Defining Management
Management is the attainment of organizational goals in an effective and efficient manner through planning,
organizing, staffing, directing and controlling organizational resources.
According to Harold Koontz ,”Management is the art of getting things done through and with people in formally
organized groups”
According to Henry Fayol,”To manage is to forecast and to plan ,to organize, to command, to coordinate and to control”.
Characteristics/Features of Management
1.Group Activity
Management is not an isolated activity but is essentially a teamwork in formally organized groups. It represents a team, certain section of people in performing managerial functions. Group of people work together to attain organizational objectives.
2. continuous process
Management is an ongoing process. Management is a huge task with many activities to accomplish through out its span. With completion of one task, other tasks comes up and vice versa.Its an entire institution on its own with many large and small activities to accomplish
3.Multi-disciplinary approach:
Management has grown as a separate discipline drawing upon the knowledge and skills of various disciplines like economics, , finance,,sociology, statistics, demography, quantitative techniques,engineering, geography, to name few. Management uses the relevant information from these disciplines and integrates them to form a multi-isciplinary field of study in dealing with organizational problems.
4.Goal oriented
Every organization is established to meet certain goals. Management is a system that contributes for the efficient use of human and other resources to determine pre determined objectives . Determination of organizational goals and their accomplishment form the core of managerial activity.
5. Integration of resources:
Management is integrating and balancing of all resources- both material and human-for their optimum utilization, so as to achieve 0f effective results.
6. Management- Both a Science and an Art:
Management is a science because it consists of an organized knowledge and systematic body of principles It is, however, a combination of social sciences and behavioral sciences, not an exact science like the physical or natural sciences.Management is also an art because it involves application of systematic knowledge and scientific principles for achieving the desired results in actual work situations . Science teaches on “to know” while art “to do”. It may be said that management is the oldest of arts and the youngest of sciences. Management is essentially a practice as it is
performance oriented creative action.
7. Integration of resources:
Management is integrating and balancing of all resources- both material and human-for their optimum utilization, so as to achieve effective results
PROCESS/FUNCTIONS OF MANAGEMENT
1.PLANNING
The first of the managerial functions is planning. In this step, the manager will create a detailed action plan aimed at some organizational goal. This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organization’s goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. Planning begins with environmental scanning, which simply means that planners must be aware of economic conditions, their competitors, and their customers. This helps to shape out the planning process .
2. Organizing
The organizing function of leadership controls the overall structure of the company. The organizational structure is the foundation of a company. without this structure, the day-to-day operation of the business becomes difficult and unsuccessful to function.Organizing involves designating tasks and responsibilities to employees with the specific skill sets needed to complete the tasks. The structure is usually represented by an organization chart, which
provides a graphic representation of the chain of command within an organization . Assigning work and granting authority are two important elements of organizing.
3. STAFFING
The main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the organization.After a manager discerns his area’s needs, he decides towards staffing by recruiting, selecting, training, and developing employees. Staffing involves more than just recruitment; staffing also encompasses training and development, performance appraisals, promotions and transfers . Without the staffing function, the business would fail because the business would not be properly staffed to meet its goals.
4.LEADING
A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging . It requires the manager to coach, assist, and problem solve with employees.Leading also involves supervision of employees and their work.
5.DIRECTING
Directing is an important link with the other management functions. The functions of planning and organizing lose their importance if the function of directing is missing in the chain of management functions.While the functions of planning and organizing prepare a base for action, the function of directing initiates the action in the organization.Directing consists of the process and techniques of issuing instructions for making certain that operation are carried out as planned. It is telling the employees what to do and seeing to it that they do to the best of their ability .
6.Leadership
It refers to influence others in a manner to do what the leader wants them to do . Only through this quality, a manager can inculcate trust and zeal among his subordinates.
7.Communication
It refers to an art of transferring facts, ideas, feeling, etc. from one person to another and making him understand them .A manager has to continuously tell his subordinates about what to do, how to do, and when to do various thing. Communication by developing mutual understanding inculcates a sense of cooperation which builds an environment of coordination in the organization.
8.Coordination
Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goal. The coordinating function of the management prevents overlapping
and conflict so that the unity of action is achieved.Coordinating function of the management consists of inter-relating the various parts of the work as well as the work of different departments. It involves coordinating the various job roles and responsibilities of the employees so that they have good relationship with the co-employees while delivering the output.
