Concept of Management
Concept of Management
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 objective.
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.
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.
As a set of activities directed at the efficient and effective utilization of resources in the pursuit of one or more
goals. – Van Fleet and Peterson
As working with human, financial and physical resources to achieve organizational objectives by performing the
planning, organizing, leading and controlling functions. – Megginson, Mosley, and Pietri
A problem-solving process of effectively achieving organizational objectives through the efficient use of scare
resources in a changing environment – Kreitner’s
An art of knowing what to do when to do and see that it is done in the best and cheapest way. – F.W. Taylor
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. -Harold Koontz
The term “management” may also refer to those people who manage an organization – individually: managers.
Management can also refer to the seniority structure of staff members within an organization.
In other words, it is concerned with optimally using 5M’s, i.e. men, machine, material, money and methods,
and, this is possible only when there are proper direction, coordination and integration of the processes and
activities, to achieve the desired results.
FEATURES OF MANAGEMENT
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.
Managers focus their attention and efforts on bringing about successful action. Successful managers have an
urge for accomplishment.
Management is Indispensable
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.
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.
Objectives of Management:
Here the three (3) positive management styles that can help make any manager a more effective leader. (Once you’ve
taken all of these factors into account, you’re ready for action!)
Characteristics of Management:
CHARACTERISTICS OF MANAGEMENT:
A. Universal:
All the organizations, whether it is profit-making or not, they require management, for managing their
activities. Hence, it is universal in nature.
2. Goal-Oriented:
Every organization is set up with a predetermined objective and management helps in reaching those
goals timely, and smoothly.
3. Continuous Process:
It is ongoing process which tends to persist as long as the organization exists. It is required in every
sphere of the organization whether it is production, human resource, finance or marketing.
4. Multi-Dimensional:
Management is not confined to the administration of people only, but it also manages work, processes
and operations, which makes it a multi-disciplinary activity.
5. Group Activity
An organization consists of various members who have different needs, expectations and beliefs. Every
person joins the organization with a different motive, but after becoming a part of the organization they
work for achieving the same goal.
6. Dynamic Function
An organization exists in a business environment that has various factors like social, political, legal,
technological and economic.
7. Intangible Force
Management can neither be seen nor touched but one can feel its existence, in the way the organization
functions.
1. DIVISION OF WORK
According to this principle the whole work is divided into small tasks. The specialization of the
workforce according to the skills of a person, creating specific personal and professional development
within the labor force and therefore increasing productivity; leads to specialization which increases the
efficiency of labor.
2. AUTHORITY AND RESPONSIBILITY
This is the issue of commands followed by responsibility for their consequences. Authority means the
right of a superior to give enhance order to his subordinates; responsibility means obligation for
performance.
3. DISCIPLINE
It is obedience, proper conduct in relation to others, respect of authority, etc. it is essential for the
smooth functioning of all organizations.
4. UNITY OF COMMAND
This principle states that each subordinate should receive orders and be accountable to one and only
one superior. If an employee receives orders from more than one superior, it is likely to create
confusion and conflict.
5. UNITY OF DIRECTION
All related activities should be put under one group, there should be one plan of action for them, and
they should be under the control of one manager.
6. SUBORDINATION OF INDIVIDUAL INTEREST TO MUTUAL INTEREST
The management must put aside personal considerations and put company objectives firstly.
Therefore, the interests of goals of the organization must prevail over the personal interests of
individuals.
7. REMUNERATION
Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly
influences productivity. The quantum and methods of renumeration payable should be fair, reasonable
and rewarding of effort.
8. THE DEGREE OF CENTRALIZATION
The amount of power wielded with the central management depends on company size. Centralization
implies the concentration of decision-making authority at the top management.
9. LINE OF AUTHORITY/SCALAR CHAIN
This refers to the chain of superiors ranging from top management to the lowest rank. The principle
suggests that there should be a clear line of authority from top to bottom linking all managers at all
levels.
10. ORDER
Social order ensures the fluid operation of a company through authoritative procedure. Material order
ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the
company.
11. EQUITY
Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers
should be fair and impartial when dealing with employees, giving equal attention towards all
employees.
12. STABILITY OF TENURE OF PERSONNEL
Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly,
personnel (especially managerial personnel) must not frequently enter and exit the organization.
