PPM Chap 1
PPM Chap 1
PPM Chap 1
some organisations
sucessfully with proper management : The
The organisations grow administration can be cited as follows :
due to0 able
MANAGMstoEiNes
SuccesS
oh
Dhiru BhaiAmbani of
Narain Murthy of India Azeem Premjiof India India
CONCEPTS OF MANAGEMENT
It may refer to the functions
The term 'management has been used in different senses.
it undertakes, a body of knowledge, a practice and a discipline, a factor of production, etc.
management, one concept is
There are two schools of thought defining the concept of
traditional and the other is modern.
h
taroug
NATURE AND SCOPE OF MANAGEMENT e
don 1.3
but Same
Modern Concept of Management heonle have
Management is an activity which is necessary wherever there is a group of people
working in an organisation. Though/people in an organisation have diverse functions but their
aim is to achieve same goals.)
Thus concept of management brings out the fact that all types of managenments have to
nerform the same functions irrespective of the size, nature or country. It also highlights the
utiversal nature of management.
,prManagement as Art of Getting Things. Mary Parker Follett described management
as the art of getting things done. A manager is supposed to direct the activities of others.
This concept states that :
() It is the art of getting things done through others.
(i) The work is to be got done with the co-operation of others.
(in) It also involves motivating the subordinates for achieving objectives.
ohmiacng
(iv) Humarn and technical skills play an important role, for tngs done.
Aanagement as a Team. As a tearm or a group of persons, management consists of
all those individuals who direct the activities of other individuals to achieve organisational
goals. Though managers occupy positions at different levels of the organisation but basically
they perform the same functions. The managers at top-levelmanagement have more authority
than those at middie-level and these marnagers carry more authority and power as compared
to those at operational level (lower level). The management group may consist of professional
managers, family managers (owning and running abusiness), civil servant managers (managing
public sector undertakings9).The managers perform important managerial functions and carry
lot of authority and power.
rs Management as a Human Process. Management deals with human beings in the
ny organisation, s0 a zunber of activities willbe required to be performed for geting better
results. Tese activities include :
() The goals are achieved through and with other people.
of
ich (i) The co-operation of everyone in the organisation is necessary.
1is (ii Decisions have to be taken at every level of management.
(iv Delegation of adequate authority and fixing of responsibility is essential.
ities (} Motivation piays an important roie ir achieving organisational objectives.
d to (V) All manageriai functions are important for getting the things done through others.
Û Management as an Activity. Management is an activity like any other activity such
as playing, studying, teaching, etc. Managers generally perform the following activities.
PRINCIPLES AND PRACTICES OF
1.6
MANAGEMENT
,Anterpersonal activities. A manager has to interact with his subordinates as wel
superiors. Interpersonal activities consist of attending social functions,
a
subordinates, maintaining contacts with clients and such other activities
necisional activities. A manager has to take several types
motivat
of decisions such
ing
allocation of resources, initiating new products, bargaining with outsiders. at
(iiD Tnformative activity. In order to run the unit efficiently a manager has ..
communicate regularly with inside and outside of the organisation. He receivee
gives information about the tasks, situations and persons.
(HAlanagement as a Creative Process. Management is required to deploy resourCes
judiciouslv for the achievement of organisational goals. It is a creative process where efforts
are made to anticipate new opportunities, new methods of production, new marketing ideas
and so on. The creative ideas are put into action and required resources are provided for the
implementation. The ideas should be transformed into viable realities and utilities.
Management is a
MANAGEMENT
Management is system of authority.
a group activity.
Management is
Management is adynamic function,
goal-oriented.
Management is an
Management is a art as well as a science.
factor of production.
FEATURESOF
MANAGEMENT Management is
Management is intangible.
universal in character.
Management is
Management
needed at all levels. multidiscipinary.
NATURE OF MANAGEMENT
Some authors regard management as service because there are well tested and
experimented principles of management. There are others, who are of view that management
NATURE AND SCOPE OF MANAGEMENT i.9
is an art because more practice is
required in
management is a science, though it may not be management. There is also a view that
compared with physical sciences. Some
authors feel that management is emerging as a profession
of knowledge and its principles are aplicable in all because it has a specialised body
understand the nature of management, we will discuss types of organisations. In order to
various features of art, science and
profession and then will reach certain conclusion.
