Mature and Characteristics of Management

1. Multidisciplinary: Management is basically multidisciplinary. 2. Goal-oriented:

Management aims at achieving some definite goals or objectives. 3. Economic
Resource: Management is a factor of production. 4. Dynamic Nature of Principles: The
principles of management are flexible in nature. 5. System of Authority: Authority is
the power to get the work done from others and to compel them to work in a certain
manner. 6. Universal Application: Management is applicable in all types of
organisations. 7. A Science and an Art: Management is a science because it has
developed certain principles which are of universal application. But, the results of
management depend upon the personal skills of managers and in this sense,
management is an art. 8. A Profession: Management is, now, recognised as a
profession. 9. Results Through Others: The managers cannot do everything
themselves. They must have the necessary ability and skills to get work done through
the efforts of others. 10. A Social Process: Management is a social process which
consists of getting things done through others.

Objectives of Management

The primary objective of management is to run the organisation smoothly. It should

keep in mind the profit earning objective of a business while undertaking various
functions. Management has the following objectives.-

1. To organise the effective carrying out of work, 2. To organise the expert personnel
for work,  3. To utilise all the resources economically,  4. To assess and evaluate the
performance of work periodically, 5. To improve the performance of each and every
factor of production,  6. To draft policies for promoting industrial peace, 7. To provide
for expansion of business,  8. To prepare plans for future development, 9. To promote
economic development, and 10. To maintain a proper environment to attract
specialists in various fields.

Levels of Management

The term 'Levels of Management' stands for the arranged managerial positions in an
organisation. The number of levels of management increases when the size of the
organisation' and work force increases. But, it is desirable to restrict the number of
levels of management.

1. Top Level Management

The top level management is the policy-making group responsible

for the overall direction and success of all company activities. It consists of the Board
of Directors and the Chief Executive or the Managing Director. It is the ultimate source
of authority. It establishes goals and policies for the company. It is accountable to the
shareholders for the overall management.

Functions

The top management has to perform the following functions:

1. To lay down the objectives of the enterprise. 2. To prepare plans and policies for
the enterprise. 3. To issue necessary instructions for the preparation of departmental
budgets, schedules, procedures, etc. 4. To co-ordinate the activities of different
departments. 5. To build and maintain relations with the public.

2. Middle Level Management

Middle level management consists of heads of functional departments. They are

responsible to the top management for the efficient functioning of their departments.
They include branch managers, superintendents and heads of various sections.

Functions

Mary C. Niles has laid down the following functions for middle management: 

1. To run the details of the organisation and leave the top managers as free as
possible of their responsibilities. 2. To co-operate in making a smooth functioning of
the organisation. 3. To understand the interlocking of departments in major policies.
4. To achieve the co-ordination between the different parts of the organisation 5. To
develop leaders for the future by broad training and experience

3. Lower Level Management

It is also known as 'Supervisory Management'. It refers to those executives whose

work is to oversee and direct operative employees This level includes supervisors,
foremen, accounts officers, sales officers, etc. Managers at this level are also known
as first line supervisors. They provide a link between the management and the
workers.

Functions

1. To plan and organise the activities of the group. 2. To arrange necessary materials,
machines, tools etc. for the workers 3. To provide the workers with the necessary
working environment. 4. To give training to the workers. 5. To supervise and guide the
subordinates.

NATURE OF MANAGEMENT
Management as a Science

Science is a systematically organised body of knowledge base on proper findings and

exact principles and is capable of verification Any subject which is scientifically
developed and consists of universally accepted principles is a science. In this respect,
management can be considered a science. It satisfies the basic characteristics of a
science. The following are the important features:-

1. Science is an organised body of knowledge comprising general principles.

Management is also an organised body of knowledge comprising general principles.

2 Science uses scientiñe and systematic methods for observationa Management also
uses scientific methods for observations and calculations. 

3 The principles of Science are derived from practice and are verified by competent
people. The management principles are also derived from practice and are proved to
be true. 

4. The scientific principles are exact and are universally applicable The principles of
management are also exact and are universally applicable

5 Science has a predictive power. A manager also can predict from practice that sales
will increase if advertisement expenses are increased. 

Management as an Art

'Art' refers to the way of doing specific things. It indicates how an objective is to be
achieved. It is the know-how to accomplish a desired concrete result. Management
possesses many of the important qualities of an art.It can rightly be called an art due
to the following similarities:-

1. Just like an art, the process of management requires the use of know-how and skills.

2 Management is also practical like an art because it aims at the achievement of

concrete results. 

3. There is always a risk regarding the success of an art. There is an uncertainty

regarding the success of a manager also. 

4. The work of an art is highly personalised. The management is also personalised

because every manager has his own approach to the solving of problems.

