Definition of Management
Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way.
—F.W. Taylor
Management is guiding human and physical resources into dynamic organizational units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering service.
—American Management Association
Characteristics of Management
(i) Management is goal-oriented:
Management is not an end in itself. It is a means to achieve certain goals. Management has no justification to exist without goals. Management goals are called group goals or organizational goals. The basic goal of management is to ensure efficiency and economy in the utilization of human, physical and financial resources. The success of management is measured by the extent to which the established goals one achieved. Thus, management is purposeful.
(ii) Management is universal:
Management is an essential element of every organized activity irrespective of the size or type of activity. Wherever two or more persons are engaged in working for a common goal, management is necessary. All types of organizations,
e.g., family, club, university, government, army, cricket team or business, require management. Thus, management is a pervasive activity. The fundamental principles of management are applicable in all areas of organized effort. Managers at all levels perform the same basic functions.
e.g., family, club, university, government, army, cricket team or business, require management. Thus, management is a pervasive activity. The fundamental principles of management are applicable in all areas of organized effort. Managers at all levels perform the same basic functions.
(iii) Management is an Integrative Force:
The essence of management lies in the coordination of individual efforts into a team. Management reconciles individual goals with organizational goals. As unifying force, management creates a whole that is more than the sum of individual parts. It integrates human and other resources.
(iv) Management is a Social Process:
Management is done by people, through people, and for people. It is a social process because it is concerned with interpersonal relations. The human factor is the most important element in management. According to Appley, “Management is the development of people not the direction of things. A good manager is a leader, not a boss. It is the pervasiveness of human element which gives management its special character as a social process”.
(v) Management is multidisciplinary:
Management has to deal with human behavior under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology, etc. The vast body of knowledge in management draws heavily upon other fields of study.
(vi) Management is a continuous Process:
Management is a dynamic and on-going process. The cycle of management continues to operate so long as there is organized action for the achievement of group goals.
(vii) Management is Intangible / (invisible force):
Management is an unseen or invisible force. It cannot be seen but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible.
(viii) Management is an Art as well as Science:
Management knowledge exhibits characteristics of both art and science, the two not mutually exclusive but supplementary. Every discipline of art is always backed by science which is basic knowledge of that art. Similarly, every discipline of science is complete only when it is used in practice for solving various kinds of problems faced by human beings in an organization or in other fields of social life which is more related to art. Art basically deals with an application of knowledge personal skill and know-how in a specific situation for efficiently achieving a given objective. It is concerned with the best way of doing things and is consequently, personalized in nature.
IMPORTANCE OF MANAGEMENT
(i) Achievement of group goals:
A human group consists of several persons, each specializing in doing a part of the total task. Each person may be working efficiently, but the group as a whole cannot realize its objectives unless there are mutual cooperation and coordination among the members of the group. Management creates team-work and coordination in the group. He reconciles the objectives of the group with those of its members so that each one of them is motivated to make his best contribution towards the accomplishment of group goals. Managers provide inspiring leadership to keep the members of the group working hard.
(ii) Optimum utilization of resources:
Managers forecast the need for materials, machinery, money, and manpower. They ensure that the organization has adequate resources and at the same time does not have idle resources. They create and maintain an environment conducive to the highest productivity. Managers make sure that workers know their jobs well and use the most efficient methods of work. They provide training and guidance to employees so that they can make the best use of the available resources.
(iii) Minimization of cost:
In the modern era of cut-throat competition, no business can succeed unless it is able to supply the required goods and services at the lowest possible cost per unit. Management directs day-to-day operations in such a manner that all wastage and extravagance are avoided. By reducing costs and improving efficiency, managers enable an enterprise to be competent to face competitors and earn profits.
(iv) Survival and growth:
The modern business operates in a rapidly changing environment. An enterprise has to adapt itself to the changing demands of the market and society.
Management keeps in touch with the existing business environment and draws its predictions about the trends in the future. It takes steps in advance to meet the challenges of changing the environment. Changes in the business environment create risks as well as opportunities. Managers enable the enterprise to minimize the risks and maximize the benefits of opportunities. In this way, managers facilitate the continuity and prosperity of business.
Management keeps in touch with the existing business environment and draws its predictions about the trends in the future. It takes steps in advance to meet the challenges of changing the environment. Changes in the business environment create risks as well as opportunities. Managers enable the enterprise to minimize the risks and maximize the benefits of opportunities. In this way, managers facilitate the continuity and prosperity of business.
(v) Generation of employment:
By setting up and expanding business enterprises, managers create jobs for the people. People earn their livelihood by working in these organizations. Managers also create such an environment that people working in an enterprise can get job satisfaction and happiness. In this way, managers help to satisfy the economic and social needs of the employees.
(vi) Development of the nation:
Efficient management is equally important at the national level. Management is the most crucial factor in economic and social development.
