What is the meaning 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 is the coordination and administration of tasks to achieve a goal. Such administration activities include setting the organization’s strategy and coordinating the efforts of staff to accomplish these objectives through the application of available resources. Management can also refer to the seniority structure of staff members within an organization.

[toc]

In other words, Management is a technique of extracting work from others in an integrated and coordinated manner for realizing specific objectives through the productive use of material resources.

Mobilizing the physical, human, and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be benefited management.

Meaning of Management

Let’s understand the meaning of management in detail:

Management is a very broad term that can be analyzed in different ways. The meaning of management varies depending upon the context in which it is used. A few important meanings of management are stated below:

1. Management as a Noun
2. Management as a Process
3. Management as a Discipline
4. Management as a Profession

Management as a Noun

Management as a noun refers to all those persons who are engaged in managing a business organization and have both responsibility and authority to manage an organization and for those who are responsible for the work of others at all levels.

Management as a Process

Management as a process refers to a continuous and dynamic business process. Planning, organizing, staffing, directing, coordination, communication, motivation, and control are important aspects of the modern managerial process.

Management as a Discipline

Management as a discipline refers to various principles, practices, and techniques of management of a business organization. Like Economics, Sociology, and Philosophy it is an entirely different field and new subject.

As a branch of knowledge, it denotes a code of conduct for managers and prescribes the techniques, methods, and skills for managing things. It is a young discipline.

Management as a Profession

Like medicine, law, and teaching, management is also a profession. In any profession specialized knowledge, experience, and competency are needed, likewise, these things are also needed in studying management.

Definition of Management

These are the simple and easy-to-understand definitions of management by authors:

Nature of Management

Following are the nature of management explained below:

1. Art as Well as Science
2. Management is an Activity
3. A Continuous Process
4. To Achieving Pre-determined Objectives
5. Organized Activities
6. A factor of Production
7. Management as a System of Activity
8. Management is a Discipline
9. Management is a Purposeful Activity
10. Aims at Maximizing Profit
11. Decision-Making
12. Management is a Profession
13. Universal Application
14. Management is Getting Things Done
15. Management as a Class or a Term
16. Management as a Career
17. Direction and Control
18. Dynamic
19. Management is Needed at All Levels
20. Leadership Quality

Art as Well as Science

Management is both an art and a science. It is an art in the sense of possessing managing skills by a person. In another sense, management is a science because developing certain principles of laws that are applicable in a place where a group of activities is co-coordinated.

Management is an Activity

Management is the process of activity relating to the effective utilization of available resources for production. The term ‘resources’ includes men, materials, money, and machine in the organization.

A Continuous Process

The process of management mainly consists of planning, organizing, directing, and controlling the resources. The resources (men and money) of an organization should be used for the best advantages of the organization and its objectives.

The management function of anyone alone cannot produce any results in the absence of any other basic functions of management. So, management is a continuous process.

To Achieving Pre-determined Objectives

The objectives of an organization are clearly laid down. Every managerial activity results in the achievement of objectives fixed well in advance.

Organized Activities

Management is a group of organized activities. A group is formed not only in a public limited company but also in an ordinary club. All organizations have their own objectives. These objectives will be achieved only by a group of people.

These persons’ activities should be organized in a systematic way to achieve the objectives that cannot be achieved without any organized activities.

A factor of Production

The factor of production includes land, labor, capital, and entrepreneurs. Here, land refers to a place where production is carried on. Labour refers to the paid employees of the organization who are working at different levels as skilled, unskilled, semi-skilled, managers, and supervisors and like capital refers to the working capital in the form of cash, raw materials, and production.

According to Peter. F. Drucker, “whatever rapid economic and social development took place after World War II, it occurred as a result of systematic and purposeful work of developing managers and management. Development is a matter of human energies rather than of economic wealth and the generation of human energies is the task of management. Management is the mover and development is the consequence.”

Management as a System of Activity

A system may be defined as a set of component parts working as a whole. Authority may be defined as a right to command others for getting a particular course of organizational work done. Individuals are the foundation stones of management.

An individual has some goals as a member of the organization. There may be a conflict between his own goals and the management’s expectations of that individual. Such conflict is resolved by the management by ensuring the balance between individual goals and organizational expectations.

