Definition of the word management

Management (or managing) is the administration of organizations, whether they are a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business.

Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees (or of volunteers) to accomplish its objectives through the application of available resources, such as financial, natural, technological, and human resources. «Run the business»^[1] and «Change the business» are two concepts that are used in management to differentiate between the continued delivery of goods or services and adapting of goods or services to meet the changing needs of customers — see trend. The term «management» may also refer to those people who manage an organization—managers.

Some people study management at colleges or universities; major degrees in management includes the Bachelor of Commerce (B.Com.), Bachelor of Business Administration (BBA.), Master of Business Administration (MBA.), Master in Management (MSM or MIM) and, for the public sector, the Master of Public Administration (MPA) degree. Individuals who aim to become management specialists or experts, management researchers, or professors may complete the Doctor of Management (DM), the Doctor of Business Administration (DBA), or the PhD in Business Administration or Management. In the past few decades, there has been a movement for evidence-based management.^[2]

Larger organizations generally have three hierarchical levels of managers,^[3] in a pyramid structure:

• Senior managers such as members of a board of directors and a chief executive officer (CEO) or a president of an organization sets the strategic goals and policy of the organization and make decisions on how the overall organization will operate. Senior managers are generally executive-level professionals who provide direction to middle management, and directly or indirectly report to them.
• Middle managers such as branch managers, regional managers, department managers, and section managers, who provide direction to the front-line managers. They communicate the strategic goals and policy of senior management to the front-line managers.
• Line managers such as supervisors and front-line team leaders, oversee the work of regular employees (or volunteers, in some voluntary organizations) and provide direction on their work. Line managers often perform the managerial functions that are traditionally considered as the core of management. Despite the name, they are usually considered part of the workforce and not part of the organization’s management class.

In smaller organizations, a manager may have a much wider scope and may perform several roles or even all of the roles commonly observed in a large organization.

Social scientists study management as an academic discipline, investigating areas such as social organization, organizational adaptation, and organizational leadership.^[4]

Etymology[edit]

The English verb «manage» has its roots by the XV century French verb ‘mesnager’, which often referred in equestrian language «to hold in hand the reins of a horse».^[5] Also the Italian term maneggiare (to handle, especially tools or a horse) is possible. In Spanish, manejar can also mean to rule the horses.^[6] These three terms derive from the two Latin words manus (hand) and agere (to act).

The French word for housekeeping, ménagerie, derived from ménager («to keep house»; compare ménage for «household»), also encompasses taking care of domestic animals. Ménagerie is the French translation of Xenophon’s famous book Oeconomicus^[7] (Greek: Οἰκονομικός) on household matters and husbandry. The French word mesnagement (or ménagement) influenced the semantic development of the English word management in the 17th and 18th centuries.^[8]

Definitions[edit]

Views on the definition and scope of management include:

• Henri Fayol (1841–1925) stated: «to manage is to forecast and to plan, to organise, to command, to co-ordinate and to control».^[9]
• Fredmund Malik (1944– ) defines management as «the transformation of resources into utility».^[10]
• Management is included^{[by whom?]} as one of the factors of production – along with machines, materials and money.
• Ghislain Deslandes defines management as «a vulnerable force, under pressure to achieve results and endowed with the triple power of constraint, imitation and imagination, operating on subjective, interpersonal, institutional and environmental levels».^[11]
• Peter Drucker (1909–2005) saw the basic task of management as twofold: marketing and innovation. Nevertheless, innovation is also linked to marketing (product innovation is a central strategic marketing issue).^{[citation needed]} Drucker identifies marketing as a key essence for business success, but management and marketing are generally understood^{[by whom?]} as two different branches of business administration knowledge.

Theoretical scope[edit]

Management involves identifying the mission, objective, procedures, rules and manipulation^[12] of the human capital of an enterprise to contribute to the success of the enterprise.^[13] Scholars have focused on the management of individual,^[14] organizational,^[15] and inter-organizational relationships. This implies effective communication: an enterprise environment (as opposed to a physical or mechanical mechanism) implies human motivation and implies some sort of successful progress or system outcome.^[16] As such, management is not the manipulation of a mechanism (machine or automated program), not the herding of animals, and can occur either in a legal or in an illegal enterprise or environment. From an individual’s perspective, management does not need to be seen solely from an enterprise point of view, because management is an essential^[quantify] function in improving one’s life and relationships.^[17] Management is therefore everywhere^[18] and it has a wider range of application.^{[clarification needed]} Communication and a positive endeavor are two main aspects of it either through enterprise or through independent pursuit.^{[citation needed]} Plans, measurements, motivational psychological tools, goals, and economic measures (profit, etc.) may or may not be necessary components for there to be management. At first, one views management functionally, such as measuring quantity, adjusting plans, and meeting goals,^{[citation needed]} but this applies even in situations where planning does not take place. From this perspective, Henri Fayol (1841–1925)^{[19][page needed]} considers management to consist of five functions:

1. planning (forecasting)
2. organizing
3. commanding
4. coordinating
5. controlling

In another way of thinking, Mary Parker Follett (1868–1933), allegedly defined management as «the art of getting things done through people».^[20] She described management as a philosophy.^{[21][need quotation to verify]}

Critics,^[which?] however, find this definition useful but far too narrow. The phrase «management is what managers do» occurs widely,^[22] suggesting the difficulty of defining management without circularity, the shifting nature of definitions^{[citation needed]} and the connection of managerial practices with the existence of a managerial cadre or of a class.

One habit of thought regards management as equivalent to «business administration» and thus excludes management in places outside commerce, as for example in charities and in the public sector. More broadly, every organization must «manage» its work, people, processes, technology, etc. to maximize effectiveness.^{[citation needed]} Nonetheless, many people refer to university departments that teach management as «business schools». Some such institutions (such as the Harvard Business School) use that name, while others (such as the Yale School of Management) employ the broader term «management».

English-speakers may also use the term «management» or «the management» as a collective word describing the managers of an organization, for example of a corporation.^[23]
Historically this use of the term often contrasted with the term «labor» – referring to those being managed.^[24]

But in the present era^[when?] the concept of management is identified^{[by whom?]} in the wide areas^[which?] and its frontiers have been pushed^{[by whom?]} to a broader range.^{[citation needed]} Apart from profitable organizations, even non-profit organizations apply management concepts. The concept and its uses are not constrained^{[by whom?]}. Management as a whole is the process of planning, organizing, directing, leading and controlling.^[25]

Levels[edit]

A common management structure of organizations includes three management levels: first-level, middle-level, and top-level managers. First-line managers are the lowest level of management and manage the work of non-managerial individuals who are directly involved with the production or creation of the organization’s products. First-line managers are often called supervisors, but may also be called line managers, office managers, or even foremen. Middle managers include all levels of management between the first-line level and the top level of the organization. These managers manage the work of first-line managers and may have titles such as department head, project leader, plant manager, or division manager. Top managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, chief executive officer, or chairman of the board.

These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles.^[26]

Top management[edit]

The top or senior layer of management is a small group which consists of the board of directors (including non-executive directors, executive directors and independent directors), president, vice-president, CEOs and other members of the C-level executives. Different organizations have various members in their C-suite, which may include a chief financial officer, chief technology officer, and so on. They are responsible for controlling and overseeing the operations of the entire organization. They set a «tone at the top» and develop strategic plans, company policies, and make decisions on the overall direction of the organization. In addition, top-level managers play a significant role in the mobilization of outside resources. Senior managers are accountable to the shareholders, the general public and to public bodies that oversee corporations and similar organizations. Some members of the senior management may serve as the public face of the organization, and they may make speeches to introduce new strategies or appear in marketing.

The board of directors is typically primarily composed of non-executives who owe a fiduciary duty to shareholders and are not closely involved in the day-to-day activities of the organization, although this varies depending on the type (e.g., public versus private), size and culture of the organization. These directors are theoretically liable for breaches of that duty and typically insured under directors and officers liability insurance. Fortune 500 directors are estimated to spend 4.4 hours per week on board duties, and median compensation was $212,512 in 2010. The board sets corporate strategy, makes major decisions such as major acquisitions,^[27] and hires, evaluates, and fires the top-level manager (chief executive officer or CEO). The CEO typically hires other positions. However, board involvement in the hiring of other positions such as the chief financial officer (CFO) has increased.^[28] In 2013, a survey of over 160 CEOs and directors of public and private companies found that the top weaknesses of CEOs were «mentoring skills» and «board engagement», and 10% of companies never evaluated the CEO.^[29] The board may also have certain employees (e.g., internal auditors) report to them or directly hire independent contractors; for example, the board (through the audit committee) typically selects the auditor.

Helpful skills of top management vary by the type of organization but typically include^[30] a broad understanding of competition, world economies, and politics. In addition, the CEO is responsible for implementing and determining (within the board’s framework) the broad policies of the organization. Executive management accomplishes the day-to-day details, including: instructions for preparation of department budgets, procedures, schedules; appointment of middle level executives such as department managers; coordination of departments; media and governmental relations; and shareholder communication.

Middle management[edit]

Consist of general managers, branch managers and department managers. They are accountable to the top management for their department’s function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company’s policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower-level managers towards better performance.

Middle management is the midway management of a categorized organization, being secondary to the senior management but above the deepest levels of operational members. An operational manager may be well-thought-out by middle management or may be categorized as non-management operate, liable to the policy of the specific organization. The efficiency of the middle level is vital in any organization since they bridge the gap between top level and bottom level staffs.

Their functions include:

• Design and implement effective group and inter-group work and information systems.
• Define and monitor group-level performance indicators.
• Diagnose and resolve problems within and among workgroups.
• Design and implement reward systems that support cooperative behavior. They also make decisions and share ideas with top managers.