5. Finally, like an art the management is undoubtedly an art, and that too a fine art.

Management as a Profession
Management is regarded as a profession by many, although it does not possess all the
features of a profession. A profession is an occupation for which specialised
knowledge, skills and training are required. The use of these skills is not meant for self-
satisfaction, but for larger interests of the society. The success of the use of these
skills is measured not in terms of money alone. Management as a profession should
possess the following attributes:

1. A profession involves the application of expert knowledge for solving problems

Management also requires expert knowledge for solving problems. 

2. A person must compulsorily acquire the expert knowledge practise a profession

Those who want to practise management as a profession must acquire expert
knowledge 

3. Honesty and integrity are essential for a profession. They are equally essential for
management also. 

4. The principal motive of any profession is service. Modern management aims at

giving priority to service to the customers.

5. Every profession has certain social responsibilities.

General Principles of Management

1. Division of Labour   2. Authority and responsibility  3. Discipline  4. Unity of

command  5. Unity of Direction  6. Subordination of Individual interest to the general
interest  7. Remuneration  8. Centralisation  9. Scalar Chain  10. Order  11. Equity  12.
Stability of Tenure of Personnel   13. Initiative  14. Esprit de Corps  

Managerial Roles: Mintzberg Model

I. Interpersonal roles ::1. As a figure head   2. As a Leader   3.As a Liaison   

II. Informational Roles:: 4. As a Monitor   5.As a Disseminator   6. As a Spokesman    

III. Decisional Roles :: 7. As an Entrepreneur   8. As a Disturbance Handler   9. As a

Resource Allocator            10. As a Negotiator. 

Functions of Management

The management of a business or non-business organisation has to perform various

functions for the achievement of pre- determined objectives. Many scholars on
management have discussed the functions of management. But, there is no unanimity
among them regarding the managerial functions. The principal functions of
management in most of the business and non-business enterprises are as follows:

1. Planning

Planning is the most basic or primary function of management. It precedes all other
functions. Planning involves determining the objectives and selecting a course of
action to achieve them. It implies looking ahead and deciding in advance what is to be
done, when and where it is to be done, and how and by whom it is to be done.

The function of planning includes: (1) determination of objectives, (2) forecasting and
choice of a course of action, (3) formulation of policies, programmes, budgets,
schedules etc. to achieve the objectives, and (4) laying down of procedures and
standards of performance. 

2. Organising

is the function of creating a structure of duties and responsibilities.

things in an orderly and efficient manner. Organising is the process of establishing

harmonious authority responsibility relationships among the members of the
enterprise. It is the function of creating a structure of duties and responsibilities.

The function of organising consists of the following:

a. determining and defining the activities needed to achieve the goals;

b. grouping the activities into convenient units;

c. assigning duties and activities to specific positions and people;

d. delegating authority to these positions and people;

e. defining and fixing responsibility for performance; and

f. establishing authority responsibility relationships throughout the organisation.

3. Staffing

Staffing is the process of filling all positions in the organisation with qualified
personnel. It includes a large number of activities like manpower planning,
recruitment, selection, communication, participation, appraisal, counselling, training,
compensation, dismissal, integration and maintenance of employees.

4. Directing

Directing is the executive function of management as it is concerned with the

execution of plans and policies. It involves guiding, supervising, motivating and
leading the people towards the achievement of targeted performance. The directing
function includes the following activities:

a. issuing orders and instructions,

b. supervising people at work,

c. motivating the employees to work for certain objectives,

d establishing communication with employees regarding plans

e. influencing the behaviour of employees.

5. Co-ordination

Co-ordination is the essence of management. It is the orderly synchronisation of the

efforts of the subordinates for achieving the goals of the organisation Co-ordination
consists in unifying the activities of different individuals and groups for the
achievement of common objectives. It has the following features:

a. It is an orderly arrangement of group efforts.

b. It intends to secure unity of action towards common objectives.

c. It is needed at all levels of management d. It is the essence of managing.

6. Motivation

Motivation is a constructive force in management. A manager inspires the

subordinates to do what he wants them to do through motivation. 

7. Control

The function of control deals with taking corrective action if the results do not confirm
to plans. According to Henry Fayol, "control is verifying whether everything occurs in
confirmity with the plan adopted, instructions issued and principles established".

The process of control involves the following steps:

a. Establishment of standards, b. Measurement of performance,  c. Appraisal of

performance, and  d. Taking corrective action. 

Nature of Planning

1. Planning is an intellectual process: Planning is intellectual in nature. It is a mental work,

and not a manual work.
2. Planning is goal-oriented: Planning is not an end in itself. It is a means towards the
achievement of goals. Planning is meaningless if it does not establish goals and
objectives. It should, then, adhere to the objectives and goals.

