines, like, psychology, sociology,
anthropology, economics, etc.
- Integrating ideas and concepts
B) Dynamic nature of principles
- Principle is a fundamental truth which establishes cause
and effect relationship of a function.
-Principles are flexible with changes in the environment it
exists with
-Example: Automation in industry

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 C) Relative and not Absolute Principles
-the management principles are applied according to the needs
of the organization.
-different organization: time, space, employees, culture
-flexible in approach and application.
Eg. Piece rate system for compensation
D: Management as a Science
▶ F. W. Taylor was the first person who considered management
as a science.
▶ Science is divided into two parts:
-Physical science & Social science.
Management is a social science because it deals with human
being.
Management is “Inexact Science”
How???

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▶ Science is a systematic body of knowledge pertaining to a specific
field of study that contains general facts which explains a
phenomenon.
▶ It establishes cause and effect relationship between two or more
variables and underlines the principles governing their
relationship.
▶ Principles of Science are:

1. Universally accepted principles-

▶ eg. Boiling point of water (212°F) remains same in the entire
world.
▶ Management principle: Span of control in organization is
similar across the world.
2. Experimentation & Observation
-all mathematical or chemical formulae in Science
-Management: Motivation theories
3. Cause & Effect Relationship
-effect of medicines on patients, dosage foe different age group
-Management- reinforcement of rewards and punishments in
organizations. 12
 Cont..
D: Management as an Art
▶ Art implies application of knowledge & skill to trying
about desired results.
▶ An art may be defined as personalized application of
general theoretical principles for achieving best possible
results.
▶ Characteristics of an art are:
1. Practical Knowledge
2. Personal Skill
3. Creativity
4. Perfection through practice
5. Goal-Oriented
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 Cont…
Management as Art
The process of management :
❑ Involve the use of know-how and skills, as in other art
forms (music, painting, etc.).
❑ Is directed to achieve the desired goals

❑ Creative, as situations are dynamic and favor

improvement.
❑ Is personalized , implying no one best way. Use of
individual approach and technique in confronting issues.

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D: Management both as a Science and an art
▶ The above mentioned points clearly reveals that management
combines features of both science as well as art.
▶ It is considered as a science because it has an organized body
of knowledge which contains certain universal truth.
▶ It is called an art because managing requires certain skills
which are personal possessions of managers.
▶ Science provides the knowledge & art deals with the
application of knowledge and skills.
▶ A manager to be successful in his profession must acquire the
knowledge of science & the art of applying it.
▶ Therefore management is a judicious blend of science as well
as an art because it proves the principles and the way these
principles are applied is a matter of art.

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▶ What elements of art and
science are involved in
Management???

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 E:Management as a Profession
▶ A profession may be defined as an occupation that requires
specialized knowledge and intensive academic preparations to
which entry is regulated by a representative body.
▶ Characteristics of a profession are:

▶ Existence of Specialized Knowledge

-A systematic body of knowledge that can be used for development of

professionals. 
▶ Acquisition of knowledge through Formal Education & Training

▶ Existence of institutes and training centers

▶ Eg. Psychology, Business Law,etc.

▶ Social Obligations/Service Motive

-eg. doctors
▶ Code of Conduct/Ethical Codes

-eg. Sex determination test for doctors.

▶ Representative/Professional Association

-eg, AIMA(All India Management Association) : Manages and co-ordinate

the research work in the various areas of management. 
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How is Management a Profession?
Reiss : Suggested management as a
“would-be-profession”

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 Professional Approach in
Management
▶ Commitment to professionally defined knowledge
and techniques. Eg. Aviation industry
▶ Discipline and integrity
▶ Respect for all
▶ Application of relevant modern management tools
and techniques
▶ Team approach in managing
▶ Preparedness to accept change and to apply the
principles of change management
▶ Preference of merit over birth
▶ Optimization –oriented decision making for best
results
▶ Responsiveness to society

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 E: But not exactly a Profession…
Management does not fulfill some conditions
that are associated with being a professional
▶ It does not restrict the entry in managerial jobs for
account of one standard or other.
▶ No minimum qualifications have been prescribed
for managers.
▶ No management association has the authority to
grant a certificate of practice to various managers.
▶ Competent education and training facilities do not
exist.
▶ Managers are responsible to many groups such as
shareholders, employees and society. A regulatory
code may curtail their freedom.
▶ Managers are known by their performance and not
mere degrees.
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F: UNIVERSALITY OF MANAGEMENT
Transmission of management knowledge may be
undertaken:
▶ By managers from a developed country to a
developing one
▶ By people from a developing country coming to
study and work in developed countries and
returning back to their own country.
▶ Through training and development programmes
for managers in a developing country.
Application
1. Arguments for Universality
2. Arguments against Universality

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 Cont..
F: Arguments for Universality
❑ Management as Process
❑ irrespective of country, culture or size
❑ Intensity may vary
❑ Distinction between Management Fundamentals and
Techniques
-Management Fundamentals are the basic principles
and theories and predominantly remains the same.
-Eg. Training schedule in HRD
-Techniques are the tools for performing managerial
functions and can vary
❑ Distinction between Management fundamentals and
Practices.
- Management Fundamentals(MF) remain same, 22
 F: Arguments against Universality
❑ Cultural Characteristics

-culture is a set of beliefs, attitudes and values that are shared

commonly by the members of the society
-Management is culture bound
-It is a people oriented processed by the culture of its members
and hence is affected by its members.
-eg. Individualism and collectivism; power distance;
uncertainty avoidance; masculinity; time orientation
(shorter / longer)
❑ Management philosophy

- Professionally vs. Family managed companies

❑ Organizational objectives

❑ A person can’t perform in all types of organizations

❑ Eg. A salesperson vs. Scientist

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TASK

Compare Indian vs. American

practices in organizations

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Importance of management
A. Effective utilization of resources
B. Development of resources
C. Incorporate innovativeness
D. Integrating various interest groups
E. Stability in the society

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 Cont…
A:Effective utilization of resources
➢ Management tries to make effective utilization of
various available resources.
➢ Management not only decides in which particular
alternative a particular resource should be used, but
also takes actions to utilize that particular alternative
in the best way.
B:Development of resources
➢ Management develops various resources, through
the development of resources.
➢ Management improves the quality of lives of people
in the society.
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 Cont…
C: To incorporate innovativeness
❑ Today changes are occurring at a very fast rate in
both technology and social process.
❑ These changes need to be incorporated to keep the
organizations alive & efficient.
D:Integrating various interest groups
❑ In the case of a business organization, there are
various pressure groups such as shareholders,
employees, government etc,
❑ These interest groups have pressure on an
organization.
❑ Management has to balance these pressure from
various interest groups.
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 Cont…
E:Stability in the society
▶ Management provides stability in the
society by changing and modifying the
resources in accordance with the
changing environment of the society.
▶ Management provides integration
between traditions and new inventions
and safeguards society from the
unfavorable impact of these inventions so
the continuity in social process is
maintained.
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ASSIGNMENT FOR CLASS
Distinguish between :
▶ Management and Administration

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 Management and Administration
Points Administration Management
Levels in organization Top level Middle and lower
management
Major Focus Policy and objective Policy execution for
formation objective achievement
Nature of functions Determinative Executive
Scope of Functions Broad and conceptual Narrow and operational
Factors affecting decisions Mostly external Mostly internal

Employer-employee Entrepreneurs and owners Employees

relation
Qualities required Administrative Technical

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