MANAGEMENT

Management is a very popular term and has been used extensively for all types of activities and mainly for taking charge of different activities in any enterprise. Management involves both acquisition and application of knowledge.I. It does not go by rule of thumb or intuition alone even though it is considered to be an extension of common sense. Hence, management is a combination of both an art and a science. The scientific approach lies in decision-making, planning and in the appropriate use of technology. The artistic approach to management can be found in the tasks of communicating, leadership and goal-setting. t has been derived from the greek word - "NOMOS".A few commonly used definitions of management are given below:

• Managing is an art or process of getting things done through the efforts of other people.

 • Managing is the art of creation and maintenance of an internal environment in an enterprise where individuals, working together in groups, can perform efficiently and effectively towards the attainment of group goals.

 • Management is the process of setting and achieving goals through the execution of five basic management functions (i.e. Planning, Organising, Staffing, Directing and Controlling) that utilise human, financial and material resources.

• Management is a process or an activity that brings together several varied resources like persons, materials, techniques and technologies to accomplish a task or tasks.

 • Management, as a distinct field of study, is also the body of organised knowledge which underlies the art of management.

“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

Nature of Management-

It is used as a noun, a process, and a separate discipline.

NOUN -

Management as a Noun In general and popular usage, management refers to a distinct group of people who direct the activities of other people and material resources toward the attainment of predetermined goals.

• Management as a Noun-

Management as an economic resource :

The managerial resource, to a large extent, determines organisational effectiveness and efficiency. Hence in a dynamic environment managerial development is more important and its use must be more intensive.

Management as a system of authority :

Management is a system of authority in the sense that it consists of a team of managers who are responsible for making decisions and supervising the work of others. Managers at different levels possess varying degrees of authority

Management as a class or elite :

Access to managerial positions is based - on achievement criteria (i.e., on intellect and knowledge) rather than on ascriptive  criteria (i.e., on family and social origins).

Management as a Discipline

 Another connotation of management is that it is a separate discipline having a systematised body of knowledge which managers use in performing 'their jobs. As a separate field of study, management includes the principles and practice of general management as well as of the various 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.

MANAGEMENT AND ADMINISTRATION

Distinction based on nature of enterprises :

The term administration is preferred with respect to government enterprises pursuing social and political activities and whose primary objective is other than surplus generation.

Distinction based upon managerial levels

• American School of Thought

Administration is a broader concept than mangement . Management, on the other hand, is the force that leads, directs and guides the organisation in the accomplishment of predetermined objectives. Administration is a thinking function or a top level function involved in planning, setting objectives and policies.

• British School of Thought

management is a wider concept than administration. Management is the rule making and rule enforcing ,body. It performs top level functions of the organisation. Whereas administration handles the current problems which arises in carrying out the policies laid down by the management.

Reconciling the two Schools of Thought :

 In an attempt to solve the terminological problem, management is categorized as administrative management and operative management. Administrative management is top I management in-charge of planning function. Operative management is middle and lower level managements responsible for execution of the plans.

Classification of Management Theories 

 There are several schools of thought in management. Apart from the 'autocratic' or 'authoritarian' or pre-scientific era (i.e., earlier to 1880) of the early period, several schools of management thought are identified and classified in several ways by experts. It is interesting to note that while early writings on management principles came from experienced practitioners, the more recent writings tend to come from academic theorists, of whom have had no direct experience in organisational management.

 During the history of management a number of more or less separate schools of management thought have emerged, and each sees management from its own has classified the management theories into the following six groups:

1. The management process school
2.  The empirical school
3.  The human behavioural school
4. The social systems school
5. The decision theory school
6.  The mathematical school.

Emperical Approach:

Clear understanding of management theories can be developed by study & analysis of cases and comparative approach.  Application of effective technique in comparable situations can be attained through the study of success & failures and the endeavour of managers to solve specific problems.  This approach intend to make some generalizations from case study with a view to establishing theories as useful guides for futures course of action.

 Inter Personal Behaviour Approach:

 It is also termed as ‘Behavioural science’, ‘leadership’ or ‘human behaviour’ approach. It focuses on inter personal relations, personality dynamics, i.e human aspect of management. This Approach leans heavily on human aspect of management. This approach deals with His / her motivation as socio-psychological being.

 Group Behaviour Approach:

It  Focuses on studying the behavioural pattern of members & groups in an organisation. It is  closely related to interpersonal behaviour approach. The Objective is to indicate the ways of achieving effective organisational behaviour.

 Decision Theory Approach:

 It emphasizes on decision making being the core of management. It involves organisational groups decision making, or analysis of decision making process. It concentrates on rational decision makes. The attempts are made to cover the social and psychological aspects of decisions and decision makers.

 Mathematical Approach:

 Analysts believe that if planning, decision making and organising conform to logical processes then the same can be presented in mathematical symbols. It focuses on expressing and interpreting basic relationship of problems in terms of determined goals. It is Closely related to decision theory approach.  But unrelated in the sense that it emphasizes on intensive use of mathematics in management. Operation Researcher and analysts primarily belong to this group.

Operational Approach:

 Actual managing is real life situation. It recognizes that there is a central core of knowledge about managing which exists only in management. It  consolidates the vital thinking of all approach of management. This approach recognizes that the problems faced by executives & managers vary with nature, size & level of enterprise.  The various approaches to interpret the term management may at best be described as “window” as much as they emphasize a particular aspect of management.

Different schools of thought defined management differently due to three reasons :

 1) difference in perspectives of management and organisation theories,

2) shifts in emphasis in the study of the organisation from economic and technical aspects to conceptual and human aspects, and

3) focus on internal and external environments of the organisation.

Nature of Management-

1 .Management is a goal-oriented process:

An organisation has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organisations have different goals. For example, the goal of a retail store may be to increase sales, but the goal of The Spastics Society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organisation towards achieving these goals.

2.  Management is all pervasive:

The activities involved in managing an enterprise are common to all organisations whether economic, social or political. A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.

3.  Management is multidimensional:

Management is a complex activity that has three main dimensions. These are:

a) Management of work:

All organisations exist for the performance of some work. In a factory, a product is manufactured, in a garment store a customer’s need is satisfied and in a hospital a patient is treated. Management translates this work in terms of goals to be achieved and assigns the means to achieve it. This is done in terms of problems to be solved, decisions to be made, plans to be established, budgets to be prepared, responsibilities to be assigned and authority to be delegated.

b) Management of people:

Human resources or people are an organisation’s greatest asset. Despite all developments in technology “getting work done through people” is still a major task for the manager. Managing people has two dimensions

1. it implies dealing with employees as individuals with diverse needs and behavior;
2.  it also means dealing with individuals as a group of people. The task of management is to make people work towards achieving the organisation’s goals, by making their strengths effective and their weaknesses irrelevant.

c) Management of operations:

No matter what the organisation, it has some basic product or service to provide in order to survive. This requires a production process which entails the flow of input material and the technology for transforming this input into the desired output for consumption. This is interlinked with both the management of work and the management of people.

4.  Management is a continuous process:

The process of management is a series of continuous, composite, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all managers all the time

5. Management is a group activity:

An organisation is a collection of diverse individuals with different needs. Every member of the group has a different purpose for joining the organisation but as members of the organisation they work towards fulfilling the common organisational goal. This requires team work and coordination of individual effort in a common direction. At the same time mana gement should enable all its members to grow and develop as needs and opportunities change.

6. Management is a dynamic function:

Management is a dynamic function and has to adapt itself to the changing environment. An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.

7. Management is an intangible force:

Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation functions. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos.