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PROCESS OF MANAGEMENT

DEFINITION:

Art of knowing what you want to do and then seeing that it is donethe best and cheapest way

. Art of getting things done through and with people.

5 Ms of Management

1. Money

2. Manpower

3. Materials

4. Machinery

5. Methods

The process of management begins with setting of goals, objectives andtargets.

Goals are long-term aims to be achieved by the organization objectives are relatively short-term milestones to be accomplished, Targets refer to physical achievements in the organizations business. Goals, objectives and targets should support each other and timely

else loss of business profit and image.

Difference between these entities is shown in the table below

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Business organization Hospital State transportorganization

GOAL

OBJECTIVES

TARGETS

Be a leader in thehousehold consumer goods industry, withmodern amenities

Provide completeproduct range in thearea of cleaning,preserving andentertainment

20 per cent growth per annum in turnover

Be a hospital providingtotal service to thepatients

Establish 300 bedhospital in three years

Achieve Rs.800 per bedper day earnings

Connect all villages of population 5000 andabove by S.T. service

Manage state transportat the rate of Rs.5 per kilometer traveled

Achieve 90 per centaverage seatoccupancy every day

It is a function of a top management. Goals, objectives and targets need to be fine turned to pull the

resources of the organization in one direction. Achievement of targets should help in accomplishing objectives and

accomplishment of objectives should lead to attainment of goals. They are the reference points for strategic planning, resource planning

and operations planning. Performance appraisal of the employees is done with reference to

achievement of goals, objectives and targets. It is on results and notonly personality.

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Functions of Top-Level Management

1. To provide a basic sense of direction to the activities of thecompany by setting its long range mission and translating intoclear set of objectives

2. To design the organization structure of the company in terms of differentiated and integrated activities, role of various positions,authority & responsibility between them.

3. Top management must ensure the quality of personnel in terms of their skills, orientations and commitment

4. To ensure that the resource conversion and exchange systemsare designed and operated efficiently.

5. Periodic review of objectives for necessary modifications is a partof this function

Levels of Management

Board of Directors

Managing Director

Executive Directors

Finance Manager Marketing Manager

Branch Manager

Sale Officers

Chief Accountant

Finance Officers

Personnel Manager

Labor Officers

TOPMANAGEMENT

MIDDLE MGT

LOWER MGT

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Functions of Middle-Level Management

1. To interpret and explain the plans and policies formulated by topmanagement

2. To monitor & control the operating performance3. To cooperate among themselves so as to integrate the various

activities of a department

4. To train, motivate and develop supervisory personnel;

5. To lay down rules & regulations to be followed by supervisorypersonnel.

Functions of Lower-Level Management

1. To interpret and explain the plans and policies formulated by topmanagement

2. To monitor & control the operating performance

3. To cooperate among themselves so as to integrate the variousactivities of a department

4. . To supervise & control workers operations and to maintainpersonal contact with them

5. To arrange materials and tools and to maintain machinery

6. To advise & assist workers by explaining work procedures,solving their problems etc.

7. To maintain discipline and good human relations among workers

8. To report feedback information and workers problems to thehigher authorities

Creating a Mission and Vision Statement

For any business to succeed, it must know what it is about. It must be able toclearly describe why it is there, and what it is there to achieve. Developing avision and mission statement is a way of articulating these ideas to yourself, your customers, your employees, and to the world at large.

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A Business Vision that Inspires!If you don't know where you are heading, then you can make any choice and goin any direction (including backwards). The value in knowing your finaldestination (your vision) is that you can choose to take the specific paths thatlead you there. Your action is intentional and keeps you pointed in the right

direction.

A Clear Mission that describes what you doFor any business to succeed, even a business consisting of one individual, it(he/she) needs to know what they're about - what, precisely, it is that they do.The mission statement describes the "what" of your business. It states why your organization is in business and what you are hoping to achieve.

A typical mission statement contains three components:

1. The overall purpose of your business - what are you trying to achieve, why are

you in business2. What your business does - products and services it provides

3. What's important to your business - the values your business lives by

Some examples:Pfizer Pharmaceutical's mission statement : "We dedicate ourselves tohumanity's quest for longer, healthier, happier lives through innovation inpharmaceutical, consumer and animal health products".

