Principles of Business Management – Unit 1: Introduction to Management

Vocabulary flashcards cover key terms, definitions, objectives, characteristics, significance, scope, levels and foundational thinkers of management as presented in Unit 1.

Management

The process of planning, organizing, staffing, leading and controlling to create an environment in which people work together to achieve predefined goals.

Organizational Objectives

Goals related to profit, survival, and growth & expansion that management sets in the interest of owners, employees, customers and other stakeholders.

Social Objectives

Management aims that benefit society, such as employment generation, welfare programs and creation of economic value for different social groups.

Personal Objectives

Individual goals of employees—financial rewards, recognition, career growth—that management must integrate with organizational aims.

Profit (as an objective)

The primary motivational force for a business; covers costs and risks while ensuring success and future expansion.

Survival (as an objective)

The basic need of a business to generate sufficient revenue to continue operating.

Growth and Expansion

The objective of increasing scale through higher sales volume, capital investment or workforce once profit and survival are secured.

Production Management

Managerial area dealing with planning, organizing and controlling activities such as product design, layout, inventory, maintenance and R&D for goods production.

Marketing Management

Identification and satisfaction of customer needs through research, product planning, pricing, distribution, advertising and promotion.

Financial Management

Ensuring availability, allocation and control of funds to keep business operations running smoothly.

Personnel Management

Planning, acquiring, developing, compensating and controlling human resources, including recruitment, training, appraisal and welfare.

Strategic Management

Formulating and implementing long-term strategies to achieve superior performance and competitive advantage.

Goal Oriented (Characteristic)

Management always strives to achieve specific organizational goals through coordinated efforts.

Pervasive (Characteristic)

Applicable to all organizations—business, hospital, school, etc.—regardless of size or location.

Multidimensional (Characteristic)

Involves management of work, people and operations simultaneously.

Continuous Process (Characteristic)

A never-ending series of functions—planning, organizing, staffing, leading and controlling.

Dynamic (Characteristic)

Adapts to changes in the internal and external business environment.

Group Activity (Characteristic)

Requires coordination and cooperation among many people working together.

Intangible (Characteristic)

Cannot be seen but is felt through an organization’s efficiency and goal attainment.

Management of Work

Ensuring tasks and activities are completed to achieve goals (e.g., producing shirts in a factory).

Management of People

Handling individuals and groups, leveraging human behavior to utilize resources effectively.

Management of Operations

Supervising the production cycle from raw materials to finished goods.

Management as Science

Has a systematic body of knowledge and principles based on experimentation, though considered an inexact science because results vary with situations.

Management as Art

Personalized, creative application of knowledge and experience to achieve desired outcomes.

Management as Profession

Displays some but not all features of a profession; formal education helps but is not mandatory for entry.

Optimum Utilization of Resources

Significance point: management seeks to maximize output while minimizing waste and inefficiency.

Cost Minimization

Using suitable techniques to reduce operational expenses and increase profits.

Group Goal Achievement

Management provides leadership and motivation so teams meet shared objectives.

Adaptation to Change

Management alters structure and operations to fit shifting business conditions.

Sound Organizational Structure

A clear framework of authority and responsibility established by management to foster cooperation.

Levels of Management

The three hierarchical strata—top, middle and lower—that divide managerial authority and responsibility.

Top-Level Management

Senior executives who set overall objectives and possess ultimate authority.

Middle-Level Management

Managers who translate top management goals into departmental plans and supervise lower levels.

Lower-Level Management

Supervisors who oversee day-to-day work of operative employees.

Peter F. Drucker Definition

Described management as an ‘organ’ that can be understood only through its functions.

Henry Fayol Definition

Defined management as forecasting, planning, organizing, commanding, coordinating and controlling.

Koontz & Donnell Definition

Management is creating and maintaining an internal environment where people work efficiently toward group goals.

George Terry Definition

Management is a process of planning, organizing, actuating and controlling to accomplish objectives with people and resources.

Mary Parker Follett Definition

Called management the ‘art of getting things done through people.’

Corporate Social Responsibility (CSR)

Voluntary business practices that create social and environmental benefits alongside economic value.