Management Concepts and Applications/Management
Management means many things to many people . To a layman management means an impressive person occupying an air-condition chamber with an overstaked table and cushioned chair . Some people suggest management as commanding other . To many others, management is nothing more than clerical work and putting fancy signatures. But truly management is the process of planning, organising, staffing, directing, co-ordinating and controlling the activities of business enterprises. It is also described as the technique of leadership, decision making and a mean of co-ordinating
Definition[edit | edit source]
Meaning[edit | edit source]
As there is no universally accepted definition for management, it is difficult to define it.
But a simple traditional definition, defines it as the "art of getting things done by others". This definition brings in two elements namely accomplishment of objectives, and direction of group activities towards the goal. The weaknesses of this definition is that firstly it uses the word "art", whereas management is not merely an art, but it is both art and science. Secondly, the definition does not state the various functions of a manager clearly.
A more elaborate definition given by George R. Terry, defines management as a process "consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources." Firstly it considers management as a "process" i.e. a systematic way of doing things. Secondly it states four management activities: Planning, organizing, actuating, and controlling. Planning is thinking of an actions in advance. organizing is coordination of the human and material resources of an organization. Actuating is motivation and direction of subordinates. Controlling means the attempt to ensure no deviation from the norm or plan. Thirdly it states that manager uses people and other resources. For example a manager who wants to increase the sales, might try not only to increase the sales force, but also to increase advertising budget. And fourthly, it states that management involves the act of achieving the organization's objectives.
Definitions[edit | edit source]
A few definitions by experts are:
- "Management is an art of knowing what is to be done and seeing that it is done in the best possible manner." (planning and controlling)
- F.W. Taylor (father of scientific management)
- "Management is to forecast, to plan, to organize, to command, to coordinate and control activities of others."
- Henri Fayol (father of modern management)
- "Management is the process by which co-operative group directs actions towards common goals."
- Joseph Massie
- "Management is that process by which managers create, direct, maintain and operate purposive organisation through systematic, coordinated and cooperative human efforts."
- "Management is the coordination of all resources through the process of planning, organising, directing and controlling in order to attain stated goals."
- Henry Sisk
- "Management is a social and technical process that utilises resources, influences human action and facilitates changes in order to accomplish an organization's goals."
- Tho Harmann, William Scott
- "Management is a process of working with and through others to achieve organizational objectives in a changing environment, central to this purpose is the effective and efficient use of limited resources."
- Rovert Kreitner
- "Management is a responsible person's or group’s thinking processes and administrative processes directed at achieving the purpose, needs, aspirations and objectives of an organization, project or task through people."
- Universal Management System Standard MSS 1000 - CQI Integrated Management Special Interest Group
Process of Management[edit | edit source]
Management is a process which brings the scarce human and material resources together and motivates people for the achievement of objectives of the organization. Management is not a onetime act but an on-going series of interrelated activities. The sum total of these activities is known as management process. It consists of a set of interrelated operations or functions necessary to achieve desired organizational goals. A process is a systematic way of doing things. It is concerned with conversion of inputs into outputs. An analysis of management process will enable us to know the functions which managers perform.
- Goal oriented Process: The process of management comes with the purpose of achieving the organizational goals correctly and meaningfully. Hence, it is a goal oriented process.
- All Pervasive: Management is used by all departments of an organization and by all organizations, irrespective of size, nature and location. It is also practiced at each level of an organization.
- Multidimensional: Management covers all aspects of an organization ranging from work, people and operations. Different mechanisms and systems are set up for each aspect.
- Continuous Process: A series of functions are performed in organization by all its managers simultaneously. It keeps running in a cycle that repeats itself over and over again.
- Group Activity: Management is never done in solidarity. It is a group activity that involves participation of all the people of an organization, including the managers and the workers, for the desired achievement of objectives.
- Intangible Force: Management in its essence cannot be seen or touched, and hence is termed as intangible. But its effect can be felt and measured based on the results achieved by way of the organizational functions.
Management: Art or science?[edit | edit source]
Management involves characteristics of both art and science. While certain aspects of management make it a science, certain others which involve application of skills make it an art. Every discipline of art is always backed by science which is basic knowledge of that art. Similarly, every discipline of science is complete only when it is used in practice for solving various kind of problems. Whereas under "science" one normally learns the "why" of a phenomenon, under "art" one learns the "how" of it. In the words of Robert H. Hilkert: "In the area of management, science and art are two sides of the same coin".