Line management[edit]

Line managers include supervisors, section leaders, forepersons and team leaders. They focus on controlling and directing regular employees. They are usually responsible for assigning employees’ tasks, guiding and supervising employees on day-to-day activities, ensuring the quality and quantity of production and/or service, making recommendations and suggestions to employees on their work, and channeling employee concerns that they cannot resolve to mid-level managers or other administrators. First-level or «front line» managers also act as role models for their employees. In some types of work, front line managers may also do some of the same tasks that employees do, at least some of the time. For example, in some restaurants, the front line managers will also serve customers during a very busy period of the day. In general, line managers are considered part of the workforce and not part of the organization’s proper management despite performing traditional management functions.

Front-line managers typically provide:

• Training for new employees
• Basic supervision
• Motivation
• Performance feedback and guidance

Some front-line managers may also provide career planning for employees who aim to rise within the organization.

Training and education[edit]

Colleges and universities around the world offers bachelor’s degrees, graduate degrees, diplomas and certificates in management; generally within their colleges of business, business schools or faculty of management but also in other related departments. In the 2010s era, there has been an increase in online management education and training in the form of electronic educational technology (also called e-learning). Online education has increased the accessibility of management training to people who do not live near a college or university, or who cannot afford to travel to a city where such training is available.

Requirement[edit]

While some professions require academic credentials in order to work in the profession (e.g., law, medicine, engineering, which require, respectively the Bachelor of Law, Doctor of Medicine and Bachelor of Engineering degrees), management and administration positions do not necessarily require the completion of academic degrees. Some well-known senior executives in the US who did not complete a degree include Steve Jobs, Bill Gates and Mark Zuckerberg. However, many managers and executives have completed some type of business or management training, such as a Bachelor of Commerce or a Master of Business Administration degree. Some major organizations, including companies, non-profit organizations and governments, require applicants to managerial or executive positions to hold at minimum bachelor’s degree in a field related to administration or management, or in the case of business jobs, a Bachelor of Commerce or a similar degree.

Undergraduate[edit]

At the undergraduate level, the most common business programs are the Bachelor of Business Administration (BBA) and Bachelor of Commerce (B.Com.).
These typically comprise a four-year program designed to give students an overview of the role of managers in planning and directing within an organization.
Course topics include accounting, financial management, statistics, marketing, strategy, and other related areas.

There are many other undergraduate degrees that include the study of management, such as Bachelor of Arts degrees with a major in business administration or management and Bachelor of Public Administration (B.P.A), a degree designed for individuals aiming to work as bureaucrats in the government jobs.
Many colleges and universities also offer certificates and diplomas in business administration or management, which typically require one to two years of full-time study.

Note that to manage technological areas, one often needs an undergraduate degree in a STEM area.

Graduate[edit]

At the graduate level students aiming at careers as managers or executives may choose to specialize in major subareas of management or business administration such as entrepreneurship, human resources, international business, organizational behavior, organizational theory, strategic management,^[31] accounting, corporate finance, entertainment, global management, healthcare management, investment management, sustainability and real estate.

A Master of Business Administration (MBA) is the most popular professional degree at the master’s level and can be obtained from many universities in the United States. MBA programs provide further education in management and leadership for graduate students. Other master’s degrees in business and management include Master of Management (MM) and the Master of Science (M.Sc.) in business administration or management, which is typically taken by students aiming to become researchers or professors.

There are also specialized master’s degrees in administration for individuals aiming at careers outside of business, such as the Master of Public Administration (MPA) degree (also offered as a Master of Arts in Public Administration in some universities), for students aiming to become managers or executives in the public service and the Master of Health Administration, for students aiming to become managers or executives in the health care and hospital sector.

Management doctorates are the most advanced terminal degrees in the field of business and management. Most individuals obtaining management doctorates take the programs to obtain the training in research methods, statistical analysis and writing academic papers that they will need to seek careers as researchers, senior consultants and/or professors in business administration or management. There are three main types of management doctorates: the Doctor of Management (D.M.), the Doctor of Business Administration (D.B.A.), and the Doctor of Philosophy (PhD) in Business Administration or Management. In the 2010s, doctorates in business administration and management are available with many specializations.

Good practices[edit]

While management trends can change so fast, the long-term trend in management has been defined by a market embracing diversity and a rising service industry. Managers are currently being trained to encourage greater equality for minorities and women in the workplace, by offering increased flexibility in working hours, better retraining, and innovative (and usually industry-specific) performance markers. Managers destined for the service sector are being trained to use unique measurement techniques, better worker support and more charismatic leadership styles.^[32] Human resources finds itself increasingly working with management in a training capacity to help collect management data on the success (or failure) of management actions with employees.^[33]

Good practices identified for managers include «walking the shop floor»,^[34] and, especially for managers who are new in post, identifying and achieving some «quick wins» which demonstrate visible success in establishing appropriate objectives.^[35] Leadership writer John Kotter uses the phrase «Short-Term Wins» to express the same idea.^[36] As in all work, achieving an appropriate work-life balance for self and others is an important management practice.^[37]

Evidence-based management[edit]

Evidence-based management is an emerging movement to use the current, best evidence in management and decision-making. It is part of the larger movement towards evidence-based practices. Evidence-based management entails managerial decisions and organizational practices informed by the best available evidence.^[38] As with other evidence-based practice, this is based on the three principles of: 1) published peer-reviewed (often in management or social science journals) research evidence that bears on whether and why a particular management practice works; 2) judgement and experience from contextual management practice, to understand the organization and interpersonal dynamics in a situation and determine the risks and benefits of available actions; and 3) the preferences and values of those affected.^[39][40]

History[edit]

Some see management as a late-modern (in the sense of late modernity) conceptualization.^[41] On those terms it cannot have a pre-modern history – only harbingers (such as stewards). Others, however, detect management-like thought among ancient Sumerian traders and the builders of the pyramids of ancient Egypt. Slave-owners through the centuries faced the problems of exploiting/motivating a dependent but sometimes unenthusiastic or recalcitrant workforce, but many pre-industrial enterprises, given their small scale, did not feel compelled to face the issues of management systematically. However, innovations such as the spread of Arabic numerals (5th to 15th centuries) and the codification of double-entry book-keeping (1494) provided tools for management assessment, planning and control.

• An organisation is more stable if members have the right to express their differences and solve their conflicts within it.
• While one person can begin an organisation, «it is lasting when it is left in the care of many and when many desire to maintain it».
• A weak manager can follow a strong one, but not another weak one, and maintain authority.
• A manager seeking to change an established organization «should retain at least a shadow of the ancient customs».

With the changing workplaces of industrial revolutions in the 18th and 19th centuries, military theory and practice contributed approaches to managing the newly popular factories.^[42]

Given the scale of most commercial operations and the lack of mechanized record-keeping and recording before the industrial revolution, it made sense for most owners of enterprises in those times to carry out management functions by and for themselves. But with growing size and complexity of organizations, a distinction between owners (individuals, industrial dynasties or groups of shareholders) and day-to-day managers (independent specialists in planning and control) gradually became more common.

Early writing[edit]

The field of management originated in ancient China,^[43] including possibly the first highly centralized bureaucratic state, and the earliest (by the second century BC) example of an administration based on merit through testing.^[44] Some theorists have cited ancient military texts as providing lessons for civilian managers. For example, Chinese general Sun Tzu in his 6th-century BC work The Art of War recommends^{[citation needed]} (when re-phrased in modern terminology) being aware of and acting on strengths and weaknesses of both a manager’s organization and a foe’s.^{[45][need quotation to verify]} The writings of influential Chinese Legalist philosopher Shen Buhai may be considered^{[by whom?]} to embody a rare premodern example of abstract theory of administration.^[46][47] American philosopher Herrlee G. Creel and other scholars find the influence of Chinese administration in Europe by the 12th century.^{[48][49][50][51]} Thomas Taylor Meadows, Britain’s consul in Guangzhou, argued in his Desultory Notes on the Government and People of China (1847) that «the long duration of the Chinese empire is solely and altogether owing to the good government which consists in the advancement of men of talent and merit only,» and that the British must reform their civil service by making the institution meritocratic.^[52] Influenced by the ancient Chinese imperial examination, the Northcote–Trevelyan Report of 1854 recommended that recruitment should be on the basis of merit determined through competitive examination, candidates should have a solid general education to enable inter-departmental transfers, and promotion should be through achievement rather than «preferment, patronage, or purchase».^[53][52] This led to implementation of Her Majesty’s Civil Service as a systematic, meritocratic civil service bureaucracy.^[54] Like the British, the development of French bureaucracy was influenced by the Chinese system. Voltaire claimed that the Chinese had «perfected moral science» and François Quesnay advocated an economic and political system modeled after that of the Chinese.^[55] French civil service examinations adopted in the late 19th century were also heavily based on general cultural studies. These features have been likened to the earlier Chinese model.^[56]

Various ancient and medieval civilizations produced «mirrors for princes» books, which aimed to advise new monarchs on how to govern. Plato described job specialization in 350 BC, and Alfarabi listed several leadership traits in AD 900.^[57] Other examples include the Indian Arthashastra by Chanakya (written around 300 BC), and The Prince by Italian author
Niccolò Machiavelli (c. 1515).^[58]

Written in 1776 by Adam Smith, a Scottish moral philosopher, The Wealth of Nations discussed efficient organization of work through division of labour.^[58]
Smith described how changes in processes could boost productivity in the manufacture of pins. While individuals could produce 200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day.^{[58][need quotation to verify]}

19th century[edit]

Classical economists such as Adam Smith (1723–1790) and John Stuart Mill (1806–1873) provided a theoretical background to resource allocation, production (economics), and pricing issues. About the same time, innovators like Eli Whitney (1765–1825), James Watt (1736–1819), and Matthew Boulton (1728–1809) developed elements of technical production such as standardization, quality-control procedures, cost-accounting, interchangeability of parts, and work-planning. Many of these aspects of management existed in the pre-1861 slave-based sector of the US economy. That environment saw 4 million people, as the contemporary usages had it, «managed» in profitable quasi-mass production^[59]
before wage slavery eclipsed chattel slavery.

Salaried managers as an identifiable group first became prominent in the late 19th century.^[60] As large corporations began to overshadow small family businesses the need for personnel management positions became more necessary.^[61] Businesses grew into large corporations and the need for clerks, bookkeepers, secretaries and managers expanded. The demand for trained managers led college and university administrators to consider and move forward with plans to create the first schools of business on their campuses.

