“Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.” Harold Koontz and Heinz Weihrich

“Management is defined as t he process of planning, organising, actuating and controlling an organisation’s operations in order to achieve coordination of the human and material resources essential in the effective and efficient attainment of objectives.” Robert L. Trewelly and M. Gene

Newport “Management is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.” Kreitner

Certain terms make up the definition of management-

1. Process
2. Effectively
3. Efficiently

Process

Management is the art of getting things done through people. In a broader sense, it is the process of planning, organising, leading and controlling the efforts of organisation members and of using all other organisational resources to achieve stated organisational goals.

Effectiveness & Efficiency

Management is always aimed at achieving organizational goals and purposes. The success of management is measured by the extent to which the desired objectives are attained. In both economic and non-economic enterprises, the tasks of management are directed towards effectiveness (i.e., attainment of organisational goals), and efficiency (is., goal attainment with economy of resource use).

Characteristics of Management

1. Management is a goal-oriented process :

Management is always aimed at achieving organisational goals and purposes. The success of management  is measured by the extent to which the desired objectives are attained

2. Management is all pervasive:

Management is required at all level and in every organization.

3. Management is multi-dimensional:

Management is 3-D in nature

• a) Management of work:

Management translates the work of the entity in terms of goals to be achieved and assigns the means to achieve it. So, it divides the entire working into plans, budgets & assigns responsibilities.

• b) Management of people:

Dealing with people means dealing with them both as individuals for their personal needs and as a group as well.

• c) Management of operations:

Management of operations means in disintegrating the goal in regular working.This is interlinked with both the management of work and the management of people.

4. Management is a continuous process:

Management is a dynamic and an on-going process. The cycle of management continues to operate so long as there is organised action for the achievement of group goals.

5.Management is a group activity:

Management is a dynamic function: Environment is never static. Management has to keep on evolving to survive.

6. Management is an intangible force:

Management is intangible. It is an unseen force. Its presence can be felt everywhere by the results of its effort which comes in the form of orderliness, adequate work output, satisfactory, working climate, employees satisfaction, etc

Objectives of Management

Objectives can be classified into organisational objectives, social objectives and personal or individual objectives.

Organisational Objectives

The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business. These are survival, profit and growth.

Survival: In order to survive, an organisation must earn enough revenues to cover costs.

Profit: Mere survival is not enough for business. Management has to ensure that the organisation makes a profit.

Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow.

 Social objectives: It involves the creation of benefit for society. As a part of society, every organisation whether it is business or non-business, has a social obligation to fulfill.

- Personal objectives: These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs such as personal growth and development. Management has to reconcile personal goals with organisational objectives for harmony in the organisation.

 

Importance of Management-

i) Management helps in achieving group goals

The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organization

ii) Management increases efficiency:

The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.

(iii) Management creates a dynamic organisation:

Management helps people adapt to these changes so that the organisation is able to maintain its competitive edge.

(iv) Management helps in achieving personal objectives:

Through motivation and leadership the management helps individuals to develop team spirit, cooperation and commitment to group success.

(v) Management helps in the development of society:

It helps to provide good quality products and services, creates employment opportu nities, adopts new techno-logy for the greater good of the people and leads the path towards growth and development.

Management is derived from a Greek term called “NOMOS”. It basically a process of getting the work done through others.

Management as an art

The basic features of an art areas follows:

(i) Existence of theoretical knowledge:

Art presupposes the existence of certain theoretical knowledge. Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art. For example, literature on dancing, public speaking, acting or music is widely recognised.

(ii) Personalised application:

The use of this basic knowledge varies from individual to individual. Art, therefore, is a very person alised concept. For example, two dancers, two speakers, two actors,or two writers will always differ in demonstrating their art.

(iii) Based on practice and creativity:

All art is practical. Art involves the creative practice of existing theoretical knowledge. Every one knows that all music is based on seven basic notes. However, what makes the composition of a musician unique or different is his use of these notes in a creative manner that is entirely his own interpretation.

Management is an art as it has the following common characteristics

i) There is existence of theoretical knowledge

There is a lot of literature available in various areas of management like marketing, finance and human resources which the manager has to specialise in.

(ii) Personalised application:

A manager applies this acquired knowledge in a personalised and skillful manner in the light

of the realities of a given situation.

(iii) Based on practice and creativity:

A good manager works through a combination of practice, creativity, imagination, initiative and innovation.

Management as a science-

A science explains phenomena, events and situations as well as establishes cause and effect relationship between two or more variables. The basic features of science are as follows:

(i) Systematised body of knowledge:

Science is a systematic bodyof knowledge. Its principles are based on a cause and effect relationship.