9.CONTROLLING
Controlling consists of verifying whether everything occurs in conformities with the plans adopted,instructions issued and principles established . Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions.
MANAGERIAL HIERARCHY/LEVELS OF MANAGEMENT
Level of management is to divide authority and responsibility of the organization among the various managerial positions . Many managers work in an organization. However, these managers do not work at the same level. They work and operate at different positions. Hierarchy of these managerial positions is called Levels of Management.
1.TOP LEVEL MANAGEMENT
These managers are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business.
The board of directors, president, vice-president, and CEO are all examples of top-level managers.
Top-level managers are accountable to the shareholders and general public.
These top managers are responsible for setting the overall direction of a company and making sure that major
organizational objectives are achieved.
It devotes more time on planning and coordinating functions.
Functions of Top level Management
- To formulate and determine the objectives and define the goals of the business.
- To establish policies and prepare plans to attain goals.
- Assembling all the resources such as finance, fixed assets etc. The top level management arranges all the finance required to carry on day to day activities.
- To assemble the resources necessary for the attainment of the policy and execution of the plan.
- To control effectively the business operations .
- To judge and evaluate the results
MIDDLE LEVEL MANAGEMENT
This level of management consists of departmental heads such as purchase department head, sales department head, finance manager, marketing manager, executive officer, plant superintendent, etc.
People of this group are responsible for executing the plans and policies made by top level.
They act as a linking pin between top and lower level management.
Functions of Middle Level Management
- Interpretation of policies framed by top management to lower level .
- Organizing the activities of their department for executing the plans and policies. Generally middle level managers are the head of some department.
- Finding out or recruiting/selecting and appointing the required employees for their department. The middle level management selects and appoints employees of their department.
- Controlling and instructing the employees, preparing their performance reports etc. The middle level managers keep a watch on the activities of low level managers
- Implementing the plans framed by top level .
- To report and make suitable recommendations to the top level management for the better execution of the plans and policies.
LOWER LEVEL MANAGEMENT/SUPERVISORY LEVEL
This level consists of supervisors, superintendent, sub-department executives; clerk, etc
Managers of this group actually carry on the work or perform the activities according to the plans of top and middle level management.
They pass on the instruction to workers and report to the middle level management. They are also responsible for maintaining discipline among the workers.
Functions of Lower Level Management
- Maintaining good working conditions and developing healthy relations between superior and subordinate.
- Representing the problems or grievances of workers before the middle level management. The supervisory level managers are directly linked with subordinates so they are the right persons to understand the problems and grievances of subordinates.
- Looking to safety of workers. Supervisory level managers provide safe and secure work environment for workers.
- They are responsible for boosting the morale of the workers and developing the team spirit in them. They motivate the employees and boost their morale.
- They try to maintain precise standard of quality and ensure steady flow of output. The supervisory level managers make sure that quality standards are maintained by the workers.
TYPES OF MANAGERS
A. On basis of level of Management
1.Top level Managers
2.Middle level Managers
3.Lower Level Managers
B.On the basis of Nature/Area of Managerial job
1.General Manager
2.Functional Manager
3.Staff Manager
A. On basis of level of Management
Most organizations have three management levels:
- Low-level managers;
- Middle-level managers; and
- Top-level managers.
These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid.
Below, you’ll find the specifications of each level’s different responsibilities and their likely job titles.
Top-level managers
The board of directors, president, vice-president, and CEO are all examples of top-level managers.
These managers are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business.
In addition, top-level managers play a significant role in the mobilization of outside resources.
Top-level managers are accountable to the shareholders and general public.
Middle-level managers
General managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to the top management for their department’s function.
Middle-level managers devote more time to organizational and directional functions than top-level managers. Their roles can be emphasized as:
- Executing organizational plans in conformance with the company’s policies and the objectives of the top management;
- Defining and discussing information and policies from top management to lower management; and most importantly
- Inspiring and providing guidance to low-level managers towards better performance.
Some of their functions are as follows:
- Designing and implementing effective group and intergroup work and information systems;
- Defining and monitoring group-level performance indicators;
- Diagnosing and resolving problems within and among work groups;
- Designing and implementing reward systems supporting cooperative behavior.
Low-level managers
Supervisors, section leads, and foremen are examples of low-level management titles. These managers focus on controlling and directing.