20th century[edit]

At the turn of the twentieth century the need for skilled and trained managers had become increasingly apparent. The demand occurred as personnel departments began to expand rapidly. In 1915, less than one in twenty manufacturing firms had a dedicated personnel department. By 1929 that number had grown to over one-third.^[62] Formal management education became standardized at colleges and universities.^[63] Colleges and universities capitalized on the needs of corporations by forming business schools and corporate placement departments.^[64] This shift toward formal business education marked the creation of a corporate elite in the US.

By about 1900 one finds managers trying to place their theories on what they regarded as a thoroughly scientific basis (see scientism for perceived limitations of this belief). Examples include Henry R. Towne’s Science of management in the 1890s, Frederick Winslow Taylor’s The Principles of Scientific Management (1911), Lillian Gilbreth’s Psychology of Management (1914),^[65] Frank and Lillian Gilbreth’s Applied motion study (1917), and Henry L. Gantt’s charts (1910s). J. Duncan wrote the first college management textbook in 1911. In 1912 Yoichi Ueno introduced Taylorism to Japan and became the first management consultant of the «Japanese management style». His son Ichiro Ueno pioneered Japanese quality assurance.

The first comprehensive theories of management appeared around 1920.^{[citation needed]} The Harvard Business School offered the first Master of Business Administration degree (MBA) in 1921. People like Henri Fayol (1841–1925) and Alexander Church (1866–1936) described the various branches of management and their inter-relationships. In the early 20th century, people like Ordway Tead (1891–1973), Walter Scott (1869–1955) and J. Mooney applied the principles of psychology to management. Other writers, such as Elton Mayo (1880–1949), Mary Parker Follett (1868–1933), Chester Barnard (1886–1961), Max Weber (1864–1920), who saw what he called the «administrator» as bureaucrat,^[66] Rensis Likert (1903–1981), and Chris Argyris (born 1923) approached the phenomenon of management from a sociological perspective.

The 1930s and 1940s saw the development of a militarization trend in management in parts of Eurasia – both the NKVD (in the Soviet Union) and the SS (in the Greater Germanic Reich), for example, managed labor camps as industrial enterprises using slave labor supervised by uniformed cadres.^[67][68]
Military habits persisted in some management circles.^[69]

Peter Drucker (1909–2005) wrote one of the earliest books on applied management: Concept of the Corporation (published in 1946). It resulted from Alfred Sloan (chairman of General Motors until 1956) commissioning a study of the organisation. Drucker went on to write 39 books, many in the same vein.

H. Dodge, Ronald Fisher (1890–1962), and Thornton C. Fry introduced statistical techniques into management-studies. In the 1940s, Patrick Blackett worked in the development of the applied-mathematics science of operations research, initially for military operations. Operations research, sometimes known as «management science» (but distinct from Taylor’s scientific management), attempts to take a scientific approach to solving decision-problems, and can apply directly to multiple management problems, particularly in the areas of logistics and operations.

Some of the later 20th-century developments include the theory of constraints (introduced in 1984), management by objectives (systematised in 1954), re-engineering (early 1990s), Six Sigma (1986), management by walking around (1970s), the Viable system model (1972), and various information-technology-driven theories such as agile software development (so-named from 2001), as well as group-management theories such as Cog’s Ladder (1972) and the notion of «thriving on chaos»^[70] (1987).

As the general recognition of managers as a class solidified during the 20th century and gave perceived practitioners of the art/science of management a certain amount of prestige, so the way opened for popularised systems of management ideas to peddle their wares. In this context many management fads may have had more to do with pop psychology than with scientific theories of management.

Business management^[when?] includes the following branches:^{[citation needed]}

1. financial management
2. human resource management
3. Management cybernetics
4. information technology management (responsible for management information systems )
5. marketing management
6. operations management and production management
7. strategic management

21st century[edit]

In the 21st century observers find it increasingly difficult to subdivide management into functional categories in this way. More and more processes simultaneously involve several categories. Instead, one tends to think in terms of the various processes, tasks, and objects subject to management.^{[citation needed]}

Branches of management theory also exist relating to nonprofits and to government: such as public administration, public management, and educational management. Further, management programs related to civil-society organizations have also spawned programs in nonprofit management and social entrepreneurship.

Note that many of the assumptions made by management have come under attack from business-ethics viewpoints, critical management studies, and anti-corporate activism.

As one consequence, workplace democracy (sometimes referred to as Workers’ self-management) has become both more common and more advocated, in some places distributing all management functions among workers, each of whom takes on a portion of the work. However, these models predate any current political issue, and may occur more naturally than does a command hierarchy. All management embraces to some degree a democratic principle—in that in the long term, the majority of workers must support management. Otherwise, they leave to find other work or go on strike. Despite the move toward workplace democracy, command-and-control organization structures remain commonplace as de facto organization structures. Indeed, the entrenched nature of command-and-control is evident in the way that recent^[when?] layoffs have been conducted with management ranks affected far less than employees at the lower levels.^{[citation needed]} In some cases, management has even rewarded itself with bonuses after laying off lower-level workers.^[71]

According to leadership-academic Manfred F.R. Kets de Vries, a contemporary senior-management team will almost inevitably have some personality disorders.^[72]

Nature of work[edit]

In profitable organizations, management’s primary function is the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers), and providing great employment opportunities for employees. In case of nonprofit management, one of the main functions is, keeping the faith of donors. In most models of management and governance, shareholders vote for the board of directors, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers, but this is rare.

Topics[edit]

Basics[edit]

According to Fayol, management operates through five basic functions: planning, organizing, commanding, coordinating and controlling.

• Planning: Deciding what needs to happen in the future and generating plans for action (deciding in advance).
• Organizing (or staffing): Making sure the human and nonhuman resources are put into place.^[73]
• Commanding (or leading): Determining what must be done in a situation and getting people to do it.
• Coordinating: Creating a structure through which an organization’s goals can be accomplished.
• Controlling: Checking progress against plans.

Basic roles[edit]

• Interpersonal: roles that involve coordination and interaction with employees.

Figurehead, leader, liaison

• Informational: roles that involve handling, sharing, and analyzing information.

Nerve centre, disseminator, spokesperson

• Decision: roles that require decision-making.

Entrepreneur, negotiator, allocator, disturbance handler

Skills[edit]

Management skills include:

• Political: used to build a power base and to establish connections.
• Interpersonal: used to communicate, motivate, mentor and delegate.
• Diagnostic: ability to visualize appropriate responses to a situation.
• Leadership: ability to communicate a vision and inspire people to embrace that vision.^[74]
  • cross-cultural leadership: ability to understand the effects of culture on leadership style.
• Behavioral: perception towards others, conflict resolution, time-management, self-improvement, stress management and resilience, patience, clear communication.^[75]

Implementation of policies and strategies[edit]

• All policies and strategies must be discussed with all managerial personnel and staff.
• Managers must understand where and how they can implement their policies and strategies.
• An action plan must be devised for each department.
• Policies and strategies must be reviewed regularly.
• Contingency plans must be devised in case the environment changes.
• Top-level managers should carry out regular progress assessments.
• The business requires team spirit and a good environment.
• The missions, objectives, strengths and weaknesses of each department must be analyzed to determine their roles in achieving the business’s mission.
• The forecasting method develops a reliable picture of the business’s future environment.
• A planning unit must be created to ensure that all plans are consistent and that policies and strategies are aimed at achieving the same mission and objectives.

Policies and strategies in the planning process[edit]

• They give mid and lower-level managers a good idea of the future plans for each department in an organization.
• A framework is created whereby plans and decisions are made.
• Mid and lower-level management may add their own plans to the business’s strategies.

See also[edit]

• Certificate in Management Studies
• Engineering management
• Outline of business management

References[edit]

External links[edit]

Management defined as all the activities and tasks undertaken for archiving goals by continuous activities like; planning, organizing, leading and controlling.

Management is a process of planning, decision making, organizing, leading, motivation and controlling the human resources, financial, physical, and information resources of an organization to reach its goals efficiently and effectively.

Threefold Concept of Management

To understand the definition of management and its nature, a threefold concept of management for emplacing a broader scope for the viewpoint of management.

We can say management is a;

Management is an Economic Factor

For an economist, management is one of the factors of production together with land, labor, and capital.

As the industrialization of a nation increases, the need for management becomes greater.

The managerial resources of a firm determine, in large measure, its productivity and profitability. Executive development, therefore, is more important for those firms in a dynamic industry in which progress is rapid.

Management is a System of Authority

From an administrator’s point of view, management is a system of authority. Historically, management first developed an authoritarian philosophy.

Later on, it turned paternalistic.

Still, later, constitutional management emerged, characterized by a concern for consistent policies and procedures for dealing with the working group.

Finally, the trend of management turned towards a democratic and participatory approach.

Modern management is nothing but a synthesis of these four approaches to authority.

Management is a Class and Status System

As viewed by a sociologist, management is a class-and-status system.

The increase in the complexity of relationships in modern society demands that managers become elite of brain and education.

Entry into this class of executives is being more and more dependent on excellence in education and knowledge rather than family or political connections.

Some scholars view this development as a “Managerial Revolution”.

But you might have a different point of view about management but the purpose of it remains static; reach the goal effectively and efficiently.

It is a set of activates directed at an organization’s resources to achieve organizational goals efficiently and effectively.

The basic managerial functions or activities are planning, organizing, leading, and controlling.

These activities are undertaken by the managers to combine all resources (human, financial, physical, information) efficiently and effectively to work toward achieving the goals of the organization.

So, we can say that the nature of management is;

• Management as a systematic process of planning, organizing, staffing, leading and controlling. As managers, people carry out the managerial functions of planning, organizing, staffing, leading, and controlling.
• The concepts and activities of management apply to all levels of management, as well as to all types of organizations and activities managed.
• The aim of all managers is universal: to create a surplus.
• Management identifies a special group of people whose job is to direct the effort and activities of other people towards common objectives.
• Management is concerned with productivity, thereby implying efficiency and effectiveness. Factors of production of an organization such as labor, capital, land, equipment, etc. are used efficiently and effectively prepared through management for achieving organizational goals.
• Management has to pay attention to fulfilling the objectives of the interested parties.
• Management is the art and science of getting work done by other peoples.
• “Maximum results with the minimum of efforts” is the motto of management of any organization.