In the beginning of development of management knowledge, it was considered as an art. There was a jungle of management knowledge. Any one used it to get things done in his own way. But later by codifying and systemizing the management, it became a science as well as being an art.
Management as an Art[edit | edit source]
Management can be an art in the sense that it has the following characteristics:
- Just like other arts it has to be practiced and performed. The knowledge should be learned and practiced, just as medical or legal practitioners practice their respective sciences.
- The manager gains experience by continual application of management knowledge and facing new experiences. This helps to develop more skills and abilities for translating knowledge into practice.
- Application calls for innovativeness and creativity.
- The fourth reason is that in many situations, theoretical knowledge of management may not be adequate or relevant for solving the problem. It may be because of complexity or unique nature of the problem.
The art is in knowing how to accomplish the desired results. This implies that there exists a body of knowledge which management uses to accomplish the desired results in organization
Management as a Science[edit | edit source]
Management as a science has the following characteristics:
- Its principles, generalizations and concepts are systematic. In this case the manager can manage the situation or organization in a systematic and scientific manner.
- Its principles, generalizations and concepts are formulated on the basis of observation, research, analysis and experimentation, as is the case with the principles of other sciences.
- Like other sciences, management principles are also based on relationship of cause and effect. It states that same cause under similar circumstance will produce same effect. Suppose if workers are paid more (cause), the produce more (effect).
- Management principles are codified and systematic, and can be transferred from one to another and can be taught.
- Management principles are universally applicable to all types of organizations.
there is no tailor - made answer to a question- Is management a science or art? To ascertain the nature of management with respect of science or art, there is a need to know the exact meaning of the words 'science' or 'art' and subsequently, their application to management.
Management: A profession?[edit | edit source]
The following criteria identifies the statues of a profession to management:
- Profession is a body of specialized knowledge.
- Professional knowledge in systemized and codified form can be learned through formal education system.
- A profession emphasizes on having a central body to formulate a code of behavior for its members.
- A profession calls for rendering competent and specialized services to clients.
- A profession maintains the scientific attitude and commitment for discovering new ideas and upgrading in order to improve quality of service and level of efficiency provided to clients.
- A profession requires members to exercise restraint and self-discipline.
Management knowledge meets the first two criteria because it has grown into a systematic body of knowledge and also it can be acquired and learned through the formal education.
There is no minimum qualification prescribed either for getting entry in the management profession or for becoming members of it. In practice, whosoever manages in known as manager, irrespective of qualifications. Peter Drucker in support of this view says that "no greater damage could be done to our economy or to our society than to attempt to professionalize management by licensing managers, for instance, or by limiting access to management to people with a special academic degree."
Regarding professional approach, a manager has to continuously strive for discovering new ideas, relationships and concepts and act in a dynamic and innovative manner to cope with the changing environment. Even so, managers are not respected as other professionals like doctors, advocates and chartered accountants.
Professional vs. Family Management[edit | edit source]
Professionalization of management[edit | edit source]
The following reasons are in a support of the professionalization of management:
- In joint stock company, ownership has been separated from its management and control. This situation has really contributed to the development of management as a profession.
- Rapid expansion and growth of management universities and institutions is an indicative of management professionalization trend.
- In a high-tech industrial society, manifold changes have occurred in the role of managers.
- In the context of globalization of economic operations, many strategic areas have been developed which require professional expertise and specialized knowledge (e.g. strategic planning, etc).
- Increased utilization of specialized management services (e.g. consultancy, human resource development, etc) requires a team of professional managers.
Family management[edit | edit source]
Family management implies management and control of business operations by a group of members belonging to a particular family, regardless of their knowledge about management. Thus the decisions and policies are largely influenced by family interest. Disputes and disagreements relating to family matters also tend to have a direct bearing on the functioning of the business organization. But in a professionally-managed enterprise, ownership is separated from management and control. Authority to manage and control business operations is delegated to professionally-qualified managers.
A study covering 30 nations around the world points out that 75% of all firms in the world are family firms. In some of which, family inheritance has been continuing for centuries. The phenomenal progress of Ford Motors, IBM, etc, bears testimony to their quality of leadership and management. In the words of K.K. Birla, "if people like Sir Jamshedji Tata or Rai Bahadur Gujarmal Modi were to start their business career again, I would any day put my rupee on them than on the best of the professionals."
Management and Administration[edit | edit source]
There has been a controversy regarding the interpretation of these two terms. There are different views in this regard:
According to first view (William Newman, Peter Drucker, etc), there is no basic difference between the two terms, and they are interchangeable. If there is any difference, it may perhaps be in their usage in practice. The term administration is used for non-business activities, and management is used for business activities.