Authority is vested with many persons to take decisions and influence the behavior of the sub-ordinates. The very purpose of using authority rest with superiors as given in the organization chart and social norms. The utilization of authority is based on the personality factors of the user and the behavior of the person over whom it is used.

Management is a Discipline

The boundaries of management are not exact as those of any other physical science. It may be increased by the continuous discovery of many more aspects of business enterprise. So, the management status as a discipline is also increased in the same manner.

Management is a Purposeful Activity

Management is concerned with the achievement of the objectives of an organization. These objectives are achieved through the functions of planning, organizing, staffing, directing, controlling, and decision-making. The organizational objectives are clearly defined and explained to every employee.

Management is a Distinct Entity

Management is distinct from its functional activities. The functions have the nature of “to do” but the management has the nature of “how to get things done” A manager requires some amount of skill and knowledge to get work done.

Aims at Maximizing Profit

the available resources are properly utilized to get desired results. The results should be the maximizing profit or increasing profit by the economic function of a manager.

Decision-Making

There are a number of decisions taken by the management every day. Decision-making arises only where there is the availability of alternative courses of action. If there is only one course of action, the need for decision-making does not arise the quality of decisions taken by the manager determines the organization’s performance.

The success or failure of an organization depends upon the degree of the right decision taken by the manager.

Management is a Profession

Management is a profession because it processes the qualities of a profession. A fund of knowledge is imparted and transferred in this profession and the same is followed by management. The established principles of management are applied in practice.

Universal Application

The principles and practices of management are applicable not to any particular industry alone but applicable to every type of industry. The practice of management is different from one organization to another according to its nature.

Management is Getting Things Done

A manager does not actually perform the work but he gets the things done by others. According to Koontz and O’Donnell, “Management is the art of getting things done through and with people in formally organized groups”.

Management as a Class or a Term

A class may be defined as a group of people having homogenous characteristics to achieve common objectives. Engineers and doctors are grouped as a class in society. Each and every doctor has the same objectives in life just like engineers and doctors, the management people have got similar aspirations to achieve corporate objectives.

Management as a Career

Nowadays, management is developed as a career focused on certain specializations. Financial management, cash management, portfolio management, Marketing management, Personnel management, industrial management, and Business management are some of the specializations of management. Specialists are appointed to the key posts of top management.

Direction and Control

A manager can direct his subordinates in the performance of a work and control them whenever necessary. If the available resources are not unlisted properly by him, he fails to achieve the corporate objective in the absence of direction and control. Generally, direction and control deal with the activities of human effort.

Dynamic

The management is not static. In the fast-developing business world, new techniques are developed and adopted by the management. Management is changed according to social change. Social change is the result of the changing business world.

Management is Needed at All Levels

The functions of management are common to all levels of the organization. The top executive performs the functions of planning, organizing, directing, controlling, and decision-making. The same functions are also performed by the lower-level supervisor.

Leadership Quality

Leadership quality is developed in the persons who are working at the level of management. According to R.C. Davis, “Management is the function of executive leadership everywhere”.

FAQ Related to Management

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.

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”.

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

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.

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.

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.

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.

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

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

Management Topics

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 essential for an organized life and necessary to run all types of management. Good management is the backbone of successful organizations. Managing life means getting things done to achieve life’s objectives and managing an organization means getting things done with and through other people to achieve its objectives.

Whether management is an art or science, will continue to be a subject of debate. However, most management thinkers agree that some form of formal academic management background helps in managing successfully. Practically, all CEO’s are university graduates. Hence, the reason for including business degree programs in all academic institutions.

Management is a set of principles relating to the functions of planning, organizing, directing and controlling, and the application of these principles in harnessing physical, financial, human, and informational resources efficiently and effectively to achieve organizational goals.

Definition of Management

Many management thinkers have defined management in their own ways. For example, Van Fleet and Peterson define management, ‘as a set of activities directed at the efficient and effective utilization of resources in the pursuit of one or more goals.’

Megginson, Mosley, and Pietri define management as ‘working with human, financial and physical resources to achieve organizational objectives by performing the planning, organizing, leading and controlling functions‘.

Kreitner’s definition of management:

‘Management is a problem-solving process of effectively achieving organizational objectives through the efficient use of scarce resources in a changing environment.’