Management as a concept has broadened in scope with the introduction of new perspectives by different fields of study, such as economics, sociology, psychology and the like.

Features of Management

Management is the process of setting and reaching goals effectively and efficiently. Management process has some qualities or features;

1. Management is Associated with Group Efforts
2. Management is Purposeful
3. Management is Accomplished Through the Efforts of Others
4. Management is Goal-oriented
5. Management is Indispensable
6. Management is Intangible
7. Management can Ensure Better Life

Management is Associated with Group Efforts

It is usual to associate management with a group.

Although people as individuals manage many personal affairs, the group emphasis on management is universal.

Every enterprise entails the existence of a group to achieve goals. It is now established that goals are achieved more readily by a group than by any one person alone.

Management is Purposeful

Wherever there is management, there is a purpose. Management deals with the achievement of something definite expressed as a goal or objective.

Management success is commonly measured by the extent to which objectives are achieved. Management exists because it is an effective means of getting the necessary work accomplished.

Management is Accomplished Through the Efforts of Others

Management is sometimes defined as “getting things done through others’ efforts.”

Besides the manager of a firm, there may be accountants, engineers, system analysts, salesmen and a host of other employees working but it is the manager’s job to integrate all their activities.

Thus it can well be said that participation in management necessitates relinquishing the normal tendency to perform all things oneself and getting tasks accomplished through group efforts.

Management is Goal-oriented

Managers focus their attention and efforts on bringing about successful action. Successful managers have an urge for accomplishment.

They know when and where to start, what to do with keeping things moving, and how to follow a goal-oriented approach.

Management is Indispensable

Management can neither be replaced nor substituted by anything else.

Even the computer which is the wonderful invention of the twentieth century can only aid but not replace management.

We know that the computer is an extremely powerful tool for management.

It can widen a manager’s vision and sharpen his insight by supplying more and faster information for making key decisions.

The computer has enabled the manager to conduct analysis far beyond the normal analytical capacities of man.

But what happens, in reality, is that the computer can neither work by itself nor can it pass any judgment.

The manager plays his/her role by providing judgment and imagination as well as interpreting and evaluating what the information/data mean in each case.

Management is Intangible

Management is often called the unseen force; its presence is evidenced by the results of its efforts – motivation among employees, discipline in the group, high productivity, adequate surplus, etc.

Conversely, the identity of management may also be felt by its absence or by the presence of its direct opposite mismanagement. The consequence of mismanagement is anybody’s guess.

Management can Ensure Better Life

A manager can do much to improve the work environment, stimulate people to perform better, achieve progress, bring hope and accomplish better things in life.

The study of management has evolved into more than just the use of means to achieve ends; today it includes moral and ethical questions concerning the selection of the right ends towards which managers should strive.

Management is the science and art of getting people together to accomplish desired goals and objectives by coordinating and integrating all available resources efficiently and effectively.

Let’s understand the management definition and it’s basics in this infographic

Management is a social process entailing responsibility for the effective and economical planning and regulation of the operations of an enterprise, in fulfilment of a given purpose or task, such responsibility involves:

• Judgment and decision in determining plans and in using data to control performance, and progress against plans; and
• The guidance, integration, motivation and supervision of the personnel composing the enterprise and carrying out its operations

In other words, Management is the process of controlling the whole productive machinery.”

So, management is an important factor in the business. It is considered as important as a brain in human body. Without a brain human body is only a collection of bones and fleshes which is of no use; likewise, if management is not in business it is only collection of money, machines, material and men which is not useful in achieving the objectives.

The management is not a matter of pressing a button, pulling a lever, issuing orders, scanning profit and loss statements, promulgating rules and regulations. Rather it is the process to determine what shall happen to the personalities and happiness of entire people, the power to shape the destiny of a nation and all the nations which make up the world.

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Definitions of Management

Management may be defined in many different ways. Many eminent authors on the subject have defined the term “management”, some of these definitions are reproduced below:

According to Lawrence A. Appley, “Management is the development of people and not the direction of things”.

According to Joseph Massie, “Management is defined as the process by which a co-operative group directs action towards common goals”.

In the words of George R Terry, “Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources”.

According to James L Lundy, “Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective”.

In the words of Henry Fayol, “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control”.

According to Peter F. Drucker, “Management is a multi-purpose organ that manages a business and manages managers and manages worker and work”.

In the words of J.N. Schulze, “Management is the force which leads guides and directs an organization in the accomplishment of a pre-determined object”.

In the words of Koontz and O’Donnell, “Management is defined as the 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”.

According to Ordway Tead, “Management is the process and agency which directs and guides the operations of an organization in realizing of established aims”.

According to Stanley Vance, “Management is simply the process of decision-making and control over the actions of human beings for the express purpose of attaining pre-determined goals”.

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Concept of Management

The concept is the idea or image or understanding about things, activity or a person that emerges in the mind of a person. There are several different concepts about management. Economists have treated management as a factor of production; sociologists have treated it as a class or group of persons; practitioners have treated it as a process comprising different activates.

There are three basic concepts of Management

1. Management as a Discipline
2. Management as a Group of People
3. Management as a process

Management as a Discipline

Discipline refers to a field of study having well-defined concepts and principles. When we refer to management as a discipline, we include in it the various relevant concepts and principles, the knowledge of which aids in managing.

Management as a Group of People

We refer to management as a group of people in which we include all those personnel who perform managerial functions in organizations. We refer to two distinct classes or groups of personnel in the organization.

In the first category, we include all those persons who are responsible for managerial functions and in the second category, we include non-managerial personnel.

Management as a process

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Scope of Management

The scope of management is too wide to be covered in a few pages. It is very difficult to precisely state the scope of management. However, management includes the following aspects:-

• Economic Resource
• System of Authority
• Class or Elite
• Subject-matter of Management
• Functional Areas of Management
• Management is an Inter-Disciplinary Approach
• Principles of Management
• Management is an Agent of Change
• The Essentials of Management

Economic Resource

Business Economics classifies the factors of production into four basic inputs, viz. land, labour, capital and entrepreneur. By the use of all these four, basic production can be done. But to turn that into a profitable venture, an effective utilization of man, money, material, machinery and methods of production has to be ensured.

This is guaranteed by the application of management fundamentals and practices. The better is the management of an enterprise; the higher is its growth rate in terms of profit, sales, production and distribution. Thus management itself serves as an economic resource.

As already discussed, management is a system of authority. It formalizes a standard set of rules and procedure to be followed by the subordinates and ensures their compliance with the rules and regulations. Since management is a process of directing men to perform a task, authority to extract the work from others is implied in the very concept of management.

Class or Elite

Management is considered to be a distinct class that has its own value system. Managerial class, often referred to as a collective group of those individuals that perform managerial activities is essential component of each organization. The importance the class has become so huge that the entire group of mangers is known as “management” in every organization.

Subject-matter of Management

Management is considered as a continuing activity made up of basic management functions like planning, organizing, staffing, directing and controlling. These components form the subject matter of management.

Functional Areas of Management

Management covers the following functional areas:-

• Financial Management: Financial management includes forecasting, cost control, management accounting, budgetary control, statistical control, financial planning etc.
• Human Resource Management: Human Resource Management covers the various aspects relating to the employees of the organization such as recruitment, training, transfers, promotions, retirement, terminations, remuneration, labour welfare and social security, industrial relations etc.
• Marketing Management: Marketing management deals with marketing of goods, sales promotion, advertisement and publicity, channels of distribution, market research etc.
• Production Management: Production Management includes production planning, quality control and inspection, production techniques etc.
• Material Management: Material management includes purchase of materials, issue of materials, storage of materials, maintenance of records, materials control etc.
• Purchasing Management: Purchasing management includes inviting tenders for raw materials, placing orders, entering into contracts etc.
• Maintenance Management: Maintenance Management relates to the proper care and maintenance of the buildings, plant and machinery etc.
• Office Management: Office management is concerned with office layout, office staffing and equipment of the office.

Management is an Inter-Disciplinary Approach

Though management is regarded as a separate discipline, for the correct application of the management principles, the study of commerce, economics, sociology, psychology, and mathematics is very essential. The science of management draws ideas and concepts from a number of disciplines making it a multi-disciplinary subject.

Principles of Management

The principles of management are of universal application. These principles are applicable to any group activity undertaken for the achievement of some common goals.

Management is an Agent of Change

The techniques of management can be improved by proper research and development.

The Essentials of Management

The essentials of management include scientific method, human relations and quantitative techniques.

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Characteristics of Management

An analysis of the various definitions of management indicates that management has certain characteristics. The following are the salient characteristics of management.

• Management is universal
• Management is a social process
• Management is an integrating/unifying force
• Management is objective/ target oriented
• Management is dynamic, and not static
• Management is a system of authority
• Decision-making
• Continuous process
• Management is born as well as acquired ability
• Proper utilization of resources
• Intangible
• Management is a science as well as an art
• Modern management can be regarded as a profession
• Distinct Process
• Management is a group activity
• Management implies good leadership
• Management draws ideas and concepts from various disciplines
• Different Levels of Management
• Need of organization
• Management need not be owners

Management is universal

Management is applicable to all forms of human organizations whether it is profit- making or non- profit making. Management is not applicable to business undertakings only. It is applicable to political, social, religious and educational institutions also. Management is necessary when group effort is required

Management is an integrating/unifying force

Management is integrating people into a single working force with available physical resources. The essence of management is the integration of human and other resources to achieve the desired objectives. Managers seek to harmonize the individuals’ goals with the organizational goals for the smooth working of the organization.

Management is objective/ target oriented

Management is purposeful or goal-oriented activity. The success of management is measured by the extent to which organization goals are achieved.

