Management Definitions by the Management Scholar s

It is very difficult to give a precise definition of the term 'management'. Different scholars
from different disciplines view and interpret management from their own angles. The
economists consider management as a resource like land, labour, capital and organisation.
The bureaucrats look upon it as a system of authority to achieve business goals. The
sociologists consider managers as a part of the class elite in the society.
Management and leadership author Stephen Covey describes the Seven Habits model of
management and leadership for personal and business growth.
The Seven Habits are: be proactive, begin with the end in mind, put first things first, think
win-win, seek first to understand and then to be understood, synergize, and learn from
previous experience.
A ‘Management’s a distinct process consisting of planning, organising, actuating and
controlling; utilising in each both science and art, and followed in order to accomplish pre-
determined objectives."
George R Terry (1877 - 1955)

"Management is the art of getting things done through others and with formally organised
groups."
Harold Koontz (1909-1984)

Peter Ferdinand Drucker

(November 19, 1909 – November 11, 2005)
"Management may be defined as the process by means of which the purpose and objectives of
a particular human group are determined, clarified and effectuated"
Management is a multipurpose organ that manage a business and manages Managers and
manages Workers and work.

"Management is the art of knowing what you want to do and then seeing that they do it in the
best and the cheapest may."
Frederick Winslow Taylor (March 20, 1856 – March 21, 1915)
One popular definition is by Mary Parker Follett. Management, she says, is the "art of
getting things done through people."
Mary Parker Follett (3 September 1868 – 18 December 1933)

Levels of Management - Top, Middle and Lower

The term “Levels of Management” refers to a line of demarcation between various

managerial positions in an organization. The number of levels in management increases when
the size of the business and work force increases and vice versa.

The level of management determines a chain of command, the amount of authority & status
enjoyed by any managerial position.

The levels of management can be classified in three broad categories:

1. Top level/Administrative level

2. Middle level/Executory
3. Low level/Supervisory/Operative/First-line managers

Managers at all these levels perform different functions. The role of managers at all the three
levels is discussed below:

LEVELS OF MANAGEMENT
1. Top Level of Management

It consists of board of directors, chief executive or managing director.

 The top management is the ultimate source of authority and it manages goals and
policies for an enterprise. It devotes more time on planning and coordinating
functions.

The role of the top management can be summarized as follows -

a. Top management lays down the objectives and broad policies of the
enterprise.
b. It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside world.
g. It provides guidance and direction.
h. The top management is also responsible towards the shareholders for the
performance of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the functioning of their department. They
devote more time to organizational and directional functions.

In small organization, there is only one layer of middle level of management but in
big enterprises, there may be senior and junior middle level management. Their role
can be emphasized as -

a. They execute the plans of the organization in accordance with the policies and
directives of the top management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or
department.
f. It also sends important reports and other important data to top level
management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better
performance.
 3. Lower Level of Management

Lower level is also known as supervisory/operative level of management. It consists

of supervisors, foreman, section officers, superintendent etc.

According to R.C. Davis, “Supervisory management refers to those executives

whose work has to be largely with personal oversight and direction of operative
employees”.

In other words, they are concerned with direction and controlling function of
management. Their activities include -

a. Assigning of jobs and tasks to various workers.

b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in
the organization.
e. They communicate workers problems, suggestions, and recommendatory
appeals etc to the higher level and higher-level goals and objectives to the
workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things
done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact
with the workers.

Classical Theories of Management

FW Taylor Principles of Scientific Management

Principles of Scientific Management by Taylor:

F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’
proved with his practical theories that a scientific method can be implemented to management.
Taylor gave much concentration on the supervisory level of management and performance of
managers and workers at an operational level. Let’s discuss in detail the five principles of
management by F.W Taylor.

1. Science, not the Rule of Thumb-

This rule focuses on increasing the efficiency of an organisation through scientific analysis of
work and not with the ‘Rule of Thumb’ method. Taylor believed that even a small activity like
loading paper sheets into boxcars can be planned scientifically. This will save time and also
human energy. This decision should be based on scientific analysis and cause and effect
relationships rather than ‘Rule of Thumb’ where the decision is taken according to the
manager’s personal judgement.