(ii) Principles based on experimentation:

Scientific principles arefirst developed through observation and then tested through repeated experimentation under controlled conditions.

(iii) Universal validity:

Scientific principles have universal validity and application.

Common Characteristics-

(i) Systematised body of knowledge:

Management has a systematised body of knowledge. It has its own theory and principles that have developed over a period of time, but it also draws on

other disciplines such as Economics, Sociology, Psychology and Mathematics.

ii) Inexact science.

Management deals with human beings and human behaviour, the outcomes of these experiments are not capable of being accurately predicted or replicated. Therefore, management can be called an inexact science. Despite these limitations, management scholars have been able to identify general principles of management.

(iii) Principles based on experimentation:

Since the principles of management are not as exact as the principles of science, their application and use is not universal. They have to be modified according to a given situation. However, they provide managers with certain standardised techniques that can be used in different situations.

Management as a profession

Louis Allen defined profession as "a specialised kind of work practiced through and by use of classified knowledge, a common vocabulary, and requiring standards of practice and code of ethics established by a recognised body."

A profession has the following characteristics:

(i) Well-defined body of knowledge:

All professions are based on a well-defined body of knowledge that can be acquired through instruction.

(ii) Restricted entry:

The entry to a profession is restricted through an examination or through acquiring an educational degree.

(iii) Professional association:

All professions are affiliated to a professional association which regulates entry, grants certificate of practice and formulates and enforces a code of conduct. To be able to practice in India lawyers have to become members of the Bar Council which regulates and controls their activities.

(iv) Ethical code of conduct:

All professions are bound by a code of conduct which guides the behaviour of its members. All doctors, for example, take the oath of ethical practice at the time they enter the profession.

(v) Service motive:

The basic motive of a profession is to serve their client’s interests by rendering dedicated and committed service. The task of a lawyer is to ensure that his client gets justice.

Management does not meet the exact criteria of a profession. However, it does have some of the features of a profession:

(i) Well-defined body of knowledge:

It is based on a systematic body of knowledge comprising well-defined principles based on a variety of business situations. The subject of management is taught at different institutions. Some of these have been set up with the specific purpose of providing management education such as the Indian Institutes of Management (IIMs) in India.  Entry to different institutes is usually through an examination.

(ii) Unrestricted entry:

There is no restriction on anyone being designated or appointed as manager in any business enterprise. Anyone can be called a manager irrespective of the educational qualifications possessed.

(iii) Ethical code of conduct

There are several associations of practising managers in India, like the AIMA (All India Management Association) that has laid down a code of conduct to regulate the activities of their members. There is, however,  no compulsion for managers to be members of such an association nor does it have any statutory backing.

 (iv)Profit motive

 The basic purpose of management is to help the organisation achieve its stated goal. This may be profit maximisation for a business enterprise and service for a hospital. However, profit maximisation as the objective of management does not hold true and is fast changing. Therefore, if an organisation has a good management team that is efficient and effective it automatically serves society by providing good quality products at reasonable prices.

Levels of Management-

Every individual in the hierarchy is responsible for successful completion of a particular task. To be able to fulfill that responsibility he is assigned a certain amount of authority or the right to take a decision. This authority-responsibility relationship binds individuals as superiors and subordinates and gives rise to different levels in an organisation. Generally speaking there are three levels in the hierarchy of an organisation.

 

Top Management:

They consist of the senior-most executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. Top management is a team consisting of managers from different functional levels, heading finance, marketing etc. For example chief finance officer, vice president (marketing). Their basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation. These top level managers are responsible for the welfare and survival of the organisation. They analyse the business environment and its implications for the survival of the firm. They formulate overall organisational goals and strategies for their achievement. They are responsible for all the activities of the business and for its impact on society. The job of the top manager is complex and stressful, demanding long hours and commitment to the organisation.

Middle Management:

 It is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time they are responsible for all the activities of first line managers. Their main task is to carry out the plans formulated by the top managers. For this they need to:

- -(i) interpret the policies framed by top management,

--(ii) ensure that their department has the necessary personnel,

--(iii) assign necessary duties and responsibilities to them

-- (iv) motivate them to achieve desired objectives, and

--(v) cooperate with other departments for smooth functioning of the organisation. At the same time they are responsible for all the activities of first line managers.

