The Nature of Management

Management “Management is an art of getting things done through

and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”. Of course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be launching of new products by conducting market surveys and for other it may be profit maximization by minimizing cost.

“Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way”.

Management is a continuous, lively and fast developing science. Management is needed to convert the disorganized resources of men, machines, materials and methods into a useful and effective enterprise. Management is a pipeline, the inputs are fed at the end and they are proceeded through management functions and ultimately we get the end results or outputs in the form of goods, services, productivity, information and satisfaction.

Management has been defined by different authors in a number of ways. A number of definitions advanced by various experts take a similar partial view of management.

• According to Koontz, "Management is the art of getting things done through and with people in formally organized groups.“

• According to Lawrence, "Management is the development of people “• According to Stanley, "Management is simply the process of decision

making and control over the actions of human being for the express purpose of attaining predetermined goals.

• According to Theo haimann, "Management is the function of getting things done through people and directing the efforts of individuals towards a common objective.“

• According to Brech, "Management is concerned with seeing that job gets done: it tasks all centre on planning and guiding the operations that are going on in the enterprise.

Taking these approaches into consideration, management may be defined as follows :

“Management is a social process of planning, organizing, staffing, directing, coordinating and controlling for the determination and achivement of organizational objectives in a dynamic enviroment.”

Management is a process as a managerial functions are performed in continuity with each other.

Management is a social process as it takes its inputs from and exports its outputs to society. It is a social process also because the most important element in any organization is the “people” and its non human resources are actuated through their actions and interactions.

Efficiency and EffectivenessIt is the responsibility of management to create such conditions which

are conducive to maximum efforts so that people are able to perform their task efficiently and effectively.

Efficiency - getting the most output from the least amount of inputs“doing things right”concerned with meansAchieving the objectives in time

Effectiveness - completing activities so that organizational goals are attained

“doing the right things” concerned with ends Achieving the objectives on time

Goals

LowWaste

HighAttainment

MeansEfficiency

EndsEffectiveness

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The Functions of Management

The management process comprises the following six fundamental functions:

1.Planning2.Organizing3.Staffing4.Directing5.Coordinating 6.Controlling

1. PlanningIt involves deciding in advance what to do, when to do it, where to do

it, how to do it and who is to do it and how the results are to be evaluated.

Planning is a process of seeking answer to some of the following particular questions:

(i) What is to be done? (ii) Why it is to be done? (iii) How the work will be done? (iv) Who will do the work? (v) When the work will be done? (vi) Where the work will be done?

Thus, planning is the systematic thinking about the ways and the means for the accomplishment of predetermined objectives. Planning involves:

a) Determination of long and short-range objectives.

b)Development of strategies and courses of action to be followed for the achievement of these objectives, and

c) Formulation of policies, procedures, and rules, etc.., for the implementation of strategies and plans.

2. OrganizingOrganization or organizing is an important managerial activity

by which managers bring together the manpower and material resources for the achievement of objectives of the enterprises. Organizing involves following sub-functions:

a) Identification of activities required for the achievement of objectives and implementations of plans.

b) Grouping of activities so as to create self-contained jobs.c) Assignment of jobs to employees.d) Delegation of authority so as to enable them to perform

their jobs and to command the resources needed for their performance

e) Establishment of a network of coordinating relationships.

3.StaffingThe next logical step in the management process is to procure

suitable personnel for manning the jobs. Since the efficiency of an organization significantly depends on the quality of its personnel. it comprises of several functions:

a) Manpower planning involving determination of the number and the kind of personnel required.

b) Recruitment for attracting suitable number of potential employees to seek jobs in the enterprise concerned

c) Selection of the most suitable persons for the job under consideration.

d) Placement , induction and orientation.

4. DirectingDirection and leadership is an important function of management. As

the process of management is concerned with getting work done through and with people, they require continuous encouragement to work effectively. According to Terry, "Directing means moving to action and supplying simulative power to group of persons. "So management guides and leads them continuously. It imparts instructions to them, communicates them orders, rules and decisions, motivates, provides leadership and guidance, supervises their work and behavior, inspires them towards improved performance. The function of directing thus involves the following sub functions:

a) Communicationb) Motivation c) Leadership

5. CoordinatingThe process of co-ordination involves synchronizing

individual actions with the goals of the enterprise. Today, organizations have grown in size and in character. A large number of people work there in. So co-ordination has become very necessary. In the words of koonty and O Donnell. "The best co-ordination occurs when individuals see how their jobs contribute to the dominant goals of the enterprise. It is thus the process of tying together all the organizational decisions, operations, activities and efforts so as to achieve unity of action for the accomplishment of organizational objectives.

6. ControllingThe next function of management is controlling. In the words of Henry

Fayol, "In an undertaking control consists in verifying whether every thing occurs in conformity with the plan adapted, the instructions issued and principles issued." Thus, the control is a measuring and corrective device. It measures performance against goals and plans. Where as planning guides the management in the timely use of resources to accomplish specific goals, the control ensures the effective planning.

Thus controlling involves following sub-functions:a) Measurement of performance against predetermined goalsb) Identification of deviation from these goalsc) Corrective action to rectify deviations.