2. Harmony, Not Discord-

Taylor indicated and believed that the relationship between the workers and management
should be cordial and completely harmonious. Difference between the two will never be
beneficial to either side. Management and workers should acknowledge and understand each
other’s importance. Taylor also suggested the mental revolution for both management and
workers to achieve total harmony.

3. Mental Revolution-
This technique involves a shift of attitude of management and workers towards each other.
Both should understand the value of each other and work with full participation and
cooperation. The aim of both should be to improve and boost the profits of the organisation.
Mental Revolution demands a complete change in the outlook of both the workers and
management; both should have a sense of togetherness.

4. Cooperation, not Individualism-

It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers
and the management. Managers and workers should have mutual cooperation and confidence
and a sense of goodwill. The main purpose is to substitute internal competition with
cooperation.

5. Development of Every Person to his Greatest Efficiency-

The effectiveness of a company also relies on the abilities and skills of its employees. Thus,
implementing training, learning best practices and technology, is the scientific approach to
brush up the employee skill. To assure that the training is given to the right employee, the right
steps should be taken at the time of selection and recruiting candidates based on a scientific
selection.

Henri Fayol's 14 Principles of Management

Henry Fayol, also known as the Father of Modern Management Theory, gave a new
perception on the concept of management. He introduced a general theory that can be applied
to all levels of management and every department. He envisioned maximising managerial
efficiency. Today, Fayol’s theory is practised by the management to organise and regulate the
internal activities of an organisation.

The fourteen principles of management created by Henri Fayol are explained below.
1. Division of Work

Henri believed that segregating work in the workforce amongst the workers will enhance the
quality of the product. Similarly, he also concluded that the division of work improves the
productivity, efficiency, accuracy and speed of the workers. This principle is appropriate for
both the managerial as well as a technical work level.

2. Authority and Responsibility

These are the two key aspects of management. Authority facilitates the management to work
efficiently, and responsibility makes them responsible for the work done under their guidance
or leadership.

3. Discipline

Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy
and comprehensive. Employees’ good behaviour also helps them smoothly build and progress
in their professional careers.

4. Unity of Command

This means an employee should have only one boss and follow his command. If an employee
has to follow more than one boss, there begins a conflict of interest and can create confusion.

5. Unity of Direction

Whoever is engaged in the same activity should have a unified goal. This means all the
people working in a company should have one goal and motive which will make the work
easier and achieve the set goal easily.

6. Subordination of Individual Interest

This indicates a company should work unitedly towards the interest of a company rather
than personal interest. Be subordinate to the purposes of an organisation. This refers to the
whole chain of command in a company.

7. Remuneration

This plays an important role in motivating the workers of a company. Remuneration can be
monetary or non-monetary. Ideally, it should be according to an individual’s efforts they have
put forth.

8. Centralization

In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organisation. Henri Fayol
stressed on the point that there should be a balance between the hierarchy and division of
power.

9. Scalar Chain

Fayol, on this principle, highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also they
should be able to contact any, if needed.

10. Order

A company should maintain a well-defined work order to have a favourable work culture.
The positive atmosphere in the workplace will boost more positive productivity.

11. Equity

All employees should be treated equally and respectfully. It’s the responsibility of a
manager that no employees face discrimination.

12. Stability

An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.

13. Initiative

The management should support and encourage the employees to take initiatives in an
organisation. It will help them to increase their motivation and morale.

14. Esprit de Corps

It is the responsibility of the management to motivate their employees and be supportive

of each other regularly. Developing trust and mutual understanding will lead to a positive
outcome and work environment.

In conclusion, the 14 Principles of Management the pillars of any organisation. They are
integral for prediction, planning, decision-making, process management, control and
coordination.

Behavioural Management Theories (Elton Mayo, Douglas McGregor)

Elton Mayo And His Key Theories

Management, according to human relations, is the study of the behavior of employees in the
workplace. And this approach of human relations also has its roots in the myriads of
experiments which was conducted by the renowned professor, Elton Mayo and his team at
the Harvard School of Business, precisely at the Hawthorne plant of Western Electric
Company.