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

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

A leader has certain inherent qualities and traits which assist him in playing a directing role and wielding commanding influence which others. Leadership is an integral part of management and plays a vital role in managerial operations, while management is an integral component of technical as well as social processes. The practice of management is as old as human civilization. However, the study of management in a systematic and scientific way as a distinct body of knowledge is only of recent origin.

Management in some form or another is an integral part of living and is essential wherever human efforts are to be undertaken to achieve desired objectives. The basic ingredients of management are always at play, whether we manage our lives or our business.

For example, let us look at the managerial role of a simple housewife and how she uses the managerial ingredients in managing the home. First, she appraises her household and its needs. She forecasts the needs of the household for a period of a week or a month or longer. She takes stock of her resources and any constraints on these resources.

She plans and organizes her resources to obtain the maximum benefits out of these resources. She monitors and controls the household budget and expenses and other activities. In a large household, she divides the work among other members and coordinates their activities. She encourages and motivates them to do their best in completing their activities. She is always in search of improvement, mentions goals, resources, and means to attain these goals. These ingredients, generally, are the basic functions of management.

Management Can Be Defined In Detail In The Following Categories :

•     Management as a Process
•     Management as an Activity
•     Management as a Discipline
•     Management as a Group
•     Management as a Science
•     Management as an Art
•     Management as a Profession

The concept of management is as old as the human race itself. The concept of ‘family’ itself required that life be organized and resources of food are apportioned in a manner so as to maximize the utility of such resources. Taking proper steps to safeguard the family from attacks by wild animals, planning on where to go fishing and hunting and whom to go with, organizing these groups into chiefs and hunting and fishing bands where chiefs gave directions, and so on, are all subtle ingredients of management and organization.

A study of various people around the world shows good examples of organizational structures and organizational evolution over the years. A village open market in a tribe and a large department store in a modern city serves the same needs in a similar fashion, which is putting things together that people need.

While the tribal organization was simple in nature, the modern organization is much more sophisticated and complex with many technological innovations. However, the basic form of management and organizational structure seems to have existed since the beginning of organized human activity.

Even the recorded history shows the application of some current management techniques as far back as 5000 BC. when the ancient Sumerians used written records in assisting governmental operations. The Egyptian pyramids, built as early as 3000 BC., required the organized efforts of over 1,00,000 workers. It would be natural to assume that all functions of modern management, namely, planning, organizing, directing, and controlling played a significant role in the construction of these monuments. Similarly, the early civilization of India bears witness to organized living.

Management, as a system, is not only an essential element of an organized society but also an integral part of life when we talk about managing our lives. Managing life is not much different from managing an organization and this ‘art’ of management has been with us from time immemorial. Just as a well-managed life is much better organized, goal-oriented, and successful, ‘good’ management of an organization makes the difference between the success and the failure of the organization.

Perhaps, the importance of management was highlighted by the late President of the United States, John F. Kennedy when he said that, the role of management in our society is critical in human progress. It serves to identify a great need of our time: to improve standards of living for all people through the effective utilization of human and material sources.

Similarly, Peter F. Drucker, a noted management authority has emphasized the importance of management to social living. He proclaimed nearly 25 years ago that, ‘effective management was becoming the main resource of developed nations and that it was the most needed resource for developing nations.’

A manager’s job is highly crucial to the success of any organization. The more complex the organization, the more crucial is to the manager’s role in it. A good manager makes things happen. The importance of management in any organization was emphasized by Professor Leonard R. Sayles in his address to a group of management development specialists, as follows:

‘We must find ways of convincing society as a whole, and those who train managers in particular, that the real leadership problems of our institutions-the getting things done, the implementation, the evolving of a consensus, the making of the right decisions at the right time with the right people is where the action is. Although we as a society haven’t learned to give much credit to managers, I hope we can move toward recognizing that managerial and leadership jobs are among the most critical tasks of our society. As such, they deserve the professional status that we give to more traditional fields of knowledge.’

There Are Basically Five Primary Functions of Management. These Are:

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

The controlling function comprises coordination, reporting, and budgeting, and hence the controlling function can be broken into these three separate functions. Based upon these seven functions, Luther Gulick coined the word POSDCORB, which generally represents the initials of these seven functions i.e. P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for Budgeting.

