Important Concepts

Important Definitions: -

1. Management: Creating the internal environment of an enterprise where individuals working together in-groups can perform efficiently and effectively towards the attainment of group goals.
2. Planning: Planning is the process of determining in advance what is to be don, how it is to be done, where, when and by whom.
3. Organizing: It refers its identification of activities to be carried out, grouping similar activities and assigning them to different departments.
4. Staffing: It refers to steps necessary for the recruitment and selection of competent personal to fill various jobs in the enterprise.
5. Directing: It is the process of guiding the subordinate towards achieving the organizational goals.
6. Management principles: These are statements of fundamental truth, which provide guidelines for managerial decision making and action.
7. Delegation of authority: The process by which a manager shares some of his work and authority with his subordinates is known as delegation of authority.
8. Centralization: Centralization of authority means concentration of authority for decision making at higher or top levels of management.
9. Decentralization: It refers to systematic delegation of authority at all levels of management and in all departments of the organization.
10. Supervision: It means overseeing from above by a supervisor.
11. Motivation: It may be defined, as the process of stimulating people to action, to accomplish desired goals.
12. Leadership: It is the process of influencing the behavior and work of others in-group effort towards the realization of specified goals in a given situation.
13. Communication: It means an exchange of ideas, facts, opinions, information and undertaking between two or more person.

THINGS TO REMEMBER
1. Management is a process - because it includes a series of actions, which consist of setting objectives and taking steps to ensure that these objectives are achieved.
2. Management as an Activity - includes,
* Informational activities
* Decisional activities, and
* Interpersonal activities
3. Management as a group - refers to a class of people who together carry out various managerial activities.
4. Management as a Discipline - is recognized as a formal discipline having an organized body of knowledge, which can be learnt through instructions, and teaching.
5. Management - is regarded as a science because it deals with the behavior of human beings, which is subject to constant changes.
6. Management as an Art - refer to the application of the principles on the experience and skill of managers.

7. Levels of Management -
* Top level management
* Middle Level Management, and
* Supervisory level or operating management.
8. Fayol's Principles of management -
1. Division of labour
2. Parity of authority and responsibility
3. Discipline
4. Unity of command.
5. Unity of direction
6. Subordination of individual to general interest
7. Fair remuneration to employees.
8. Centralization and Decentralization
9. Scalar chain
10. Order
11. Equity
12. Stability of tenure of personnel
13. Initiative
14. Esprit de crops
9. Techniques of scientific management -
* Time study
* Motion study
* Standardization
* Functional foremanship
* Differential price rate plan, and
* Other techniques like issue of instructions cards, graphs, slide rules, etc.
10. Steps in planning
* Setting of objectives
* Establishing the planing premises
* Choice of alternatives
* Formulation of derivative plans
* Securing cooperation of employees
* Follow-up reviews
11. Taylor's principles of scientific management:
1. Development of a science for each element of a man's work.
2. Scientific selection, training & Development of workers.
3. Close cooperation between workers & management.
4. Division of responsible between managers & workmen.
5. Mental revolution
6. Maximum prosperity for employers & employees.

12. Type of administrative organizations -
1. Line organization
2. Line & staff organization, and
3. Functional Organization.
13. Process of staffing has the following steps -
1. Manpower Planning
2. Recruitment and selection
3. Placement
4. Training
5. Induction
14. Elements of Direction -
* Supervision,
* Motivation,
* Leadership, and
* Communication
15. Qualities of a good leader -
1. He should be objective in his outlook.
2. A leader should be intelligent enough to examine problems in the right perspective.
3. He must be able to communicate clearly, precisely and effectively.
4. He should have full Knowledge of the task handled by him.
5. He must be able to get along with people in a smooth & friendly manner.
6. He must have confidence in his ability.
7. He should have a sense of responsibility towards the accomplishment of goals.
16. There are two types of Communication
* Formal Communication
* Informal Communication
17. Channels of Communication
* Oral
* Written