IS MANAGEMENT AN ART OR SCIENCE
The controversy with regard to the nature of
management as to whether it is an art or
science is very. old and has created a lot of confusion. It is necessary to understand the real
nature of management. The learning of art involves its continuous
science involves assimilation of principles. The earlier captains of practiceandwhile learring of
industry
intuition, commonsense, hunches and experience in managing organisations. managers used
and hard working but still were not professionally trained They were brilliant
reason of controversy about the nature of managers. This was the main
management.
EManagement As An Art
An art is often regarded as the systematic application of skill or knowledge in
effecting
accomplishment of results. It represents the methods or ways of doing specific things
indicates how an objective is to be achieved. The function of art is to effect change and and
accomplish results through deliberate efforts. Art is a personalised process and every artist
has his own style. It is practice-based and perfection in it requires
a long period of time.
continuous practice over
Let us see if the elements of art are present in
managerment or not :
1Eistence of Theoretical Knowledge. In every art there is a systematic and organised
study material available to acquire theoretical knowledge of the art. For example,
dancing, public speaking, acting, music, there is sufficient theoretical
available for those who want to practise that art. Management also has knowledge
and organised material available for acquiring knowledge of systematic
and practices. This feature of art is available in managerial principles
management.
Personalised Application. Art is a personalised concept. Every individual makes
use of the basic knowiedge in his/her own personal way. It varies from
person to
person. For example, two dancers, two singers, two artists will be showing their
talent differently. In management, managers learn same management theories but
their success will depend on the application of those theories under different situations.
So this feature of art is also available in management.
3,ased on Continuous Practice. Art involves continuous practice of existing theoretical
knowledge. Management satisfies this criteria as a manager gains experience through
regular practice and becomes effective. This feature of art is present in management.
dreativity. Art involves creativity. An artist tries to apply his knowledge to improve
his work and brings out for viewer better things. For example, a musician will try
to bring out new Compositions based on the basics of music notes. Like any other
PRINCIPLES AND PRACTICES OF
1,10
5. Replication is Possible. When two scientists working on the same data and working
independently reach the same conclusions and get same results, this will be called
replication. This type of experimentation and results is possible in science. In
management managers conduct research or experiments on human beings. When two
managers are investigating on the same data, on different sets of human beings, the
results may not be the same since human beings do not react similarly at different
times. So this feature of science is (not present jn management.
Conclusion. Some features of science are present in management but these are not
enough to call it a science. Management is not a science like other physical sciences such as
physics, chemistry, astronomy, etc. We may say that management may be called as inexact
science or social science.
As Science As Art
Systmatised body of knowledge Existence of theoretical know ledge
Principles based on repeated experiments Personalised application
Based on continuous practice
Creativity
MANAGEMENTAS A PROFESSION
Another question that arises in regard to the nature of management is whether
management can be regarded as a profession or not. To determine this, we must understand
the meaning and special attributes of profession. The dictionary meaning of profession is a
calling in which one professes to have acquired specialised knowledge, which is used either
in instructing, guiding or advising others." The term profession' has been defined in a
variety of meanings by different authors. In the broad sense, it refers to any occupation by
which a person earns a livelihood. In the restricted sense, it includes only the three learned
professions' of theology, law and medicine. But in real sense, the term profession falls in
between the two extremes.
AProfession has the following features :
1. Well defined body of knowledge. 2. Professional associations.
3. Restricted entry 4. Code of conduct for members.
5. Service Motive
features
1.12
examine whether the
We willnow profession has a systematiç
Knowledge. Every proper knowledge of that bodyoi
or not:
yell Defined
1. knowledge
Body
which helps
of
organised body of
to gain
professionals knowledge built by
scholars are
management
studying different
prote
thinkers
problems
s
andion
Management has an
period of time.