Professor George Elton Mayo (1880 – 1949) and his team conducted an experiment that had
a massive impact on management. In short, Elton’s work transformed management thinking
and also paved the way for the modern system of management that many organizations are
enjoying today.

As a result of his experiment, Mayo was able to discover that job satisfaction among workers
was difficult to achieve through short-term incentives offered to them, but preferably through
participation in discussions. However, Mayo’s management approach is not fundamentally an
alternative to Taylor’s scientific management theory. But the fact that he presented a piece of
evidence to back up his claim gave his work more value and made it difficult for management
scholars like F W Taylor to ignore.

Before Mayo’s studies drew the relationship between productivity and social factors, things
were a bit different. And before his studies, the productivity of employees in the workplace
was considered to depend entirely on the wages paid and working conditions. But his work
pointed out that work satisfaction had more of a massive impact on productivity.

George Elton Mayo’s Key Theories

Mayo did leave his footprint in management thinking with his experiment; a study conducted
in West Electric’s Hawthorne plant located in Chicago, which has over 29,000 workers. The
company opened the door to the National Research Council to carry on with their experiment
that focuses on the relationship between the efficiency of employees and workplace lighting.
The study was carried out in the year 1924.

The Hawthorne Experiment – How it Happened

The idea of this experiment was to figure out the impact different incentives have on
worker’s productivity. So the entire workers in the plant were shared into two groups for this
purpose. One of the groups was regarded as the control while the other was the main group.
And in the main group, the lighting condition was increased so know if worker’s productivity
will increase, and it did.

But then, something strange also took place. When the light became low in the control group,
the team also figured out that productivity also improved to some degree. In other words,
employee satisfaction improved.

However, in addition to the experiment done using lighting, other incentives were introduced
to have more comprehensive research and result. They include rest pauses and payment
incentives, which were also manipulated at various intervals to have varied output. There was
also a partial conclusion regarding the impact of lighting which was that lighting had little or
no effect on output levels amongst employees.

At this point, no factual conclusion was reached even with all the results at their disposal. But
a breakthrough was about to happen. Mayo, who had not been part of the experience all along
was invited to contribute. And his findings were contrary to what every other person believed
or had in mind.

Mayo was quick to point out the fact that workers are not machines and should not be
treated as such. In short, how they are treated and the environment they find
themselves is equally as important as anything else. They recognized that employees do
have a sense of belonging and long for recognition too.

The Hawthorne effects

The social concern for workers was one of the significant findings of the Hawthorne
studies. Another was the Hawthorn Effect which states that changes in employee behavior
happen when management decides to monitor them. In the real sense, when someone is
watching you while you are working on a task, then you may even be more focused and
perform a lot better. You will also change your behavior too. So going back to the previous
Hawthorne lighting studies, you can understand why the productivity of employees improved
when the lighting was increased and decreased is apparent. But a very significant discovery
from the Hawthorne study is the fact that when employees are treated well, they may
turn out to be more productivity for the said organization.

George Elton Mayo’s Theory of Motivation

Following a successful analysis of the data derived from the Hawthorne studies, Elton Mayo
was able to propose that environmental factors or payment incentives do not motivate
workers. He concluded that positive relational factors tend to play a more significant role in
boosting employee productivity or job satisfaction. In a nutshell, there is a vital role that
group or teamwork plays that management cannot neglect, particularly when it comes to
productivity.

Elton Mayo also created different positions to show how much productivity can change in
certain conditions or groups. And these comprise of the cohesiveness and norm of a group.
The group cohesiveness indicates how well the team members get along. And the norm, on
the other hand, focuses on whether positive or negative traits are permitted in the group.

1. Illumination Experiments:
Illumination experiments were undertaken to find out how varying levels of
illumination (amount of light at the workplace, a physical factor) affected the
productivity. The hypothesis was that with higher illumination, productivity will increase. In
the first series of experiments, a group of workers was chosen and placed in two separate
groups. One group was exposed to varying intensities of illumination.

Since this group was subjected to experimental changes, it was termed as experimental group.
Another group, called as control group, continued to work under constant intensities of
illumination. The researchers found that as they increased the illumination in the
experimental group, both groups increased production. When the intensity of
illumination decreased, the production continued to increase in both the groups.

