DEFINITIONS OF MANAGEMENT :
1.“Management is the process of designing and maintaining an environment in which individuals , working together in groups , efficiently accomplish selected aims.”
--By Harold Koontz and Heinz Weihrich
2. "Management is a multi-purpose organ that manages business and manages managers and manages workers and work.”
--By Peter Drucker
3. “ Management is defined as the process of planning , organizing , actuating and controlling an organizations operations in order to achieve coordination of the human and material resources essential in t he effective and efficient attainment of objectives.”
--By Robert L. Trewelly and M. Gene Newport
Thus management is said to be profession since it satisfies some criteria of being an PROFESSION .
TOP LEVEL ROLE -
LOWER LEVEL ROLE -
1. Assigning of jobs and tasks to various workers and staff .
2. Guiding and instructing workers for day to day activities.
3. They are responsible for the quality as well as quantity of production.
4.Communicating workers problems, suggestions, and re commendatory appeals etc to the higher level and higher level goals and objectives to the workers.
5. They help to solve the grievances of the workers.
6. Supervising & guiding the sub-ordinates.
7 .They are responsible for providing training to the workers.
8. They arrange necessary materials, machines, tools etc for getting the things done.
Management also encourages innovation in the organisation. Innovation
brings new ideas, new technology, new methods, new products, new
services, etc. This makes the organisation more competitive and
efficient.
4. CREATES A DYNAMIC ORGANISATION :
It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.
5. INCREASES EFFICIENCY :
Efficiency is the relationship between returns and cost. Management uses many techniques to increase returns and to reduce costs. Higher efficiency brings many benefits to the organisation.
6. ENCOURAGES TEAMWORK :
Management encourages employees to work as a team. It develops a team spirit in the organisation. This unity bring success to the organisation.
NATURE OF MANAGEMENT :
The study of management has evolved over a period of time and has evolved as a dynamic subject . The nature of management can be described in 3 ways :
Management as an ART , SCIENCE AND PROFESSION .
Art requires practical and theory knowledge. It is very important to know practical application of theoretical principles in art.
A successful manager practice the art of management in day to day job. There is a lot of literature available on various management areas like finance , marketing , HR etc .
2. PERSONALIZED APPLICATION :
The art's basic knowledge varies from individual to individual .
Example - Two dancers , actors , musicians etc will differ in demonstrating their art .
There are various theories of management as propounded by management thinkers , which prescribe certain universal principles .
A good manager works through a combination of practice , creativity , imagination and innovation .
3. CREATIVITY :
Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination.
Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner.
4. PRACTICE :
Practice makes a man perfect. Every artist becomes more and more proficient through constant practice of its art .
Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing.
Thus management is said to be an art since it satisfies all the criteria of being an ART .
Thus management is said to be science since it satisfies all the criteria of being an SCIENCE .
Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure self discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn.
4.PROFESSIONAL ASSOCIATION :
Management as an ART , SCIENCE AND PROFESSION .
MANAGEMENT AS AN ART :
Art means skillful and personal application of existing knowledge & skill to get the desired
results.
An art may be defined as personalized application of general theoretical principles for achieving best possible results.
An art may be defined as personalized application of general theoretical principles for achieving best possible results.
Art has the
following FEATURES –(Also in management)
1. EXISTENCE OF THEORETICAL KNOWLEDGE :
Art requires practical and theory knowledge. It is very important to know practical application of theoretical principles in art.
Example : Literature of dancing , speaking , acting or music requires art .
A successful manager practice the art of management in day to day job. There is a lot of literature available on various management areas like finance , marketing , HR etc .
2. PERSONALIZED APPLICATION :
The art's basic knowledge varies from individual to individual .
Example - Two dancers , actors , musicians etc will differ in demonstrating their art .
There are various theories of management as propounded by management thinkers , which prescribe certain universal principles .
A good manager works through a combination of practice , creativity , imagination and innovation .
3. CREATIVITY :
Every artist has an element of creativity in line. That is why he aims at producing something that has never existed before which requires combination of intelligence & imagination.