The development of a country largely depends on the quality of the management of its resources. Capital investment and import of technical know-how cannot lead to economic growth unless wealth-producing resources are managed efficiently. By producing wealth, management increases the national income and the living standards of people. That is why management is regarded as a key to the economic growth of a country.
The development of a country largely depends on the quality of the management of its resources. Capital investment and import of technical know-how cannot lead to economic growth unless wealth-producing resources are managed efficiently. By producing wealth, management increases the national income and the living standards of people. That is why management is regarded as a key to the economic growth of a country.
NATURE OF MANAGEMENT
To understand the basic nature of management, it must be analyzed in terms of art and science, in relation to administration, and as a profession, in terms of managerial skills and style of managers.
Management is a Combination of Art and Science:Management knowledge exhibits characteristics of both art and science, the two not mutually exclusive but supplementary. Every discipline of art is always backed by science which is basic knowledge of that art. Similarly, every discipline of science is complete only when it is used in practice for solving various kinds of problems faced by human beings in an organization or in other fields of social life which is more related to art. Art basically deals with an application of knowledge personal skill and know-how in a specific situation for efficiently achieving a given objective. It is concerned with the best way of doing things and is consequently, personalized in nature.
MANAGEMENT AS A SCIENCE
Science means a systematic body of knowledge pertaining to a specific field of study. It contains general principles and facts which explains a phenomenon. These principles establish a cause-and-effect relationship between two or more factors. These principles and theories help to explain past events and may be used to predict the outcome of actions. Scientific methods of observations and experiments are used to develop the principles of science.
Thus, the essential features of science are as follows:
(i) Basic facts or general principles capable of universal application
(ii) Developed through scientific inquiry or experiments
(iii) Establish cause and effect relationships between various factors.
(iv) Their Validity can be verified and they serve as a reliable guide for predicting future events
MANAGEMENT AS A PROFESSION
A profession is calling that requires specialized knowledge and often, long intensive academic preparation. The essential features of the profession are as follows:
(i) A well-defined body of knowledge
(ii) Restricted entry
(iii) Service motive
(iv) Code of Conduct
(v) Representative professional association
SKILLS OF MANAGEMENT
In modern business, job management has become very difficult. Several skills are required to manage successfully a large organization in a dynamic environment. These skills of managers have been classified into four categories, namely technical, human, diagnostic and conceptual skills.
(I) TECHNICAL SKILLS
Technical skills refer to the ability and knowledge in using the equipment, technique, and procedures involved in performing specific tasks. These skills require specialized knowledge and proficiency in the mechanics of a particular job. Ability in programming and operating computers is, for instance, a technical skill. There are two things a manager should understand about technical skills. In the first place, he must know which skills should be employed in his particular enterprise and be familiar enough with their potentiality to ask discerning questions of his technical advisors. Secondly, a manager must understand both the role of each skill employed and interrelations between the skills.
(II) HUMAN SKILLS
Human skills consist of the ability to work effectively with other people both as individuals and as members of a group. These are required to win the cooperation of others and to build effective work teams. Such skills require a sense of feeling for others and the capacity to look at things from others point of view. Human skills are reflected in the way a manager perceives his superiors, subordinates, and peers. An awareness of the importance of human skills should be part of a managers orientation and such skills should be developed throughout the career. While technical skills involve mastery of ‘things’ human skills are concerned with the understanding of ‘People’.
(III) CONCEPTUAL SKILLS
Conceptual skills comprise the ability to see the whole organization and the interrelationships between its parts. These skills refer to the ability to visualize the entire picture or to consider a situation in its totality. Such skills help the manager to conceptualize the environment, to analyze the forces working in a situation and take a broad and far-sighted view of the organization. Conceptual skills also include the competence to understand a problem in all its aspects and to use original thinking in solving the problem. Such competence is necessary for rational decision-making.
FUNCTIONS OF MANAGEMENT
PLANNING
It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals.
According to KOONTZ, “Planning is deciding in advance – what to do when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem-solving & decision making. Planning is the determination of courses of action to achieve desired goals. Thus, planning is systematic thinking about ways & means for the accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.
ORGANIZING
It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for the achievement of organizational goals.
According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a business involves determining & providing human and non-human resources to the organizational structure. Organizing as a process involves:
Identification of activities.
Classification of a grouping of activities.
Assignment of duties.
A delegation of authority and creation of responsibility.
Identification of activities.
Classification of a grouping of activities.
Assignment of duties.
A delegation of authority and creation of responsibility.
STAFFING
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in recent years due to the advancement of technology, increase in size of business, the complexity of human behavior etc. The main purpose o staffing is to put the right man on the right job i.e. square pegs in square holes and round pegs in round holes.
According to Kootz & O’Donnell, “Managerial function of staffing involves manning the organization structure through the proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:
Manpower planning(estimating manpower in terms of searching, choose the person
and giving the right place).
Recruitment, Selection & Placement.