The production in the experimental group decreased only when the illumination was
decreased to the level of moonlight. The decrease was due to light falling much below the
normal level.

Thus, it was concluded that illumination did not have any effect on productivity but
something else was interfering with the productivity. At that time, it was concluded that
human factor was important in determining productivity but which aspect was affecting, it
was not sure. Therefore, another phase of experiments was undertaken.

2. Relay Assembly Test Room Experiments:

Relay assembly test room experiments were designed to determine the effect of changes in
various job conditions on group productivity as the illumination experiments could not
establish relationship between intensity of illumination and production. For this purpose,
the researchers set up a relay assembly test room two girls were chosen.

These girls were asked to choose for more girls as co-workers. The work related to the
assembly of telephone relays. Each relay consisted of a number of parts which girls
assembled into finished products. Output depended on the speed and continuity with
which girls worked. The experiments started with introducing numerous changes in
sequence with duration of each change ranging from four to twelve weeks.

An observer was associated with girls to supervise their work. Before each change was
introduced, the girls were consulted. They were given opportunity to express their viewpoints
and concerns to the supervisor. In some cases, they were allowed to take decisions on matters
concerning them.

Following were the changes and resultant outcomes:

1. The incentive system was changed so that each girl’s extra pay was based on the other five
rather than output of larger group, say, 100 workers or so. The productivity increase as
compared to before.

2. Two five- minute rests one in the morning session and other in evening session were
introduced which were increased to ten minutes. The productivity increased.
3. The rest period was reduced to five minutes but frequency was increased. The productivity
decreased slightly and the girls complained that frequent rest intervals affected the rhythm of
the work.

4. The number of rests was reduced to two of ten minutes of each, but in the morning, coffee
or soup was served along with the sandwich and in the evening, snack was provided. The
productivity increased.

5. Changes in working hours and workday were introduced, such as cutting an hour off the
end of the day and eliminating Saturday work. The girls were allowed to leave at 4.30 p.m.
instead of usual 5.00 p.m. and later at 4.00 p.m. productivity increased.

As each change was introduced, absenteeism decreased, morale increased, and less
supervision was required. It was assumed that these positive factors were there because of the
various factors being adjusted and making them more positive. At this time, the researchers
decided to revert back to original position, that is, no rest and other benefits. Surprisingly,
productivity increased further instead of going down.

This development caused a considerable amount of redirection in thinking and the result
implied that productivity increased not because of positive changes in physical factors but
because of the change in girls’ attitudes towards work and their work group.

They developed a feeling of stability and a sense of belongings. Since there was more
freedom of work, they developed a sense of responsibility and self-discipline. The
relationship between supervisor and workers became close and friendly.

3. Mass Interviewing Programme:

During the course of experiments, about 20,000 interviews were conducted between 1928 and
1930 to determine employees’ attitudes towards company, supervision, insurance plans,
promotion and wages. Initially, these interviews were conducted by means of direct
questioning such as “do you like your supervisor?” or “is he in your opinion fair or does
he have favorites?” etc. this method has disadvantage of stimulating antagonism or the
oversimplified ‘yes’ or ‘no’ responses which could not get to the root of the problem, the
method was changed to non- directive interviewing where interviewer was asked to listen to
instead of talking, arguing or advising. The interview programme gave valuable insights
about the human behaviour in the company.

During the course of interviews, it was discovered that workers’ behaviour was being
influenced by group behaviour. However, this conclusion was not very satisfactory and,
therefore, researches decided to conduct another series of experiments. As such, the detailed
study of a shop situation was started to find out the behaviour of workers in small groups.
4. Bank Wiring Observation Room Experiment:
These experiments were conducted to find out the impact of small groups on the individuals.
In this experiment, a group of 14 male workers were formed into a small work group. The
men were engaged in the assembly of terminal banks for the use in telephone exchanges.

The work involved attaching wire with switches for certain equipment used in telephone
exchanges. Hourly wage for each worker was fixed on the basis of average output of
each worker. Bonus as also payable on the basis of group effort.