Management is also creative in nature like any other art. It combines human and non-human resources in useful way so as to achieve desired results. It tries to produce sweet music by combining chords in an efficient manner.
4. PRACTICE :
Practice makes a man perfect. Every artist becomes more and more proficient through constant practice of its art .
Similarly managers learn through an art of trial and error initially but application of management principles over the years makes them perfect in the job of managing.
Thus management is said to be an art since it satisfies all the criteria of being an ART .
MANAGEMENT AS A SCIENCE :
Science is a systematised body of knowledge that explains certain general truths or the general operation of law.
Science has the following features : (Also in management )
1. UNIVERSAL VALIDITY :
Scientific principles represents basic truth about a particular field
of enquiry. These principles may be applied in all situations, at all
time & places.
Example - Law of gravitation can be applied
in all situations and countries irrespective of the time.
Management also contains some fundamental principles which can be
applied universally like the Fayols principles of management . Principle of Unity of Command i.e. one man,
one boss is applicable to all type of organization .
2. BASED ON EXPERIMENTATION :
Scientific principles are derived through scientific investigation
& researching i.e. they are based on logic and developed through repeated experiments .
Example: The principle that
earth goes round the sun has been scientifically proved.
Management principles are also evolved over a period of time based on scientific inquiry &
observation . They have been
developed through experiments & practical experiences of large number of managers.
Example: It is observed that fair remuneration to personal
helps in creating a satisfied work force.
3. SYSTEMATISED BODY OF KNOWLEDGE :
Science is a systematic body of knowledge . Its principles are based on cause and effect relationship .
Example : Phenomenon of apple falling from tree towrads ground is explained by the law of gravity .
Management also has a systematic knowledge .It has its own disciplines : Finance , Marketing , HR etc having its own theory and principles.
Thus management is said to be science since it satisfies all the criteria of being an SCIENCE .
MANAGEMENT AS A PROFESSION :
A profession is a vocation founded upon specialized educational training,
the purpose of which is to supply objective counsel and service to
others, for a direct and definite compensation, wholly apart from
expectation of other business or the general operation of law.
Example : Doctors , Lawyers, Charted Accountant (CA) .
Profession has the following features : (Also in management )
1.WELL DEFINED BODY OF KNOWLEDGE :
A profession is a systematic body of knowledge that can be used
for development of professionals. Every professional must make
deliberate efforts to acquire expertise in the principles and
techniques.
Similarly a manager must have devotion and involvement to
acquire expertise in the management.
2.RESTRICTED ENTRY :
The entry to a profession is restricted through an examination or a degree .There are number of institutes and universities to impart education &
training for a profession. No one can practice a profession without
going through a prescribed course.
Example : A CA
cannot audit the A/C’s unless he has acquired a degree or diploma for
the same .
There is no restriction on anyone being designated or appointed as manager in any enterprise . Its not necessary to possess educational qualification like MBA to be a manager.
Therefore , the second criteria of management to be called profession is not met strictly .
3.ETHICAL CODE OF CONDUCT :
Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure self discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn.
Example : Doctors take the oath of ethical practice at the time of entry to the profession .
Management also has its own code of conduct that may vary from company to company .
The AIMA has prescribed a code of conduct for managers but it
has no right to take legal action against any manager who violates it.
All professions are affiliated to a professional association which regulates entry , grants certificate of practice and formulates and enforces the code of conduct .
Example : To be able to practice law in India lawyers have to become members of the Bar Council .
Management also has several associations like AIMA ( All India management Association ) .
5.SERVICE MOTIVE :
The basic motive of profession is to serve their clients and society by rendering their beneficial services. Their actions are
influenced by social norms and values.
Similarly a manager is
responsible not only to its owners but also to the society and therefore
he is expected to provide quality goods at reasonable prices to the
society.
Thus management is said to be profession since it satisfies some criteria of being an PROFESSION .