But, Planning, Organizing, Staffing, Directing, and Controlling are widely recognized functions of management.

(1) Planning

Planning is future-oriented and determines an organization’s direction. It is a rational and systematic way of making decisions today that will affect the future of the company. It is a kind of organized foresight as well as corrective hindsight. It involves predicting of the future as well as attempting to control the events. It involves the ability to foresee the effects of current actions in the long run in the future.

Peter Drucker has defined planning as follows:

“Planning is the continuous process of making present entrepreneurial decisions systematically and with best possible knowledge of their futurity, organizing systematically the efforts needed to carry out these decisions and measuring the results of these decisions against the expectations through organized and systematic feedback”.

An effective planning program incorporates the effect of both external as well as internal factors. The external factors are shortages of resources; both capital and material, general economic trend as far as interest rates and inflation are concerned, dynamic technological advancements, increased governmental regulation regarding community interests, unstable international political environments, etc.

The internal factors that affect planning are limited growth opportunities due to saturation requiring diversification, changing patterns of the workforce, more complex organizational structures, decentralization, etc

(2) Organizing

Organizing requires a formal structure of authority and the direction and flow of such authority through which work subdivisions are defined, arranged, and coordinated so that each part
relates to the other part in a united and coherent manner so as to attain the prescribed objectives.

According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.

Thus the function of organizing involves the determination of activities that need to be done in order to reach the company goals, assigning these activities to the proper personnel, and delegating the necessary authority to carry out these activities in a coordinated and cohesive manner.

It follows, therefore, that the function of organizing is concerned with:

1. Identifying the tasks that must be performed and grouping them whenever necessary
2. Assigning these tasks to the personnel while defining their authority and responsibility.
3. Delegating this authority to these employees
4. Establishing a relationship between authority and responsibility
5. Coordinating these activities

(3) Staffing

Staffing is the function of hiring and retaining a suitable work-force for the enterprise both at managerial as well as non-managerial levels. It involves the process of recruiting, training, developing, compensating, and evaluating employees and maintaining this workforce with proper incentives and motivations. Since the human element is the most vital factor in the process of management, it is important to recruit the right personnel.

According to Kootz & O’Donnell, “Managerial function of staffing involves manning the organization structure through the proper and effective selection, appraisal & development of personnel to fill the roles designed in the structure”.

This function is even more critically important since people differ in their intelligence, knowledge, skills, experience, physical condition, age, and attitudes, and this complicates the function. Hence, management must understand, in addition to the technical and operational competence, the sociological and psychological structure of the workforce.

(4) Directing

The directing function is concerned with leadership, communication, motivation, and supervision so that the employees perform their activities in the most efficient manner possible, in order to achieve the desired goals.

The leadership element involves issuing instructions and guiding the subordinates about procedures and methods.

The communication must be open both ways so that the information can be passed on to the subordinates and the feedback received from them.

Motivation is very important since highly motivated people show excellent performance with less direction from superiors.

Supervising subordinates would lead to continuous progress reports as well as assure the superiors that the directions are being properly carried out.

(5) Controlling

The function of control consists of those activities that are undertaken to ensure that the events do not deviate from the pre-arranged plans. The activities consist of establishing standards for work performance, measuring performance and comparing it to these set standards, and taking corrective actions as and when needed, to correct any deviations.

According to Koontz & O’Donnell, “Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them as being accomplished”.

The controlling function involves:

a. Establishment of standard performance.

b. Measurement of actual performance.

c. Measuring actual performance with the pre-determined standard and finding out the deviations.

d. Taking corrective action.

All these five functions of management are closely interrelated. However, these functions are highly indistinguishable and virtually unrecognizable on the job. It is necessary, though, to put each function separately into focus and deal with it.

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.

How do you use management?

Used with verbs: “The company needs better management.” “Management handles all of the personnel issues.” “Management should provide support to its employees.”

How do you explain the word management as a student?

Answer: the act or skill of controlling and making decisions about a business, department, sports team, etc. : the people who make decisions about a business, department, sports team, etc. : the act or process of deciding how to use something.

What is the five word definition of management?

The process of setting and achieving goals through the execution of five basic management functions: planning, organizing, staffing, directing, and controlling; that utilize human, financial, and material resources. This definition stresses the activities that are necessary for reaching particular goals.