It was expected that highly efficient workers would bring pressure on less efficient workers to
increase output and take advantage of group incentive plan. However, the strategy did not
work and workers established their own standard of output and this was enforced vigorously
by various methods of social pressure. The workers cited various reasons for this behaviour
viz. fear of unemployment, fear of increase in output, desire to protect slow workers etc.

The Hawthorne experiments clearly showed that a man at work is motivated by more
than the satisfaction of economic needs. Management should recognise that people are
essentially social beings and not merely economic beings. As a social being, they are
members of a group and the management should try to understand group attitudes and
group psychology.

The following were the main conclusions drawn by Prof. Mayo on the basis of
Hawthorne studies:
1. Social Unit:
A factory is not only a techno-economic unit, but also a social unit. Men are social beings.
This social characteristic at work plays an important role in motivating people. The
output increased in Relay Room due to effectively functioning of a social group with a
warm relationship with its supervisors.

2. Group Influence:
The workers in a group develop a common psychological bond uniting them as a group in
the form of informal organisation.

3. Group Behaviour:
Management must understand that a typical group behaviour can dominate or even supersede
individual propensities.

4. Motivation:
Human and social motivation can play even a greater role than mere monitory incentives in
moving or motivating and managing employee group.

5. Supervision:
The style of supervision affects worker’s attitude to work and his productivity. A supervisor
who is friendly with his workers and takes interest in their social problems can get co-
operation and better results from the subordinates.

6. Working Conditions:
Productivity increases as a result of improved working conditions in the organisation.

7. Employee Morale:
Mayo pointed out that workers were not simply cogs (cost of goods sold), in the machinery,
instead the employee morale (both individual and in groups) can have profound effects on
productivity.

8. Communication:
Experiments have shown that the output increases when workers are explained the logic
behind various decisions and their participation in decision making brings better results.

9. Balanced Approach:
The problems of workers could not be solved by taking one factor i.e., management could not
achieve the results by emphasizing one aspect. All the things should be discussed and
decision be taken for improving the whole situation. A balanced approach to the whole
situation can show better results.

In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees):

1. One of which is negative, called as Theory X and

2. The other is positive, so called as Theory Y
According to McGregor, the perception of managers on the nature of individuals is based on
various assumptions.

Assumptions of Theory X

▪ An average employee intrinsically does not like work and tries to escape it whenever
possible.
▪ Since the employee does not want to work, he must be persuaded, compelled, or
warned with punishment so as to achieve organizational goals. A close supervision is
required on part of managers. The managers adopt a more dictatorial style.
▪ Many employees rank job security on top, and they have little or no aspiration/
ambition.
▪ Employees generally dislike responsibilities.
▪ Employees resist change.
▪ An average employee needs formal direction.

Assumptions of Theory Y

▪ Employees can perceive their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
▪ Employees may not require only threat, external control and coercion to work, but
they can use self-direction and self-control if they are dedicated and sincere to achieve
the organizational objectives.
▪ If the job is rewarding and satisfying, then it will result in employees’ loyalty and
commitment to organization.
 ▪ An average employee can learn to admit and recognize the responsibility. In fact, he
can even learn to obtain responsibility.
▪ The employees have skills and capabilities. Their logical capabilities should be fully
utilized.

In other words, the creativity, resourcefulness and innovative potentiality of the

employees can be utilized to solve organizational problems.

Thus, we can say that Theory X presents a pessimistic view of employees’ nature and
behaviour at work, while Theory Y presents an optimistic view of the employees’ nature and
behaviour at work.

If we correlate it with Maslow’s theory, we can say that Theory X is based on the assumption
that the employees emphasize on the physiological needs and the safety needs; while Theory
X is based on the assumption that the social needs, esteem needs and the self-actualization
needs dominate the employees.

McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he
encouraged cordial team relations, responsible and stimulating jobs, and participation of all in
decision-making process.

Implications of Theory X and Theory Y

▪ Quite a few organizations use Theory X today. Theory X encourages use of tight
control and supervision. It implies that employees are reluctant to organizational
changes. Thus, it does not encourage innovation.
▪ Many organizations are using Theory Y techniques. Theory Y implies that the
managers should create and encourage a work environment which provides
opportunities to employees to take initiative and self-direction. Employees should be
given opportunities to contribute to organizational well-being.

