Introduction

Definition

Characteristics

Concepts and Types of management

What is Management?

The concept of management has acquired special significance in the present competitive
and complex business/organizational world. Efficient and purposeful management is
absolutely essential for the survival of organizational/ a business unit. Management
concept is comprehensive and covers all aspects of organization/ business. In simple
words, management means utilizing available resources in the best possible manner and
also for achieving well defined objectives. It is a distinct and dynamic process involving
use of different resources for achieving well defined objectives. The resources are: men,
money, materials, machines, methods and markets. These are the six basic inputs in
management process (six M's of management) and the output is in the form of
achievement of objectives. It is the end result of inputs and is available through efficient
management process.

The term 'management' is used extensively in organizations/ business. It is the core or life
giving element in organization/ business. We expect that a business/ organizational unit
should be managed efficiently. This is precisely what is done in management.
Management is essential for the conduct of business activity in an orderly manner. It is a
vital function concerned with all aspects of working of an enterprise/ organization.

Definitions of Management

1. According to George R. Terry, "Management is a distinct process consisting of

planning, organizing, actuating and controlling, performed to determine and
accomplish stated objectives by the use of human beings and other resources".

Characteristics of Management

 Management is a managerial process: Management is a process and not merely a

body of individuals. Those who perform this process are called managers. The
managers exercise leadership by assuming authority and direct others to act
within the organisation. Management process involves planning, organising,
directing and unifying human efforts for the accomplishment of given tasks.
 Management is a social process- Management takes place through people. The
importance of human factor in management cannot be ignored. A manager's job is
to get the things done with the support and cooperation of subordinates. It is this
human element which gives management its special character.
 Management is action-based: Management is always for achieving certain
objectives in terms of sales, profit, etc. It is a result-oriented concept and not
merely an abstract philosophy. It gives importance to concrete performance
through suitable actions. It is an action based activity.
 Management involves achieving results through the efforts of others:
Management is the art of getting the things done through others. Managers are
expected to guide and motivate subordinates and get the expected performance
from them. Management acts as an activating factor.
 Management is a group activity: Management is not an isolated individual activity
but it is a collective activity or an activity of a group. It aims at using group
efforts for achieving objectives. Managers manage the groups and coordinate the
activities of groups functioning in an organisation.
 Management is intangible: Management is not directly visible but its presence is
noticed in the form of concrete results. Management is intangible. It is like
invisible spirit, which guides and motivates people working in a business unit.
Management is like government, which functions but is not visible in physical
form.
 Management is aided, not replaced by computers: The computer is an extremely
powerful tool of management. It helps a manager to widen his vision. The
computer supplies ocean of information for important decision-making. The
computer has unbelievable data processing and feedback facilities. This has
enabled the manager to conduct quick analysis towards making correct decisions.
A computer supports manager in his managerial work. However, it cannot replace
managers in business. They were required in the past, at present and also in
future. Their existence is absolutely essential in the management process.
 Management is all pervasive: Management is comprehensive and covers all
departments, activities and employees. Managers operate at different levels but
their functions are identical. This indicates that management is a universal and all
pervasive process.
 Management is an art, science as well as a profession: Management is an art
because certain skills, essential for good management, are unique to individuals.
Management is a science because it has an organised body of knowledge.
Management is also a profession because it is based on advanced and cultivated
knowledge.
 Management aims at coordination of activities: Coordination is the essence of
management. It gives one clear direction to the whole organisation and brings
unity and harmony in the whole business unit. For such coordination, effective
communication at all levels is essential.
 Management is innovative: Management techniques are dynamic and innovative.
They need to be adjusted as per the requirements of the situations. Another
manager need not repeat the decisions of one manager. Similarly, a manager has
to change his decisions under different situations.
  Management has different operational levels: Every Organisation needs managers
for managing business activities. The manager's job is basically the same at all
levels. The managers at the higher levels have more important duties while
managers at the lower levels have to perform routine functions i.e duties.
 Management is different from ownership: Management is concerned with the
management of business activities. Managers are not the owners but they manage
the business on behalf of the owners. Separation of ownership and management is
a special feature of modem business organisation.
 Management has vast scope: The scope of management is quite comprehensive. It
covers all aspects of business. The principles of management guide managers
while managing various business activities.
 Management is dynamic: Business is influenced by changes in economic, social,
political technological and human resource. Management adjusts itself to the
changing atmosphere making suitable forecasts and changes in the policies.
Hence, management is treated as a dynamic activity.
 Management aims at achieving predetermined objectives: Management is a
meaningful activity. All organisations are essentially groups of individuals formed
for achieving common objectives. An Organisation exists for the attainment of
specific objectives.

Levels of management

Two leaders may serve as managers within the same company but have very different
titles and purposes. Large organizations, in particular, may break down management
into different levels because so many more people need to be managed. Typical
management levels fall into the following categories:

 Top level: Managers at this level ensure that major performance objectives
are established and accomplished. Common job titles for top managers
include chief executive officer (CEO), chief operating officer (COO),
president, and vice president. These senior managers are considered
executives, responsible for the performance of an organization as a whole or
for one of its significant parts. When you think of a top-level manager, think
of someone like Dave Thomas of the fast-food franchise Wendy's. Although
John T. Schuessler was elected CEO in 2000, Dave Thomas was the founder
and served as the chairman of the board. He was the well-known
spokesperson for the chain, until his death in 2002.
 Middle level: Middle managers report to top managers and are in charge of
relatively large departments or divisions consisting of several smaller units.
Examples of middle managers include clinic directors in hospitals; deans in
universities; and division managers, plant managers, and branch sales
managers in businesses. Middle managers develop and implement action
plans consistent with company objectives, such as increasing market
presence.

 Low level: The initial management job that most people attain is typically a
first-line management position, such as a team leader or supervisor — a
person in charge of smaller work units composed of hands-on workers. Job
titles for these first-line managers vary greatly, but include such designations
as department head, group leader, and unit leader. First-line managers ensure
that their work teams or units meet performance objectives, such as
producing a set number of items at a given quality, that are consistent with
the plans of middle and top management.