MEVE 012: Unit 01 - Fundamentals of Management
UNIT 1: FUNDAMENTALS OF MANAGEMENT
1.0 Introduction
Management is an essential component
of every organized activity, whether in business, government, or non-profit
organizations. It involves coordinating human, financial, and material
resources to achieve specific goals efficiently and effectively. As
organizations have grown in complexity, management has evolved as a distinct
and vital discipline to ensure stability, productivity, and continuous
improvement.
1.1 Objectives
After studying this unit, you will be
able to:
- Understand the meaning,
definition, and evolution of management.
- Describe the importance and
nature of management.
- Explain the scope, levels, and
functions of management.
- Differentiate between management,
leadership, and administration.
- Appreciate the role of ethics and
modern challenges in management.
1.2 Meaning of
Management
Management is the process of planning,
organizing, directing, and controlling resources (human, financial, and
material) to achieve organizational goals efficiently and effectively. It
ensures that resources are used judiciously and work is directed towards a
common purpose.
1.3 Definition
and Evolution of Management
Definition:
According to Harold Koontz, "Management is the art of getting things done
through and with people in formally organized groups."
Evolution of Management:
Management has evolved over time through the following schools of thought:
- Classical Approach: Scientific
management (Frederick Taylor), Administrative theory (Henri Fayol)
- Behavioral Approach: Emphasis
on human relations (Elton Mayo)
- Quantitative Approach:
Decision-making and mathematical models
- Modern Approaches: Systems
theory, contingency theory, and Total Quality Management (TQM)
1.4 Importance of
Management
- Enhances efficiency and
productivity
- Helps in achieving organizational
goals
- Facilitates optimum utilization
of resources
- Promotes innovation and
adaptability
- Builds team spirit and leadership
1.5 Nature of
Management
Management is:
- Goal-oriented: Focuses on
achieving organizational objectives.
- Universal: Applicable
to all types of organizations.
- Multidimensional: Involves
work, people, and operations.
- Intangible: It is a
process, not a physical product.
- Dynamic: Adapts to
changes in the environment.
1.6 Scope of
Management
The scope of management is vast and
includes:
- Production Management
- Marketing Management
- Financial Management
- Human Resource Management
- Strategic Management
- Information Management
1.7 Levels of
Management
- Top-level Management:
Policy-makers and strategists (e.g., CEO, Board of Directors)
- Middle-level Management: Bridge
between top and lower levels (e.g., department heads, branch managers)
- Lower-level Management: Directs
day-to-day operations (e.g., supervisors, team leaders)
1.8 Functions of
Management
According to Henri Fayol and other
thinkers, key management functions include:
- Planning: Setting
goals and deciding how to achieve them.
- Organizing: Arranging
tasks, people, and resources.
- Staffing: Recruiting
and developing employees.
- Directing: Guiding
and motivating employees.
- Controlling: Monitoring
performance and making adjustments.
1.9 Distinctions
of Management
1.9.1 Management
vs Administration
|
Basis |
Management |
Administration |
|
Meaning |
Execution of policies |
Formulation of policies |
|
Focus |
Efficiency and results |
Planning and decision-making |
|
Level |
Middle and lower |
Top-level |
1.9.2 Management
vs Leadership
|
Basis |
Management |
Leadership |
|
Role |
Organizes and coordinates |
Inspires and influences |
|
Focus |
Structure and systems |
Vision and people |
|
Approach |
Reactive |
Proactive |
1.10 Ethics in
Management
Ethics refers to the moral principles
that govern a manager’s behavior and decision-making.
1.10.1 Types of
Managerial Ethics
- Personal Ethics: Individual
values and morality
- Corporate Ethics: Code of
conduct within organizations
- Professional Ethics: Standards
specific to the managerial role
- Social Ethics:
Responsibility towards society and environment
1.11
Transformation of Management
Modern management is transforming due
to:
- Globalization and international
competition
- Technology and digital
transformation
- Sustainability and
environmental responsibility
- Diversity and inclusion in the
workplace
- Remote work and flexibility in
organizational design
1.12 Challenges
of Management
Managers face multiple contemporary
challenges, including:
- Rapid technological change
- Increasing competition
- Workforce diversity
- Ethical dilemmas
- Managing change and innovation
- Crisis management and risk
mitigation
1.13 Let Us Sum
Up
Management is a multidimensional, goal-oriented,
and dynamic process essential to any organized activity. Understanding its
nature, scope, levels, functions, and ethical underpinnings equips future
managers to face contemporary challenges and lead their organizations towards
success.
1.14 Keywords
• Management:
The process of planning, organizing, directing, and controlling resources to
achieve organizational goals.
• Administration: The formulation of policies and setting of goals in an
organization.
• Leadership: The ability to influence, inspire, and guide individuals
or groups.
• Planning: A management function that involves setting objectives and
determining how to achieve them.
• Organizing: Arranging tasks, people, and other resources to accomplish
the work.
• Controlling: Monitoring and evaluating the progress towards
objectives.
• Ethics: Moral principles guiding management decisions and behavior.
• Levels of Management: The hierarchy in an organization, including top,
middle, and lower levels.
• Managerial Functions: Core activities such as planning, organizing,
staffing, directing, and controlling.
• Scope of Management: Areas of management application like finance, HR,
marketing, and production.
• Transformational Leadership: A leadership style that motivates and
inspires change and innovation.
• Corporate Governance: The system of rules, practices, and processes by
which a company is directed and controlled.
• Change Management: A structured approach to transitioning individuals,
teams, and organizations to a desired future state.
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