Low-level managers usually have the responsibility of:
- Assigning employees tasks;
- Guiding and supervising employees on day-to-day activities;
- Ensuring the quality and quantity of production;
- Making recommendations and suggestions; and
- Upchanneling employee problems.
Also referred to as first-level managers, low-level managers are role models for employees. These managers provide:
- Basic supervision;
- Motivation;
- Career planning;
- Performance feedback; and
- Staff supervision.
They are the managers who perform different types of job in an organization as per the requirement . They do not necessarily specialize in any specific area . Generally they desire to manage a complex or difficult department.
They are the managers who specialize in specific area . Their responsibilities,duties,authorities are illustrated clearly in their job description. In normal practice, all department heads of business firm are .Functional Managers
They are accountable about the performance to their own respective departments or units.
❖ They are professionals and experts in a specific area of business. Legal advisors, external auditors, consultants are example of such managers. They are given no specific formal position in management level.They play a role of advisors between generalist and functional managers . They provide guidance and suggestion to both the
managers(generalist and functional) as per the requirement.
Henry Fayol’s 14 Principles of Management
In the last century, organizations already had to deal with management in practice. In the early 1900s, large organizations, such as production factories, had to be managed too. At the time there were only few (external) management tools, models and methods available.
Thanks to scientists like Henri Fayol (1841-1925) the first foundations were laid for modern scientific management. These first concepts, also called principles of management are the underlying factors for successful management. Henri Fayolexplored this comprehensively and, as a result, he synthesized the 14 principles of management. Henri Fayol ‘s principles of management and research were published in the book ‘General and Industrial Management’ (1916).
1. Division of Work
In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist). Personal and professional developments support this. According to him specialization promotes efficiency of the workforce and increases productivity. In addition, the specialization of the workforce increases their accuracy and speed. This management principle of the 14 principles of management is applicable to both technical and managerial activities.
2. Authority and Responsibility
In order to get things done in an organization, management has the authority to give orders to the employees. Of course with this authority comes responsibility. According to him the accompanying power or authority gives the management the right to give orders to the subordinates. The responsibility can be traced back from performance and it is therefore necessary to make agreements about this. In other words, authority and responsibility go together and they are two sides of the same coin.
3. Discipline
This third principle of the 14 principles of management is about obedience. It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions. This management principle is essential and is seen as the oil to make the engine of an organization run smoothly.
4. Unity of Command
The management principle ‘Unity of command’ means that an individual employee should receive orders from one manager and that the employee is answerable to that manager. If tasks and related responsibilities are given to the employee by more than one manager, this may lead to confusion which may lead to possible conflicts for employees. By using this principle, the responsibility for mistakes can be established more easily.
5. Unity of Direction
This management principle of the 14 principles of management is all about focus and unity. All employees deliver the same activities that can be linked to the same objectives. All activities must be carried out by one group that forms a team. These activities must be described in a plan of action. The manager is ultimately responsible for this plan and he monitors the progress of the defined and planned activities. Focus areas are the efforts made by the employees and coordination.
6. Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to have an organization function well, He indicated that personal interests are subordinate to the interests of the organization (ethics). The primary focus is on the organizational objectives and not on those of the individual. This applies to all levels of the entire organization, including the managers.
7. Remuneration
Motivation and productivity are close to one another as far as the smooth running of an organization is concerned. This management principle of the 14 principles of management argues that the remuneration should be sufficient to keep employees motivated and productive. There are two types of remuneration namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus or other financial compensation). Ultimately, it is about rewarding the efforts that have been made.
8. The Degree of Centralization
Management and authority for decision-making process must be properly balanced in an organization. This depends on the volume and size of an organization including its hierarchy.
Centralization implies the concentration of decision making authority at the top management (executive board). Sharing of authorities for the decision-making process with lower levels (middle and lower management), is referred to as decentralization by Henri Fayol. Henri Fayol indicated that an organization should strive for a good balance in this.
9. Scalar Chain
Hierarchy presents itself in any given organization. This varies from senior management (executive board) to the lowest levels in the organization. Henri Fayol ’s “hierarchy” management principle states that there should be a clear line in the area of authority (from top to bottom and all managers at all levels). This can be seen as a type of management structure. Each employee can contact a manager or a superior in an emergency situation without challenging the hierarchy. Especially, when it concerns reports about calamities to the immediate managers/superiors.