Management is dynamic, and not static

Management is not a stereotype activity but is ever changing. It is a complex and dynamic activity. Management adapts itself to changes in environment, and also initiates and introduces changes i.e. Innovations, change in methodology etc.

Management is a purposeful activity. It coordinates the efforts of workers to achieve the goals of the organization. The success of management is measured by the extent to which the organizational goals are achieved. Management is concerned with directing and controlling of the various activities of the organization to attain the pre-determined objectives.

Every managerial activity has certain objectives. In fact, management deals particularly with the actual directing of human efforts.

Management is a system of authority

Decision-making

Continuous process

Management is not one time activity, but it is continuous activity. The cycle of management continues to operate so long as the organizations continue to exist.

Management is born as well as acquired ability

Management is considered not only as an inborn ability but also an acquired ability by proper training.

Proper utilization of resources

Management is concerned with the best and proper utilization of the resources.

Intangible

Management is intangible, it cannot be seen with eyes, it is evidenced or measured only by the quality results of organization, such as increased productivity, the increased morale of the employees etc. Management has been called an unseen force.

Its presence is evidenced by the result of its efforts – orderliness, informed employees, buoyant spirit and adequate work output. Thus, feeling of management is result-oriented.

Management is a science as well as an art

Management has an organized body of knowledge consisting of well-defined concepts, principles and techniques which have wide applications. So it is treated as a science. The application of these concepts, principles and techniques requires specialized knowledge and skills on the part of the manager. Since the skills acquired by a manager are his personal possession, management is viewed as an art.

Modern management can be regarded as a profession

Management is gradually becoming a profession because there are established principles of management which are being applied in practice, and it involves specialized training and is governed by ethical code arising out of its social obligations.

Distinct Process

Management is a distinct process consisting of such functions as planning, organizing, staffing, directing, and controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. Management enjoys the separate status in the organization, so, management is a distinct activity.

Management is a group activity

Management comes into existence only when there is a group activity towards a common objective. Management is always concerned with group efforts and not individual efforts. To achieve the goals of an organization management plans organizes, coordinates, directs and controls the group effort.

Management implies good leadership

A manager must have the ability to lead and get the desired course of action from the subordinates. According to R. C. Davis – “management is the function of executive leadership everywhere”. Management of the high order implies the capacity of managers to influence the behavior of their subordinates.

Management draws ideas and concepts from various disciplines

Management is an interdisciplinary study. It draws ideas and concepts from various disciplines like economics, statistics, mathematics, psychology, sociology, anthropology etc.

Different Levels of Management

Management is needed at different levels of an organization namely top level, middle level and lower level.

Need of organization

There is the need of an organization for the success of management. Management uses the organization for achieving pre-determined objectives.

Management need not be owners

It is not necessary that managers are owners of the enterprise. In joint stock companies, management and owners (capital) are different entities.

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Importance of Management

Management acts as a creative and life-giving force in the organization. Management by right men through right methods may give better results. It is properly said that business is built not by the technical ability of specialists but largely by good managers who can effectively utilize human skill, energy and efficiency for transforming resources with higher productivity.

Management is considered to be the brain of business, which plans, coordinates resources of production, gets the things done through other people and accomplishers objectives.

More significance or importance of management can be explained with the help of the following points:

• Management meets the challenge of change
• Accomplishment of various interests of different groups
• Effective utilization of resources
• Stability to society
• Innovation
• Co-ordination and team spirit
• Social responsibilities
• Development of country
• Effective functioning of business
• Resource development
• Sound organizational structure
• Management directs the organization
• It integrates various interests
• It stabilizes the fluctuations
• Tackling and solving problems
• Management is a tool for personality development

Management meets the challenge of change

Accomplishment of various interests of different groups

There are various groups such as shareholders, society, which have various interests in the business. The survival of the business depends on the satisfaction of these stakeholders. Management can skillfully integrates the interests of these different groups and obtain their support.

Effective utilization of resources

The efficient management can make optimum use of resources, (i.e. – Men, Money, Materials, Machines, Methods, Motivation, Markets and Management.) Underutilization or over utilization of resources should be avoided and this can be done by management only because Management has control over other remaining ‘M’s.

Stability to society

If there is no smooth supply of goods and services to society, the society becomes vibrant. There fluctuations in supply can be stabilized by the management.

Innovation

New ideas are developed by the management and implemented in the business for better performance.

Co-ordination and team spirit

Management coordinates the activities of different department and establishes team- spirit to achieve the objectives.

No organization can run its function in isolation from society. A number of responsibilities have to be discharged for the upliftment of society. The management plays an important role in discharging the responsibilities towards society.

Development of country

The management helps in infrastructural development of the nation, in increasing GDP, capital formation, national income etc.

Effective functioning of business

Ability, experience, mutual understanding, coordination, motivation and supervision are the factors responsible for effective functioning of the business.

Resource development

The resources viz. men, machines, materials and money have to be developed by the management.

Sound organizational structure

It clearly defines the authority and responsibility relationship of employees. Care must be taken to appoint right persons to the right job.

Management directs the organization

Similar to human mind directing and controlling human body, management directs and controls the organization.

It integrates various interests

Management takes steps to integrate various interests of employees working in the organization.

It stabilizes the fluctuations

The business always has ups and downs. These fluctuations are stabilized by the management.

Tackling and solving problems

Good management acts as a friend and guide to the employees to solve the day-to-day problems for effective performance.

Management is a tool for personality development

New methods and techniques are taught to workers. Training facilities are arranged by the management. Thus, there is personality development in the employees.

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Functions of Management

There are five major functions of management which are given below:

1. Planning
2. Organising
3. Staffing
4. Directing
5. Controlling
6. Other Functions of Management

Planning

It involves anticipating all possible future conditions and deciding the future course of action. In other words, planning involves setting future goals and objectives and devising the methods and means for achieving those objectives. The function is carried out at all levels of an organisation i.e., top, middle and lower management levels, and in all divisions, departments, business units and sub-units.

Organising

It involves two major activities: one is to establish an organisational structure and the other is to arrange all necessary resources (such as men, machines, materials, methods, money and market) so that work can be performed effectively.

An organisational structure is a diagrammatic representation of how different roles, powers, authorities and responsibilities are assigned in an organisation. You will study the organisational structure and its functions in detail later in the book.

Staffing

This function is all about recruiting people with the required skill sets. It involves evaluating the existing skills and knowledge of candidates before offering them specific job roles. Staffing is an ongoing function as employees keep on leaving and joining an organisation.

Directing

After the managers have established goals, created the organisational structure, recruited people and trained them, it is time for directing the employees and facilitating coordination among them so that work can be performed on time in order to meet the set goals.

Controlling

This function involves ensuring that work is performed as per the plans developed and instructions issued. The controlling function includes three main activities, which are:

• Establishing the required performance standards
• Assessing the current performance level and comparing it with the established standards
• Take corrective actions in case the actual performance deviates from the established standards.

Other Functions of Management

1. Coordinating
2. Reporting
3. Budgeting

Coordinating

This key function of management implies interrelating the various work components and processes to ensure smooth functioning in an organisation. Coordination is used to synchronise and integrate the activities, responsibilities, command control, structures and resources of an organisation to achieve organisational objectives.

Reporting

This function of management is significant for controlling and planning functions. The reporting function involves giving a regular update to the superiors about the progress of the work assigned to subordinates. The information is disseminated through records or inspection.

Budgeting

The budgeting function of management comprises all the activities that fall under auditing, accounting, fiscal planning and control. Budgeting is used to do all forms of planning related to the sources of income, accounting and control of expenditures.

It is the process of creating a plan to spend the available money. It is used to determine in advance whether an organisation has enough money to execute activities smoothly or not.

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Functional Areas of Management

As mentioned above, management has a wide scope in different areas due to its social and universal nature. Therefore, the functional areas of management have widened due to its inter-disciplinary approach.

There are four major functional areas of management as shown in Figure below:

• Production and operations
• Marketing
• Finance
• Human Resource (HR)
• Information Technology (IT)/Information and Communication Technology (ICT)
• Logistics and Distribution

Production and operations

The production and operations function converts inputs, such as land, labour and raw materials into goods and services in the right quantity at the right cost and at the right time.

The production function includes various subordinate functions which are as follows:

• Developing product designs
• Selecting the plant location and layout
• Purchasing and storing materials
• Planning and controlling the production operations
• Carrying out repair and maintenance works
• Ensuring inventory control
• Ensuring quality control

Marketing

Under the marketing function, managers need to identify consumers’ needs and provide them the goods and services to satisfy their needs. The scope of the marketing function is quite wide and it includes various subordinate functions which are as follows:

• Carrying out marketing research to determine the exact needs and expectations of consumers
• Developing suitable products
• Setting prices
• Selecting marketing strategies
• Selecting appropriate marketing channels

Finance

Finance is an extremely important functional area of management and the main activity of finance is to ensure that there are sufficient funds in the organisation for carrying out different activities, such as procurement, working capital management, debt repayment, etc. In addition, the finance function involves determining financial strategies, such as expansion, diversification, joint ventures, mergers and acquisitions.

The three major subordinate functions of finance are as follows:

• Financial planning: This sub-function relates to decisions, such as raising funds, deciding about the amount to be raised and estimating the costs (interests) and risks associated with raising funds.
• Financial control: This sub-function involves monitoring the finance-related operations of an organisation.
• Financial decision-making: This sub-function relates to the use of funds that have been raised by the organisation.

Human Resource (HR)

The human resource function relates to the management of various aspects related to human resources such as:

• Taking care of employee compensation and benefits
• Maintaining employee database
• Planning the staff and workforce requirements
• Appraising employee performance and promotions
• Devising HR policies
• Taking care of recruitment, selection and training and development processes

Information Technology (IT)/Information and Communication Technology (ICT)

It involves managing information and communication technology tools and techniques that collect, organise, and distribute data for use in the organisation’s decision-making purposes.

The significant aspects related to IT/ICT are as follows:

• It is committed to develop the organisation’s hardware, software, and other computing and communicating technologies.
• It develops the organisation’s management information system (MIS) tailored to the needs of the firm’s units.
• It also encourages e-commerce through the use of the Internet.