Theory Y encourages decentralization of authority, teamwork and participative

decision making in an organization.

Theory Y searches and discovers the ways in which an employee can make significant
contributions in an organization. It harmonizes and matches employees’ needs and
aspirations with organizational needs and aspirations.

Modern Management Theories

The Theory of Open Systems was theorized primarily by Robert Kahn (1938), an
American electrical engineer, and Daniel Katz (1903-1998), an American psychologist.

The Theory of Open Systems states that an organization is always interacting with its
environment through a three-step process such that inputs are received from the external
environment, transformed through organizational processes, and then output back to the
outside environment.

In summary:

1. Receiving inputs from its external environment;

2. Processing and transforming inputs through internal organizational subsystems and
processes; and
3. Sending outputs back to the outside environment

Considering this open system, the theory then states that management must respond to its
external environment. First, management must determine and organize appropriate internal
dimensions, capabilities, and structures. Then, they must optimally align these internal
characteristics with the external domains in which they can compete and serve customers.

Contingency Theory can primarily be attributed to Paul R. Lawrence (1922-2011), an

American sociologist, and Jay Lorsch (1932), an American organizational theorist. This
theory states that a business’ organization is contingent upon the nature of the work and
varying needs of the people. More specifically, it states that:

1. Businesses with consistent and predictable tasks should be organized with

formalized procedures, classical management hierarchies, and directive supervision;
while

2. Businesses with inconsistent and/or unpredictable tasks should be less defined and
more flexible, allowing for greater participation by all of those who are involved.

Thus, by matching the organization to the task, the task to the people, and the people to
the organization, everyone is made to work for the betterment of organisation as a whole.

Functions of Management

Management has been described as a social process involving responsibility for economical
and effective planning & regulation of operation of an enterprise in the fulfillment of given
purposes.

It is a dynamic process consisting of various elements and activities. These activities are
different from operative functions like marketing, finance, purchase etc. Rather these
activities are common to each and every manger irrespective of his level or status.

Different experts have classified functions of management.

According to George & Jerry, “There are four fundamental functions of management i.e.
planning, organizing, actuating and controlling”.
According to Henry Fayol, “To manage is to forecast and plan, to organize, to command, &
to control”.

Whereas Luther Gullick has given a keyword ’POSDCORB’ where P stands for Planning, O
for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting & B for
Budgeting.

But the most widely accepted are functions of management given by KOONTZ O’DONNEL
i.e. Planning, Organizing, Staffing, Directing and Controlling.

For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e. they are highly inseparable. Each
function blends into the other & each affects the performance of others.

1. Planning

It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement
of pre-determined goals.

According to Koontz, “Planning is deciding in advance - what to do, when to do &

how to do. It bridges the gap from where we are & where we want to be”.

A plan is a future course of actions. It is an exercise in problem solving &

decision making.

Planning is determination of courses of action to achieve desired goals. Thus,

planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals.
 Planning is necessary to ensure proper utilization of human & non-human resources.
It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion,
uncertainties, risks, wastages etc.

2. Organizing

It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals.

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”.

To organize a business involves determining & providing human and non-human

resources to the organizational structure. Organizing as a process involves:

▪ Identification of activities.
▪ Classification of grouping of activities.
▪ Assignment of duties.
▪ Delegation of authority and creation of responsibility.
▪ Coordinating authority and responsibility relationships.
3. Staffing

It is the function of manning the organization structure and keeping it manned.

Staffing has assumed greater importance in the recent years due to advancement of
technology, increase in size of business, complexity of human behavior etc.

The main purpose of staffing is to put right man/woman on right job i.e. square
pegs in square holes and round pegs in round holes.

According to Koontz & O’Donell, “Managerial function of staffing involves

manning the organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed in the structure”. Staffing
involves:

▪ Manpower Planning (estimating man power in terms of searching, choose the

person and giving the right place).
▪ Recruitment, Selection & Placement.
▪ Training & Development.
▪ Remuneration.
▪ Performance Appraisal.
▪ Promotions & Transfer.
4. Directing

It is that part of managerial function which actuates the organizational methods to

work efficiently for achievement of organizational purposes.
 It is considered life-spark of the enterprise which sets it in motion and action of
people, because planning, organizing and staffing are the mere preparations for doing
the work.