According to second view (Kimball, Brech, other British writers, etc), management is a more comprehensive term which includes administration. Management involves "thinking" and administration involves "doing". Management is responsible for planning and organizing, and administration is responsible for directing and controlling. Whereas management refers to a high level of managerial activities such as goal-setting, policy formulation and strategy making, administration refers to an operative part concerned with lower level management activities such as execution of policies.
According to third view (Sheldon, Speriegal, Milward, etc), administration is a more comprehensive term which includes management. Administration involves "thinking" and management involves "doing". Administration is a top level function which concentrates on determination of plans, policies and objectives, whereas management is a lower level function which deals with the execution and direction of policies and operations. It doesn't mean that we need two separate sets of personnel, but each manager performs both the managerial as well as administrative functions. At top level more time is spent in administrative activity and as one moves down, more time is spent in management activity.
Difference between Administration and Management. 1. Management is the act or function of putting into practice the policies and plans decided upon by the administration. 2. Administration is a determinative function, while management is an executive function. 3. Administration makes the important decisions of an enterprise in its entirety, whereas management makes the decisions within the confines of the framework, which is set up by the administration. 4. Administrators are mainly found in large and multi-layered enterprises such as governments, military, religious and educational organizations or corporations. Management, on the other hand, is used by mid-size to small enterprises and may take administrative functions or even be labeled as administration but granted mostly a management function. For example the administration of a condominium is mostly a managerial body that is needs to convey an assembly to reach most decisions.
Levels of Management[edit | edit source]
Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. While this may be more visible in large organisations there is not normally such a sharp stratification in smaller organisations where the same person may perform strategic, tactical and operational roles.
The 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 are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. 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 management 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[edit | edit source]
Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include -
Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relation in the organization. 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 supervise & guide the sub-ordinates. 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.
Skills and Functions of a manager[edit | edit source]
Skills[edit | edit source]
the five functions of management ensures the organization runs smoothly.these five functions are :
The basic skills needed are:
- Neutral towards means & end etc.
Evolution of management Thoughts[edit | edit source]
Early Classical approach[edit | edit source]
Human Behaviour Approach
Human Relations, Leadership or Behavioural Science Approach
It bears the existing and newly developed theories and methods of the relevant social sciences upon the study of human behavior ranging from personality dynamics of individuals to the relations of culture.
Interpersonal B.A. => individual Psychology
Group B.A. => Social Psychology and Organizational Behaviour.
Features As management is the process of getting things done by people, managers should understand human behaviour. Emphasis is put on increasing productivity through motivation and good human relations. Motivation, leadership, communication, participative management and group dynamics are the central core of this approach.
Uses It suggests how the knowledge of human behaviour can be used in making people more effective in the organization. An individual’s behaviour is not determined by organization factors alone but also by his attitude, pressure, conflicts of cultural environment etc. Hence these factors must be taken into account.
Limitations Managers can be better placed by understanding human behaviour but equating management with human behaviour is untenable.
Neo-Classical approach[edit | edit source]
Native American Approach[edit | edit source]
Harrington, in his 2017 manuscript titled "A Brief History of American Indian Business, states "American Indians have a long and proud history of productive trade commerce, and entrepreneurship. Existing long before European colonialism, Native people created and sustained numerous and complex trade and barter alliances that provided for their various needs."
Tribal Finance & Economics
Business Ethics & Values
In a Lakota sweat lodge the phrase "mitakuye oyas'in has much meaning. One English translation is rendered as "for all my relatives". In the spirit of cosmology of the Lakota all things are relations: people, animals, trees, rocks- every creature and thing is apart of this universe and has a spirit. Therefore it has value and requires understanding.
- In a Lakota sweat lodge the phrase "mitakuye oyas'in has much meaning. One English translation is rendered as "for all my relatives". In the spirit of cosmology of the Lakota all things are relations: people, animals, trees, rocks- every creature and thing is apart of this universe and has a spirit. Therefore it has value and requires understanding.
- Harrington, C. F. (2017). A BRIEF HISTORY OF AMERICAN INDIAN BUSINESS. In D. M. KENNEDY, C. F. HARRINGTON, A. K. VERBOS, D. STEWART, J. S. GLADSTONE, & G. CLARKSON (Eds.), American Indian Business: Principles and Practices (pp. 3–15). University of Washington Press. http://www.jstor.org/stable/j.ctvcwnqhd.5