10. Order
According to this principle of the 14 principles of management, employees in an organization must have the right resources at their disposal so that they can function properly in an organization. In addition to social order (responsibility of the managers) the work environment must be safe, clean and tidy.
11. Equity
The management principle of equity often occurs in the core values of an organization. According to Henri Fayol, employees must be treated kindly and equally. Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process and they should treat employees fairly and impartially.
12. Stability of Tenure of Personnel
This management principle of the 14 principles of management represents deployment and managing of personnel and this should be in balance with the service that is provided from the organization. Management strives to minimize employee turnover and to have the right staff in the right place. Focus areas such as frequent change of position and sufficient development must be managed well.
13. Initiative
Henri Fayol argued that with this management principle employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization according to Henri Fayol. This encourages the employees to be involved and interested.
14. Esprit de Corps
The management principle ‘esprit de corps’ of the 14 principles of management stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace; individually and in the area of communication. Esprit de corps contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.
In conclusion on the 14 Principles of management,The 14 principles of management can be used to manage organizations and are useful tools for forecasting, planning, process management, organization management, decision-making, coordination and control.
Although they are obvious, many of these matters are still used based on common sense in current management practices in organizations. It remains a practical list with focus areas that are based on Henri Fayol ’s research which still applies today due to a number of logical principles.
Management Skills
According to Prof. Robert Katz, all managers require above three managerial skills. However, the degree (amount) of these skills required varies (changes) from levels of management and from an organisation to organisation.
The above picture or diagram shows the managerial skills which are required by managers working at different levels of management. The top-level managers require more conceptual skills and less technical skills. The lower-level managers require more technical skills and fewer conceptual skills. Human relations skills are required equally by all three levels of management.
Conceptual Skills
Conceptual skill is the ability to visualise (see) the organisation as a whole. It includes Analytical, Creative and Initiative skills. It helps the manager to identify the causes of the problems and not the symptoms. It helps him to solve the problems for the benefit of the entire organisation. It helps the manager to fix goals for the whole organisation and to plan for every situation. According to Prof. Robert Katz, conceptual skills are mostly required by the top-level management because they spend more time in planning, organising and problem solving.
2. Human Relations Skills
Human relations skills are also called Interpersonal skills. It is an ability to work with people. It helps the managers to understand, communicate and work with others. It also helps the managers to lead, motivate and develop team spirit. Human relations skills are required by all managers at all levels of management. This is so, since all managers have to interact and work with people.
Technical Skills
A technical skill is the ability to perform the given job. Technical skills help the managers to use different machines and tools. It also helps them to use various procedures and techniques. The low-level managers require more technical skills. This is because they are incharge of the actual operations.
Apart from Prof. Robert Katz’s three managerial skills, a manager also needs (requires) following additional managerial skills.
4. Communication Skills
Communication skills are required equally at all three levels of management. A manager must be able to communicate the plans and policies to the workers. Similarly, he must listen and solve the problems of the workers. He must encourage a free-flow of communication in the organisation.
5. Administrative Skills
Administrative skills are required at the top-level management. The top-level managers should know how to make plans and policies. They should also know how to get the work done. They should be able to co-ordinate different activities of the organisation. They should also be able to control the full organisation.
6. Leadership Skills
Leadership skill is the ability to influence human behaviour. A manager requires leadership skills to motivate the workers. These skills help the Manager to get the work done through the workers.
7. Problem Solving Skills
Problem solving skills are also called as Design skills. A manager should know how to identify a problem. He should also possess an ability to find a best solution for solving any specific problem. This requires intelligence, experience and up-to-date knowledge of the latest developments.
8. Decision Making Skills
Decision-making skills are required at all levels of management. However, it is required more at the top-level of management. A manager must be able to take quick and correct decisions. He must also be able to implement his decision wisely. The success or failure of a manager depends upon the correctness of his decisions.
Managerial Roles
Another approach to study management is to examine the roles that managers are expected to perform. These roles can be defined as the organized sets of behaviors identified with the position. These roles were developed by Henry Mintzberg in the late 1960s after a careful study of executives at work. All these roles in one form or another deal with people and their interpersonal relationships.
These ten managerial roles are divided into three categories. The first category of interpersonal roles arises directly from the manager’s position and the formal authority bestowed upon him. The second category of informational roles is played as a direct result of interpersonal roles and these two categories lead to the third category of decisional roles.