LEVELS OF MANAGEMENT :
1. Top management lays down the objectives and broad policies of the enterprise.
2. They issue necessary instructions for preparation of department budgets, procedures, schedules etc.
3. It prepares strategic plans & policies for the enterprise.
4. It appoints the executive for middle level i.e. departmental managers.
5. It controls & coordinates the activities of all the departments.
6. They are also responsible for maintaining a contact with the outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the shareholders for the performance of the enterprise.
2. They issue necessary instructions for preparation of department budgets, procedures, schedules etc.
3. It prepares strategic plans & policies for the enterprise.
4. It appoints the executive for middle level i.e. departmental managers.
5. It controls & coordinates the activities of all the departments.
6. They are also responsible for maintaining a contact with the outside world.
7. It provides guidance and direction.
8. The top management is also responsible towards the shareholders for the performance of the enterprise.
MIDDLE LEVEL ROLE -
1. They execute the plans of the organization in accordance with the policies and directives of the top management.
2. They make plans for the sub-units of the organization.
2. They make plans for the sub-units of the organization.
3. They participate in employment & training of lower level management.
4. They interpret and explain policies from top level management to lower level.
5. They are responsible for coordinating the activities within the division or department.
6. It also sends important reports and other important data to top level management.
7. They evaluate performance of junior managers.
8. They are also responsible for inspiring lower level managers towards better performance.
4. They interpret and explain policies from top level management to lower level.
5. They are responsible for coordinating the activities within the division or department.
6. It also sends important reports and other important data to top level management.
7. They evaluate performance of junior managers.
8. They are also responsible for inspiring lower level managers towards better performance.
1. Assigning of jobs and tasks to various workers and staff .
2. Guiding and instructing workers for day to day activities.
3. They are responsible for the quality as well as quantity of production.
4.Communicating workers problems, suggestions, and re commendatory appeals etc to the higher level and higher level goals and objectives to the workers.
5. They help to solve the grievances of the workers.
6. Supervising & guiding the sub-ordinates.
7 .They are responsible for providing training to the workers.
8. They arrange necessary materials, machines, tools etc for getting the things done.
CHARACTERISTICS OF MANAGEMENT :
(1) MANAGEMENT IS GOAL ORIENTED:
Each organistion has different goals . A manager on the
basis of his knowledge and experience tries to achieve the goals which
are already decided.
Example : Goal to increase sales , Goal to attract new customers.
(2) MANAGEMENT IS ALL-PERVASIVE:
Anything minus management is nothing or zero.
Pervasive means present everywhere : all types of activities-business and non-business.
It means management is necessary to conduct any type of activities.
Hence, it is pervasive or universal.
(3) MANAGEMENT IS MULTIDIMENSIONAL:
The management is a three-dimensional activity:
(i) Management of Work:
Every organisation is established for doing some work, like a school
provides education, a hospital treats patients, a factory produces, etc.
Of these, no work can be completed satisfactorily without management .
(ii) Management of People:
Each organisation is managed and
conducted by people. Hence, it is necessary to manage the people so that
the work can be accomplished in a better way.
(iii) Management of Operations:
To achieve the goals of an organisation many operations or activities
need to be conducted, such as, production, sale, purchase, finance,
accounting, R&D, etc. Management is needed to make sure that
operations are accomplished efficiently and effectively.
(4) MANAGEMENT IS A CONTINUOUS PROCESS:
The various managerial activities cannot be performed once for all,
but it is a continuous process. A manager is busy sometimes in doing one
managerial activity and at other times some other activity.
(5) MANAGEMENT IS A GROUP ACTIVITY:
It means that (|T-2 it is not a single person who consummates all the
activities of an organisation but it is always a group of persons
(managers). Hence, management is a group effort.
(6) MANAGEMENT IS A DYNAMIC FUNCTION:
Management is a dynamic activity as it has to adjust itself to the
regularly changing environment. Nothing is eternal in management.
(7) MANAGEMENT IS AN INTANGIBLE FORCE:
Management is that power which cannot be seen. It can only be felt.