What are the 3 types of management?

Key Points

• The three levels of management typically found in an organization are low-level management, middle-level management, and top-level management.
• Top-level managers are responsible for controlling and overseeing the entire organization.

Which management style is best?

8 Most Effective Management Styles

1. Democratic Management Style.
2. Coaching Management Style.
3. Affiliative Management Style.
4. Pacesetting Management Style.
5. Authoritative Management Style.
6. Coercive Management Style.
7. Laissez-Faire Management Style.
8. Persuasive Management Style.

What are the 7 leadership styles?

The seven primary leadership styles are: (1) Autocratic, (2) Authoritative, (3) Pace-Setting, (4) Democratic, (5) Coaching, (6) Affiliative, (7) Laissez-faire.

Who is considered upper management?

Upper management includes individuals and teams that are responsible for making the primary decisions within a company. Personnel considered to be part of a company’s upper management are at the top of the corporate ladder and carry a degree of responsibility greater than lower level personnel.

What are the 4 levels of managers?

Most organizations, however, still have four basic levels of management: top, middle, first line, and team leaders.

What are the types management?

Types of management styles

• Authoritative management style.
• Persuasive management style.
• Paternalistic management style.
• Consultative management style.
• Participative management style.
• Collaborative management style.
• Transformational management style.
• Coaching management style.

What is management and its type?

Management: An Overview Management functions include: Planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. There are several different resource types within management.

What are the two types of managers?

In the field of management there are two basic types of management styles: Theory X and Theory Y. Each is shaped by the worldview of the manager and greatly impact the culture of the organization.

What is management explain with example?

The definition of management is the way something is handled, careful treatment, supervising skills, or those in charge of a business or group. An example of management is how a person handles their personal finances. An example of management is the CEO of an organization.

What is management explain in your own words?

Management is the coordination and administration of tasks to achieve a goal. Such administration activities include setting the organization’s strategy and coordinating the efforts of staff to accomplish these objectives through the application of available resources.

What is the best definition of management?

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.

What is another name for management?

SYNONYMS FOR management 1 regulation, administration; superintendence, care, charge, conduct, guidance, treatment.

What is another name for team?

Synonyms of team

• army,
• band,
• brigade,
• company,
• crew,
• gang,
• outfit,
• party,

What is the difference between leadership and management?

Management consists of controlling a group or a set of entities to accomplish a goal. Leadership refers to an individual’s ability to influence, motivate, and enable others to contribute toward organizational success.

Which is better leader or manager?

Leaders help organizations and people to grow, while a manager’s greatest accomplishment comes from making work processes more effective. Both are important but naturally, leadership is ahead of management. A well-balanced organization has leadership at its base.

What are the four types of leadership?

Leadership styles based on authority can be 4 types:

• Autocratic Leadership,
• Democratic or Participative Leadership,
• Free-Rein or Laisse-Faire Leadership, and.
• Paternalistic Leadership.

What are examples of leadership?

We asked business pros to share some examples of leadership roles that could catch the eye of potential employers.

• Sports.
• Cross-cultural experience.
• Social groups.
• Internships.
• Volunteering.
• Student government and organizations.
• Passion projects.
• Any time you worked in a team.

What is the best example of leadership?

Taking a lead role in a school project is a great example of leadership experience. If you delegated tasks, chose the overall strategy for the project, or anything like that, that’s leadership! Organizing a team presentation can also be considered leadership.

What is your leadership style best answer?

Example Answer #1: “I would describe my leadership style as direct, and leading by example. I enjoy delegating tasks and taking the lead on projects, but I also like to stay involved and inspire my team by showing that I’m working hands-on to help them, too.

What are five qualities of a good leader?

Five Qualities of Effective Leaders

• They are self-aware and prioritize personal development.
• They focus on developing others.
• They encourage strategic thinking, innovation, and action.
• They are ethical and civic-minded.
• They practice effective cross-cultural communication.

What are the two main responsibilities of a leader?

A leader sets a clear vision for the organization, motivates employees, guides employees through the work process and builds morale.

What are the qualities of a good leader?