Logistics and Distribution

In simple terms, logistics refers to the planning and controlling the movement of goods. Logistics and distribution functional area ensure that goods are delivered to the right place on time and in the right condition.

Some major aspects of logistics and distribution are as follows:

• Ensuring that the process of the finished goods leaving a factory and arriving at a store is predefined and hurdle free
• Ensuring the proper storage of goods before dispatch
• Ensuring that dispatched goods are firmly packed and appropriately labelled
• Ensuring the dispatch of goods at the right time
• Ensuring the completion of the delivery documents

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Levels of Management

Management involves a set of functions performed by people in an organisation who are bound together in a hierarchy of relationships. Every person in the organisational hierarchy is responsible for the successful completion of particular tasks. To perform these tasks successfully and make decisions, individuals are given a certain degree of authority, which lead to the creation of different levels in the organisational hierarchy.

Generally, there are three levels of management as shown in Figure:

Let us now study about these three levels of management:

• Top-level management
• Middle-level management
• Lower-level management

Top-level management

This level is comprised of corporate heads, such as chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), and chief information officer (CIO), president, vice president, chairman, managing directors and executive directors.

These corporate heads are responsible for performing the following functions:

• Determining organisational goals and objectives and formulating plans, strategies and policies accordingly
• Organising and arranging resources
• Communicating with the public, government and other external agencies
• Controlling and overseeing organisational activities
• Preparing long-term plans (usually for 5 years or more) and making strategic (strategy-level) decisions

Middle-level management

This level comprises business heads, such as departmental heads, general managers and regional managers. These business heads are responsible for performing the following functions:

• Subordinating the top-level management
• Supervising the lower-level management
• Organising departmental activities
• Recruiting and selecting the workforce
• Controlling resources and executing organisational plans
• Ensuring adherence to the organisation’s policies
• Acting as a connecting link between the top-level and lower-level management
• Co-ordinating and communicating
• Preparing short-term plans (usually for 1-5 years or more)
• Compiling the relevant data and generating reports for top-level management
• Motivating lower-level managers

Lower-level management

This level includes functional heads, such as supervisors and team leaders, who are primarily responsible for the following functions:

• Supervising baseline workers and putting plans into actions
• Helping middle-level managers in the recruitment and selection process
• Making operational or functional-level decisions
• Controlling and directing the work of baseline workers
• Communicating with baseline workers about the decisions of middle and top levels of management.
• Preparing daily, weekly or monthly plans

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Management Topics

МЕТОДИЧЕСКОЕ
ПОСОБИЕ ДЛЯ СТУДЕНТОВ

ФАКУЛЬТЕТА
«МЕНЕДЖМЕНТ ОРГАНИЗАЦИЙ»

Unit
1

Definition
of Management

Management
is based on scientific theories and today we can say that it is a
developing science.

But
knowledge of theories and principles doesn’t provide practical
results. It is necessary to know how to apply this knowledge.
Practical application of knowledge in the management area requires
certain abilities or skills. Here is an example:

Depending
on its size, an organization may employ a number of specialized
managers who are responsible for particular areas of management. A
very large organization may employ many man­agers, each
responsible for activities of one management area. In contrast, the
owner of a sole proprietorship may be the only manager in the
organization. He or she is responsible for all levels
and
areas
of
management.

What
is important to an organization is not the number of managers it
employs but the ability of these managers to achieve the
organization’s goals, and this ability requires a great skill.

In
other words, management
is the process of coordinating the resources of an organization to
achieve the primary organizational goals.

Managers
are concerned with the following main
resources:

Material resources

Human resources

Financial resources

Informational resources

Organizational goals

1.
Material resources are
physical materials and the equipment used by an organization to make
a product. For example, cars are made on assembly lines. These
assembly lines and the buildings that house them are material
resources.

2.
The most important resources of any organization are its human
resources –
people. Some firms believe that their employees are their most
important assets. To keep employees content, a variety of incentives
are used, including higher-than-average pay, flexible working hours,
recreational facilities, lengthy paid vacations, cafeterias offering
inexpensive meals, etc.

3.
Financial resources are
the funds the organization uses to meet its obligations to various
creditors. A grocery store obtains money from customers and uses a
portion of that money to pay the wholesalers from which it buys food.
A large bank, borrows and lends money. A college obtains money in the
form of tuition, income from its endowments, and federal grants. It
uses the money to pay utility bills, insurance premiums, and
processors’ sala­ries. Each of these transactions involves
financial resources.

4.
Finally,
many organizations increasingly find they cannot ignore information.
External
environment – including the economy, consumer markets, technology,
politics, and cultural forces – are all changing so rapidly that
an organization that does not adapt will probably not survive. And,
to adapt to change, the organization must know what is changing and
how it is changing. Companies are finding it increasingly important
to gather information about their competitors in today’s business
environment.

It
is important to realize that these are only general categories of
resources. Within each category are hundreds or thousands of more
specific resources, from which management must choose those that can
best accomplish its goals.
Managers
must coordinate this complex group of specific resources to produce
goods and services.

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Definition of Management

Everything you need to know about the definition of management. Management is a distinct process of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Management is defined as the process by which a co-operative group directs actions towards common goals.

Learn about the definitions of management provided by eminent authors like Karl Marx, Marry Parker Follett, Stewart, John F. Mee, R.C. Davis, Prof. A Dasgupta, E.F.L. Brech, George R. Terry, Stanley Vane, S. George, William Spriegel, Kimball and Kimball, Harold Konntz, Peter F. Drucker and Others.

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Definition of Management: Propounded by John F. Mee, R.C. Davis, Prof. A.Dasgupta, EFL Brech, George R. Terry and Other Details

Definition of Management – Provided by Karl Marx, Mary Parker Follett and Stewart

Management has been defined in many ways. A simple definition is “the activity of using resources in an efficient and effective way so that the end product is worth more than the initial resources”. This simple definition has the advantage that it focuses upon the crucial role of management to transform inputs into outputs of greater value.

However, the simple definition has a drawback- it is too inclusive. According to this definition, a cow chewing the cud would be an excel­lent manager since it eats a cheap resource, i.e. grass, and converts it into a more valuable product, milk. The definition includes practically every adult- a housewife cooking a meal, a vagrant collecting cigarette stubs, a student working in a library and an operative assembling chocolate boxes would qualify as a manager.

A definition so wide is useless because it is synonymous with humankind and does not differentiate a subset of people who are clearly managers. To improve the defi­nition it is necessary to specify the resources a manager uses.

Classically (according to Karl Marx) there are three main resources (inputs):

i. Capital- the money to buy machines and raw materials

ii. Labour- the people to work the machines

iii. Land- where raw materials such as coal, iron ore and cotton can be extracted or farmed

Modern theory has refined Marx’s list of resources.

Today we tend to think of resources as the four “M’s” of management:

i. Markets

ii. Making goods and services

iii. Men & women

iv. Money

Even when the resources are specified, a definition of a manager as “someone who uses resources in an efficient and effective way so that the end product is worth more than the initial resources” is still inadequate. It still includes too many people. A person working alone assembling bundles of firewood or an academic reading a book in a library would still qualify as a manager. Many people identify the management of other people as the defining characteristic of management.

Mary Parker Follett (1941) defined management as:

“Getting things done by other people.”

More recently Stewart (1967) described a manager as:

“Someone who get things done with the aid of other people.”

This emphasis on the management of other people provides a good way to differentiate between managers, operatives (workers who work directly upon raw materials or infor­mation or who directly provide personal services) and specialists (workers who use their skills and knowledge to enable other people to do things).

Specialists such as neurologists or financial analysts may have equal or higher status and salaries than managers. However, they will not be managers until they are responsible for the work of other people such as a clinical team or a group of junior investment analysts.

The simple definition of a manager needs a final improvement. It needs to specify what is meant by “more value”. Resources can be combined in ways that merely make the workers feel happy or they can be combined in ways that merely give managers pleasure. However, managers work within organisations and the phrase “more value” means “more value” in terms of the organisation’s goals.

When all these ideas are taken into account man­agement can be defined as:

“The activity of getting other people to transform resources so that the results add value to the organisation in terms of reaching its organisational goals.”

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Definition of Management – John F. Mee, R.C. Davis, E.F.L. Brech and Prof. A. Dasgupta (With Different Meanings of Management)

John F. Mee defines management as the art of securing maximum results with a minimum of effort so as to secure maximum prosperity and happiness for both employer and employee and give the public the best possible service.

R C Davis defines management is tough function of executive leadership anywhere.

Mary Cushing Niles defines management as Good Management, or Scientific Management, achieves a social objective with the best use of human and material energy and time and with satisfaction for the participants and the public.

E F L Brech says that management is concerned with seeing that the job gets done -its tasks put emphasis on planning and guiding the operations that are going on in the enterprise.

Prof. A Dasgupta defines as management is the creation and control of technological and human environment of an organization in which human skill and capacities of individuals and groups find full scope for their effective use in order to accomplish the objective for which an enterprise has been set up. It is involved in the relationships of the individual, group, organization and the environment.

Many authors defined management in their own way of learning. Many definitions concentrate on getting things done by the people by coordinating, using the resources of the organization to fulfill the goal for which the organization is set up.

Management is also looked up on as a process concerned with planning, executing and controlling the activities of an enterprise.

Different Meanings of Management:

The word management can be referred as a field of learning a body of organized knowledge, which is taught in universities and business schools.

Another way of thinking is collective sense of the managerial group of an organization; say for example, ‘the management of the college has declared the vacation period’.

Management may also be taken as an occupation or a career.

The word management can also referred to as describing a field of learning – the new discipline of management. Today the knowledge of management is taught in Universities, Colleges, Institutions and professional bodies. The status of management as a discipline will be enhanced as more principles are evolved, as more information or knowledge of managing is organized and communicated to those interested and as the act of managing becomes more systematic.