3. Planning is a primary function: Planning has been described as the most basic of all
managerial functions.

4. Planning is directed towards efficiency and economy:  Planning involves the

efficient utilisation of various resources like capital, labour, machines, materials etc.
Every factor of production is put to efficient and economical use so that the output, ie,
result, is more than the efforts employed.

5. Planning requires flexibility: Planning process should be adaptable to the changing

business environment. If planning is rigid, then it will not be able to achame business
goals. Planning is a dynamic process. It adjusts with the needs and requirements of
the situations.

6. Planning is related to objectives: Every plan specifies the objectives to be attained in

the future If the objectives are not properly set, then the efforts spent on them will go
waste. The main purpose of planning is to focus attention on setting up of appropriate
objectives.

7. Planning is all-pervasive: Planning is the function of each and every manager

irrespective of the level and area of his operation.

8. Planning is a continuous process:  Planning is a never ending activity of a manager.

Old plans have to be revised or new plans have to be prepared as assumptions and
events change. Hence, planning is an on-going and dynamic process.

9. Planning is forward-looking:  All planning is done with an eye on the future.

Planning involves anticipating the future course of events. No plan can be prepared
without the knowledge of future events. So, forecasting is the essence of planning.

10. Planning involves choice: Planning presupposes the existence of alternatives. It is

essentially choosing among alternative courses of action. There is no need for
planning if there is only one way of doing something.

Importance of planning

following are the important advantages of planning:

(i) Focuses attention on objectives   (ii) Reduces uncertainty   (iii) Provides sense of
direction   (iv) Facilitates control   (v) Encourages innovation and creativity   (vi)
Improves Motivation   (vii) Improves competitive strength   (viii) Helps in co-
ordination   (ix) Guides decision-making   (x) Provides a basis for decentralisation   (xi)
Provides efficiency and economy in operations  

Purpose of Planning

The following are the important purposes of planning

1. To set up the business objectives.   2. To ensure proper allocation of resources to

achieve them.   3. To provide for future uncertainty.   4. To secure economy in
operation. 5. To ensure business stability 6. To make co-ordination easy.  7. To
increase organisational effectiveness. 8. To avoid repetition of certain business
operations,  9. To avoid wastage of efforts and resources.  10. To ensure proper use of
human and material resources.  11. To bring about uniformity in the methods and
procedures.  12. To help in decision-making.

Planning Process

Planning process involves the setting up of business objectives and allocation of resources for
achieving them. It is a combination of information - handling and decision-making system based
on information inputs, outputs and feedback.

Steps in Planning Process

Organisations differ in terms of their size and complexity. Hence, there is no single planning
process applicable to all organisations However, the following steps are common to all types of
planning:-

1. Awareness of opportunities:  It means that before starting with actual planning one must be 
aware of the opportunities that exist.

2. Establishment of objectives: The first step in the process of planning is the

establishment of the objectives of the organisation These objectives determine the
pattern of the proposed course of action. They must be clearly stated. 

3. Establishment of planning premises: Planning is done for future which is uncertain.

Therefore, certain assumptions are made about the future environment.

4. Developing alternative courses of action:  An action can be performed in several

ways. But, there is a particular way which is the most suitable for the organisation. It
means finding out and examining all the available alternatives.

5. Evaluation of alternatives:  This step consists in evaluating the various alternatives

in the light of objectives and premises. A number of methods have been developed to
evaluate the various alternatives.

6. Selection of the best alternative: It includes the selection of the most suitable
alternative course of action. It is the real point of decision-making. After evaluating
the various alternatives, the best and the fittest alternative is selected.

7. Formulation of derivative plans: In addition to the basic plan, derivative plans are
also prepared. Derivative plans are sub-plans and departmental plans which support
the basic plan.

8. Determination of the sequence of activities: After formulating basic and derivative

plans, the sequence of activities should be determined.

9. Execution of the plans: Once a plan is made out, it is to be implemented. Hence,

this is an important step in the process of planning.

10. Evaluation of the plans: This is the last step in the process of planning. Follow-up
measures should be provided. It helps to adopt corrective measures. 

Limitations of planning

1. Since there are many alternatives in planning, it is difficult the select the best
alternative. 

2 Planning restricts quick decision-making.

3. Planning cannot ensure the accuracy and reliability of forecasts and predictions.

4. It is sometimes very costly compared to its contributions

5. Planning need not be effective because plans usually remain on paper They are not
put into operation.

6. Planning is sometimes inflexible and is reluctant to adopt changes.

7. Planning delays actions. It is a time-consuming activity.

8. It encourages a false sense of security against the risk of uncertainty. 

TYPES OF PLANS (diagram) 

1) multi-use plan

1. Objectives   2. Strategies  3. Policies  4. Procedures        5. Rules 

2) Single use plans

1. Programmes  2. Budgets  3. Schedules  4. Projects   5. Methods. 

A. Multi-use or Standing Plans

The plans which are used repeatedly in similar situations are called multi-use or standing plans.
They are used more than once.