The this sense,
this feature of and
practitioners
are developing
over a
new principles
to solve them. In
profession
profession, there should
management. of any be
is present in Associations. For the regulation standards of education and
2Professional
representative bodv.
entering
This body lavs down the
For example, doctors have to get
that profession.of India, a Chartered
Accountant has to
traini
themselve,
get the
ng
for those with Medical Council Chartered Accountants.
registered Institute of and
at national
membership of Indian
management, various
management associations
India
internationa
Management Association. New Dlh
In case of
leen set up. For example, All Calcutta have been set up for the benefit
level have Personnel Management, essential that management
National Institute of
Legally, it is not professional;
management cannot)
management professionals. these bodies. As per this feature
should get the
membership of
associations may get statutory backing innear fuh
called aprofession but surely such controlled by its profession.
profession is
Restricted Entrv. The entry to a particular profession must acquire the prescribed
3. to enter that hav.
bodv. A person intending For example, to become a doctor a person must
educational qualifications. profession one must be a law graduate.
law
MBBS degree or to enter a qualification prescribed for becomin
there is no specific
In the case of managemernt, irrespective of educational qualifications
can become a manager
a manager. A person persons with MBA qualification are preferred as
and
The trernd is now changing does not qualify to be a profession on
account of
managers. At present management
this feature but the trend is surely changing.
no
professional bodies prescribe acode of conduct
Conduct. Various
4. Existen ce of Codeareof required to observe. A code of conduct provides rules and
which members professional morality.
regulations, norms of honesty, integrity and AIMA has devised a code
no code of conduct for managers.
In management, there is binding for the managers to get
of conduct for Indian managers but it is not legally
management (cannot )be called a
themselves registered with that association. So
profession on the basis of this feature but things are proceeding in the direction
code of conduct.
when managers may follow a standard
for the
of expert knowledge
Service Motive. A profession involves the application service
service of society) A doctor earns his living out of his medical profession but
to achieve the goals of a
to society is upper most in his mind. A manager aims
business, the main goal may be to mnaximise profits. The things are now changing and
besides profits, business is taking up social responsibilities for the welfare of society.
So presently the feature of profession is(not þresent in management but things may
change in future.
NATURE AND SCOPE OF MANAGEMENT 1.13
Conclusion
The above discussion shows that management does not qualify to be
on most of the accounts. The most of the features of a called a profession
profession are not present in
management. There is a likelihood that statutory backing in near future may make management
as a profession like that of medical, law, chartered
accountancy, etc.
PROFESSIONAL MANAGEMENT IN INDIA
Professional management is enterprise management where major decision making is in
the hands of those persons who have acquired managerial or professional qualifications, have
technical competency and rich practical experience. Professional management can be described
as management conducted by professionally qualified managers.
Following types of management is prevalent in Indian business :
E Family Management
In India management has been mostly 'family management. The features of family
management are:
() The ownership and managerial control of business are in the hands of family members;
() the main objective of business is the maximisation of profits; (i) the members of family
may or may not have managerial qualifications. In this traditional family management or
patrimonial management the authority of decision-making rests with members of the family.
The hierarchy of managerialposition of a person is decided by the position held in the family.
In most of the cases power is personalised in a close-knit group tied with family relationship.
The business is run on the basis of value system followed by the family.
Bureaucratic Management
Another type of managerial system practised in India is bureaucratic style. Since
independence government has invested large amounts in public sector enterprises. These units
are management by civil servants transferred from government departments. These bureaucrats
concentrate more on file work than on practical aspects of the business. They are slow to
changes and have a snobish attitude towards subordinates. The bureaucrats are not
professionally trained managers and are oftenly transterred on different jobs. The main cause
of failure of public sector in India is due to bad management of these units. In some sectors
government is now trying to put professionally trained persons too.
E Professional Management
The profile of a professional manager is totally different from that of the traditional
manager. He has professional qualifications like M.B.A. or Post-Graduate Diploma in
Management or such required education. They pass through the rigorous process of interviews
and tests and then get placements.
After the advent of liberation, beginning from 1991, the managerial trend is changing.
Government has opened many areas for private sector and the entry of multinationals has
been allowed as a matter of policy. The private sector is facing stiff competition from foreign