Pom Unit 1 PDF
Pom Unit 1 PDF
Pom Unit 1 PDF
Unit I: Introduction
Modern Concept of Management ............................................................................................3
Trends in Management.............................................................................................................3
The a classical theory. ............................................................................................................... 4
2. The neoclassical theory ......................................................................................................... 4
3. Modern organizations theory ................................................................................................. 4
Trends in Management
Trends in Management means movement of management thought in particular direction.
Management thought developed gradually, from past to present and passed through various
distinct phases.
1. The classical theory.
It mainly consists of 3 theories
o Bureaucratic theory.
o Scientific management theory
o Administrative theory.
Concerned with production of efficiency and productivity through the one best way
Scientific method should be used to define the best way. There should be standardization.
Importance of Management
1) Acquisition and utilization of resources
Management performs efficient acquisition effective development and utilization and proper
coordination of resources.
2) Environmental adaptation.
3) Goal achievement
5) Performance control.
6) Social responsibility
Function of Management
1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling
1. Planning
Planning is setting goals and deciding how best to achieve them planning is predetermining
future. Planning is deciding in advance about what to do how to do it when to do it and who
is to do it.
2. Organizing: Organizing is establishing structure. It includes grouping tasks, producing
authority – responsibility structures creating channel of communication and creating
coordinating mechanism.
3. Staffing: Staffing is hiring and assigning people to carry out tasks. It is filling and keeping
filled positions in the organization structure. It is human resource management.
4. Leading is influencing, communicating and motivating people to perform tasks for goal
achievement.
5. Controlling is maintaining, comparing and correcting organizational performance toward
goal achievement
2. Technology: The new economy will base on digital revolution. The development in
information technology will provide greater access to management. Management will need to
manage changing technology effectively.
3. Quality: Quality assurance is getting important.
4. Social responsibility: Management will pursue long term goals that are good for society.
6. Human resource management: Management needs to deal with diversified work force,
requires visionary leadership on the part of management.
7. Organization design: Organization will be lean flat and less hierarchical
8. Cultural sensitivity: Cultural value will change cross cultural influences. Organizations
are emerging as cultural systems.
9. Change management Manager will face the challenge of managing change. They will
need to aware specific changes and their likely impact on the practice of management.
10. Learning organization: Management needs to create learning environment. Organization
of future will be predominantly knowledge based.
Scope of Management
The field of management is very wide. The operational areas of business management may be
classified into the following categories:
Production Management
Production management implies planning, organising, directing and controlling the
production function so as to produce the right goods, in right quantity, at the right time and at
the right cost. It includes the following activities:
Marketing management refers to the identification of consumer’s needs and supplying them
the goods and services which can satisfy these wants. It involves the following activities:
(a) Marketing research to determine the needs and expectation of consumers
(b) Planning and developing suitable products
(e) Promotional activities like advertising and salesmanship to communicate with the
customers.
(a) Estimating the volume of funds required for both long-term and short-term needs of
business
(b) Selecting the appropriate source of funds
(d) Ensuring proper utilisation and allocation of raised funds so as to maintain safety and
liquidity of funds and the creditworthiness and profitability of business, and
Thus, financial management involves the planning, organising and controlling of the financial
resources.
Nature of management
Continuous Process: Management is a never ending process. It will remain the part of
organization till the organization itself exists. Management is an unending process as past
decisions always carry their impact for the future course of action.
Levels of Management
Every business organisation, irrespective of its size, has many managerial positions in its
structure. These positions are created through the process of delegation of authority from top
to lower levels. Each position is marked by authority, responsibility, functions, roles and
relationships. The contents and nature vary, depending in the level at which the position lies.
As one moves upward in the organisation, the managerial position plays an important role,
larger the contribution, greater the authority and higher the responsibility. These managerial
positions lying in the chain of command may be classified into various groups or levels of
management. Broadly speaking, an organisation has two important levels of management,
namely functional and operative. The functional level is concerned with the process of
determining primary objectives, formulating basic policies, making vital decisions and
controlling and coordinating activities of personnel. The operative level of management is
related to implementation of plans and decisions, and pursuit of basic policies for achieving
the objectives of the organisation.
But, in a joint stock company, for conducting its business efficiently, managerial personnel
may be placed in three levels, that is, top, middle and lower or supervisory level.
(i) To make a corporate plan for the entire organisation covering all areas of operations.
(ii) To decide upon the matters which are vital for the survival, profitability and growth of the
organisation such as introduction of new product, shifting to new technology and opening
new plant etc.
(v) To exercise overall managerial control through the process of reviewing over all financial
and operating results.
(x) To formulate basic policies and providing direction and leadership to the organisation as a
whole.
(i) To prepare departmental plan covering all activities of the department within the basic
framework of the corporate plan.
(ii) To establish departmental goals and to decide upon various ways and means for achieving
these goals to contribute to organisational goals.
(iii) To perform all other managerial functions with regard to departmental activities for
securing smooth functioning of the entire department.
(iv) To issue detailed orders and instructions to lower level managers and coordinate the
activities of various work units at lower level.
(v) Middle level managers explain and interpret policy decisions made at the top level to
lower level managers.
(iv) Maintaining close personal contacts with workers to ensure discipline and team-work
c) Administrative Management
4) Maximum output
4) Standardisation
7) Specialisation
Bureaucratic Management
• Max Web (1864-1920)
inconsistencies Characteristics
1) Division of work
2) Hierarchy of position
4) Impersonal conduct
5) Staffing
6) Technical competence
7) Official records
Administrative Management
• Henri Fayol (1841-1925) Father of modern management
Neo—classical theory
1. Human Relations
• Elton Mayo- Founder of Human Relations.
• He conducted on experiment on Hawtrone plant of western electric company and
concluded thatproduction efficiency of workers depends uponemotional factors.
• Happy & satisfied employees trying to increase production.
1) Organisation is basically a social system and not just techno economical system.