I. Objectives 

Objectives are the aims or purposes for which an organisation is set up and operated. They
indicate the destination of an organisation.

II. Strategies

A strategy is a broad plan of action for the use of resources to achieve the objectives of an
organisation. It is formulated by the top management to give meaning and shape to other plans. It
is defined as a special type of plan prepared for meeting the challenge of competitors and other
environmental forces.

III. Policies

Policies are guides to action. They provide a broad guideline as to how the objectives of an
organisation are to be achieved. Policies are routes to the realisation of objectives.

A policy is a continuing decision. It provides the answer to problems of a certain type. Policies may
be described as plans which serve as broad guides to decisions and actions in a firm. Policies are
made according to the assumptions, objectives and forecastings.

IV. Procedures

A procedure is a systematic way of handling regular events. It is stated in terms of steps to be

followed in carrying out certain kinds of work. Procedures are operational guides to action. 

V. Rules

Rules are the simplest and the most specific type of standing plans They are used for guiding what
may or may not be done. A rule demands specific action. It is rigid and definite Rules demand
strict compliance. Their violation is generally associated with some sort of disciplinary action.
Rules facilitate discipline and uniformity of action in the organisation.

B. Single-use Plans or Adhoc Plans

Single-use plans are made for handling non-recurring problems. They are also called 'specific'
plans as they are prepared to fit the specific situations. They are used to handle non-repetitive,
novel and unique problems. They cannot be used again and again. There are five types of such
plans as discussed below. 

1. Programmes

A programme is a comprehensive plan designed to implement the policies and accomplish the
objectives. A programme is action- based and result-oriented. It is a single-use plan because it is
not used in the same form again.

2. Budgets
A budget is a plan which states expected results of a given future period in numerical terms. It is
also known as "Numerised Plan." It is a plan of action to achieve a specified goal. It may be
expressed in time, money or other units. 

3. Schedules

A schedule is a time-table of work. It is an essential part of an action-plan. It specifies the exact

time when a task is to begin and when it will terminate. Scheduling is the process of establishing a
time sequence for the work to be done. A schedule is necessary in every organisation to complete
each task at the right time.

4. Projects

A project is a single-use plan. It is defined as any scheme for investing resources, which can be
analysed and evaluated as an independent unit. A project involves time bound activities. It is
actually a proposal for investment which can be separately appraised through cost-benefit analysis.

5. Methods

Methods provide detailed and specific guidance for day-to-day action. They are formalised and
standardised ways of accomplishing repetitive and routine jobs. They help to ensure economy and
efficiency in operations. A method specifies the 'one best way' of performing each step in a task. 

Management By Objectives (MBO)

Management by objectives is a new concept in the management field. It is both a philosophy and a
technique of management. It is defined as a process by which the management intends to achieve
the best results through the active participation of all the workers. Under MBO superiors and
subordinates jointly determine the common objectives. They also set the results to be achieved by
the subordinates through their active participation.

Features of MBO

1. MBO focuses attention on what must be accomplished (goal) rather than on how it is to be
accomplished. 

2. It ensures participation of subordinates in the goal-setting process.

3. MBO stresses measurable and verifiable goals in key result areas.

4 MBO is a dynamic system which integrates the company's need to achieve its objectives with the
manager's need to contribute and develop himself.

5. MBO is a philosophy of management that allows management to attain maximum results from
available resources.

Benefits of MBO

1. Improved planning: MBO sets clear and measurable performance goals. Appropriate

action plans are formulated for the achievement of these goals. 
2. Better management: MBO results in improved and better management of the organisation
Managers are well aware of the goals of the organisation and individual targets.

3. Team work: It results in better communication between superiors and subordinates

which reduces conflicts. The whole management team is actively involved in the
achievement of targets.

4. Better Personnel commitment: Every employee participates in setting the objectives of the
organisation. So, he will try his best to achieve its goals

5. Effective controls: In MBO, verifiable standards are set. Everybody is clear about what
is expected from him and these standards act as clear cut controls.

Limitations of MBO

1. Difficulty in setting goals: It is very difficult to set verifiable and measurable goals

2. Emphasis on short-term goals : Under MBO, goals are set only for a short period. It
does not care for long-range goals

3. Time Consuming and costly: Setting goals through consensus of superior and
subordinate is time consuming and costly. Several meetings may have to be held to
instill confidence in subordinates.

4. Increased paper work:  MBO requires the preparation of a number of newsletters,

instruction booklets, training manuals, performance reports etc.,

5. Pressure-Oriented: A change is required in the thinking and acting style of

managers. This is not so easy

6. Rigidity: It may introduce inflexibility in the organization.