Management can also be taken in the collective sense of the managerial group of an organization – say for example we will be hearing or reading that the management of XYZ organization is pleased to sanction two months bonus…… All those who performs supervisory responsibilities are grouped under this package.

In an organizational set up management would include not only the top level manager but includes departmental and divisional heads, first line supervisors at the bottom of the management hierarchy as well as all the executives at the higher level reaching up to the chief executives. In a business organization, non-managers are the clerical, technical and sales employees.

Finally, the term management is now beginning to be used as distinguishing an occupation or a career. Careers in the sense here is workers like salesman, typist, clerk who are generally considered as non-managerial. When an employee occupies a position where he is responsible/accountable for the work of others, it may be mentioned that he has entered as the managerial career. Some of these managers attain the status of professional managers, which mainly indicates the knowledge, skill and attitude attain by these people.

Thus, the management is a purposeful goal-directed activity concerned with accomplishing objectives with and through the efforts of others. It is intangible in that it is a force, which is invisible. One can feel it presence in the results obtained, such as, increased productivity, employee co-operation and so on. Here one thing must be cleared that is an owner may be a manager, but a manager need not be an owner. The effectiveness of a manager (or management) depends on the knowledge and skill he possesses.

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Definition of Management – George R. Terry, E.F.L. Brech, Stanley Vane, S. George, William Spriegel, Kimball and Kimball, Harold Konntz and Peter F. Drucker

Unlike other subjects like philosophy, psychology and economics, management is a relatively a new subject. The principles and techniques of management are still in a developing stage and the definitions of management given by different scholars emphasise different aspects of management.

The following are a few of the important definitions of the term ‘management’:

“Management is a distinct process consisting of planning, organising, actuating and controlling performance to determine and accomplish the objectives by the use of people and resources” – George R. Terry

“Management is concerned with seeing that the job gets done, it tasks all centre that on planning and guiding the operations to it are going on the enterprise.” – E.F.L. Brech

“Management is simply the process of decision making and control over the actions of human beings for the express purpose of attaining predetermined goals.” – Stanley Vane

“Management consists of getting things done through others. Manager is one who accomplishes the objectives by directing the efforts of others.” – S. George

“Management is that function of an enterprise which concerns itself with the direction and control of the various activities to attain the business objectives.” – William Spriegel

“Management embraces all duties and functions that pertain to the initiation of an enterprise, it’s financing, the establishment of major policies, the provision of all necessary equipment, the outlining of general form of organisation under which the enterprise is to operate and the group of officials in primary control of an enterprise is referred to as the management.” – Kimbail and Kimball

“Management is the art of getting things done through and with people in formally organised groups. It is the art of creating an environment in which people can perform as individuals and yet co-operate towards the attainment of group goals. It is the art of removing blocks to such performance, a way of optimising efficiency in reaching goals.” -Harold Konntz

The first definition of management is that it is an economic organ of industrial society. It means taking action to make the desired result to pass. – Peter. F. Drucker

From these definitions, it is clear that management consists of getting things done through others by directing their efforts in an integrated and co-ordinated manner in order to attain business objectives. It is a process consisting of functions such as planning, organising, actuating and controlling business operations in such a manner as to attain the predetermined goals. It also involves securing men, money, materials and machinery needed for the achievement of business objectives and putting all of them into operation and checking their performance in order to ensure the productive use of the material resources.

It consists of resource and all of organisational activities that involve goal formation and accomplishment, performance appraisal and the development of an operating philosophy that ensures survival of the organisation.

(i) “To determine the goals and mission of the organisation,

(ii) To make work productive and the worker achieving,

(iii) To take care of social impacts and responsibilities.”

Of these three tasks, second task assumes priority. Human resource of the organisation is the real resource. This resource has to be effectively managed to achieve high productivity from this. Managers have to co-operate with human elements in and out of the organisation. They have to co-operate each human element to attain the organisation goals.

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Definition of Management – Propounded by Koontz and O’Donnell, Oliver Sheldon, Ordway Tead, Lawrence A. Appley, Louis Allen and Henry Fayol

Koontz and O’ Donnell – Management is the task of Manager to establish and maintain an internal environment in which people working together in groups can perform effectively and efficiently towards the attainment of group goals.

Oliver Sheldon – Proper management is the function in industry concerned with the execution of policy within the limit set up by the administration, and the employment in the organisation with a particular object.

Ordway Tead – Management is the process and agency which directs and guides the operations of an organisation in the realisation of established aims.

Lawrence A. Appley – Management is the development of people and not the direction of things. Management is personnel administration.

Louis Allen – Management is what management does.

Henry Fayol – To manage is “to forecast and plan, to organise, to command, to coordinate and to control.”

Critical Analysis of Selected Definitions:

Definition given by famous authors Koontz and O’ Donnel – In this definition there are two main points to be distinguished as below –

i. It is the responsibility of the manager to create and maintain a good working atmosphere in an organisation.

ii. So that people can work in group effectively and efficiently to achieve the group goals.

The authors convey through this definition that it is the responsibility of the manager to create a conducive working condition in the organization; so that the people working will have physical and psychological satisfaction to work effectively and efficiently to achieve the group goals. This definition considers the important aspect of human resource management.

Lawrence Appley, in his definition of management, spoke about the entire philosophy of modern management within a few calculated words. He stated that management is development of personnel. It means the development of human resource. In other words, development of skills of personnel. We cannot use the term management to any inanimate things (money, materials etc.).

Therefore, management is for personnel and not for the things. It is but natural to have a confusion in the mind of a reader that other managements like material, finance, production, etc., do relate to human. It should be understood that in all these managements, Personnel, Material, Finance, Production ‘HUMAN’ is the main factor. So the term management represents the management of personnel and not the inanimate things. Therefore, management is personnel administration.

Louis Allen, in his definition spoke about the entire management activity in five words. He captured the total managerial and operative functions of the manager.

He emphasised that management means what manager does. Management is basically an action oriented process.

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Definition of Management – Provided by Henry Fayol, Dr. F.W. Taylor, Peter Drucker, E.F.L. Breech, Joseph L. Massie, Lawrence Appley and Others

The term ‘Management’ defies precise def­inition. No two definitions are identical. It has not yet been possible to include all the ingredients of management within a single unassailable for­mula. In spite of the fact that the area of Manage­ment is becoming increasingly clear, no universally accepted definition of Management is forthcoming.

This is because persons of different professions try to define Management according to their own pre­disposition or orientation; engineers view Manage­ment as a matter of design of product, accountants as a matter of facts and figures, chemists as a mat­ter of formulae and mixtures, so on and so forth.

The different meanings and concepts of Ma­nagement are due to different points of view of dif­ferent persons. Some view management ‘as a group of managerial personnel’, while others define it as a function such as planning, organising, controlling etc.; still others consider Management as an eco­nomic resource and there are others to whom Management is a technique of leadership or a means of co-ordination.

Management is so comprehensive in nature cov­ering various facets that it is well-nigh impossi­ble to formulate a definition that will exactly fit in with all the aspects of Management.

In fact, the term Management can be interpreted in four di­fferent senses:

(i) Management as a Team or Sys­tem of Authority

(ii) Management as a Discipline

(iii) Management as an Economic Resource and

(iv) Management as a Process.

The exact definition of Management poses cer­tain difficulties which stem from the fact that Management is concerned with human beings whose behaviour is unpredictable. Moreover, Management, being a new concept and being in the process of development, naturally cannot be sub­jected to exact definition. Management experts like George R. Terry observed- “Management is extensive and formulating a comprehensive defi­nition of it poses certain difficulties”.

In spite of difficulties, various definitions of management have been offered.

Henry Fayol, the famous French Management expert, defined Management in a manner that gives us a better understanding of the nature of Management.

His definition runs as follows:

To manage is to forecast and to plan, to orga­nise, to command, to co-ordinate and to control.

This functional definition of Management gives us an idea as to what a manager has to do.

Dr. F. W. Taylor, the father of scientific Man­agement, defined Management as an art of “know­ing what you want to do” and then seeing that it is done “in the best and cheapest way”. This defi­nition is productivity-oriented and unlike the one offered by Fayol.

The concept of Management di­vorced from functional aspect was not liked by many including Peter Drucker who echoed the definition of Fayol and stated- “Management is an organ; organs can be described and defined only through their functions”. Taylor and Fayol de­fined Management in a way that did not lay much emphasis on the human aspect of Management.

This aspect of Management was emphasised later on by a number of experts, one of whom described Management as a personal administration and Management is the development of people and not the direction of things. It was even observed that it is the men whom we build and the men build products.

So, Management builds men who, in their turn, produce things. It is no exaggeration to say that in Management, the human aspect is more im­portant; it is the motivational factor on which de­pends the success of an enterprise.

There have been attempts to define Manage­ment from the angle of process approach. Manage­ment is a social process. It entails responsibility for effective and economical planning and regula­tion of the operation of an enterprise of a given purpose on task. E. F. L. Breech stated, “It is the pervasiveness of this human element that gives Management its special character as a social pro­cess”.

Terry’s definition of Management as a distinct process consisting of planning, organising, actuat­ing and controlling, utilizing in each both science and art and followed in order to accomplish prede­termined objectives; is very comprehensive with the essential elements that Management is a dis­tinct process and it consists of planning, organising, actuating and controlling. According to him, Man­agement utilizes both science as well as art and it is meant to accomplish predetermined objectives.

Joseph L. Massie, an eminent Management au­thor, defined Management as a process by which a co-operative group directs action towards common goals.

There is no dearth of definitions but to give a long list of definitions will not make things clear rather it will create confusion.

So, a few more definitions, which have been widely accepted, are being given:

Lawrence Appley, once President of the Ameri­can Management Association, gave a very accepta­ble definition – Management is the accomplish­ment of results through the efforts of other people.

Harold Koontz defines Management as the art of following things done through and with infor­mally organized groups.

Sir Charles Reynold, a British Management ex­pert, defined Management as a process of getting things done through the agency of a community.

At present, Management has acquired the na­ture of trusteeship. A professional manager has to act as a trustee and not as a boss.