13. INITIATIVE
Using the initiative of employees can add strength and new ideas to an organization. Initiative on the
part of employees is a source of strength for organization because it provides new better ideas.
Employees are likely to take greater interest in the functioning of the organization.
14. ESPRIT DE CORP/TEAM SPIRIT
This refers to the need of managers to ensure and develop morale in the workplace; individually and
communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit
helps to finish the task on time.
FUNCTIONS OF MANAGEMENT
Management’s primary function is to get people to work together for the attainment of an
organization’s goals and objectives.
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
Budgeting
And hence, the controlling function can be broken into these three separate 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 COORDINATION
R FOR REPORTING, AND
B FOR BUDGETING.
1) PLANNING
- It is the first and foremost function of management, i.e. to decide beforehand what is to be done in
future. It encompasses formulating policies establishing targets, scheduling actions and so forth.
2) ORGANIZING
- Once the plans are formulated, the next step is to organize the activities and resources, as in
identifying the tasks, classifying them, assigning duties to subordinates and allocating the resources.
3) STAFFING
- It involves hiring personnel for carrying out various activities of the organization. It is to ensure that the
right person is appointed to the right job.
4) DIRECTING
- It is task of the manager to guide, supervise, lead and motivate the subordinates, to ensure that they
work in the right direction, so far as the objectives of the organization are concerned.
5) CONTROLLING
- The controlling function of management involves a number of steps to be taken to make sure that the
performance of the employees is as per the plans. It involves establishing performance standards and
comparing them with the actual performance. In case of any variations, necessary steps are to be
taken for its correction.
- Coordination is an important feature of management which means the integration of the activities,
processes and operations of the organization and synchronization of efforts, to ensure that every
element of the organization contributes to its success. It is creating a structure through which an
organization’s goals can be accomplished.
FIVE (5) QUALITIES OF GOOD MANAGEMENT
1) APPRECIATION OF EMPLOYEES
2) PROVIDE NECESSARY RESOURCES
3) BEING GENEROUS WITH KNOWLEDGE
4) LISTENS AND MAKES GOOD DECISION
5) LEAD EMPLOYEES AND DELEGATE TASKS
1. APPRECIATION OF EMPLOYEE
Organization with good management teams understand the importance of respecting and
appreciating their employees. Appreciation can come in many forms, such as saying thank you,
monetary bonuses, paid-time off and other valuable rewards.
2. PROVIDE NECESSARY RESOURCES
Good management provides employees with the resources necessary to accomplish their tasks.
Good organizational management believes in equipping their employees with the necessary skills
and knowledge needed to grow and maintain success for the organization.
3. BEING GENEROUS WITH KNOWLEDGE
Management must possess the necessary knowledge to effective provide services in their
community. Knowledge managers possess comes from the ability to learn relevant information.
Therefore, managers must stay current on issues regarding their community and organization
4. LISTENS AND MAKES GOOD DECISION
Managers should take time to listen to their employees. Effective managers understand the
importance of listening to its employees. The decisions made within an organization should benefit
the clientele and its employees.
5. LEAD EMPLOYEES AND DELEGATE TASKS
Good management knows how to develop employees by focusing on their strength. An
organization with good managers employs professionals who knows how to delegate tasks to
subordinates. Delegation also allows managers to focus on more pressing issues that require a
greater expertise than what employees possess.
SECOND PHASE OF MY NOTES ITO.
UNDERSTANDING MANAGEMENT
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.
Management as a Process
Management as a process embarked upon with the sole aim of achieving a purpose.
That purpose could be:
1. To increase the client satisfaction on the services offered by the organization.
2. Develop the knowledge, skills and capacity of the personnel, or
3. To achieve a specific goal or target.
Management: The Never-Ending Process
This simply means that, as the organization remains, management is a process that will never end.
There will always be projects, goals, and challenges managers would push themselves to solve at some
point in time.
Activity Management
Freedom of the mind from jobs already done is significant so that there can be concentration on the present
task, so a person’s mind needs to move task out of mind by recording them externally.
Activity Management is the process of recording the day to day accomplishments of personnel, in an
order in which they are done. It is an essential key to the success of an organization as it helps to
control the direction of the organization and increase working efficiency. It relies on the ideology that
in a personal or group organization of personnel, information from higher levels of management
controls every action that takes place in the organization, therefore proper recording process is critical
and it cannot take place without managing the activities.