The Characteristics & Qualities of a Good Leader

• Integrity.
• Ability to delegate.
• Communication.
• Self-awareness.
• Gratitude.
• Learning agility.
• Influence.
• Empathy.

Here we learn about the What is Management? Definitions Meaning and Features of the Management. Every human being has several needs and desires. But no one can fulfill all their needs alone.  Therefore, people work groups to meet their mutual needs.

Moreover, man is a social being, who likes to live and work in a group. Groups can achieve their goals only if the efforts of people working together are properly coordinated and controlled.

Thus, the task of achieving goals through coordination and control of other people’s activities is known as management.  

Peter Drucker believes that management work is to make people productive. Managerial efficiency is essential for, becoming competitive in the national and international area. The word ‘management’ can be explained as It means managing men tactfully to get things done. In order for men, one has to understand the unpredictable human nature tactfully. Hence, it is very complicated and challenging manage activity.

The word management is defined in many ways. Views differ on the subject and it is difficult to find out any uniformity among them.

Some define management as a process comprising specific functions such as planning, organizing staffing, leading, and controlling.

Management is also a discipline, which involves the study of certain principles and  are also persons who regard management as a group of the person charged with the responsibility of running a business.

What is Management? Definitions

Some of the important definitions of management are given below:

(1) Harold Koontz: Management is the art of getting things done through and with people in formally organized groups

(2) S. George: Management consists of getting things one through others. The manager is one who accomplishes the objectives by directing the efforts of others.

Meaning of Management

The Human has analyzed the term management in three senses/concepts:

1. as a process
2. as a discipline
3. as a noun.

Here, we shall briefly explain each of these.

1. Management as a Process

Many Scholars have defined management as a process. When used a process, management refers to the series of interrelated functions, which are performed by managers to make productive use of materials and human resources.

The process engagement involves the determination of objectives and putting them into action. Hence, management is the process of planning organizing, staffing, leading, and controlling the efforts of of an organizational members to accomplish the objectives organization.

Management process is not a series of separate mutually independent functions. In practice, a manager oft performs many of these functions simultaneously. This concept most popular and appropriate because management is what the managers do. It has the following advantages:

• It is very simple and easy to understand
• It indicates the functions of management
• It recognizes management as a universal process

2. Management as a Discipline

A discipline may be defined as a branch of knowledge or subject of instruction. When used as discipline, management is a specialized branch of human knowledge, which involves the study of principles and practices of management. It is a subject of study which is now formally taught in campuses and universities Management has acquired the status of a discipline because of the following two reasons.

• The scholars in the field of management are carrying out a lot of research. The results of the research will be useful for future managers.
• It is a the socialized body of knowledge, which is studied and practiced in management institutions.

Management is comparatively new discipline but it growing at a great pace. As a discipline, the popularity of management can be judged by the huge crowd for admission in institutions which provide education and training in management.

It is an applied discipline, which is inter-disciplinary in nature because it involves the study and application of knowledge drawn from Economics, Mathematics, Psychology, Sociology, and other disciplines.

With the increasing size of the organizations, growing specialization. sophisticated technology, cut throat competition, and other challenges, the importance of management as a discipline is growing .

3. Management as a Noun

When management is used as a noun, it refers to all managerial personnel of an organization who have policy making supervisory and controlling responsibility for achieving organizational goals.  It is a collective noun consisting of Board of Directors, Managing Director, General Manager, Department Heads, Supervisors, etc.  

Thus, when we say management of Himalayan Bank is good. we are referring the persons who are managing the organization. It may be said that all those who direct the work of others are part of management.

There are some that describe management as a technique of leadership and decision making or a means of coordination Though used in different senses, the term management as a process is most popular.

Drucker stress three jobs of management:

1. managing a business
2. managing a manager. and
3. managing workers and work

Even if one is omitted, we would not have management any more and we also would not have a business enterprise or an industrial society. The manager requires balancing and harmonizing three major function of business enterprise. Hence, a the manager is a  dynamic and life giving element in every business.  

Without efficient management, we cannot secure the best allocation and utilization of human, material, and financial resources. An analysis of the above definitions makes it clear that management has been viewed differently stressing on the different aspect of management.