Training & Development
Remuneration
Performance Appraisal
Training & Development
Remuneration
Performance Appraisal
According to Kootz & O’Donnell, “Managerial function of staffing involves manning the organization structure through the proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure”. Staffing involves:
Manpower planning(estimating manpower in terms of searching, choose the person
and giving the right place).
Recruitment, Selection & Placement.
Training & Development
Remuneration
Performance Appraisal
Training & Development
Remuneration
Performance Appraisal
DIRECTING
It is that part of the managerial function which actuates the organizational methods to work efficiently for the achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because of planning, organizing and
staffing is the mere preparations for doing the work. The direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating subordinate for the achievement of organizational goals. The direction has the following elements:
Supervision
Motivation
Leadership
Communication
staffing is the mere preparations for doing the work. The direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating subordinate for the achievement of organizational goals. The direction has the following elements:
Supervision
Motivation
Leadership
Communication
COORDINATING
Coordinating function of the management consists of inter-relating the various parts of the work as well as the work of different departments. It involves coordinating the various job roles and responsibilities of the employees so that they have a good relationship with the co-employees while delivering the output. It also consists of developing a relationship with stakeholders and the environment under which the organization operates.
CONTROLLING
It implies the measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of control is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”.
According to Koontz & O’Donnell “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”. Therefore controlling has the following steps:
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.
a. Establishment of standard performance.
b. Measurement of actual performance.
c. Comparison of actual performance with the standards and finding out deviation if any.
d. Corrective action.
THEORIES OF MANAGEMENT
SCIENTIFIC THEORY OF MANAGEMENT
The Scientific Management Theory is well known for its application of engineering science at the production floor or the operating levels. The major contributor of this theory is Fredrick Winslow Taylor, and that’s why the scientific management is often called as “Taylorism”.
ADMINISTRATIVE THEORY OF MANAGEMENT
BUREAUCRATIC THEORY OF MANAGEMENT
MERITS AND DEMERITS OF ALL THE THEORIES….?
What is Scientific Management?
A theory which focuses on worker-task efficiency in a workforce with little or no education during the Industrial Revolution. (Frederick Taylor: Taylorism)
What are 3 advantages of Scientific Management?
1. Increased efficiency of production
2. Introduction of rules/standard operating procedures
3. Improved worker performance- selecting workers with skills/abilities that match the task
2. Introduction of rules/standard operating procedures
3. Improved worker performance- selecting workers with skills/abilities that match the task
What are 3 disadvantages of Scientific Management?
1. Increased performance = more work for the same pay
2. Increased performance = fewer positions created
3. Repetitive and monotonous tasks- employee dissatisfaction
2. Increased performance = fewer positions created
3. Repetitive and monotonous tasks- employee dissatisfaction
What is Administrative (Bureaucracy) Management?
A theory which focuses on the role of a manager and the structure of organizations. (Henri Fayol)
What are 3 advantages of Administrative (Bureaucracy) Management?
1. Role of manager defined- clear direction
2. Increased efficiency of organizational structures
3. Increased effectiveness of administration
2. Increased efficiency of organizational structures
3. Increased effectiveness of administration
What are 3 disadvantages of Administrative (Bureaucracy) Management?
1. Difficult to translate into organizations- general/not very specific
2. Managers able to interpret their role in various ways- minimal consideration for employees’ feelings
3. Ideal employee commits an entire life to an organisation- difficult to achieve
2. Managers able to interpret their role in various ways- minimal consideration for employees’ feelings
3. Ideal employee commits an entire life to an organisation- difficult to achieve
What is Behavioural (Human Relations) Management?
A theory which focuses on worker productivity and motivation, their attitudes towards managers and recognition of their contributions.
What are 3 advantages of Behavioural (Human Relations) Management?
1. Worker recognition/appreciation
2. Consideration of employees’ well-being
3. Building a relationship between workers and managers
2. Consideration of employees’ well-being
3. Building a relationship between workers and managers
What are 3 disadvantages of Behavioural (Human Relations) Management?
1. Oversimplified human behavior- one way works for all
2. Difficult to predict workplace behavior
3. Strategies based on predicted behavior vs. observed behavior that is Management Science?A theory which focuses on quantitative techniques and four approaches to measurement.
2. Difficult to predict workplace behavior
3. Strategies based on predicted behavior vs. observed behavior that is Management Science?A theory which focuses on quantitative techniques and four approaches to measurement.
WHAT IS RED TAPE?
Red tape often refers to tiresome rules and regulations that in many instances will include long queues, a series of unnecessary paperwork, long procedures, and legal requirements with heavy obligations. Although no one is against rules, red tape is often not needed in the current business world because it slows down progress. In the past, it was the norm for many large businesses to have red tape because they wanted to minimize mistakes and losses. These firms used lengthy procedures so that employees could be extra careful when they executed their duties. Nowadays, businesses are trying to streamline procedures so that everything is fast and easy. Getting rid of red tape improves productivity, since workers are no longer frustrated by redundant tasks, and enables the firm to remain competitive.