Managing activities would help the personnel prioritize their daily activities. The system of the
activity management enables a review or check on the performance of the managers and their
subordinates. It supports worker transparency as work activities are accurately tracked, and updates
deserved by the employees are granted according to the daily-observed progress of the employees.
Tracking the employee’s work and the line spent helps to identify where improvement is essential.
Management as a Discipline
Management is also a discipline for it involves the study of practices and principles required to carry
out official administrative duties, and also highlight the code of conduct managers need to follow in the
discharge of their responsibilities.
As with other courses of study or discipline, management also being taught in various institutes and
universities around the world.
After obtaining a diploma certificate or higher degree, people can secure employment as managers.
There are also opportunities for managers to increase their knowledge and qualification by pursuing a
higher degree or certification in management.
Management as an Art
Management is also regarded as art because they both share similar characteristics. A look at the
definition of art and will make you understand how close both of them are. Art is a systematic body of
knowledge that requires creativity and skill. An artist also needs constant practice to become perfect or
reach a certain level of perfection considered acceptable.
Art is learned and applied. The learning process comes before the application. There is a vast amount
of resources to learn and develop industry knowledge on art which includes study materials and books
available to help artist acquire a better understanding and deliver quality output. The same thing
applies to management. There is theoretical knowledge acquired through learning in other words,
managers can learn about management operations and principles provided in study materials.
Management as a Group
The definition of management indicates in every sense that is a group. Managerial tasks are usually not
carried out by one person alone in most cases, as businesses expand, various administrative position
are even created so the company can achieve its targeted goals.
Management is as an activity performed by a group of people saddled with the responsibility to keep
the organization running and to achieve a specific objective in other words, to manage a business, a
group made up of people with specialized knowledge about the company or managerial roles needs to
work together.
Now, when we say the management of XYZ and Company is doing great. We are indirectly referring to
a particular group of people that makes up the management team. They are the decision makers and
the first set of people to get the boot when things go wrong. Let’s use police force an example. The
chief is a “manage” but don’t forget that other team leader makes up the group of managers, not just
one person.
In business, management includes the top-level managers who are the decision makers in the
company. Any decision they make binds on the other lower level managers and employees. These
includes chairman, chief, executives, the board of directors, general manager and so on.
Management as Science
Management is also a science because it involves everything used in classifying a field. For instance,
science establishes cause and effect relationship between variables. It also takes into account the
principles that bind the variables in question. However, scientific principles are established through the
usual scientific methods which involves testing. And this process includes the observation and
verification done through a series of testing.
One of the features that science and management are the same is the scientific principles are
universally accepted. In other words, scientific laws are the same throughout the world and in every
situation. Management, on the other hand, has its fundamental principles which are universally
accepted and applies in every circumstances or company. An example of this is the Principle of Unity
of Command.
Another feature that indicates that science and management are the same is the manager, in which
scientific principles are obtained. Before a principle becomes generally accepted, it has to pass
through certain scientific investigation and research. However, management principle also involves
the same process. Before management principles are arrived at scientific inquiry and observation are
carried out and this might also include practical experiences drawn rom a large, number of managers
or experiments conducted.
The cause and effect relationship are another feature that defines management and science as one. In
scientific principles, the relationship between cause and effect is vital. For example, the heating of
metal will cause it to expand. The cause is the heat applied while the effect is the expansion
experience. The same thing applies in management. For example, it has been established that in
companies where there is no balance between authority and responsibility, there will be
ineffectiveness.
Management as a Profession
Management is also a profession because it has features that qualify it to be so. A profession is termed
an occupation in which one acquires knowledge and undergoes series of training to fit perfectly into
the said position.
A profession has restricted entry, which also applies in management. Although anyone can assume a
managerial role in a company, and there is no law prohibiting that, many companies now prefer
individuals with Master’s Degree for such position.
THE MANAGER
A manager is a person in the organization who directs the activities of others. They perform their work at
different levels and they are called by different names:
1. The first line managers – they are usually called supervisor or in a manufacturing they may be called
foreman.
2. The Middle level managers – They include all levels of management between the supervisory level and
the top level of the organization. These managers may be called functional managers, plant heads, and
project managers.
3. The Top managers – They are those who are responsible for making organizational decisions and
setting policies and strategies that affect all the aspects of the organization. These persons may be
called vice-president, managing director, chief executive officer or chairman of the board etc.