However, it is clear that management is a  the process of getting things done through others to attain organizational goals. In its broadest sense, management can be regarded as:

• Formulation of plans, policies and programmers,
• Securing men, material and machinery cheaply,
• Putting all of them into operation through the sound organization,
• Leading and the men at work
• Supervising and controlling their performance
• Providing maximum satisfaction and service to employer, employees and public at large

 In short, «Management is managing people and other resources in the organization for achieving the goals of the organization.» It is nothing but managing people with tact and managing people for achieving goals.

The concept of management exists in all organizations seeking to attain goals. The nature of management varies, but all organizations have a managerial structure.

Features or Characteristics of Management

An analysis of the above definitions of management reveals certain features and characteristics of management. Such features are as follows

1) Management is Goal-Oriented :

Management is a means to achieve predetermined goals. All managerial activities are systematically directed in the accomplishment of such goals.  Management has no justification to exist without goals. Effective management is always management by objective.

The basic goal of management is to maximize the efficiency and economy of human efforts. The success of management is measured to the extent that the targets achieved are achieved. Therefore, management is goal-oriented.

2) Management is a Group Activity:

Management cannot be done in isolation. It always refers to Whenever there is an organized group of people working towards a common goal, some type of management becomes essential. A group can achieve the goals or objectives of an organization more easily and effectively than a person.

3) It is a Distinct Process:

 Management is a distinct process performed to accomplish organizational goals by the use of human and material resources.

4) Management is a Universal Activity:

Management is required in all types of organization. Wherever there is a human activity there is a management. The basic principles of management are applicable in business as well in other organizations.

These principles are flexible and are modified according to the needs and environment of the organization

5) Management is an Integrating Process:

The essence of management is the integration of human and other resources for effective performance. It integrates men’s, machines and materials in order to achieve set goals.

The responsibility of management is welding the three factor men, methods and machinery into a single working facto.

6) Management is a Social Process:

Management is a social process because it consists of getting things done through others. This involves dealing with people. The efforts of human beings have to be directed, coordinated and regulated by management.

Apart from this, management has a social obligation to maximize the use of rare resources for the benefit of the community.

7) Management is Both Science and Art:

Management is a science because it has developed certain principles that are of universal application.  It is also an art because management results depend on the individual skills of managers.

The manager’s art is essential to make the best management science. Therefore, it is both science and art.  

Management is a Profession:

Management is now regarded as a profession. It has a systematic and specialized body of knowledge, principles and techniques, which can be taught along with practice.

With the increase in joint stock companies, and multinationals, management has been entrusted to the management of professional managers.

9) Management is Multidisciplinary Discipline:

Management draws knowledge and concepts from other disciplines such as economics, psychology, sociology, statistical operation research, etc.

Management integrates ideas and concepts taken from other disciplines and uses them in organization management.

10) Management is Intangible:

Management is unseen forces but its results are apparent. The effectiveness of management is judged on the basis of the final results, although operations can not be seen.

11) Management is Dynamic:

Management is a dynamic function and it has to be performed continuously. It operates in an ever-changing environment. Management adapts itself to environmental changes and also introduces innovation in methodology.

MANAGEMENT is : SCIENCE, ART OR PROFESSION

The controversy, whether the management is a science or an art is very old which still exists.

According to J. Paul Gety «Management cannot be systematized, or practiced according to a formula. it is an art, even a creative art». Others disagree. It is said that, «The management is the oldest of arts and the youngest of sciences».

Some scholars consider management to be a science, some others as an art and still others as a profession. Thus, the true nature of management will be clear after analyzing whether management is a science, an art or a profession.

1) Management as a Science

Science is a systematized body of knowledge gathered by observation and experiment, which is verifiable. The essential features of science are as follows.

1. Principles are universally applicable
2. Developed through scientific inquiry or experiments
3. Established cause-and-effect relationships between various factors.
4. Their validity can be verified and predictable.

Management does satisfy the basic features of science. Management contains a systematized body of knowledge in the form of general principles, which can be universally applied. These principles are also based on scientific enquiry and investigation.

They have been developed through experiments and practical experiences. The principles of management also establish cause and effect relationship between different variables.

They can also be tested for their validity. Moreover, the future events can be predicted with reasonable accuracy by using scientific principles. Thus, management is undoubtedly a science. However. it is not an exact science as physics, chemistry, and other physical sciences.