Direction is that inter-personnel aspect of management which deals directly with

influencing, guiding, supervising, motivating sub-ordinate for the achievement of
organizational goals. Direction has following elements:

▪ Supervision
▪ Motivation
▪ Leadership
▪ Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the

act of watching & directing work & workers.

Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal

to work. Positive, negative, monetary, non-monetary incentives may be used for this
purpose.

Leadership- may be defined as a process by which manager guides and influences

the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from

one person to another. It is a bridge of understanding.

5. Controlling

It implies measurement of accomplishment against the standards and correction of

deviation if any to ensure achievement of organizational goals.

The purpose of controlling is to ensure that everything occurs in conformities with the
standards. An efficient system of control helps to predict deviations before they
actually occur.

According to Theo Haimann, “Controlling is the process of checking whether or not

proper progress is being made towards the objectives and goals and acting if
necessary, to correct any deviation”.

According to Koontz & O’Donell “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”. Therefore
controlling has following steps:

▪ Establishment of standard performance.

▪ Measurement of actual performance.
 ▪ Comparison of actual performance with the standards and finding out
deviation if any.
▪ Corrective action.

Role of Manager as per Mintzberg

The different manager’s roles as per Mintzberg (1973):

Mintzberg’s managerial theory is founded on the idea that managers are involved in ten roles,
divided into three main clusters: interpersonal, informational, and decisional. Furthermore,
Henry Mintzberg defines the operating effort of managers in each role. The behaviours of those
managers are crucial components for their success. Of course, the ten roles are inspired by
personal and situational considerations.

A) Interpersonal cluster includes:

1- Figurehead role, where a manager plays officially the role of a professional representing his
organization in social activities and events.

2- The second role is leadership. This role is related to people’s motivation and inspiration. As
a leader, a manager must coach, support, and guide his/her subordinates.

3- The last role requested from a manager in the interpersonal cluster is to be a liaison and to
build contacts with all stakeholders. Managers should oversee networking even beyond their
organization boundary.

B) Informational cluster includes also very critical roles. Based on these roles, the
manager is supposed to communicate, monitor, manage, and distribute the information
at all levels. Therefore, the detailed roles in this cluster are the following:

4- Monitor: managers should ask for information inside and outside the workplace. This will
help them to evaluate their department from internal and external viewpoints, discover related
problems, and address them in due time.

5- Disseminator: managers must delegate more when it is appropriate and convey important
information especially to their employees.

6- Spokesperson: as a manager one ought to transmit information outside the workplace taking
the role of a brand ambassador.

C) Decisional part encompasses the following roles:

7- Entrepreneur: behaving as an entrepreneur, managers should encourage change and

creativity by leading the implementation of new ideas.
8- Disturbance-handler: managers are responsible for avoiding any disruptions that can prevent
achieving the needed outcomes.

9- Resource-allocator: managers need to assign and administer a variety of financial,

technological, and human resources activities.

10- Negotiator: surely a manager is responsible to carry out important negotiations within his
department and organization.
In a nutshell, a successful manager knows when to play every role separately or a combination
of roles to achieve success. The manager’s profession can be defined as playing several roles
or planned sets of actions linked to his position. However, with time and after the learning
organization concept by Garvin et al (2008) was well recognized, a manager’s role evolved,
and it needs a new set of skills to empower employees to achieve their goals as well as the
organizational goals. Managers need to focus on goals, relations, and participation. To do so, a
manager needs to play more the leadership role to inspire people and share with them the
necessary information to work together as a team, cooperate, and learn from each other.

Managers are always comfortable in their organizational setting. However, they can always
benefit themselves as well as their employees from adopting positive change, training, and
development. The roles of managers as defined by Mintzberg are considered essential
guidelines for good managers, though, adding new skills and competencies can always uplift a
manager to a higher level. A level of exploration and people understanding that helps in
improving the overall performance of the organization.

Compiled by: Dr.Parul Sharda

Associate Professor
Department of Management Studies
Medi-Caps University, Indore