Nature and Scope of Management

Meaning of Management

Management is the process of getting work done through and with people to achieve organizational goals efficiently and effectively.

Simple Example

A restaurant manager plans the menu, assigns duties, motivates staff, and checks service quality. This is management.

Functions of Management

Planning – Decide what to do.
Organizing – Arrange resources.
Staffing – Hire people.
Directing – Lead and motivate.
Controlling – Check performance.

Levels of Management

Level	Examples	Work
Top	CEO, Director	Strategic decisions
Middle	Department Manager	Implement plans
Lower	Supervisor	Day-to-day operations

Management as Art, Science & Profession

Art: Requires skills and experience.

Example: A salesperson convincing customers.

Science: Uses principles and theories.

Example: Planning based on data.

Profession: Requires specialized knowledge and ethics.

Example: MBA-trained managers.

Management as Art, Science & Profession

Art: Requires skills and experience.

Example: A salesperson convincing customers.

Science: Uses principles and theories.

Example: Planning based on data.

Profession: Requires specialized knowledge and ethics.

Example: MBA-trained managers.

Scope of Management

Marketing
Finance
HR
Operations
Production
Administration

Thinkers

Henri Fayol

Father of Administrative Management.

Proposed:

5 Functions of Management
14 Principles of Management

Peter Drucker

Father of Modern Management.

Known for:

Management by Objectives (MBO)
Focus on results and innovation

2. Schools of Management Thought

Classical School

Scientific Management (F.W. Taylor)

Father of Scientific Management.

Focus:

Increase productivity
One best way of doing work

Example:
A factory studies worker movements to reduce wasted effort.

Administrative Theory (Henri Fayol)

Focus:

Managing the entire organization
14 Principles of Management

Bureaucratic Theory (Max Weber)

Focus:

Rules
Formal structure
Clear hierarchy

Example:
Government offices.

Neo-Classical School

Human Relations Approach

Focus:

Employees are social beings.
Motivation improves performance.

Hawthorne Studies (Elton Mayo)

Finding:
Workers perform better when they feel important and valued.

Example:
Employees work harder when managers appreciate them.

Modern School

Systems Approach

Organization is an interconnected system.

Example:
Poor production affects sales and customer satisfaction.

Contingency Approach

“No one best way.”

Management style depends on the situation.

Example:
A crisis may require autocratic leadership.

Quantitative Approach

Uses mathematics and statistics.

Example:
Demand forecasting using data analysis.

3. Planning Function

Meaning

Planning means deciding in advance what to do, how to do it, when to do it, and who will do it.

Example

A YouTube creator planning content for the next month.

Importance

Reduces uncertainty
Improves efficiency
Helps achieve goals

Characteristics

Future-oriented
Goal-oriented
Continuous process

Types of Plans

Objectives

Targets to achieve.

Example:
Increase sales by 20%.

Policies

Guidelines for decisions.

Example:
Customer-first policy.

Procedures

Step-by-step methods.

Example:
Customer complaint process.

Rules

Specific instructions.

Example:
No smoking in office.

Programmes

Combination of activities.

Example:
New product launch plan.

Budgets

Financial plans.

Example:
Marketing budget ₹50,000.

Planning Process

Set objectives
Analyze environment
Develop alternatives
Evaluate alternatives
Select best option
Implement
Review results

Strategic Planning

Long-term planning by top management.

Operational Planning

Short-term daily planning.

4. Environmental Scanning

Meaning

Studying internal and external factors affecting business.

Internal Environment

Inside factors:

Employees
Finance
Resources

External Environment

Outside factors:

Customers
Competitors
Government

PESTLE Analysis

P – Political
E – Economic
S – Social
T – Technological
L – Legal
E – Environmental

SWOT Analysis

S – Strengths
W – Weaknesses
O – Opportunities
T – Threats

Importance

Identifies opportunities
Detects threats
Supports planning

5. Coordination

Meaning

Integrating activities of different departments to achieve common goals.

Example

Marketing, Production and Finance working together during a product launch.

Why Coordination is the Essence of Management?

Because all management functions require coordination.

Planning + Organizing + Staffing + Directing + Controlling = Effective only through coordination.

Mary Parker Follett’s Principles

Direct Contact
Early Coordination
Reciprocal Relationships
Continuous Process

6. Organizing & Organizational Structure

Meaning

Arranging resources and assigning duties.

Steps

Identify activities
Group activities
Assign responsibilities
Delegate authority

Delegation

Giving authority to subordinates.

Centralization vs Decentralization

Centralization
Decision-making at top level.

Decentralization
Decision-making shared with lower levels.

Structures

Functional Structure

Departments based on functions.

Example:
HR, Finance, Marketing.

Divisional Structure

Departments based on products.

Matrix Structure

Employees report to two managers.

Project Structure

Temporary teams for projects.

Network Structure

Outsourcing many activities.

7. Decision Making

Meaning

Choosing the best alternative.

Importance

Every managerial activity involves decisions.

Process

Identify problem
Gather information
Generate alternatives
Evaluate alternatives
Choose option
Implement
Review

Programmed Decisions

Routine decisions.

Example:
Reordering inventory.

Non-Programmed Decisions

Unique decisions.

Example:
Opening a new branch.

Rational Decision Model

Logical and systematic approach to decision-making.

8. Staffing

Meaning

Ensuring the right person is in the right job.

Components

Manpower Planning

Estimate future workforce needs.

Recruitment

Attract candidates.

Selection

Choose best candidate.

Training

Improve skills.

Performance Appraisal

Evaluate employee performance.

9. Direction

Meaning

Guiding employees towards organizational goals.

Elements

Supervision
Leadership
Motivation
Communication

Principles

Unity of command
Effective communication
Motivation

10. Motivation Theories

Maslow’s Need Hierarchy

Physiological Needs (Food)
Safety Needs (Job security)
Social Needs (Friendship)
Esteem Needs (Recognition)
Self-Actualization (Personal growth)

Easy Memory

Food → Safety → Friends → Respect → Growth