This is because management deals with people and it is difficult to predict accurately the behavior of human beings Hence, management is behavior science. It is an inter-disciplinary science that has been developed with the aid of other disciplines such as economics, mathematics, statistics, psychology, sociology etc. That is why management is a social science.

2) Management as an Art

Art means application of knowledge and skills to bring about the desired results. Management is one of the most ‘creative art’ as it requires a vast knowledge and certain innovating, initiating, implementing, and integrating skills in relation to goods, resources, techniques, and results.

In fact, the function of an art is to accomplish goals by deliberate efforts. The essential elements of art are as follows:

1. Practical knowledge
2. Personal skill
3. Result-oriented approach
4. Creativity
5. Improvement through continuous practice

Management satisfies also the basic features of art. An artist must not only learn the theory but also its application in practice. Similarly, a person cannot become a successful manager simply by reading theory and getting a degree in management. 

He must also learn to apply his knowledge in solving managerial problems. Every manager has his individual approach and style in solving managerial problems. It requires certain knowledge and skills to achieve desired results. A manager uses man, money, materials and machinery to promote the growth of his organization.

A manager is an artist because he applies the knowledge gained from the study of science of management for managing human and material resources. A person cannot be called manager if he does not have the skills to apply the knowledge of management.

3) Management as a Profession

The rapid development of business and the separation of ownership and management in the organization have contributed to the emergence of management as a distinct profession. To discuss whether management is a profession or not, it would be relevant to have a clear understanding of the essential features of profession.

The profession is an occupation, which involves the rendering of personal service of a special and expert nature. In order to practice their profession they must have minimum academic and professional qualifications prescribed by law or by the related professional associations.

The essential features of a profession are as follows:

1. Organized and specialized knowledge
2. Formal education and training
3. Service motive
4. Professional association and
5. Ethical codes

Now, let us examine to what extent management fulfills the above requirements of a profession :

(i) Organized and Specialized Knowledge:  Profession emerges from the establishment of an organized and specialized knowledge, which can be studied. It is true for all professions, including management.

During the last five-six decades there has been a constant and steady growth of management techniques, principles and skills.  Today, management is a separate discipline having a specialized and organized body of knowledge.

(ii) Formal Education and Training:  Profession requires a formal education and training i specific area. No one can practice a profession without going through the prescribed course.

Many institutes of management have been set up in foreign countries, which offer courses for specialized training in management. Formal education and training have become very helpful in getting jobs as managers. However. no minimum qualifications or course of study have been prescribed for managers by law.

(iii) Service Motive: A profession is a source of livelihood primarily motivated by the desire to serve the community. Due to their expert knowledge they are always in a position to charge higher fees.

They not at the cost of social interests. The success of profession cannot be measured in terms of money. Therefore, a profession enjoys high community respect.

Management is an integrating agency which integrates various resources and converts them into productive units. This is a major contribution of the management to the society, which cannot be measured in terms of money alone.

(iv) Professional Association: In every profession there is a statutory association or institution which regulates that profession. The association is a representative body, which regulate and develop the profession and prescribe the criteria for individuals entering the profession.

In management also, association has been formed for the regular exchange of knowledge and experience. However, they do not have the statutory power to regulate the activities of managers Membership of this association is not compulsory in order to become a manager. Hence, the management does not satisfy this criteria of profession.

(v) Ethical Codes:  A profession must possess some ethical standards of conduct for its members, which contains rules and regulations providing the norms of honesty, integrity and professional ethics.

Any member violating the code can be punished and his. membership can be canceled. But there are no enforced ethical codes in the field of management. Association is established for the purpose of exchanging experience and skills. No membership is required to be a manager. So, management does not satisfy this feature of a profession.

Conclusion

From the above discussion, it is very clear that the management does not satisfy all the features of a profession. Like other professions, management does not restrict the entry into managerial job to people. No minimum qualifications have yet been prescribed for managerial personnel.

No management association has the authority to grant certificates of practice. In the absence of statutory association, ethical codes are also missing Thus. management is not strictly a full-fledged profession like medicine, law or chartered accountancy.

Even though. it does not satisfy all the features of profession, it is treated as a separate an distinguished profession now-a-days. At present a large number of new graduates are attracted to this field. Certainly there is a social recognition to the management as a profession.