 Supervisory or Operational Management:

 Foremen and supervisors comprise the lower level in the hierarchy of the organisation. Supervisors directly oversee the efforts of the workforce. Their authority and responsibility is limited according to the plans drawn by the top management. Supervisory management plays a very important role in the organisation since they interact with the actual work force and pass on instructions of the middle management to the workers. Through their efforts quality of output is maintained, wastage of materials is minimised and safety standards are maintained. The quality of workmanship and the quantity of output depends on the hard work, discipline and loyalty of the workers.

 

 

Functions of Management

Management as a Process –

Management is described as the process of planning, organising, directing and controlling the efforts of organisational members and of using organisational resources to achieve specific goals.

1 - Planning

 Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way of achieving them efficiently and effectively. Planning cannot prevent problems, but it can predict them and prepare contingency plans to deal with them if and when they occur.

2 - Organising

Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan. Once a specific plan has been established for the accomplishment of an organisational goal, the organising function examines the activities and resources required to implement the plan. It determines what activities and resources are required. It decides who will do a particular task, where it will be done, and when it will be done. Organising involves the grouping of the required tasks into manageable departments or work units and the establishment of authority and reporting relationships within the organisational hierarchy.

3 - Staffing

Staffing simply stated, is finding the right people for the right job. A very important aspect of management is to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation. This is also known as the human resource function and it involves activities such as recruitment, selection, placement and training of personnel.

4 - Directing

Directing involves leading, influencing and motivating employees to perform the tasks assigned to them. This requires establishing an atmosphere that encourages employees to do their best. Motivation and leadership are two key components of direction. Directing also involves communicating effectively as well as supervising employees at work. Motivating workers means simply creating an environment that makes them want to work. Leadership is influencing others to do what the leader wants them to do. A good manager directs through praise and criticism in such a way that it brings out the best in the employee.

5 - Controlling

Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. The task of controlling involves establishing standards of performance, measuring current performance, comparing this with established standards and taking corrective action where any deviation is found.

Coordination-

Coordination is the force that binds all the other functions of management. It is the common thread that runs through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the organisation. 

   Coordination is sometimes considered a separate function of management

It is however, the essence of management, for achieving harmony among individual efforts towards the accomplishment of group goals.

Coordination is implicit and inherent in all functions of an organisation.

Coordination therefore involves synchronisation of the different actions or efforts of the various units of an organisation. This provides the requisite amount, quality, timing and sequence of efforts which ensures that planned objectives are achieved with a minimum of conflict

Characteristics of coordination-

The definitions given above highlight the following features of coordination:

(i) Coordination integrates group efforts:

 Coordination unifies unrelated or diverse interests into purposeful work activity. It gives a common focus to group effort to ensure that performance is as it was planned and scheduled.

(ii) Coordination ensures unity of action:

The purpose of coordination is to secure unity of action in the realisation of a common purpose. It acts as the binding force between departments and ensures that all action is aimed at achieving

the goals of the organisation.

(iii) Coordination is a continuous process:

Coordination is not a one-time function but a continuous process. It begins at the planning stage and continues till controlling.

(iv) Coordination is an all pervasive function:

Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.

(v) Coordination is the responsibility  of  all managers:

 Coordination is the function of every manager in the organisation. Top level managers need to coordinate with their subordinates to ensure that the overall policies for the organisation are duly carried out. Middle level management coordinates with both the top level and first line managers. Operational level management coordinates the activities of its workers to ensure that work proceeds according to plans.

(vi) Coordination is a deliberate function: .

A manager has to coordinate the efforts of different people in a conscious and deliberate manner. Even where members of a department willingly cooperate and work, coordination gives a direction to that willing spirit.

Coordination, therefore, is not a separate function of management, but its very essence.

Importance of coordination-

(i) Growth in size:

As organisations grow in size, the number of people employed by the organisation also increases. At times, it may become difficult to integrate their efforts and activities. All individuals differ in  their habits of work, background, approaches to situations and relationships with others. It becomes necessary to ensure that all individuals work towards the common goals of the organisation. But employees may have their own individual goals also. Therefore, for organisational efficiency, it is important to harmonise individual goals and organisational goals through coordination.

(ii) Functional differentiation:

Functions of an organisation are divided into departments, divisions

The and sections. In an organisation there may be separate departments of finance, production, marketing or human resources. All these departments may have their own objectives, policies and their own style of working.

The activity of each department needs to be focused on attainment of common organisational goals. The process of linking the activities of various departments is accomplished by coordination.

 (iii) Specialisation:

 Modern organisations are characterised by a high degree of specialisation. Specialisation arises out of the complexities of modern technology and the diversity of tasks to be performed. Organisations, therefore, need to employ a number of specialists. Specialists usually think that they only are qualified to evaluate, judge and decide according to their professional criteria