MANAGERIAL FUNCTIONS
1. Planning – This is required for setting goals and establishing strategies for coordinating activities.
2. Organizing – This helps in determining what tasks are to be done, how to do them, how to group the
tasks and where decisions are to be made.
3. Staffing – This is essential for employing various types of persons and performing various activities like
training, development, appraisal, compensation, welfare etc.
4. Directing – This requires giving instructions and motivating subordinates to accomplish their goals.
5. Controlling – This is the monitoring of activities to ensure that the personnel are accomplishing the
task as planned and correcting any significant deviations.
MANAGERIAL SKILLS
QUALITIES OF A MANAGER
1. Educational competence
A manager must have proper and excellent education. They are supposed to have a management
education and trainings, besides other educational qualifications. Education not only widens the
managers’ mental horizon but it also helps in understanding the things and interpreting them
properly. The knowledge of business environment is also important for dealing with various
problems the organization may encounter.
2. Intellectual Quality
Managers should have higher level of intelligence as compared to other persons since they perform
more responsibilities than other persons in the organization. Intelligence will help a manager in
assessing the present and future possibilities for the operation of the organization. He must be able
to foresee the things in advance and take necessary decisions at appropriate time.
3. Leadership Ability
A manager must have the ability to direct and motivate persons working in the organization. He
shall provide leadership to subordinate. The abilities, energies and potentials of the subordinates
should be ensured and utilized properly to achieve organizational goals. If a manager has the
leadership qualities then he can motivate subordinate in improving their performance and working
to their full capacity for the benefit of the organization.
4. Training
A manager has to acquire managerial skills. These skills consist of technical skills, human skills and
conceptual skills as mentioned in the preceding topic. These skills have to be acquired through
education, guidance, experience etc. these skills are needed for all levels of managers.
5. Technical knowledge and Skill
A manager should have technical knowledge of the job and other activities undertaken in the
organization. He will be in a better position to inspect and guide if he himself has knowledge of
those activities.
6. Mental Maturity
A manager should have mental maturity for dealing with different situations. He should be patient,
good listener and quick to react to situations. He has to take many awkward decisions which may
adversely affect the working if not taken properly. He should keep calm when dealing with
subordinates. All these qualities will come with mental maturity.
7. Positive Attitude
Positive attitude is an asset for a manager. A manager has to deal with many people from inside as
well as from outside the organization. He should be sympathetic and positive to various
suggestions and taken humane decisions. He should not pre-judge the things and take sides. He
should try to develop good relations with various persons dealing with him. He should understand
their problems and try to extend a helping hand.
8. Self-confidence
A manager should have self-confidence. He has to take many decisions daily, he may analyze the
things systematically before taking decisions. Once he takes decisions then he should stick to them
and try to implement them. A manager who lacks self-confidence will always be unsure of his
decisions. This type of attitude will create more problems than solving them.
9. Foresight
A manager has to decide not only for present but for future also. There are rapid changes in
technology, marketing, consumer behavior, financial set-up etc. the changes in economic policies
will have repercussion in the future. A manager should visualize what is going to happen in the
future and prepare the organization for facing the situations. The quality of foresight will help in
taking right decisions and face the coming things in right perspective. In case the things are not
rightly assessed then the organization may face adverse situations.
DIFFERENT HIGHLY INTERRELATED ROLES OF THE MANAGERS
1. Interpersonal Roles 2. Informational Roles 3. Decisional Roles
a. Receive the guests from a. To collect information a. He initiates and oversees
outside or preside over a from organizations and new projects for the
social function of institutions outside their improvement of
employees. own. organizational
b. Sign some legal documents b. Play the role of performance.
as head of the disseminators when they b. As disturbance handler,
organization. supply information to manager takes corrective
c. Act as leader when he has subordinates in the actions in response to
to sort out the activities of organization. previously unforeseen
subordinates. c. Acts as a spokesperson problems.
d. Not only to motivate the when the represents the c. Acts as resource allocation
employees but is also organization to outsiders. when he assigns and
involved in hiring, firing monitors the allocation of
and discipline employees. human, physical, and
e. Contact outside agencies monetary resources.
for collecting business- d. He acts as a negotiator
related information. when he discusses and
bargains with other groups
to gain advantage for his
own unit.