If any organisation is heading towards higher levels of achievement, it
signifies the existence of good management and vice versa. In other
words, achievement reflects the quality of management and its
effectiveness.
(ii) Profit:
OBJECTIVES OF MANAGEMENT :
(1) ORGANISATIONAL OBJECTIVES:
It refers to the objectives for the whole organisation. While fixing
these objectives, management keeps into consideration the benefit of all
the related parties (like owner, employee, customer, government, etc.).
This also fulfills organisational economic objectives which are
survival, profit and growth.
(i) Survival:
Every business wants to survive for long. So, management by taking
positive decisions with regard to different business activities should
ensure that business survives for long.
(ii) Profit:
Profit plays an important role in facing business hazards and
successful running of business activities. So, it must be ensured by the
management that adequate profit is earned by the business.
(iii) Growth:
Every business wants to grow. Management must ensure growth of
business. Growth can be measured by sales, number of employees,
products, capital investment, etc. If all these show an increasing trend
then it can be concluded that business is heading towards growth.
(2) SOCIAL OBJECTIVES:
It refers to the consideration of the interest of the society during
managerial activities. An organisation is established in a society. It
runs through the resources made available by the society.
That is why it becomes the responsibility of every organisation to account for social benefits.
Thus, social objectives are defined as the fulfillment of
responsibility of an organisation towards society. Under this objective
the manager promises to assure health, safety and price control.
Main social objectives of management are included in the following list:
(i) To make available employment opportunities.
(ii) To save environment from getting polluted.
(iii) To contribute in improving living standard.
For example:
Asian Paints has provided funds under its community development
programme, which has made possible the effective utilisation of local
resources by the farmers.
In the same manner, Steel Authority of India regularly provides
services related to agriculture, industry, education, health, etc. to
the people living nearby its steel plants.
(3) PERSONAL OR INDIVIDUAL OBJECTIVES:
It refers to the objectives to be determined with respect to the
employees of the organisation. The employees happen to be prudent and
sensitive resource for the company.
It is, therefore, highly imperative to take care of the feelings of
the employees. It is an undoubted fact that the satisfaction of the
employees means rapid progress for the company.
This fact of tremendous importance should never be lost sight of.
Main objectives of management towards employees are as follows:
(i) To give deserving remuneration.
(ii) To provide good working environment.
(iii) To provide a share in profit.
IMPORTANCE OF MANAGEMENT :
1. HELPS IN ACHIEVING GROUP GOALS :
It arranges the factors of production, assembles and organizes the
resources, integrates the resources in effective manner to achieve
goals. It directs group efforts towards achievement of pre-determined
goals. By defining objective of organization clearly there would be no
wastage of time, money and effort. Management converts disorganized
resources of men, machines, money etc. into useful enterprise. These
resources are coordinated, directed and controlled in such a manner that
enterprise work towards attainment of goals.
2. HELPS IN DEVELOPMENT OF SOCIETY :
Efficient management leads to better economical production which helps
in turn to increase the welfare of people. Good management makes a
difficult task easier by avoiding wastage of scarce resource. It
improves standard of living. It increases the profit which is beneficial
to business and society will get maximum output at minimum cost by
creating employment opportunities which generate income in hands.
Organization comes with new products and researches beneficial for
society.
3. ENCOURAGES INNOVATION:
4. CREATES A DYNAMIC ORGANISATION :
It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.
5. INCREASES EFFICIENCY :
Efficiency is the relationship between returns and cost. Management uses many techniques to increase returns and to reduce costs. Higher efficiency brings many benefits to the organisation.
6. ENCOURAGES TEAMWORK :
Management encourages employees to work as a team. It develops a team spirit in the organisation. This unity bring success to the organisation.
The significance of management in the modern business world has increased tremendously due to the following challenges :
(i) Growing size and complexity of business.
(ii) Increasing specialization of work,
(iii) Cut throat competition in the market,
(iv) Growing unionization of labor.
(v) Sophisticated and capital intensive technology . 