Interpersonal Roles
Managers spend a considerable amount of time in interacting with other people both within their own organizations as well as outside. These people include peers, subordinates, superiors, suppliers, customers, government officials and community leaders. All these interactions require an understanding of interpersonal relations. Studies show that interacting with people takes up nearly 80 per cent of a manager’s time. These interactions involve the following three major interpersonal roles:
Figurehead: Managers act as symbolic figureheads performing social or legal obligations. These duties include greeting visitors, signing legal documents, taking important customers to lunch, attending a subordinate’s wedding or speaking at functions in schools and churches. All these/ primarily, are duties of a ceremonial nature but are important for the smooth functioning of the organization
Leader: The influence of the manager is most clearly seen in his role as a leader of the unit or organization. Since he is responsible for the activities of his subordinates, he must lead and coordinate their activities in meeting task-related goals and he must motivate them to perform better. He must be an exemplary leader so that his subordinates follow his directions and guidelines with respect and dedication.
Liaison: In addition to their constant contact with their own subordinates, peers and superiors, the managers must maintain a network of outside contacts in order to assess the external environment of competition, social changes or changes in governmental rules, regulations and laws. In this role, the managers build up their own external information system.
In addition, they develop networks of mutual obligations with other managers in the organization. They also form alliances to win support for their proposals or decisions. The liaison with external sources of information can be developed by attending meetings and professional conferences, by personal phone calls, trade journals and by informal personal contacts within outside agencies.
Informational Roles
By virtue of his interpersonal contacts, a manager emerges as a source of information about a variety of issues concerning the organization. In this capacity of information processing, a manager executes the following three roles:
Monitor: The managers are constantly monitoring and scanning their environment, both internal and external, collecting and studying information regarding their organization and the outside environment affecting their organization. This can be done by reading reports and periodicals, by asking their liaison contacts and through gossip, hearsay and speculation.
Disseminator of Information: The managers must transmit their information regarding changes in policies or other matters to their subordinates, their peers and to other members of the organization. This can be done through memorandums, phone calls, individual meetings and group meetings.
Spokesperson: A manager has to be a spokesman for his unit and he represents his unit in either sending relevant information to people outside his unit or making some demands on behalf of his unit. This may be in the form of the president of the company making a speech to a lobby on behalf of an organizational cause or an engineer suggesting a product modification to a supplier.
Decisional Roles
On the basis of the environmental information received, a manager must make decisions and solve organizational problems. In that respect, a manager plays four important roles.
Entrepreneur: As entrepreneurs, managers are continuously involved in improving their units and facing the dynamic technological challenges. They are constantly on the lookout for new ideas for product improvement or products addition.
They initiate feasibility studies, arrange for capital for new products if necessary, and ask for suggestions from the employees for ways to improve the organization. This can be achieved through suggestion boxes, holding strategy meetings with project managers and R & D personnel.
Conflict Handler: The managers are constantly involved as arbitrators in solving differences among the subordinates or the employee’s conflicts with the central management. These conflicts may arise due to demands for higher pay or other benefits or these conflicts may involve outside forces such as vendors increasing their prices, a major customer going bankrupt or unwanted visits by governmental inspectors.
Managers must anticipate such problems and take preventive action if possible or take corrective action once the problems have arisen. These problems may also involve labor disputes, customer complaints, employee grievances, machine breakdowns, cash flow shortages and interpersonal conflicts.
Resource Allocator: The third decisional role of a manager is that of a resource allocator. The managers establish priorities among various projects or programs and make budgetary allocations to the different activities of the organization based upon these priorities. They assign personnel to jobs, they allocate their own time to different activities and they allocate funds for new equipment, advertising and pay raises.
Negotiator: The managers represent their units or organizations in negotiating deals and agreements within and outside of the organization. They negotiate contracts with the unions. Sale managers may negotiate prices with prime customers. Purchasing managers may negotiate prices with vendors.
All these ten roles are important in a manager’s job and are interrelated even through some roles may be more influential than others, depending upon the managerial position. For example, sales managers may give more importance to interpersonal roles while the production managers may give more importance to decisional roles.
The ability to recognize the appropriate role to play in each situation and the flexibility to change roles readily when necessary, are characteristics of effective managers. Most often, however, the managerial effectiveness is determined by how well the decisional roles are performed.