The discussion above clearly indicates that too many definitions have been offered for Manage­ment but the fact remains that management, in order to be deemed as science, needs to be used in one sense only and this can be secured if the word is not used to mean both status and function.

Conclusion:

There is a perceptible trend towards profe­ssional management as we find in case of Tata Iron & Steel Company Ltd. The Tata Management Ser­vice and a few others already started in our coun­try, have accelerated the trend towards professionalisation of Management.

The different interpretations of Management are not, as a matter of fact, contradictory views of Management; they are merely different ways of looking at Management from different perspec­tives. Management definitions, if carefully ana­lysed, will reveal a synthesis of different appro­aches and viewpoints.

“Many chief executives and educators contend that the most important perspective of top execu­tives should be liberally educated on life’. The to­tal concept of Management requires an understand­ing of the meaning of liberal education and its relationship to Management functions. A liberal point of view is not merely the sum of a finite num­ber of narrow approaches. Its emphasis is on free­dom to choose from the widest range of possibili­ties by discovering new possibilities.” (Massie)

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Definition of Management – Henry Fayol, Sir Charles Reynold, Mary Cushing Niles, Koontz and O’Donnell, F.W. Taylor, P.Drucker, Mary Parker Follett and Others

“Management” carries different meanings depending on the context in which it is used. It is variously described as an “activity”, a “process”, and a “group of people” vested with authority to make deci­sions. Why, sometimes it is also used in the sense of trickery.

Some Important Definitions:

Henry Fayol – To manage is “to forecast and plan, to organize, to command, to coordinate, and to control.”

Sir Charles Reynold – Management is “the process of getting things done through the agency of a community. The functions of management are the handling of a community with a view to fulfilling the purposes for which it exists.”

Mary Cushing Niles – “Good management, or ‘Scientific Management’, achieves a social objective with the best use of human and material energy and time, and with satisfaction for the participants and the public.”

John F. Mee – Management is the “art of securing maximum result with minimum of effort so as to secure maximum prosperity for the employer and employee, and give the public the best possible service.”

Koontz and O’Donnell – Management is the “creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. It is the art of getting the work done with and through people in for­mally organized group.”

Management has been defined by many thinkers in a number of ways.

Some of the important definitions are:

“Management is knowing exactly what you want men to do, and then seeing that they do it in the best and cheapest way”. — F.W. Taylor

“Management is a multipurpose organ that manages a business, manages a manager and manages workers and work”. — P. Drucker

“Management is the art of getting things done through the other peoples”. — Mary Parker Follett

“Management may be defined as the art of applying economic principles that underline control of men and materials in enterprise under consideration”. — Kimball and Kimball

“Management is a kind of coordination activity between all the social process and man, machine, material, money and method; in such a way as to achieve the stated goals”. — Prof. S.B. Srivastava

“Management is the attainment of pre-established goals by the direction of human performance along the pre-established lines”. — Appley L.

“Management is principally a task of planning, coordinating, motivating and controlling the efforts of others towards specific objectives”. — James Landy

“Management is guiding human and physical resources into dynamic organization units which attain their objectives to the satisfaction of those served and with high degree of morale and sense of attainment on the part of those rendering service”. — American Management Association

“Management is to forecast and to plan, to organize, to command, to coordinate and to control”. — Henri Fayol

“Management is the process of planning, organizing, leading and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals”. — James A.F. Stoner.

This definition suggests:

i. That management is a continuous process.

ii. There are several interrelated activities to be performed by managers irrespective their level to achieve the desired goals.

iii. That manager is to use the organizational resources, both physical and human to achieve the goals.

iv. That management aims to achieve the organizational goals by ensuring effective use of resources.

“Management is defined as the 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”. — Koontz & O’Donnell.

From the above definitions, it can be concluded that “Management is a social activity involving coordination between material resources and humans through the functions of organizing, planning, leading, staffing and controlling as such to get the stated objectives”.

Here in this definition, the following are the five parts of management as a social process:

i. The first is the coordination of resources.

ii. The second is the performance of the managerial function as a basic means for achieving coordination.

iii. The third is to establish the objectives or purpose of managerial process. The managerial activities should be perfectly purposeful.

iv. The fourth aspect of the management is a social process. It means that how to get work done by other people.

v. The last and fifth activity indicates a cyclical process which is a continuous process that represents planning – control-re-planning cycle, and so on.

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Definition of Management – Propounded by F.W. Taylor, Harold Koontz, Harold Koontz, EFL Brech, R.C. Davis, TCM Bartol and D.C. Martin

The focal point of every business enterprise in today’s dynamic business world is “Management”. The complex structure evolved for business units today has made it impossible to handle it by a single person. It involves large number of people and “management” is the buzz word.

This wide involvement of people and dispersion of its awareness has led to the realization – “The modern age of organization”. Modern day business environment carry out all human activities through organizations ranging from production of goods and services, organizing sports, events, managing political economy, scientific research, events, managing political economy, scientific research, or transport and communication systems.

The effectiveness of all the business units further depends on its management. Vital roles played by management of any organization include planning, organizing and integrating all activities and resources of an organization to achieve pre-conceived, well-defined objectives. These tasks are performed by well-trained managers.

These well-trained managers direct the organization to achieve its goals set by the board by mobilizing the required factors of production, coordinating activities and inspiring people. Thus, ‘management’ may be understood as a prime mover of organizational performance and behaviour. Managers, on the other hand are ones to provide dynamism to organizations through effective leadership.

Management today has invaded each and every sphere of modern life, business as-well-as non-business activities. Hence, it plays a significant role in business world mainly because of the dynamism involved in business structures.

Meaning of Management:

Different eminent scholars across the globe have defined management from their own perspective.

Some of the famous definitions of management have been given below:

“Management is an art of knowing what is to be done and selling that it is done in the best possible manner.” – F.W. Taylor

“Management is the art of getting things done through and with people in formally organized groups.” – Harold Koontz

“Management is a social process entailing responsibility for the effective (or efficient) planning and regulation of the operations of an enterprise in fulfillment of a given purpose or task, such responsibility involves- (a) the installation and maintenance of proper procedures to ensure adherence to plans, and (b) the guidance integration and supervision of the personnel composing the enterprise and carrying out its operations.” – EFL Brech

“Management is the function of executive leadership. Managerial functions involve the work of planning, organizing and controlling the activities of others in accomplishing the organization s objectives.” – R.C. Davis

“Management is the process of achieving organizational goal by engaging in the major functions of planning, organizing, leading and controlling.” – TC.M. Bartol and D.C. Martin

On the basis of definitions discussed above, we may regard management as a distinct process. Though management concepts, principles and techniques are still under evolution. Considering management has yet not been developed as a discipline in itself, a wide influence of other developed disciplines like economics, sociology, anthropology, political science, statistics and mathematics, and others has been observed.

Consequently, no clear-cut definition of management has evolved by now. Though experiences of these developed disciplines have contributed to deeper development and understanding of management as a discipline. Management is understood in different contexts by different people.

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Definition of Management – According to Peter F. Drucker

Management is a distinct process of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources.

Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Management is defined as the process by which a co-operative group directs actions towards common goals.

Every organization, at every level, needs management, be it an organization as small as a family/temple or a church or bigger organizations as schools, colleges, universities, business houses or even the Government. It is important for both profit and non-profit organizations. Labour unions and research organizations, hospitals and armed services are also guided by management principles.

Peter F. Drucker has very remarkably explained the importance of management in today’s context-

“Without institution there is no management. But without management there is no institution. Management is the specific organ of the modern institution. It is the organ on the performance of which the performance and the survival of the institution depends.”

In light of the above discussion, management can be viewed as a process where human and non-human resources are integrated and directed towards organizational goals, whether profit or service, through various functions of management, i.e., planning, organizing, staffing, directing and controlling.

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Definition of Management – Propounded by Harold Koontz and F.W. Taylor

During the prehistoric days when man lived largely by collecting food ‘from the natural flora and by hunting, life was simple. Even in those days, men hunted for food, women cooked and cared for children, and people chose a leader who could lead them in hunting, and preferred someone to make their hunting equipment sharp and precise.

At a very rudimentary level, this is specialisation and division of labour. They managed the divi­sion of labour by planning, organising, finding appropriate people to do different tasks, and by choosing leaders who controlled the system through customs, practices, laws, and dispensation of justice.

According to Harold Koontz, “Management is the art of getting things done through and with the people in formally organised groups. It is an art of creating an environment in which people can perform and individu­als can co-operate towards attainment of group goals”.

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

Building on the definition of Harold Koontz, we can define management as the ‘process of designing and maintaining an environment in which individuals working in groups, efficiently employ resources including technology and machines and accomplish goals of stake holders effectively’.

This definition brings to the fore the following key issues of management- it is about people and other resources, there are goals for individuals, organisations, the society and other stake holders, and it involves creating an environment where people and resources interact. This definition answers the ‘what, why, and how’ of management. 

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Definition of Management – Dr. James Lundy, Harold Koontz, Henry Fayol, J.N. Schulze and S. George

Management is a general term. It refers to the organising and directing of human activities for attaining a definite objective. It is a process through which all the resources are organised and utilised to attain maximum efficiency.

In the words of Dr. James Lundy, “it is principally a task of planning, coordinating, motivating and controlling the efforts of others towards the specific objectives.”

In management literature, we find a large number of definitions of management given by different scholars who had different orientations.

Some of these definitions are given below:

Harold Koontz – “Management is the art of getting things done through and with people informally organised groups”.

Henry Fayol – “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.”

J.N. Schulze – “Management is the force which leads, guides and directs an organisation in the accomplishment of a pre-determined object.”

S. George – “Management consists of getting things done through others. Manager is one who accomplishes the objectives by directing the efforts of others.”

Management has been defined in different senses emphasizing different aspects of management.

In its broad sense, management may include the following:

(a) Formulation of plans, policies and objectives,

(b) Securing men, material, machinery, money and methods for this achievement,

(c) Putting all of them into operation,

(d) Directing and motivating the men at work,

(e) Supervising and controlling their performance, and

(f) Providing maximum satisfaction and service to employer, employees and public at large.

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