Principles of ManagementFayol developed theory of management. According to him managerial excellence is a

technical ability and can be acquired. He developed theories and principles of management which are universally accepted and make him universalistic. He was pioneer of the formal education in management. Fayol's principles of management meet the requirements of modern management.

1. Authority and Responsibility are related Authority and responsibility go together or co-existing. Both authority and

responsibility are the two sides of a coin. In this way, if anybody is made responsible for any job, he should also have the concerned authority. Fayol's principle of management in this regard is that an efficient manager makes best possible use of his authority and does not escape from the responsibility. In other awards when the authority is exercised the responsibility is automatically generated.

2. Unity of Command A sub-ordinate should receive orders and be accountable to one and only one

boss at a time. He should not receive instructions from more than one person .

3. Unity of direction This means that all managerial activities which relate a distinct group with the same

objective should be directed by ‘one head one plan’. Acc. To fayol, there should be “one head one plan for a group of activities having the same objective.” It however does not mean that all decisions should be made at the top. It only means that all related activities should be directed by one person.

4. Scalar chain The chain of superiors and subordinates running throughout the organization from top to bottom. All those working in an organization are linked with each other in superior-subordinate relationships. Fayol says that, where necessary gangplanks should be thrown to prevent the scalar chain of command from blocking the smooth and efficient functioning of the organization.

5.Division of WorkAccording to Henry Fayol under division of work, "The worker always on the same post, the manager always concerned with the same matters, acquire an ability, sureness and accuracy which increases their output. Work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area.

6. Discipline Discipline means sincerity, obedience, respect of authority &

observance of rules and regulations of the enterprise. Subordinate should respect their superiors and obey their order. A well disciplined working force is essential for improving the quality and quantity of the production.

7. Subordination of individual interests to general interestsThe interest of the business enterprise ought to come before the interests of the individual workers. In other words, principle of management state that employees should surrender their personnel interest before the general interest of the enterprise

8. Fair Remuneration to employeesAccording to Fayol wage-rates and method of their payment should be fair, proper and satisfactory. differentials in remuneration should be based on job Differentials, in terms of qualities of employee, application, responsibility, working conditions and difficulty of the job.

9. Centralization and DecentralizationThere should be one central point in the organisation which exercises overall direction and control of all the parts. But the degree of centralization of authority should vary according to the needs of situation. According to Fayol there should be centralization in small units and proper decentralization in big organisation.

10. Order:According to Fayol there should be proper, systematic and orderly arrangement of physical and social factors, such as land, raw materials, tools and equipments and employees respectively. In other words right person on the right job and everything in its proper place.

11. EquityThe principle of equality should be followed and applicable at every level of management. There should not be any discrimination. The management should be kind, honest and impartial with the employees. In other words, kindness and justice should be exercised by management in dealing with their subordinates. This will create loyalty and devotion among the employees.

12. Stability of Tenure of personnelPrinciple of stability is linked with long tenure of personnel in the organization. Stability of job creates a sense of belongingness among workers who with this feeling are encouraged to improve the quality and quantity of work.

13. InitiativeUnder this principle, the successful management provides an opportunity to its employees to suggest their new ideas, experiences and more convenient methods of work. The employees, who has been working on the specific job since long discover now, better alternative approach and technique of work.

14. Spirit of Co-operation (Espirit de corps)In order to achieve the best possible results, individual and group effort are to be effectively integrated and coordinated.

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Levels of Management

Figure 1.3

Top Level of ManagementIt consists of board of directors, chief executive or managing director. It

devotes more time on planning and coordinating functionsThe role of the top management can be summarized as follows -• Top management lays down the objectives and broad policies of the

enterprise.• It issues necessary instructions for preparation of department budgets,

procedures, schedules etc.• It prepares strategic plans & policies for the enterprise.• It appoints the executive for middle level i.e. departmental managers.• It controls & coordinates the activities of all the departments.• It is also responsible for maintaining a contact with the outside world.• It provides guidance and direction.• The top management is also responsible towards the shareholders for the

performance of the enterprise.

Middle Level of Management

The branch managers and departmental managers constitute middle level. They devote more time to organizational and directional functions. Their role can be emphasized as –

• They execute the plans of the organization in accordance with the policies and directives of the top management.

• They make plans for the sub-units of the organization.• They participate in employment & training of lower level management.• They interpret and explain policies from top level to lower level.• They are responsible for coordinating the activities within the division or

department.• It also sends important reports and other important data to top level

management.• They evaluate performance of junior managers.• They are also responsible for inspiring lower level managers towards

better performance.

Lower Level of Management

Lower level is also known as operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. They are concerned with direction and controlling function of management.

• They guide and instruct workers for day to day activities.• They are responsible for the quality as well as quantity of production.• They communicate workers problems, suggestions, and recommendatory appeals

etc to the higher level and higher level goals and objectives to the workers.• They help to solve the grievances of the workers.• They are responsible for providing training to the workers.• They arrange necessary materials, machines, tools etc for getting the things done.• They prepare periodical reports about the performance of the workers.• They ensure discipline in the enterprise.• They motivate workers.• They are the image builders of the enterprise because they are in direct contact

with the workers.

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Relative Amount of Time That Managers Spend on the Four Managerial Functions

Figure 1.4