Purpose:quest for longer, healthier, happier lives

Business:pharmaceutical, consumer and animal health products

Values:innovation

Dell Computers statement - "With the power of direct and Dell's team of talented people, we are able to provide customers with superb value; high-quality, relevant technology; customized systems; superior service and support;and products and services that are easy to buy and use".

Purpose:provide customers with superb value technology

Business:high quality, relevant technology, customized systems

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Values:superior service and support, easy to buy, easy to use

A well-crafted mission and vision statement becomes the glue that binds the

various parts of the business together and drives behavior in your employees. Isit time you had a look at yours?

Whirlpool Vision Statement

Every Home Everywhere with Pride, Passion and Performance

Our vision reinforces that every home is our domain, every customer and customeractivity our opportunity. This vision fuels the passion that we have for ourcustomers, pushing us to provide innovative solutions to uniquely meet their needs.

Pride... in our work and each other

Passion... for creating unmatched customer loyalty for our brands

Performance... that excites and rewards global investors with superior returns

We bring this vision to life through the power of our unique global enterprise and

Vision Statements are difficult to write - they should short, clear, vivid, inspiring and

concise without using jargon, complicated words or concepts. Successful Statements arememorable and engaging. They should be powerful and compelling. A combination of both a company's mission and a company's vision of the future may be included in aMission Statement.

What is the difference between Mission Statements and VisionStatements?

A good definition for a Mission Statement is a sentence or short paragraph whichis written by a company or business which reflects its core purpose, identity,values and principle business aims. The definition for Vision Statements is asentence or short paragraph providing a broad, aspirational image of the future.A Vision is defined as 'An Image of the future we seek to create'. A Mission isdefined as 'Purpose, reason for being'. Defined simply "Who we are and what wedo".

Mission Statements therefore contain important information about acompany in a nutshell. This should include the the company mission

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( what the company does, its products, its services and its customers).These types of Statements focus on today.

Vision Statements therefore contain details of the company's future - itsvision ( the future plans with aims and objectives )These types of Statements focus on tomorrow. Read on to learn how to write VisionStatements.

An aim is where the business wants to go in the future, its goals. It is astatement of purpose, e.g. we want to grow the business into Europe.

Business objectives are the stated, measurable targets of how to achieve

business aims. For instance, we want to achieve sales of 10 million inEuropean markets in 2004.

Business Objectives

Objectives give the business a clearly defined target . Plans can then be madeto achieve these targets. This can motivate the employees. It also enables thebusiness to measure the progress towards to its stated aims.

The most effective business objectives meet the following criteria:

S Specific objectives are aimed at what the business does, e.g. a hotel mighthave an objective of filling 60% of its beds a night during October, an objectivespecific to that business.

M - Measurable the business can put a value to the objective, e.g. 10,000 insales in the next half year of trading.

A - Agreed by all those concerned in trying to achieve the objective.

R - Realistic the objective should be challenging, but it should also be able tobe achieved by the resources available.

T- Time specific they have a time limit of when the objective should beachieved, e.g. by the end of the year.

Examples

Survival a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis.

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Profit maximisation try to make the most profit possible most like to be theaim of the owners and shareholders.

Profit satisficing try to make enough profit to keep the owners comfortable probably the aim of smaller businesses whose owners do not want to work longer

hours.

Sales growth where the business tries to make as many sales as possible.This may be because the managers believe that the survival of the businessdepends on being large. Large businesses can also benefit from economies of scale.

A business may find that some of their objectives conflict with one and other:

Growth versus profit: for example, achieving higher sales in the short term (e.g.by cutting prices) will reduce short-term profit.

Short-term versus long-term: for example, a business may decide to accept lower cash flows in the short-term whilst it invests heavily in new products or plant andequipment.

Large investors in the Stock Exchange are often accused of looking too much atshort-term objectives and company performance rather than investing in abusiness for the long-term.

Management is creative problem solving. This creative problem solving isaccomplished through four functions of management: planning, organizing,

leading and controlling. The intended result is the use of an organization'sresources in a way that accomplishes its mission and objectives.

Organizing is divided into organizing and staffing so that the importance of staffing in small businesses receives emphasis along side organizing. In themanagement literature, directing and leading are used interchangeably